I':'" _.

DEPARTMENT OF BUSINESSAND ECONOMIC DEVELOPMENTKMlAMALU BUiWlNG. 250 SOUTH KING ST. HONOlULU. HAWAIIMAIlJNG ADOIlESS: P,O.BOX 2~59, HONOLUlU, HAWAII 96.'104 TEL£)(: 7430250 Ha>eO FAX: (808) 548-81M

April 4, 1990

JOHN WAIHEEGOVERNOR

ROGER A, ULVELINGDIRECfOR

BARBARA KIM STANTONDEPUTV DIRECTOR

LESLIE S.MATSUBARADEPUTY DIRECTOR

The Honorable Mark J. Andrewsstate Representative7th District, East MauiHouse of Representativesstate Capitol, Room-429HonolulU, Hawaii 96813

Dear Representative Andrews:

I have recently been provided a copy of your March 12, 1990,letter to U.S. Senator Daniel K. Inouye relating to the state'senergy program, particularly the geothermal proj ect, andconservation.

To correct the record, this department fully supports and willimplement the Governor's policy that, lithe energy needs of theisland (or county) in which the geothermal resource is locatedshall be satisfied first." This policy also allows for planning,geothermal resource verification and characterization,environmental review, and other actions to consider export ofgeothermal energy beyond the needs of the county/island in whichthe resource is located.

We would have no intention of pursuing any project, geothermalor otherwise, that was economically unsound. That statement iswithout basis. Furthermore, the Administration must obtainLegislative authorization for any state financial assistance, ifsuch is required. The Administration I s current request foradditional funds in the supplemental budget are limited togeothermal resource verification and characterization. Thesefunds, if provided, will be used to support geothermal developmentfor intra-island as well as potential inter-island benefits.

Finally, with regard to your concern that petroleum overchargefunds have been mismanaged, I would like to state unequivocallythat DBED has and will continue to work closely with the u.s.Department of Energy to ensure that the use of oil overcharge fundsfully complies with all Federal rules and regUlations. As providedin testimony on House Concurrent Resolution Number 271, whichrequests that the Legislative Auditor perform an audit of DBED toascertain the use and disposition of oil overcharge funds, DBEDmust comply with a number of Federal requirements before any fundsare expended. In addition, DBED is scrutinized annually by anindependent auditor to ensure compliance with not only statepolicies and procedures but also Federal requirements regarding the

-The Honorable Mark J. AndrewsPage TwoApril 4, 1990

proper use of oil overcharge funds. In all of the reviewsconducted by the Federal government and independent auditors on ourconservation programs and the use of oil overcharge funds, no majordiscrepancies have been noted.

If you have specific reasons to believe that these funds havebeen mismanaged, we would appreciate knowing these so theappropriate action could be taken. If you are concerned about notreceiving enough information about the use of these funds tosupport state policies and goals, we would be happy to discussthat.

ely,

Roger A. Ulveling

RAU/ll

cc: Governor John WaiheeSenator Daniel K. InouyeAll PEP members

bee: William W. PatyVSusumu Ono

Leslie S. MatsubaraMaurice H. Kaya

DEPARTMENT OF BUSINESSAND ECONOMIC DEVELOPMENTENERGY DIVISION. 335 MERCHANTST.. RM. 110. HONOlUlU. HAW....II 96813 FAX: (8081 531.5243

March 20, 1990

The Honorable Mark J. Andrews, ChairmanHouse Committee on Planning, Energy and

Environmental Protectionstate Capitol, Room 429Honolulu, Hawaii 96813

Dear Chairman Andrews:

JOHNWAIHEEGOVERNOR

ROGER A. ULVELINGDIREClOR

BARBARA KIM STANTONDEPUTY DIREClOR

LESLIE S.MATSUBARADEPUTY DIREctOR

Thank you for your March 13, 1990 letter relating toan allocation for $250,000 for the Construction to Inspect,Repair and Reactivate HGP-A Well under BED 120, Item 13A, inH.B. 2500, H.D. 1.

This line item was not an entirely new one in theExecutive Supplemental BUdget for FY 1990-91. Item 13 ofAct 316, SLH 1989, did include $250,000 in FY 1990-91 for HGP-Apower plant overhauls. The intent of the new language is toallow the Natural Energy Laboratory of Hawaii (NELH) to use the$250,000 for inspection and repairs of the HGP-A well while itis currently inactive. The well had been operating continuouslyfor eight years without maintenance: and prior to it beingreused for the sale of steam and direct use experiments at theresearch center, NELH believes it important to conduct thisinspection and repairs. We understand that NELH intends to usethe well for the purposes of: providing geothermal resources,especially brine, to continue the direct use (non-electric)experiments at the Puna Research Center (Noi'i 0 Puna) andobtaining revenues by selling steam to proposed nearby privatepower plants which will in turn sell electricity to the BigIsland utility. The state Administration expressed an intentto use net proceeds from the sale of the steam to support theGeothermal Asset Fund for assisting nearby residents which wascreated as a condition of approval for Puna Geothermalventure's County Geothermal Resource Permit.

The NELH also desires the flexibility to use theappropriation for site restoration of the former HGP-Agenerating facility. We suggest that the language of Item 13A,H.B. 2500, H.D. 1, be changed to read: "construction toinspect, repair, and reactivate HGP-A well: site restorationand demolition of HGP-A power plant. II

I

~

The Honorable Mark J. AndrewsPage 2March 20, 1990

This letter will also confirm that there are no plansto reactivate the HGP-A power plant which had been the sourceof nuisance complaints.

Thank you for informing me of your concerns.

RAUjGOL:CU:346

cc: Honorable William PatyMr. William Coops

"Mr. Susumu one

DEPARTMENT OF BUSINESSAND ECONOMIC DEVELOPMENT

FAX:(8011) 531-5243

February 16, 1990

MEMORANDUM

JOHN WAIHEEGOVERNOR

ROGER A. UlVElINGDIRECTOR

BARBARA KIM STANTONDEPUTY DIRECTOR

lESLIE S. MATSUBARADEPUTY DIRECTOR

TO:

FROM:

SUBJECT:

Major General Alexis T. Lum, HIARNGDirector of civil Defense

Roger A. Ulveling

Mitigation of Interisland Communications Breakdown

Mr. Harold S. Masumoto, Director of Office of statePlanning, forwarded to me your letter dated January 19, 1990,which suggested coupling a fiber optic marine cable with thegeothermal power marine cable. I agree that the concept hasconsiderable merit. In fact, it has been presented by aprospective developer of the geothermal/cable project.

DBED will represent the State of Hawaii in thenegotiations between HECO and the prospective developer(s) ofthe geothermal/cable project which will take place during mostof 1990. We will ensure the coupling concept is discussedduring the negotiations.

Hawaiian Electric Company and the state intend thatthe developer finance, develop, own and operate the geothermalcable project. The exact degree of the state participation inthe project has yet to be determined.

It would be helpful if your point of contact for thefiber optic cable would contact Mr. Maurice H. Kaya at 548-4150so that we can maintain internal communications during the 1990negotiations on the geothermal/cable project.

RAU/GOL:cu

cc: Honorable Harold S. MasumotoMr. Susumu ono v"

for Director

GEOTHERMAL INFORMATION FILE (GIF)

SUBJECT: Department of Business & Economic Development (DBED)

INDEX TO DOCUMENTS:

1) Memo from Frank Kingery/Steve Okino to Distribution Re:Meeting notes from Geothermal/Cable project Master DevelopmentPlan Discussion - Aug 29, 1989 (8/30/89)

2) Letter from Roger Ulveling to Harwood D. Williamson Proposinga modest contact with ENEL we will reimburse ENEL for the out­of pocket cost. (8/30/89)

3) Memo from Dee Dee Letts to Geothermal Roundtable ParticipantsRe: Questions raised at last Roundtable and next meeting(9/12/89)

4) Letter from Harwood D. Williamson to Roger Ulveling in regardsto letter of 8/30/89 Re: Proposed contract on out-of-pocketcost. (9/13/89)

5) Memo from Hill & Knowlton/communications-Pacific, Inc. Re:Geothermal Communications Action Steps.

6) Memo to Chuck Freedman from Steve Okino Re: Third Party GroupPolicy positions. (9/14/89)

7) Memo to Chuck Freedman from Steve Okino Re: WorldBank/International Monetary Fund Annual Meeting. (9/14/89)

8) Geothermal Roundtable Master Plan. (9/21/89)

9) Memo to Dee Dee Letts from Maurice Kaya Re: PCC Roundtable,9/21/89. (10/2/89)

10) Letter to Roger Ulveling from Randy Young - Requesting adviceas to whether a land corridor on Oahu, Hawaii and Maui forcable transmitting. (10/3/89)

11) Letter to Dudley Pratt from Roger Ulveling announcing that HEIhas signed a Letter of Intent to join ORMAT. (10/4/89)

12) Memo to Members of the Geothermal/Cable Proj ect SteeringCommittee from Roger Ulveling Re: Overland Transmission LineCorridor for Geothermal Energy. (10/17/89)

13) Memo to Bill Paty, Mr. Ono & Les Matsubara from Roger UlvelingRe: State Role in the Contracting for the Geothermal/CableDevelopment Project. (10/26/89)

14) Letter to Maurice Kaya from GeraldGeothermal/Cable proj ect. (10/26/89)

Sumida Re:

15) Memo from Gerald Lesperance to Libert Landgraf Re:costs & Revenues. (10/31/89)

HGP-A

16) Memo from Maurice Kaya to Roger Ulveling Re:Communications Task Force. (11/7/89)

Geothermal

17) Letter to Norman Oss & William coops from Duane Kanuha Re:Planning commission Action Pursuant to Condition No. 6 specialPermit No. 392 (HGP-A). (11/8/89)

18) Letter to William Coops from Gary Mizuno Re:No. 392 HGP-A Geothermal Research station(formerly por. of 2). (11/8/89)

Special PermitTMK: 1-4-01: 82

19) Memo from Roger Ulveling to Bill Paty Re: NEPA & EIS for the500 MW Geothermal/Cable Project. (11/24/89)

20) Memo from Maurice Kaya to Geothermal Steering Committee Re:State/HECO confidentiality Agreement. (11/27/89)

21) Memo from Roger Ulveling to Governor Waihee Re:Fund/NELH

Asset

22) Memo from Bill Paty to Roger Ulveling Re:11/24/89 letter on NEPA & EIS. (12/28/89)

In response to

23) HEI-The Start of a New Hawaii Tradition an Electric utility'sEvolution from the Monarchy to 21st Century from Dudley Pratt,Jr.

JOHN WAIHEE

GOvERNOR OF HAWA~ I

REF:WL-MH

MEMORANDUM:

STATE OF HAWAIIDEPARTMENT OF LAND AND NATURAL RESOURCES

P. O. SOX 621

HONOLULU, HAWAII 96809

December 28, 1989

WILLIAM W. PATY, CHAIRPERSON

BOAAO OF 'lAND AND NATURAL RESOURCES

DEPUTIES

LIBERT K. LANDGRAFMANABU TAGOMORI

RUSSELL N. FUKUMOTO

AQUACULTURE DEVELOPMENTPROGRAM

AOUATIC RESOURCESCONSERVATION AND

ENVIRONMENTAL AFFAIRSCONSERVATION AND

RESOURCES ENFORCEMENTCON VEYANC ESFORESTRY AND WILDliFELAND MANAGEMENTSTATE PARKSWATER AND LAND DEvELDPMEm

TO:

FROM:

SUBJECT:

The Honorable Roger A. Ulveling, DirectorDepartment of Business & Economic Development

William W. PatyDepartment of Land and Natural Resources

Your Memorandum of November 24, 1989, Regarding theNational Environmental Protection Act (NEPA)Environmental Impact Statement (EIS) for the 500 MWGeothermal/Cable Project

As tocommanderdeterminelikely be

You have requested convening the Interagency Group to discusswhat events will trigger the NEPA EIS, who will be the federal leadagency for the. NEPA EIS and how your agency's consultant canintegrate the preparation and processing of the NEPA EIS with thestate EIS.

Before making plans for any meeting, I have had staff makesome inquiries regarding these matters. First, what will triggerthe decision, which is within the discretion of the districtcommander of the U.S. Corps of Engineers, is receipt by the Corpsof a formal project application. It is this application thattriggers review and call for pUblic comments, both of which playa part in the district commander's decision as to whether or nota NEPA EIS will be required.

who will be the lead agency, it is up to the districtin consultation with other appropriate agencies to

which agency will be the lead. In this case, it wouldthe Corps itself.

The Honorable Roger A. UlvelingPage 2December 28, 1989

As to integrating the preparation and processing of the NEPAEIS with the state EIS, Mr. John Emmerson of the Corps of Engineershas recommended this strategy be followed in the event a federalEIS is required. (See his letter to me of October 12, 1988). Herefers to the document 33 CFR 230 and 325 "Environmental Quality:Procedures for Implementing the National Environmental Policy Act(NEPA) Final Rule, dated February 3, 1988" and indicates that ifany further information is needed, to call the Operations Branchat 438-9258.

In my estimation, this is all the information your consultantneeds to know in order to decide how to approach the state EIS.If for some reason other matters arise that are not regulatori1ydetermined but are a matter of process and need to be discussed,then I will consider convening the Interagency Group.

o

yours,

~-------,...W. PATY/

, ,

GEOTHEflMAlICf-lBLEPERMIT CENTER

JOHN WAIHEEGOVERNOR

f( " ROGER A. UlVElINGc: c DIREGOR

r; 1/ ,. BARBARA KIM STANTON• /::" DEPUTY DIRECTOR

(j LESLIE S.MATSUBARADEPUTY DIREOOR

November 24, 1989

DEPARTMENT OF BUSINESS t5'AND ECONOMIC DEVELOPMENP;1/(///.]:

ENERGY DIVISrON,J35MERCHANT ST., RM. 1tO, HONOWW. HAWAtl96l!lJ

. A3.9:1189C-041//.:4

/.'i:J\YQ7

MEMORANDUM

TO: The Honorable William W. PatyChairmanBoard of Land and Natural Resources

.,.,"'

J .•f

FROM: Roger A. UlvelingDepartment of Business and Economic

,r ri

:'" : ::.vDeve!J.'6pment ~.

-1 ,-,j

SUBJECT: National Environmental Protection Act (NEPA),Environmental Impact Statement (EIS) for the 500megawatt Geothermal/Cable Project ("project")

Our project planning consultant, ERC Environmentaland Energy Services company will initiate a State programmaticEIS about May, 1990. We need to know in early 1990 whether ornot the project ~ill generate a NEPA EIS so that we can arrangefor funding the EIS and to coordinate, to the maximum extentpossible, the integration of the State and NEPA EIS.

We request that you convene a meeting of theparticipants in the Chapter 185 "Interagency Group" to discuss:the requirement for a NEPA EIS; what event(s) will trigger theNEPA EIS; who will be the federal lead agency for the NEPA EIS;and how we can integrate the preparation and processing of theNEPA EIS with the State EIS. At a minimum, I suggest invitingall the federal agencies in the Interagency Group plus DLNR,DBED, and OEQC.

We have a limited number of the Hawaii Deep WaterCable Program, Phase II-G, Task I, Environmental Assessment(August, 1987) which assesses the interisland cable system, andthe Environmental Review, 500 megawatt Geothermal DevelopmentPuna District, Island of Hawaii (March 1989). The twodocuments provide an excellent summary of the environmental

The Honorable William W. PatyPage 2November 24, 1989

issues involved in the project. Federal agencies can obtaincopies by contacting Gerald Lesperance at 548-7208 or 7209 orby fax at 548-7210.

RAUjGOL:cufor Director

DEPARTMENT OF BUSINESSAND ECONOMIC DEVELOPMENTKAMAMALU BUilDING, 250 SOUTHKING ST., HONOWLU, HAWAIIMAILING ADDRESS: PO BOX 2359, HONOLUUJ. HAWAII 96304 TELEX: 7430250 HIDPED FAX: (808) 523·8637

JOHNWAIHEEGOVERNOR

ROGER A. UlVEUNGDIREClOR

BARBARA KIM STANTONDEPUTY DIRECOR

LESLIE S. MATSUBARADEPUTY DIREaoR

December 4, 1989

MEMORANDUM

TO: The Honorable John WaiheeGovernor, state of Hawaii

FROM: Roger A. Ulveling

SUBJECT: Asset Fund/NELH

__ ; .:~! J 1"': ... r / :?'C~:;'""t

__ ...~"'"7:1t ::...-'1 0# t~_~.)(:~:=~ {t i (':r,-j)

Pursuant to your verbal request, the following infor­mation regarding NELH funds is forwarded for consideration:

1. A preliminary statement from HELCO datedNovember 1, 1989 shows that NELH has a creditbalance of $8,734.30. Not included in the statementare additional charges for plant overhaul whichHELCO estimates in excess of $100,000 due to the'utility.

2. NELH has requested release of the $350,000appropriation for plant overhaul. When received andthe $100,000 paid, NELH spould have approximately$250,000 remaining from tihe appropriation.

3. NELH will have contingency costs after the well shutdown. These will include 24-hour guard service atthe site for security purposes, electricity charges,maintenance of the visitor facility and mothballedequipment. A rough estimate of these costs would be$10,000-$15,000 per month.

4. Assuming the plant and well operate until the middleof December, net income from the sale of electricityshould be in the neighborhood of $30,000.

Memo to The HonorableJohn Waihee

Page 2December 4, 1989

In summary, the figures look like this:

HELCO balance9/30/89

Appropriation

Overhaul Costs

Income from sale ofelectricity to 12/15/89

Expenses from1/1/90 - 6/30/90

ROUGH ESTIMATE BALANCE

$234,632

$350,000

$400,000

$ 30,000

$ 90,000(Estimate--highside)

$134,632

Please contact my Deputy, Leslie S. Matsubara at 548-3034if there are any questions.

cc: The Hon. William Paty, DLNR

/

MEMORANDUM

TO: Geolhermal Sleering Commillee

FROM: Maurice H. KaYa~,d~DATE: November 27, 1989

SUBJ: Slale/HECO Confidenllalily Agreemenl

Allached for your informallon is lhe recenlly execuledconfidenlialily agreemenl lhel was signed by Messrs. Mcquainend Melsubere (for lhe Direclor, DBED).

For your information, G. Lesperance of the Energy Divisionwill be in Denver wilh Mr. McQuein ell of lhe week of 27November lo review lhe technicel proposals submltled by lhefive consortia.

DISTRIBUTION:

R.

/L .W.S.D.W.

UlvellngMetsuberaPatyOnoKenuheQo i nn

AGREEMENT BETWEENDEPARTMENT OF BUSINESS AND ECONOMIC DEVELOPMENT

ANDHAWAIIAN ELECTRIC COMPANY, INC.

THIS AGREEMENT ("Agreement") is entered into by the Stateof Hawaii, through its Department of Business and EconomicDevelopment ("DBED") and Hawaiian Electric Company, Inc.("HECO") and shall govern all documents received by HECO andall information made available to or obtained by DBED fromcertain meetings, proposals, documents and communicationsbetween November 1, 1989, and December 31, 1989, relating tothe Geothermal Interisland Transmission Project described inHECO's Request for Proposal for the Project issued in May, 1989("Project").

WHEREAS, although DBED is not a party to HECO's project,DBED desires to support its goal of promoting the use ofgeothermal energy as an alternative to imported oil forelectricity, and the Project, by providing certain assistanceto enhance opportunities for submittal of viable proposals andfinal acceptance by HECO of one proposal;

WHEREAS, HECO is willing to provide DBED with anopportunity to further its goal by having access to and theopportunity to view certain information and documents receivedfrom proposers and by attending certain meetings to be heldwith potential proposers ("Proposers") between November 1,1989, and December 31, 1989;

NOW, THEREFORE, HECO and DBED hereby agree as follows:

1. That all documents from Proposers are the property ofsuch Proposers, who have placed the documents temporarily inHECO's custody solely for the purpose of evaluating theproposals, and that DBED will review such documents in theoffices of HECO or HECO's designated sites and will not takecustody of or maintain such documents (inClUding documentscontaining trade secrets as defined in Act 221, Session Laws ofHawaii, Regular Session of 1989, which is attached hereto as"Exhibit A") in written, aUditory, visual, electronic or otherphysical form in DBED's office.

2. That DBED will not maintain in written, aUditory,visual, electronic, or other physical forms, any notes ormemoranda (inclUding such material containing trade secrets)recorded prior to, during or after any meetings, discussions,or any other communications relating to the Project.

3. That any infonaation obtained by DBED hereunder in anoral, unrecorded form which contains trade secrets shall not bedisclosed to the public by DBED unless ordered by a court oradministrative body of competent jurisdiction provided,however, that HECO and the Proposer which Illlde such trade

secrets available shall be notified immediately of any actionseeking public disclosure.

4. That OBED understands that each Proposer has aninterest in protecting the disclosure and use of its privilegedor confidential information and therefore OBEO agrees toprotect such interests by complying with the terms of thisAgreement, to the extent not inconsistent with state law, andunderstands that each Proposer shall be fully entitled to takeany appropriate legal action, including any action againstOBEO, to protect its interest.

HAWAIIAN ELECTRIC COMPANY, INC.

~is~4!l::i!j;'·:'-Date 11- z.'!-r1

(HECO)

DEPARTMENT OF BUSINESS ANDECONOMIC DEVELOPMENTSTATE OF HAWAII

BY~.t6~~~:Its Director of Business and//' Economic Development

Date /', ~'Y'-N

(DBED)

APPROVED AS TO FORM:

Deputy Attorney Generalstate of Hawaii

Exhibit A

"Trade secret" means information, including a formula,pattern, compilation, program device, method, technique, orprocess that:

1) Derives independent economic value, actual orpotential, from not being generally known to, andnot being readily ascertainable by proper means by,other persons who can obtain economic value fromits disclosure or use; and

2) Is the subject of efforts that are reasonable underthe circumstances to maintain its secrecy.

JOHNWAIHEEGOVERNOR

I:'.- ,. ROGER A. UlVELING<t »: ClO....... (. DIRE R

/; I' , BARBARA KIM STANTON) 'c DEPUTY D!RECIOR~.: !) lESLIE S. MATSUBARA

DEPUTY DIREcrOR

November 24, 1989

ENERGYDIVISION, 335 MERCHANT sr, RM. 110, HONOWW. HAWAII 96813

DEPARTMENT OF BUSINESS 8.AND ECONOMIC DEVELOPMEN¥·t'Yi,'J,'

..,.89:1189C-041 ./.'\ \v

'\' f'/Q~ 1>

YMEMORANDUM

TO: The Honorable William W. PatyChairmanBoard of Land and Natural Resources

FROM: Roger A. UlvelingDepartment of Business and Economic Development

SUBJECT: National Environmental Protection Act (NEPA),Environmental Impact Statement (EIS) for the 500megawatt Geothermal/Cable Project ("project")

Our project planning consultant, ERe Environmentaland Energy Services Company will initiate a State programmaticEIS about May, 1990. We need to know in early 1990 whether ornot the project will generate a NEPA EIS so that we can arrangefor funding the EIS and to coordinate, to the maximum extentpossible, the integration of the State and NEPA EIS.

\

We request that you convene a meeting of theparticipants in the Chapter 185 "Interagency GrOUp" to discuss:the requirement for a NEPA EIS; what event(s) will trigger theNEPA EIS; who will be the federal lead agency for the NEPA EIS;and how we can integrate the preparation and processing of theNEPA EIS with the State EIS. At a minimum, I suggest invitingall the federal agencies in the Interagency Group plus DLNR,DBED, and OEQC.

We have a limited number of the Hawaii Deep WaterCable Program, Phase II-G, Task 1, Environmental Assessment(August, 1987) which assesses the interisland cable system, andthe Environmental Review, 500 megawatt Geothermal DevelopmentPuna District, Island of Hawaii (March 1989). The twodocuments provide an excellent summary of the environmental

The Honorable William W. PatyPage 2November 24, 1989

issues involved in the project. Federal agencies can obtaincopies by contacting Gerald Lesperance at 548-7208 or 7209 orby fax at 548-7210.

fo r Di rectorRAU/GOL:CU

DEPARTMENT OF BUSINESSAND ECONOMIC DEVELOPMENTKA.....AMAU! BUILDING. 250 SOUTH lONGST., HONOWW, HAWAII.....AILINGADDRESS P.O BOX2359. HONOWW, HAWAII 96804 TELEX: 7430250 HIOPED FAX, (8081523-3637

November 7, 1989

.;~ ,.' JOH~~ROGER A. ULVEUNG

DlIl£ClOR

BARBARA KIMSTANTONDEPUTY DIRECTOIl

LESUE S. MATSUBARADEPUTY OlREC1OR

MEMORANDUM

TO:

VIA:

FROM:

SUBJECT:

Roger A. Ulveling

Leslie S. Matsubara

Maurice H.KaY~~Geothermal Communications Task Force

As a follow-up to the meeting of November 1, I would like to reporton the following:

Geothermal Calendar

I have put together a calendar of events related to geothermal andsent a draft copy to Doug Carlson. He will be adding to that and providing anupdated version to the group.

Meeting with Campbell Estate

On November 6, 1989, I met with Oswald Stender, Theresia Cortez(Estate's public relations person) and Doc Stryker. The following werediscussed:

o Described DBED's two-level communications program J at the policylevel and technical (master plan) level. Advised Campbell Estatethat Communications Pacific is assisting the State, and providedcopies of communications strategYJ Chuck Freedman's "blue paper,"and tentative time line of communications activities.

o Campbell Estate has retained Stryker, Weiner. They are providingcounsel to both Campbell and True-MidPacific. Doc Stryker ispersonally involved and is interested in complementing Stateprogram.

o Agreed to exchange key message papers and collaborate oncomplementary strategy. They will contact Energy Division staffto see if they can use our resource material (video and publishedmaterial).

Roger A. UlvelingPage TwoNovember 7, 1989

o Discussed concern over True-MidPacific activities and theirapproach to handling public concern. The Estate is becoming moreinvolved in quality assurance and public relations.

The group should consider asking Campbell to be represented at thesemeetings.

Other Issues

The Master Planning public forums continue to be saddled withquestions over the "need" for geothermal and not "how" it is to occur. Thereis urgent need to get out the Administration's message on the energy visionand the energy strategy for Hawaii.

MHK:do

November

1

6

7

7

7

7

8

8

9

9

13

16

28

28

December

1

?

13

?

Geothermal Calendar of Events

Technical Proposals from Consortia Due

Master Plan Public Information Meeting, Wailuku, Maui (6:30 p.m.)

DOH Authority to Construct Hearing for ORMAT, Kailua-Kona,Hawaii (9:30 a.m.)

Hawaii Planning Commission Hearing, Closure of HGP-A,Kailua-Kona, Hawaii (2:30 p.m.)

Master Plan Public Information Meeting, State CapitolAuditorium, Oahu (6:30 p.m.)

PUC Public Hearing on Pohoiki Transmission Line, Pahoa, Hawaii(7: 00 p. m. )

Geothermal Coordinators Meeting, DB ED Conference Room, Oahu(8:00 a.m.--same time, each Wednesday)

DOH Authority to Construct Hearing for ORMAT, Hilo, Hawaii(9:30 a.m.)

McQuain, Senator Matsuura, Kaya, Geothermal Panel Discussionbefore Hawaii Water Works Association Annual Conference, WaiakeaVillas, Hilo, Hawaii (8:30-11:00 a.n.)

DOH Geothermal Brown Bag Luncheon with Environmental Groups,DOH Conference Room, Honolulu

Master Plan Focus Group Meeting #1, U.H. Hilo, Hilo(Organizational and Planning Meeting)

DBED Envision Hawaii Meeting, Hilo, Hawaii

Master plan Focus Group Meeting #2, U.H. Hilo

Chamber of Commerce Breakfast Meeting, Pan Pacific Club, Kaya toGive Progress Update on Geothermal

Financial Proposals from Consortia Due

Master Plan Focus Group Meeting #3, Maui

Master Plan Focus Group Meeting #4, Hilo

Master Plan Focus Group Meeting #5, Oahu

Memorandum0,," November 3, 1989 (via FAX)

yOI- -W1v\'l-'7~I\;. ¥

ReDRAFT STATEMENT FOR ALAN AT JOB SITE IF PROTESTERSARRIVE

Tc, Os StenderTheresia Cortez

Fran,

/\,r~~1

Doc StrykerPUBLIC RELATIONS

SUite 2860737 Bishop StreetHonolulu. Hawaii 96813Telephone 808-523-8802FAX 808-521-6141

This statement may be printed and distributed to protesters if they arrive at the job site over

the weekend, It can and should be released to the press if there is a confrontation.

On October , the Pele Defense Fund erected an ahu in the middle of True/Mid-Pacific's

drill site within a few feet of the position that the drill rig will occupy. The site was entered and

the ahu was erected without permission of Campbell Estate or True/Mid-Pacific.

At the on-site location, the ahu posed a safety hazard as well as a source of disruption of the

work being done by True/Mid-Pacific. While we respect sincere practice of native Hawaiian

customs and religion, to our knowledge this specific location has never been the site of native

religious practice and, we have confirmed, upon consultation with kupuna, that there is no

reason why such religious practices could not take place at a nearby alternate location.

As you are aware, we spent many years obtaining county and state approvals to begin

geothermal operations at this site, and both state and federal courts have acknowledged our

right to proceed. While we recognize and respect the right of any group to protest, we cannot

permit further disruption of our operation or unauthorized trespass on property that has been

granted to us for legitimate business pursuits.

Following a phone conversation with Mr. Emmet Aluli, we forwarded a letter to Yuklin Aluli,

Esq. and to Tom E. Luebben, Esq., attorneys for the Pele Defense Fund. In that letter, we

requested that the ahu be removed from the site by no later than Wednesday,

November 1, 1989. We offered to provide an alternate site for the ahu at a place in Wao Kele

o Puna which would enable persons who so wished to observe their native religious

practices without conflicting with True/Mid-Pacific's operations. We also offered to provide

physical assistance in moving the ahu if that was required.

Os StenderTheresia CortezNovember 3, 1989Page 2

We also stated in the letter that if the ahu was not moved by the Pele Defense Fund, we

would move it and inform them of its new location. We did not receive any word as to the

Pele Defense Fund's intention to remove the ahu, nor did any representatives arrive at the

site. We did receive a letter from the Defense Fund's lawyers stating objections to our actions

to which we could not agree.

Accordingly (after having the site blessed?), we moved the ahu with due respect to its present

site and reconstructed it as closely as we could to its original conformation.

We have tried to be respectful and considerate and to avoid confrontation; but both operating

and safety considerations prevent us in the future from allowing nonoperating people on our

access road or the drilling site without specific permission and identification. We hope that

you will understand and respect this decision.i

WHS:yi

DEPARTMENT OF BUSINESSAND ECONOMIC DEVELOPMENTENERGYDIVISION. 335 MEI'ICHANT ST.. RM. 110. HOHOWUJ. HAWI\II96ll13

October 4~ 1989

JOHN WAlHEEGOVERNOR

ROGER A. ULVEUNGDIRl:C1OR

BARBARA KIM STANTONDEPlffi' DIREC10ll

LESLIE S. MATSUBARADEPlffi' DIRl:CTOIl

fPd 1Ea:~BYlElDJOCT ,~ '989

GEOTHERMAL/CAlifII!RM'T C~mER

Mr. C. Dudley Pratt, Jr.President and CEOHawaiian Electric Industries~ Inc.P.O. Box 730Honolul~ii 96808-0730

Dear yaH:

Thank you for your letter of September 25~ 1989, announcing that HEI hassigned a Letter of Intent to join Ormat Energy Systems to develop Hawaii~sfirst commercial geothermal energy plant on the Big Island. We view thisaction as a positive step that will ensure that significant progress is madeto develop geothermal to increase our energy independence.

We also are pleased that you have expressed your commitment to givingin-depth consideration to local concerns about geothermal development on theBig Island. As you know, the State has proceeded with geothermal with astrong commitment to locally-sensitive development. In this regard it will betimely for HEI to bring additional resources to assist the State and County inthe resolution of sensitive social and environmental issues, and we invite youto work with our state team in a collaborative effort.

We understand that HEI has purchased a 50 percent interest in PunaGeothermal Venture (PGV) through your subsidiary, Hawaiian Electric RenewableSystems (HERS). We would, however, like clarification on the responsibilitiesand obligations of the partnership, particularly with respect to therelationship between PGV/HERS and your regulated subsidiary, HELCa.

Your announcement and the subsequent followup news coverage did notelaborate on the partnership's role in the development of geothermal beyondOrmat's initial 25 MW power purchase agreement. HE Leo currently has a rateincrease pending before the PUC which proposes to lower the avoided cost beingpaid to alternate energy producers on the Big Island. This action willundoubtedly affect future power purchase agreements that HERS and PGV will beattempting to negotiate with HELeO. We are concerned about this effect, andwould like to know what HEI and HERS's position is on the avoided cost issue.

Since PGV has the ownership or lease interest in a significant portion ofthe existing geothermal resource subzone, we would also like to know what willbe HERS's role in the development of the 500 MW geothermal/undersea cableproject. We are concerned over the effect that HEI ownership of thedevelopment right of a significant portion of the approved geothermal resourcesubzone would have on the competitiveness of responses to the request forproposal issued by another HEI subsidiary~ HEeD.

Mr. C. Dudley Pratt, Jr.Page TwoOctober 4, 1989

In summary, while we applaud HEI's apparent commitment to geothermal withthe PGV partnership, we need to be advised on the exact nature of thisrelationship to fully understand its ramifications for the State. I suggest ameeting to discuss these issues.

~,( !~~

Roger A. Ulveling

RAU/MHK:do

cc: Hon. John Waihee, GovernorMr. William F. QUinn

v Mr. Susumu Ono

From HRWR I I GEOTHERMRL/C' E Nc 12.2021 07:31 RM P02

JOHNWAIHEEGOV~IlNOIl

ROGH~ A.ULVELINGDIIlECTOR

DEPARTMENT OF BUSINESS 8ARBAR~E~~l6~~~~

~ $ AND ~9g~.<?~19 D~'v'ELOP~~t'.J!_________ __ ~,,':::~=~'ti .hh~h"'" ~...~. fNfR~V DIVISION, ~3S Ml~CI1AN' S". RM. 110,HONOlutU, H"WAIl 01>813 ~AX: (8081 5M-~24~

'/f....~II'NIll·rjJ.''f;

89:1189C-027

October 31, 1989

MEMORANDUM

TO:

FROM:

SUBJECT:

Mr. Liebert LandgrafDeputy DirectorDepa ment of Land and Natural Resources

o. Lesperance

HGP-A Costs and Revenues

In response to your request, the following cost$ andrevenue figures are provided.

9/30/89 Accrued balance dueNELlI from HELCO

CIP funds available for1989 overhaul

Estimated cost of 1989overhaul per HELCO's Frank Kennedy

10/31/89 available balance

$234,632

350,000$584,632

400.000*$184,632

* The Executive oirector of NELH, William coops, prefers anestimate of $500,000 for the overhaul which would reduce the10/31/89 available balance to $94,632. My opinion, qiven thatthe turbine was not overhauled during the 1989 overhaul, is touse the $400,000 estimate.

I believe that the plant will probably realize a profit of$25,000 for each full month it is in operation after 9/30/89.

•

F1'001 HAWA I IGEOTHER~IAL/C- ~LE

Mr. Liebert LandgrafPage 2october 31, 1989

H·- > 12.2021 07: 31 Rtvl PO]

Once the plant and well are closed down (assume Deoember31, 1989), I believe there will be reourring costs of $20,000monthly with no revenues.

There will also be nonreourring costs to refurbish thewell and to dismantle the power plant and auxiliary equipment.DBED is submitting legislation to amend existing language toappropriate $250,000 in FY 1990-91 FOR HGP-A plant upgrade tobe able to use it for well refurbishing/plant dismantling.These funds would not be available until after July 1, 1989.

I believe that onoe the well only is back on line therewill be net revenues of about $27,500 per mOnth. This isderived from the fact that the current revenue from sellingHGF-A electrioity is $80,000 to $85,000 per month and thatone-third to one-half (I've used the oonservative one-third) ofthe electricity revenUe is derived from the geothermal steam.The net revenue of $27,500 monthly would be reduoed if PunaGeothermal venture (or whoever bUys the HGP-A steam) wants tobe reimbursed in Whole or in part for the estimated $1 millionto install the piping system to oarry HGP-A fluids to the PGVsite and/or wants to be reimbursed for the operating costs todeliver the HGP-A fluids to PGV.

00: SUBumu OnoWilliam coops

GEOTHERMAL PERMITTING/APPROVALS

DEPARTMENT OF LAND AND NATURAL RESOURCES (DLNR)

A. Geothermal Resource Subzones:(Chapter 205, Hawaii Revised Statutes; Administrative Rules,Chapter 13-184, "Designation and Regulation of GeothermalResource SUbzones")

1. Initiated by the Board of Land and Natural Resources:

a. County-by-county assessmentb. Evaluation of criteria for designation of subzonesc. Publ i c heari ngs by the Board of Land and Natural

Resources (Board) - (Contested case hearings notapplicable) - Direct appeal to Hawaii Supreme Court

2. Landowner initiated subzone designation:

a. Application to the Board for approvalb. Evaluation of criteriac. 180-days processingd. Public hearing before the Board - (Contested case

hearings not applicable) - Direct appeal to HawaiiSupreme Court

B. Geothermal Resource Mining Lease (GRML);(Chapter 182, Hawaii Revised Statutes; Administrative Rules,Chapter 13-183, "Rules on the Leasing and Drilling ofGeothermal Resources")

1. Mining leases on State lands granted by competitive bidbasis at public auction

2. Mining leases on reserved lands may be granted withoutpublic auction to the occupier or to his assignee upontwo-thirds vote of the Board

3. Plan of Operations:

a. Application to the Board for approvalb. 50-days processingc. Board disapproval of plan of operations may be

subject to appeal by the applicant to the circuitcourt

C. Conservation District Use Application (CDUA):(Chapter 183, Hawaii Revised Statutes; Administrative Rules,Chapter 13-2, "Conservation Districts")

1. For geothermal development act.tv t t f ea - (exploration,development, and production):

a. Application to the Board for approvalb. Preparation of Environmental Assessment, Negative

Declaration/EISc. 180-day processingd. Public hearing before the Boarde. Contested case hearings not applicable - Mediation

proceeding may be requested (90+ days processing)f .• Direct appeal to the Hawaii Supreme Court

2. For Transmission lines:

a. Application to the Board for approvalb. Preparation of Environmental Assessment, Negative

Declaration/EISc. 180-days processingd. Discretionary requirement for public hearinge. Contested case hearing applicablef. Appeal to circuit court

D. Geothermal Well Drilling Permit:(Chapter 182, Hawaii Revised Statutes, Administrative Rules,Chapter 13-183, "Rules on the Leasing and Drilling ofGeothermal Resources")

1. Application to the Department for Chairperson's approval2. 60-days processing3. No public hearing required

E. Historic Preservation Review:(Chapter 6E. Hawaii Revised Statutes, Administrative Rulescurrently being promulgated)

1. Required for those land use and development activitieswhich may affect historic properties, including but notlimited to, State funded or State proposed projects, andfor those projects located on State and Conservationlands

2. 30+ days ~average) processing

GEOTHERMAL PERMIT/APPROVAL FLOW CHART

Designation

s

Designation ofGeothermal Resource Sub zones

Public Auction/Application for State Mining LeaseI

Board Approval and Issuance of aGeothermal Resource Mining Lease

.I 1Submltta of aConservation District Use Application (CDUA)

. . I . R .Hlstorlc Preservatlon eVlew

Geothermal

Environmen al Assessment/Negative Declaration/EIS

Public Hea)ing

. /Med1atlon~ . .

Appeal to Hawall Supreme Ct.I

Transmission Lines

Environme tal Assessment/Negative Declaration/EIS

Discretio~ary Public Hrg .

contested lease Hearing

Appeal to1c;rcuit CourtI

Board Issuance of aConservation District Use Permit (COUP)

Submittal of P an of Operationsfor Approval by the Board

IApplication for a

Geothermal Well Drilling Permit. I.

Appllcatlon for aGeothermal Well Modification Permit

IApplic~t;on for a

Geothermal Well Abandonment Permit

HP '.AND KNOWLTON

Hill and Knowlton/Communications-Pacific. in;International Public Relations Counsel820 Mililani Street. SUite 400Honolulu. Hawaii 96813Telephone: 808-521-5391Facsimile: 808-537-6836

September 14, 1989

TO: Chuck Freedman

FROM: Steve OkinoKarl Kiyokawa

RE: THIRD-PARTY GROUP POLICY POSITIONS

In an effort to determine the nature and extent of public policypositions that could be used to support the State's efforts onenvironmental and energy issues, we have contacted selectedorganizations regarding their policy positions. Where applicable,information was specifically requested about positions on thedevelopment of geothermal energy. We are still awaitingadditional information from several organizations. The followingsummarizes information and contacts made so far:

"Blueprint for the Environment - Advice to the President-Electfrom America's Environmental Community," is a cooperative effortby environmental organizations to develop comprehensiverecommendations which was presented to the President-electfollowing the 1988 election. The report provides an overview ofmajor environmental themes and broad recommendations. Theorganizations cooperating in this effort cannot endorse allrecommendations, but all agree with the overall focus and thrustof the report. The participating organizations include:

Defenders of WildlifeEnvironmental ActionEnvironmental Policy InstituteFriends of the EarthGlobal Tomorrow CoalitionNational Audubon SocietyNational Parks and Conservation AssociationNational Wildlife FederationNatural Resources Council of AmericaNatural Resources Defense CouncilRenew AmericaSierra ClubThe Oceanic SocietyThe Wilderness SocietyUnion of Concerned ScientistsZero Population Growth

September 13, 1989Third-Party Policy PositionsPage 2

• On global warming and ozone destruction, the report states,"the burning of fossil fuels and other human activities areloading the atmosphere with gases that will warm the atmospherearound the world through the 'greenhouse effect. '"

• As a result of the "greenhouse effect," the report statesthat "most of the United States could become unsuitable habitatfor both the southern deciduous forests and the northern borealforests."

• Carbon dioxide is identified as "the most important greenhousegas," and that "three-fourths of human caused carbon dioxideemissions come from burning fossil fuels."

• One recommendation references the United Nations EnvironmentalProgram and recommends a "global treaty for greater reliance onrenewable energy sources."

• Focusing on energy, the report states, "fossil fuels isresponsible for air pollution in our cities, acid rain that isdamaging our forests, and ecologically destructive oil drillingin Arctic and coastal regions."

• With fossil fuels being "responsible for about half thegreenhouse gases that are warming the earth," energy decisionsneed to move towards the use of clean renewable energysources.

• Identified sources with enormous potential include, "biofuels,wind energy, geothermal energy, and solar energy."

In an "Open Letter to Presidential Candidates," a group ofenvironmental organizations collectively called, "Public InterestLeaders on Energy and the Environment" reviewed American energypolicy. The environmental organizations include:

National Audubon SocietyCritical Mass (Public Citizen)Environmental ActionEnvironmental Policy InstituteFund for Renewable Energy and the EnvironmentEnvironmental Task ForceAmerican RiversNational Center for Appropriate TechnologyWestern Organizations of Resource CouncilsFriends of the EarthU.S. Public Interest Research GroupSierra Club

September 13, 1989Third-party Policy PositionsPage 3

• The report introduction states that "there is a period ofrelative calm still ahead in which policy makers can take a hardlook at the future and start making choices about where thenation should go in the decade to come ... a much better balanceof values is required if the nation is to benefit from thecurrent period of relative calm, because it is unlikely tolast. II

• On renewable energy, the report states, "We are learning agreat deal about the energy potential of these renewableresources, and most of the news is good."

• Geothermal energy is identified as a renewable source withgreat potential. The U.S. Geological Survey estimated thatgeothermal could produce "50 times as much energy" than iscurrently being produced by existing geothermal plants.

• The report emphasizes that state and federal energy policy be"the result of national planning where investment decisions aremade on the basis of economic, environmental, and social costs."And priority should go to "those technologies with the lowestoverall costs." Energy efficiency and renewable energyoptions will get priority through this approach.

The Sierra Club seeks aggressive gains in the greater use ofrenewable energy resources to combat the global warming"caused by a buildup of carbon dioxide, chlorofluorocarbons(CFCs), and other 'greenhouse gases. '"

• The Sierra Club also "recogrizes that geothermal energy is apotentially plentiful and favorable energy source," and urges"the gathering of pre-development base-line data, the monitoringof environmental impacts and cumulative effects, and theadoption of appropriate environmental and social safeguards inrelation to existing and proposed development projects."

Citizen Action is a nonprofit, national consumer organizationwhich deals with energy and environmental issues, among others. Ithas endorsed the development of geothermal and other renewablesources of energy.

The American Forest Council is an information organizationformed to support the wood and paper products industry. Whilemost of its energy-related work involves biomass, the Councilsupports efforts to develop other renewable energy sources todeter global warming.

September 13, 1989Third-Party Policy PositionsPage 4

The American Forestry Association, a nonprofit citizens'action group formed in 1875, prefers a low-key approach torenewable energy and geothermal development. It, however, saysthe credibiJ.ity of the Rainforest Action Network is J.ow inthe mainstream environmental community. AFA particularly objectsto the "radical" tactics used by RAN, a group AFA notes is onlyfive years old.

The Nature Conservancy has a paid staff of 30 in Hawaii. Itoperates its Heritage Database to monitor land areas ofsignificance and importance (in some states, the Conservancy hasturned its database over to state government). Opportunities mayexist for cooperation in dealing with the potential significanceof Big Island land in geothermal resource subzones.

FROM: HILL AND KNOWLTON/COMMUNICATIONS-PACIFIC, INC.820 Mililani Street, Suite 400Honolulu, Hawaii 96813Steve Okino (Ph: 808-521-5391)

RE: GEOTHERMAL COMWJNICATIONS ACTION STEPS

1. Develop central messages and back-up data supporting thosemessages regarding the State's activities on:

• Preservation and conservation• Benefits of geothermal development, including environmental

benefits• Environmental issues in general (air, water, etc.)• Matters in direct response to Rainforest Action Network

concerns

2. Monitor Non-Governmental Organizations (NGO) meetings held inconjunction with World Bank/IMF meetings.

• Media coverage (Hawaii, Washington, national)• Discussions in tropical boycott workshop

3. Select and prepare spokesperson in Washington for Stateinterests (with preparation assistance from Hill and KnowltonWashington) .

4. Prepare media strategy (with assistance of Hill and Knowlton,Washington)

• Advisability of pre-meeting contacts?• Means to respond to issues raised in meeting?• Availability of State spokesperson for responses?• Need to stage news conference or news event?

5. Local (Hawaii) strategy

• State spokesperson (selection and preparation)• Messages• Media strategy: proactive or reactive?

6. Letter to TIME in response to rainforest cover story?

(Intro to whomever .. )

Increasing Hawaii's energy self-sufficiency and thepreservation of Hawaii's forests are important and separateissues.

Approached reasonably and done well, the people ofHawaii will achieve real progress with each.

\

•

THE BASICS - ENERGY SELF-SUFFICIENCY

1. Hawaii's state goal is to reduce our dependence on oil.

2. Energy conservation programs have made us more energyefficient. Since 1980 we have achieved an impressive 21percent reduction in per-capita energy demand and a 26percent reduction in energy demand per dollar of grossproduct.

3. Private and pUblic sector action makes us world leadersin the variety of renewable energy sources we use .... Fromocean thermal, to biomass, to wind, to photovoltaic, tosolar, to geothermal.

4. Yet the people of Hawaii are the most oil-dependent inthe united States, with 90% of our energy oil based.

5. Geothermal energy is our only renewable energy resourcewhich can supply our baseload need.

6. Geothermal power is cleaner than oil or coal. Oil­generating plants emit 13 times as many gasses andparticulates as geothermal plants. Coal plants emit 40times as much. QUOTE FROM NATIONAL SIERRA CLUB

7. Short description of current process. Master planningand EIS.

8. (Summary statement) We must reduce our dangerousdependency on oil, improve our air quality and strengthenour economy through continued energy conservation, researchand development of all renewable energy resources and theuse of geothermal energy to meet our base10ad needs.

THE BASICS - OUR FORESTS AND MORE

... .. '". " -"

Harwood D. WilliamsonPreSident andChief Operating Officer

Hawaiian Electric Company, Inc.» PO Box 2750· Honolulu. HI 96840-0081

j I ,

September 13, 1989

Mr. Roger A. Ulveling, DirectorState of HawaiiDepartment of Business and

Economic DevelopmentEnergy Division335 Merchant Street, Rm. 110Honolulu, Hawaii 96813

Dear Roger:

I am in receipt of your letter of August 30, 1989, in which youinformed me of the Department's intent to contract with EnteNazionale per L'Energia Electrica (ENEL) to provide certainconsulting services. I appreciate your informing me of theState's intentions and of the general scope of work that ENELwill undertake.

Quite obviously, we are very interested in any State activitiesthat might impact upon HECO's on-going geothermal RFP. In thisregard, you mention in your letter the possibility that DBED mayuse ENEL in an advisory capacity during the evaluation andnegotiation of proposals expected to be received by HECO.

We have previously discussed HECO's concerns about the estab­lishment of a relationship between the state and ENEL. Duringdiscussions with each of the potential proposers last week, HECOdisclosed, and the prospective developers discussed, thispossible relationship. several parties expressed varying degreesof concern including potential conflicts of interest. I believeit is imperative that ENEL is not perceived to be, and is not, aparticipant in the evaluation of proposals or the selectionthereof. To that end, and to retain the integrity of the RFPprocess, it is very important that ENEL not be directly involvedin any evaluation or negotiation of proposals. Further, Ipresume that the State will require a confidentiality agreementwith ENEL which includes prohibition of ENEL divUlging anyinformation about the RFP and associated information to any partyother than the State of Hawaii.

Mr. Roger A. Ulveling, DirectorSeptember 13, 1989Page two

You invited my comment upon those tasks which ENEL may be askedto undertake. In that regard, I foresee no difficulties asrelates to our sOlicitation. I would note, however, that thetask relating to an evaluation of alternate air emission controlsappears to be unnecessary in light of what I am told is theDepartment of Health's intention to issue air emission guidelinesin the very near future. Also, the proposed task of evaluatingand describing financial incentives should be completed, I think,before December 1, 1989. Any information or recommendationsprovided after that date -- which is the due date for submittalof the commercial/financial portions of the HECO RFP -- could beperceived as having advised the State in a manner to advantage ordisadvantage a particular proposer.

Finally, HECO has been requested to provide each prospectiveparticipant to our RFP a copy of ENEL's scope of work and theState's confidentiality agreement with ENEL. Would you pleaseassist in that request by providing me with copies of thatmaterial as soon as possible?

Please call me (543-7884) if you have further thoughts orconcerns.

Sincerely,

cc: William A. QuinnRichard K. McQuain

DEPARTMENT OF BUSINESSAND ECONOMIC DEVELOPMENTENEIlGY DIVISION, 335 MERCHANT ST•• RM. "0. HONOlUlU, HAWAII 96813 FAX: (808153\-5243

89:1106B-654

August 30, 1989

Mr. Harwood D. Williamson, PresidentHawaiian Electric Company, Inc.P.O. Box 2750Honolulu, Hawaii 96840

Dear Dan:

J}~~~c.A

JOHN WAIHEEGOvERNOR

ROGH! A. ULVELINGDIR,ClOR

BARBARA KIM STANTONDEPun DIREClOR

LESlIt S. MATSUBARAOf PUTv DIRECTOR

At the request of Senator Inouye, who was initially approached by Italy's~nbassador to the United States~ we have met twice with Ente Nazionale perL'Energia £lectrica (ENEL), the Italian national electrical organization, todiscuss how they might assist the State in its geothermal/cable program.

We are proposing, but have not yet executed, a modest contract with ENEL,whereby we will rein~urse ENEL for their Qut-af-pocket costs such as traveland per diem costs, but not for their personal services to provide thefollowing general consultant services:

o Review past geoth~rmi1i scientific studies and expluri:1tioTl inHawaii and recrnm~nd a program for future geothennal explorationand development in Hawaii.

a Develop soc to-po l t t ical and eccnomfc data to be included in theGeothermal/Cable Master Development Plan (to be prepared underseparate contract for 08EO by ERC Environmental and EnergyServices Company).

o Develop technical alternatives to lilnit the emissions from theelectric generation cycle.

o Provide general financial consulting services for the qeotnermel ,'cabl e project.

We may use ENEL to advise us during the evaluation and negotiation ofproposals received as a result of the HEeD-issued PRP for the geotherilialproject. We would notify Mr. Richard McQuain exactly how we would utilizeENEL in the RFP evaluation and negotiation process. ENEL would be required tosatisfy the State and HECD regarding confidentiality.

Please call ne if you have

RAU/GOL: lta

ons.

ly,

v--'--.Roger A. Ulvellng

Office of the Administrative Director of the CourtsThe Judiciary. State of Hawaii

Herman LumChief Justice

Toshimi SodetaniInterim Administrative Director

Tom OkudaDeputy Director

MEMORANDUM

'-, j L

C!l9.1! 7.> '\ /If>iq<i1......

:s~ rn::..~

Post Office Box 2560 Honolulu, Hawaii 96804

September 12, 1989

TO:

FR:

Geothermal Roundtable Participants

Dee Dee Letts'(£

RE: Questions raised at last Roundtable and next meeting

Regarding the question of PUC approval and hearinginvolvement in the inter-island undersea cable, no PUC approvalis needed for the undersea portions. The PUC must holda public hearing and then approve any high voltage transmissionlines (46kv or greater) that are overhead and go throughresidential areas.

The PUC study on integrated energy is not available.The PUC has been reviewing the draft for approximately twomonths. According to the PUC, it should be available bymid-October.

The last California standards on H2S that were readilyavailable, compared to Hawaii's proposed standards are asfollows:

AmbientPlant emissionsIncremental standard

California

30ppb5 lbs. Ihr.None

Hawaii

100ppb8.5 lbs./hr.

25ppb

The next Roundtable will be on September 21, 1989 from9:00 AM to 4:00 PM at John Michaels. The agenda will includeas discussion items the master plan, air quality standards,and permit processing.

DOH and DLNR have agreed to become participants inthe Roundtable discussions on a regular basis. Also foryour information, the Governor has instituted a toll-freenumber for the Neighbor Islands to call State offices on

I

Judi~, Cla,ry

Memo to Geothermal Roundtable ParticipantsSeptember 8, 1989pa~e two

Oahu. The number is 1-800-468-4644.

Look forward to seeing you allan the 21st.

, .Hawaiian Electr,,- Company

N E w s • B E LEA S E

CONTACT: Scott Shirai - (808) 543-5602

FOR IMMEDIATE RELEASEAugust 8, 1989

Six geothermal developers have indicated to HawaiianElectric Company (HECO) that they intend to submit proposals forthe development and transmittal of 500 megawatts of geothermalpower from the Big Island to Oahu.

The six are ABB Energy Ventures, Inc., Fluor Daniel, Inc.,Mission Energy Company, Mission Power Engineering Company, PG&E­Bechtel Generating Company, and C. Itoh & Co. (America), Inc.

"We are greatly encouraged by this initial response," saidHECO President Harwood D. Williamson, "and we look forward to athorough review of the detailed particulars later this year."

In May, HECO issued a Request for Proposals on this projectwhich, if completed as scheduled in 1995, would move Hawaii manysteps forward in achieving the State goal of energy self­sUfficiency.

Technical proposals indicating how the geothermal developersexpect to realize this task are due by November 1 of this year.The developers have until December 1, 1989 to submit commercialproposals for a Purchase Power Agreement with HECO, along withplans of how they intend to finance the project. HECO hopes toconsummate a draft contract with the successful geothermaldeveloper by October 1, 1990.

Oahu accounts for about 80 percent of Hawaii's electricalconsumption and the successful implementation of this projectwould displace some 7.3 million barrels of imported fuel oil.

* * * * *

Hawauan Electric Company. Inc' PO Box 2750' Honolulu. Hawau 96840-0001 • Phone (808) 543-5670

. . .Hawaiian Electric Company

N E w S • BELEAS E

CONTACT: Scott Shirai - (808) 543-5602

FOR I~WEDIATE RELEASE

May 3, 1989

The State of Hawaii and Hawaiian Electric Company (HECO)

today announced that they have sent out requests for proposals

(RFP) to 31 prospective geothermal developers around the

world to achieve the electrical interconnection of the

Hawaiian Islands for the first time.

Selection is expected to be made by the end of 1990 of a

private consortium to finance and develop 500 megawatts of

geotlJrmal energy on the island of Hawaii and transmit it by

under;ea cable to the state's major population center on Oahu,

and possibly Maui as well. It is anticipated that the

geothermal-produced electricity will be available for shipment

to Oahu around 1995.

"Based on today's electrical demand and current oil prices,

satisfactory completion of this project would satisfy a major

portion of Oahu's electrical needs, while decreasing oil

imports to Oahu by 7.3 million barrels a year at a cost of

$160 million," said HECO President Harwood D. Williamson. Oahu

accounts for about 80 percent of Hawaii's electrical consumption.

(more)

Hawaiian Electric Corr-oany Inc' PO Box 2750' Honolulu. Hawaii 96840·0001 • Phone (808) 543·5670

· . .HECO - 2 - May 3, 1989

"Development of geothermal energy is the key to

achieving our state goal of energy self-sufficiency and it

is imperative to Hawaii's future that we move forward now,"

said Governor John Waihee. "As I stated earlier this year

when plans to issue the RFP were announced, we are indeed

fortunate to have, ln our own backyard, a natural resource

which is available on a commercial scale 24 hours .a day."

Williamson said the company has long favored geothermal

energy as Hawaii's best renewable fuel alternative to

imported oil. "We are hopeful several responses to the RFP

will provide viable alternatives which will culminate in a

purchase power contract between HECO and a developer."

Governor Waihee said geothermal energy is the best near­

term renewable energy alternative available in a large enough

quantity to meet Hawaii's needs. "Successful completion of

this project would move Hawaii many steps forward in its

quest for energy self-sufficiency and make us less vulnerable

to the uncertainties of the world oil market," said Waihee.

HECO has been the prime contractor since 1982 in the

Hawaii Deep Water Cable Project which is jointly funded by

the U.S. Department of Energy and the State Department of

Business and Economic Development.

(more)

HECO - 3 - May 3, 1989

A 6,000-foot deepsea cable of the type that could be

deployed between the islands was manufactured in 1987. Labor­

atory testing of the cable was completed i~ October 1988 and

concluded that the cable was mechanically and electrically

sound.

Actual at-sea testing of laying and retrieval procedures

using a surrogate, non-electric cable, will be performed during

the last quarter of 1989 in the Alenuihaha Channel between islands

of Hawaii and Maui. The Hawaii deep water cable will be the

longest and deepest electrical power cable ever deployed. The

deepest portion of the cable route in the Alenuihaha Channel is

approximately 7,000 feet.

# # #

ERC ENVIRONMENTAL &ENERGY SERVICES COMPANY

Overland Transmission Corridor Study

November 1989 - Hold public workshopDecember 1989 - Prepare A1terntaive Corridor MapsJanuary 1990 - Hold public workshopFebruary 1990 - Establish preferred corridorJuly 1990 - Hold public workshop

Master Development Plan (MOP)

March 1990 - Complete Preliminary MOPAugust 1990 - Complete Final MOP

Envi ronmenta1 Impact Statement (E IS)

May 1990 - Commence preparing draft EISOctober 1990 - Complete draft EISFebruary 1991 - Complete final EIS

11128/8

~ ERe.••~ Environmental

and EnergyServices Co.

rID ~rrn~~w~ flYU11 OCT 17 1969 ll:!J

GEOTHERMAL/CABLEPERMIT CENTER

AugJ,lst 30, i989

Pioneer Plaza900 Fort Street Mall. Suite 1550Honolulu, Hawaii 96813808-545-2462Fax 808-528-5379

,"

~ ".••

. ,•

TO:

FROM:

Distribution(~~-;

Frank Kinger~eve Okino , .

RE: Meeting Notes From Geothermal/Ca~le projtctMaster Development Plan Dis~ussidn - Augast 29, 1989

, ', ,Personnel from the Master Developmerit Plan_Project Team werein attendance along with representatives of the ~punty ofHawaii, DBED, DLNR, and HECO. Individuals that w~re presentare shown below under the Distribution lis~,

A brief summary of project status was presented a~ was atentative schedule showing project milestones. Th~ scheduleis attached.

Following are major points from the ~eeting.

1. Any softening of opposition to development may ,beapplicable only to Ormat proposal; mqvement do~sn'tnecessarily apply to True/Mid or issue of ebPoc~ing.energyto Oahu. ... .' ~

2. Mayor's Advisory Commission (Big Island)functions vis-a-vis Master Planning process:

two possible

planningfor e'll'ample) .

into thepl:"ocess,

Sounding board, providing informal'exchange of informationwith planners and the affected communities on a periodicbasis, and/orFormal mechanism for county inputprocess (as part of agency review

3. State relationship to Master Planning process:

Consensus is that state participation is necessary, andthat state must be involved with master plan.Public perception of state-consultant relationship maychange with time, depending upon trust and credibilitythat is built.

August 29, 1989DBED Meeting NotesPage 2

4. Community Liaison

Liaison is necessary for master plan, perhaps asconsultant to the consultants, or representativeof the state (no compelling case for either option,given need for state involvement and linkage in planningprocess).Suggestion that liaison be hired by county, with statefinancial assistance.

5. Public Information note: Public documents on geothermal/cable project will be duplicated and sent to AndreaGill Beck on the Big Island for public use.

6. Critical Issue: What happens to new geothermal developmentinitiatives during the time the master plan/EIS is beingprepared?

Halt proposed development?Allow exploration only?What can HELCO use (initial 25mw only? PGV's 25rnW andTrue's 25mW? Additional 25mW from True or PGV?)? Andwhat is needed for local use?Conclusion: Policy decision that must be made by State.

7. Critical Issue:what will it notthe community.

What does the master plan cover? Andcover? This needs to be communicated to

8. Policy Issues to be resolved:

Compensation for effects of development (relocation, landexchange, state buyout, etc.).Air Quality standards.Incentives to developers.

August 29, 1989DBED Meeting NotesPage 3

9. Consensus on public involvement program components:

Small-group facilitated meetings (focus groups).Community liaison for outreach, information exchange.Written materials: Newsletter, direct mail, etc ..Mayor's Advisory Commission (see above) .

Distribution:

PlanningR&DPlanning

CountyCountyCounty

Duane Kanuha, HawaiiLynn Manukea, HawaiiRodney Nakano HawaiiLes Matsubara, DBEDMaurice Kaya, DBEDJerry Lesperance, DBEDSus Ono, DLNRJohn Richardson, HECODave Matteson, Communications PacificSteve Okino, Communications PacificJohn Everingham, CH2M-HillJay Eingold, CH2M-HillGordon Chapman, Chapman Consulting Services

TENTATIVE SCHEDULE

HAWAII GEOTHERMAL/CABLE PROJECTMASTER DEVELOPMENT PLAN

Augu::.t 29, 1989

-CoM~lete deterMInatIon cf InforMstlGn needs;refine PublIc lnvolveMent Plan

-CoMplete draft geotherMal developMent andsubsea cable conceptual descrIptions

-CoMplete Phase I tranSMIs5Ion line studyI

-Integrate QeotherMal~ tranSMIssion lIne andsubsea cable systeMS descriptions intoPrelIMinary Master DevelopMent Plan February 1990

-InitIate EIS process March 1990

-Finalize Master DevelopMent Plan

-Coriplete Draft EIS

-COMplete project

Febr-'uarj 1991

89:10938-513

JOHNWAIHEEGOJERNOR

ROGER A. UlVEl1NGDIIlEClOR

BARBARA KIM STANTONDEPUTY OIREClOR

lESliE S. MATSUBARADEPUTV DIIlEClOR

The Honorable William W. Paty, ChairmanBoard of Land and Natural ResourcesState of HawaiiP.O. Box 621Honolulu, Hawaii 96809

Dear Mr. Paty:

We appreciate the opportuni~ to comment on the Draft Environmental ImpactStatement for the Pohoiki Geothermal Transmission Line.

We confirm the undesirabi1i~ of the NO ACTION ALTERNATIVE discussed onpages 110 and 111. The no action alternative is not a uno energy" alternativebecause there is increased demand for additional electrical generationcapacity on the Island of Hawaii. Without geothermal, this additionalcapacity would be met by additional oil-fired generators, further increasingthe State's extreme dependence on this imported commodity for its electricity.

The Hawaii State Plan states that planning for the State's facilitysystems with regard to energy shall be directed towards the achievement ofincreased energy self-sufficiency. The Plan further states that it shall bethe policy of the State to promote the use of renewable energy sources<Section 226-18, Hawaii Revised Statutes}. Geothermal is a renewable energysource.

In the environmental trade-off between oil and geothermal as fuels forelectricity, the U.S. Department of Energy favors geothermal. Geothermalcontributes less total air emissions than does petroleum per kilowatt hour ofgenerated electricity. Further, oil contributes to global warming aboutfifteen times more than geothermal per kilowatt hour of generatedelectricity. We believe that the proposed alternative is environmentallysuperior to the NO ACTION ALTERNATIVE.

Page 96 of ,the EIS makes it clear that the proposed transmission lines areonly for the transport of 25 MW of power from PGV·s geothermal development inPohoiki and that the transmission of electricity from any other geothermaldevelopment in Puna will require independent routing studies. The EIS should

The Honorable William W. PatyPage 2June 15, 1989

address whether HELCO plans to purchase additional power from geothermaldevelopment from Puna in the next few years. The community has expressedconcerns through the Puna Community Council, over a proliferation ofgeothermal transmission lines in Puna and the lack of an overall developmentplan. Therefore, we suggest that the EIS include a forecast of HELCO'sexpected additional purchases of power from geothermal development in Puna andan analysis of the technical, economic, environmental and social factorsinvolved in providing sufficient additional capacity in the proposed alignmentfor the 25 MW transmission lines, versus utilizing entirely differenttransmission routes.

Thank you for the opportunity to provide these comments.

~"Y~W·R09::;: U1ve1ing )

RAU/GOL: 1ta

cc: Dr. Marvin T. Miura, OEQCMr. Clyde Nagata, HELCO

MR. DUANE KANUHAPLANNING DIRECTORA lOR

LANNING COMMISIONERS25 AUPUNI ST.HILO HI. 96720

.,;-~ (, L· ;~

~. v '"' t. tA 8: 3 I

sept.26-1990, ... ~ ~ )

,. ,._~ ,~';'~'-,~ : : _~' :.. - ," .". ; ,i if;: (~_;; ~'This is a request for reloci:\':fA{it:!'~Sq'AP)ir~~~i:ionunder condition

51, of P.G.V. IS permit GRP-2 JlhlL v,p·HYrd.

The situation at my horne is loud noises from heavy equipmentincludeing numerous D-9 bulldozers, jackhammer tractors, andother large earth moveing equioment, on sept. 10, 11, 12, 13, 14,15, 17, 18, 19, 20, 21, 22, 24, 25. Gsualy the noises wake me inthe morning afld continue until dusk. Most nights I hear drillingnoises from S.O.H. all night:.to varying degrees.

This is causing me extreme stress. I am being directly impa­cted by these projects the county permited in a preexistingresidential subdivision.

I believe I should be relocated to an enviroment simaler tothe one that existed at my home before these geothermal deve­lopments began until such time as my home return~ to a comfo­rdable living condition. Geothermal was given a chance to be agood· neighbor and failed. It is now the duty of government tolive up to the promises made to the community and:trueJy reg­ulate and enforce every condition of the permit that the com­muni ty testifyed':overwhelmingly against.

The P.G.V. project construction is premature and causeing meharm for the following reasons.

1. FINANCIAL DETAILS OF THE SALE OF STEAM FROM H.G.P.-A HAVENOT BEEN FINALIZED.

Common sense diC!::tates all financial details be decided beforeormat begins construction. Remember 6rmat proposed a 20,OOOppbH2S levil before an emergency would exist, and tryed to havethe mayor overrule Harry Kim when he refused to approve that.Ormat could decide not to even use H.G.P.-A.

2 •. ALL RULES AND REGULATIONS SHOULD BE finished BEFORE ORMATBEGINS CONSTRUCTION AND DRILLING.r ,Geothermal development was given a chance and people got hurt.After H.G.P.-A. the community is entiteled to strict rules andregulations combined with strict enforcement of them, and weare entiteled to this before construction begins based on geo­thermals past performance in hawaii. This is relevant becauseit has been brought to your attention in the past.

3. CONDITION 51 IN P. G. V."S PERMIT GRP2 REQUIRES THE COMMUNITEEBE CONSULTED DURING-THE WRITEING OF THE RULES AND REGULATIONS.

I wish to participate and am being denied the oppertunity.

4. THERE IS NO ENFORCEMENT OFFICER

\

The county does not have an adequate 'system of s afequa.rds inplace to protect the community against violations and possibleharm, or an effective means for the community to have violationsdelt with promptly

5. WE HAVE NOT GOTTEN THE RESULTS OF THE HEALTH STUDY

6. IN CONDITION 51 THE INTENT OF THE PLANNING COMMISION IS FORTHE STATE TO GIVE 250,000 TO THE ASSET FUND.

What has happened instead is a loan that has to be paid backout of funds intended to aid victems of geothermal development.This clearly was not the intent of the planning commision.

7. CONDITION 50 HAS NOT BEEN MET.

8. JANUARY 15 1990 WAS THE DEADLINE FOR THE STATES CONTRIBUTION.

A Lmmedi a t;e .responSlHls in order due to the on go4ng noiseand stress now occuring

LEILANI EST.

CC RUSSEL KOKUBUNPUNA GEOTHERMAL VENTURE'­PETER ADLERWILLIAM PATY

,.p-2

.'

Planning Department2S Aupanl Street,. Ilm. 109 • HDo. Hawaii 96720 • (808) 961-8288

Larrv S" T2ni~otoMayor

Duane KanuhaDirector

William L MooreDeputy Director

r.a r cr. 13,in re!:poncin~.

April 26, 1990

Philips.1267 .

96749

Special Per~it No. 7f-307 (LUe 392)Eaweii Geoth€r~al Project (EGF-A)

)1f!: Thi£ is to ac~pov1e~se receipt of 'leur letter of

990. Please accept our nr-cloey for ttis long Gelay

c. SteveP. O. Box(}jaau, HI

Bear ~r. Philips:r -',f ' .:'~ I

U

?t e HGP-A e nv i r onr-cr.t;e 1 r-on i tor ins r r on r an \;a5 i nr.t; i tutecipitially by the State's Dcpart~cnt Qf Plan~ins and EconoricDcvclcr-rcrt tc ~rcvi~e r.ett re~2~cir.S t~€ e"is£ior.s of ~o.veralpct£r.ti21 Fcllut~nts furinq norrfl nnd stonc~y operatio~s anc tcprovi~e irfcrraticn or t~e a~~ir0t ~y~ro~cn sulfi~e c0~ce~trationsin t l.e cor-r-un i t y acjaecrt tc t l.e liGF"':" Pr o j oct , Tt'c l:GP-J;. Plant "'-CIS

rlacf'r1 into opo r e t i or- ir· ,July ll":fl (',)'1r: until tl~e HCP-.7I.. ,:('11 ,:;;!'Etrt-in in DecF~~cr of l~CS, itr e~iGsion~ a~( tte ar~iFnt "irquality of s c r r ounc Lno c otsr.c n i t y \"L'[ j.(,i!itorfO'f.

W~ile the enta eoll£cte~ ttIOUg~ t},C' pcnitoripq nronran issur-j e c t to i nt.cr p r c t e.t i or , I,"€ c c not !'t e r c YCl1r conclusion t!'bt ·~11~or.itoring to c.ate hDF ~ecr. r.iFlr;Gcin~ an r c~rcli?tlp ••• • Accorcinqto the IcportE ~utMittpf tc U~, ttc c~vir~ent uscf to ccl!ect t~c

data wa s se rv Lcec anti calibrated c n 2. r c-ou Le r !--;H:ir:. l"tile ve hnv enot ~ad~ any intcrprctatio~ of t~c fat~,-we ~eliEve ve ~evrhistorical record froD ~hict corparative ?nalvs~F e~n tc ~?~~.

On tte o t rc r r.anc , t r.e non rion i t o r s ar:e Cr.t .. ycu t e i-:« tc r e vcnot teen as rca~ily available. At this tine, ~e f~ not have enougl,i~for~ation from the£c DOH nonitoI£ an~ ~ata to.conclude, fl~ you fo,t h a t, t he r c are • con fl Lct s " bet \-'een the: HCP-" operator' s: rnon i t Of s anc}t r.e DOE r..onitorc. It i s oi. r unc.c r s t a nc i nc tr.:'l.t t l.e rop iFoon t i r-ui nq to nonitor the a r r Lcrrt air cu a l t t y a nr" t hs t PunaGcother~al Venture is conti~uinc it~ Eir ~u?lity ~onitGringp r cc r ar., ':"re r e s uLt s of bo t h e f f o r t e \.'i11 inc:rca!'€ ourinfcrr.otionvl r~se.

Mr. ~tp.v~ Ph111p~April U, 1<;90PilOf> ;>

The Octob~r 1981 nu~h~rs you refer tc were thr.n the restavei!~ple infor~~ti0P. 7hey nre the rc~ult~ of a ronitcring ~ff~rt.ticl 1n~icatc~ ttBt t~p overage 925 waD D.ee! pp~ an~ the raxirur" .. r 0.013 pf'!:'. \.<:, rev!' o vc r y r ez son to p-:lievo:> ttcllt thCEC nuebe r s~rp ~ 1~C0rr~ct~

~;c co r:"t j'(l;cvc t r e r c i~· ..:lli:Y cur r e n t v I o Le t i c-r- cf: 5?7ri-3C'7.1-'it~ rc flui~::, flcl'!rg frc.., ttl' r,C'?-,. \,'<,11, Co!,,'iti<'r' :1n. f iscrrr crt Lv ~'r-jrr: r--:t ("1:: t:' ..',~r~· r.r ccc u t i c n i!: !"eirc: tcL-,E'r, to r('ruc~ :!~:ry~.~,·;.("t·_;, ,.:} :"tr,0r it ~.(' r.c i r-c- o r fl;:"'"::'~ ';~!cr r2Y il:f~C"t ther""':'i:C"~t:- i-r'~' prr.pnrt lc~. in tr:p i!':'T";;r~i0tF ?r€"a.

1:... · :- ,l\'";l,"'-l"tr~ . .;:-: .:.t: ;'c:p-,'\.f'·,~r:.--:--.. 5.":"'~',.

~'c,llr cc~~~~t~ C~ tt~ ~lacF~~~t cf r~ritcrJn~ r~i~t~~(ir ;:;-': ~~\. r u r : ~r~'itcrir,,:,, r(.\~~:ire-rC',;.tr ,'~:j("" ~t.y ~f'

~t tl-i~ ti~r, ~r hav~ no ~!;t~rrity tc ~nr~ntr yOl'f

..... r .~ i .... , ",~ .... ,- \-. 1 :- (. i : .r i rc '.(1,( t:'(l>:lt: .. it

c:- t-:; ," s. } - : '" r~~·~~~r'ir~. ~l'JP~

,f. c 1 r r rr t o cr r.tac t:c r

c r: : T:(Y,<i \/11 r>c;"( t.t:r(·o\,crre·r ~'?i! rr.... T'- 1",. ,i I r,. !'" c.~· I { .....,:"

R&Dv Sus Ono

NELli

.- .. r , r" ,

Bernard K. AkanaMayor

Duane KanuhaDirector

William L. MooreDeputy DirectorPlanning Dep'-a_r_tm_e_n_t _

25 Aupuni Street, Rm. 109 • Hilo, Hawidi 96720 • (808) 961-8288

co ~."r. ~ .... eVE Philips~ C. Box 1267~aau, HI 96749

v~r r r , Philip"

C~ottEr~al ABset Funf

r~arch 15, 19 90

ri~ce so~e of you have te~n ccl1ir.S to irquire cp the stetus oft}'e seothpr~21 A~spt funf to b~ ert&~li~h~~ ~ur~u?r.t to Condition 51of Gectber~El Re~curceF Fpr~it (GQ~) ~c. :, I thoc0ht I'~ ta~e thiso D ~ 0 r t L' r i t v t.o ex r 1 ~ i!" ~: L c r -? '.-'per "C' i r. t b t: t e f for t so far.

P.f' y ot: r ev krJ(:\', tl.rr,,· is (i ff';f'(")fic- Ip.C'i~12ticn r e Lat e d to t r i na s s r t £'U:1t: rencinq in t h i s year's If'qislfltive s e s s Lon , ~his1~~if'1[ti0n weul~ have e t'cprinc ir r~ir!orcir" the Stct~'F en-goingcODritrne~t to t~e asset fund an2 J believe it test to await thiscu t corne before p r oo e e d f nq a ny f u r t he r , ThE' Departr'E'nt of Len0 a ndNatural Resources ~as sutnittec a revised policy ~tate~ent reqar~irgtteir initial contributic~ to the asset tunf vhich a~eresseE theconcerns of tre Planp.ins Co~mi~sion but is tief. sc~e¥'hat hac~ to theab0ve mentioned lesislation.

W~ere ~e left off was at·a point in tP€ cevelopment of th~concepts end qualification criteria th~t woul( en~ble the County toinccrporate theD into rather 5tan6ar~ forrnat~ fer rults an~requlet1ons. These woul~ then be distributee for furt~er ~iSCUFFioT\~~ong a wioer segment of tpe co~mur.ity rrior to reviFicn er.cadoption in accorcance witl: Chapter 91, HPr.

A~ y~c reC211, therp i2 also another imnortant comnonent ofCondition 51 relative to the developrer.t Gf 2 priority liFt ofi~pect ~iti0atiop. projcctF. J vill te ~i~c~s~in" tt:is acpect ~ithCouncil Chairman Kokubun relative to the Cour.cil's role or what~ge~cy will be de£ignate~ to Ftart wcr~ing ~r thiE.

Mr. steve PhilipsMerch 15, 1990Page 2

I shall be getting hack to you on ideas to expap.d the input oncethe legislature is over with.

S}£c,\relY,

Ll~DUANE KANUH}o.Planning Director

DK:aeb

cc: rayor'c OfficeR&DCouncil~an Russell f.okubun

_ susumo OnoPlanp.ing Commission

To:Date,

February 21, 1990

MEMORANDU!v,.PLANNING DEPARTMENT

~oFrom: f\\' / ~ ,

( \tG.a~irectorv

,/.y 1\~/V~J

County of Hawaii, Hila, Hawaii 96720

Subject: Coordination of ReviewORMAT/PGV Conditions of Approval

I will be drafting letters to Bill Paty and Jack Lewin ASAPregarding the establishment of 'a technical task force between theiragencies and the Planning Department to expedite our jointlyrequired review of ORMAT's permit ~ubmittals pursuant to GRP 2.

The purpose for this effort is to ensure that we can all providea more timely review of the required monitoring plans, etc. RodneyNakano will be heading up the review on our end. We have normallycoordinated with Dean Nakano (DOWAL), and Willie Nagamine (AirQuality), Chun Se Heu (OIC), and Tom Arizumi (Noise) in the past;however, these need not be contact people that Bill or Jack arerequired to assign to this.

The thought is that once these materials are sent to us, we willdistribute to the assigned contact person. This review team wouldthen decide if a joint review session is necessary and initiate suchif appropriate. I will authorize travel, etc., for this purpose andI am hopeful that Bill and Jack would also be agreeable too.

I would appreciate your support for this concept and if so, toplease let Bill or Jack now this will be coming down shortly. Callif there are any major concerns.

DK:aeb

Planning Department25 Aupuni Street, Rm. 109 • Hilo, Hawaii 96720 • (808) 96148288

· IBernard K. Akana

Mayor

Duane KanuhaDirector

William L MooreDeputy Director

CQ. William Paty

Ra t e Department o~ Landand Natural Resources

P.O. Box 621Honolulu, HI 96809

~ear Mr. Paty:

January 2, 1990 fB) ~llli~~~~IDJlffi JAN 2 6 1990

GEOTHERMAllCABLEPERMIT CENTER

Geothermal Asset FundCondition 51, GRP No.2 (Puna Geothermal venture)

At their meeting of December· 19, 1989, the PlanningCommission discussed your letter of November 28, 1989, regardingthe State's policy position on implementing the geothermal assetfund pursuant to Condition 51 of Geothermal Resource PermitNo.2 (Puna Geothermal venture).

After much discussion, the Commission unanimously voted tocommunicate to the State that (1) the intent of their draftingand voting- affirmative on Condition 51 was that an initialcontribution by· the State of apprOXimately $250,000 was expected,(2) a payback mechanism for that amount is not included in thesubject Goethermal Resource Permit; and {3} the Commission ishopeful that a revenue flow of approximately $25,000 a monthcoming from the sale of HGP-A steam will come on line.

Their actions were based-on an expectation of existing fundsalready on hand from the prior sale of steam to RELCO andcontinuous contribution by the state into the asget fund.Finally, the Commission has clearly indicated that ifimplementation of the above is unacceptable, then Condition 51of GRP No. 2 cannot be fulfilled.

•

Mr. William PatyPage 2January 2, 1990

I would ask you to give this matter your earliest attention.In the meantime, please calIon me if there is any otherclarification necessary.

Sincerely,

Wiieth~~I.. H;,DJcz-,DUANE KANURAtr Planning Director

DK:lm

cc: Planning CommissionSusan Labrenz, Managing DirectorDept. of Research & DevelopmentPuna Geothermal VentureRoger Ulveling, DBED-Energy Div.Susumu Ono

25 Aupuni Street, RIll. 213 • Hilo, Hawail96720 • (808) 961-8211 • Fax (808) 961-6553

Office of the Mayor

Bernard K. AkanaMayor

Susan LabrenzManaging Director

Gregory R. MooersDeputy Managing Director

November 15, 1989

Mr. William W. Paty, ChairmanBoard of Land and Natural ResourcesP. O. Box 621Honolulu, HI 96809

Dear Mr. Paty:

Geothermal/Cable SystemNomenclature and Required Permits/Licenses/Notifications

ex>~ (0

V)::;e: z~~C' c::' 'f"l».cr~ <: .....-::-."--C' rr.rr.):";:- ; ) r-c c;or' ~~

..." 0 I'll~-r; .-.-

=r:rn r ;b .,"::> c.r. "'"

....<C':O:" ee Tn-c:;.;d! ~:::~ .. ".

.J::..

"'" co(I')

Geothermal Resource PermitSpecial Management Area PermitsShoreline Setback VarianceSpecial PermitsUse PermitsSubdivision of landPlan Approval

This is to respond to your request of September 26, 1989, forreview of a draft listing relating to the various aspects ofgeothermal/cable development. We have added additionalpermits/licenses/notifications as well as the names, organizationsand phone numbers of the admininstrators of thesepermits/licenses/notifications.

The following permits/licenses/notifications:

are administered by:

Duane Kanuha, DirectorPlanning Department25 Aupuni StreetHila, HI 96720Phone: (808) 861-8288

The following permits/licenses/notifications:Grubbing, Grading, Excavation and Stockpiling PermitsExcavation of Public HighwaysInstallation of Utilities within Federal and Secondary

County HighwaysNational Flood Insurance

Mr. William W. Paty, ChairmanNovember 15, 1989Page 2

are administered by:

Robert Yanabu, Division ChiefDepartment of PUblic Works, Engineering Division25 Aupuni streetHilo, HI 96720Phone: (808)961-8327

The following permits/licenses/notifications:

Building, Electrical and Plumbing PermitsOutdoor LightingSign Permit

are administered by:

Herbert Hayama, Division ChiefDepartment of PUblic Works, Building Division25 Aupuni StreetHilo, HI 96720Phone: (808)961-8331

The Building Plan Approval (Fire) is administered by:

Fire Department25 Aupuni StreetHilo, HI 96720Phone: (808)961-8331

I hope this provides you the information you seek. Pleasecontact me if I can be of further assistance.

Sincerely,

.~JO..1V C)'id'U+7)Bernard K. AkanaMAYOR

cc: Planning DirectorChief Engineer

Hawaii Electric Light Company, Inc.• PO Box 1027 • Hila, HI 9672H02

November 14, 1989

Norman A. OssPresident

Mr. Duane Kanuha, Planning DirectorHawaii County Planning Department25 Aupuni street, Room 109Hi10, HI 96720

Dear Mr. Kanuha:

SUBJECT: Special Permit No. 392HGP-A Geothermal Research station

I received your letter dated November 8, 1989, regarding thedecision of the Planning commission to accept your recommen­dations on Special Permit No. 392, Condition No.6. As you areprobably aware, HELCO's load profile shows the months of Novemberand December to be the highest peak periods for the entire year.Recently, we completed the installation of a 16,000 kw combustionturbine at our Keahole site. This unit is still undergoingshakedown and ownership acceptance tests which will be completedby the end of this year.

With this in mind and the fact that the HGP-A's 2,000 kw outputhas been a reliable source of energy for our system, it would beto our mutual benefit if the HGP-A plant could remain on lineuntil the end of December 1989.

Sincerely,

?1~ CZ~Norman A. OssPresident

NAO:FGK:cr

cc: Planning CommissionMayor's OfficeSus Ono (DLNR)v/NELH

An HEI Company