ECONOMIC DEVELOPMENT & TOURISM

;:;; l-i .. J'Ti:;)?August 2, 1991 tl! ;r. ' 1, ,.., 1 ._t\ Ct

l : ~; c : .. . ' : .. C,';:: ~1T f o> 'I) .. · · ~ 't '-'• t_ 'I, 1 tl_11

Honorable William W. Paty, Chairman

Board of Land & Natural Resources 1151 Punchbowl Street, Room 130 Honolulu, Hawaii 96813

Dear Mr. Paty:

PHONE: (808) 548-4080 FAX: (808) 531-5243

JOHN WAIHEE GOVERNOR

MURRAY E. TOWILL DIRECTOR

BARBARA KIM STANTON DEPlJTY DIRECTOR

DEPlJTY DIRECTOR

Thank you for your letter dated ~pril 30, 1991, which forwarded for my comment a copy of the 1991 Report to the Legislature on Geothermal and Cable Development Permitting.

I have only one comment on Appendices D and E. I suggest you add "(Section 196D-6, Hawaii Revised Statutes)" below the title on Exhibit E, the draft Joint Agreement.

Attached are a number of comments on the report itself.

Thank you for providing me a chance to comment.

Sincerely,

~((_·~·

MET/GOL:jms:153

~urray E. Towill

Attachment

Page 2

DBED Comments on 1991 Report to the Legislature on Geothermal and Cable Development Permitting

* First paragraph under Request for Proposals:

insert after "proposals", the phrase, "for a consortium to develop the large-scale geothermal and cable project"

* Third paragraph under Request for Proposals

Rewrite as follows:

Page 3

"Negotiations between Hawaiian Electric Company and the selected consortium, Kilauea Energy Partners headed by Mission Energy Company of California, are ongoing at this writing. Hawaiian Electric Company hopes to conclude an agreement in 1991."

* Under Hawaii Deep Water Cable Program

Substitute "completed" for "executed" in the first line. Add, "The program included environmental and economic analyses and overland and ocean bottom route surveys."

* Under Master Development Plan

In the first sentence delete, "and for a federal NEPA EIS" and the word "early".

* Under True/Mid-Pacific Geothermal Venture

Add to the end of the second sentence, "in the Kilauea Middle East Geothermal Resource Subzone".

* Under Puna Geothermal Venture

Add to the end of the first sentence, "to begin supplying 25 megawatts of power to Hawaii Electric Light Company with the first increment to be delivered in 1991. 11

..... You might want to consider adding a statement, "The permitting

for this project was essentially completed prior to the enactment of the Geothermal and Cable System Development Permitting Act of 1988, therefore it was not an appropriate candidate for the provisions of the Act:•

Page 4

* Under Hawaii SOH Program

In the second sentence, insert "four" before "SOHs".

f,

Jo A Report ~the 1991 Legislature

GEOTHERMAL AND CABLE DEVELOPMENT PERMITTING

Prepared by the

Department of Land and Natural Resource

State of Hawaii

in response to

Section 196D-11, Hawaii Revised Statutes

Honolulu, Hawaii

~ A Report )if the 1991 Legislature

GEOTHERMAL AND CABLE DEVELOPMENT PERMITTING

Prepared by the

Department of Land and Natural Resource

state of Hawaii

in response to

Section 196D-11, Hawaii Revised Statutes

Honolulu, Hawaii

December 1990

,

t .

·I,

. '· / (

JOHN WAIHEE

Governor

BOARD OF LAND AND NATURAL RESOURCES

William w. Paty, Chairperson, Member at Large

Mose~ w. ~ealeha, Member at Large

John Y. Arisumi, Maui Member

~lerber~ ¥. Ara~a, Hawaii Member

Herbert K. Apaka Jr., Kauai Member

1 Wilrl-4-&llr w-:-·~Itr---¥'1ieft., Oahu Member

DEPARTMENT OF LAND AND NATURAL RESOURCES

William w. Paty, Chairperson and Member

Board of Land and Natural Resources

/ Manabu Tagomori, Deputy Russell N. Fukumoto, Deputy

~i-fi.t 1'\ A-~ a.( C.. ,. ~ ~~ (H."I.'?)

. ...

CONTENTS

INTRODUCTION

PROGRAM DEVELOPMENTS

Status of the Consortium Current Status of Geoth ~~attus of the Integrate~r:~~i~ev7lopment Activities

a us of the Int I or1ng Team Status of the En 7r sland Cable study Mit' t' V1ronmental Im t lga 1on and Monit · pac Statement 1990 International sor1ng.Workshop Newspaper File ympos1um on Geothermal Future Plans Energy

Future Plans for t Statistics he Interagency Group

~ ;;L.. ( ;!.-;..· JrRR

//-.;..· ~·~

IN-'- (;..._~ ~? ~ ~

~~~

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f

INTERAGENCY GROUP ON GEOTHERMAUCABLE PERMITIING ·l L.f. Colo,-c...l D"..,"' tel. T. W~VJvt .Celennel F.S. \¥muter District Engineer U.S. Anny Corps of Engineers

Rear Admiral William P. Kozlovsky Commander, U.S. Coast Guard 14th Coast Guard District

Dr. Allan D. Mannelstein Pacific Island Administrator U.S. Fish and Wildlife Service

Ms. Vicki Tsuhako, Manager Environmental Protection Agency Pacific Island Contact Office

Mr. Edward Y. Hirata, Director Department of Transportation

Dr. John C. Lewin, Director Department of Health

Mr. Richard Paglinawan Administrator Office of Hawaiian Affairs

Honorable H~l~ftavftfes Mayor, County of Maui

I? CJ1A.rk~ K. ~~ t1 ..,

Admiral Qavig E. Jereu:1iab Commander in Chief U.S. Pacific Fleet

Mr. William Meyer, District Chief Water Resources Division U.S. Geological Survey

Mr. John Naughton Pacific Island Environmental Coordinator National Marine Fisheries Service

Mr. G. Bryan Harry Pacific Area Director National Park Service

Mr. Harold Masumoto Office of State Planning

Mr. Roger Ulveling, Director Dept. of Business and Economic Development ,

~IV1'~ 1Awh I Honorable tJeffl (4 K:Akmii" Mayor, County of Hawaii

Honorable Frank F. Fasi Mayor, City and County of Honolulu

I J I I I I I I I I J

I J

I I

----------------~--~

GEOTHERMAL AND CABLE DEVELOPMENT PERMITTING

STATE OF HAWAII

INTRODUCTION

Chapter 196D, Hawaii Revised Statutes, {see Appendix A) requires that the Department of Land and Natural Resources establish a consolidated permit a~ication and review process in which county and state agencies ~et ...Jae- required to participate_. and in which all Fe~encies having jurisdiction over any aspect of the project WL e invited to participate. The statute also require~stabli0 a i~teragency group; preparing a joint agreement r&~ai~ coordina~ P.~~tting efforts; transfer of certain regulatory functions; :pr~V'i'a:tllgof a conflict resolution process; ~ providing information services; and establishing a repository of laws, rules, and related information concerning geothermal/cable developments.

1 ~During the initial year of the prpject, the Department f'"0rH~pared administrative rules ..:t.g.. implement;._{Chapter 196D. These

rules (see Appendix B) became effective September 5, 1989, and iReludeAProvisions for allAof the requirements of Chapter 196D/~s. 7--e+ .. ..f..r-1)v ~ o.. ... Q,

Since that time, absent any application for a geothermal/cable project to date, the Department has concentrated on developing a consolidated application form and procedures for implementing an efficient consolidated review of an application, and has monitored progress in existing geothermal projects, in order to make use of this experience preparatory to coordinating and regulating the anticipated larger project. In addition, the Department has prepared a compendium of permit documents applicable to the geothermal/cable project for use ~potential project applicants. The Department has also begun efforts to implement addi tiona! efforts in the area of public information and documentation.

This annual report reviews the and the status of ongoing activities process governing the development significant energy resources.

Department's accomplishments to facilitate the permitting of one of Hawaii's more

PROGRAM DEVELOPMENTS H tt:lf~ 1

..v".t-t+led­

At?\-~t11, '7v

During the first year after.l\the "Geothermal and Cable System Development Permitting Act of 1988" went into effect, the Department completed the steps of forming the Interagency Group called for in the Act, hiring staff, preparing a~ti~strative rules, and establishing a ,I.!er~it Center. All these t:'l , we,!"~l'}). __ ..L.__ .......J

anticipation of a major pregram application being recei ved:J~ €i1l\e during 19901 and being processed by the Interagency Group during that time frame.

Due to unanticipated delays, however, no application was received during the second year of the program. Therefore, this period was spent in further refining the draft consolidated application form (see Appendix C) and analyzing further what additional permits might be required, and making them availab~ compendium form at the Division of Water Resources Managemen~ and D~rT·~ in preparing procedures for carrying out an efficient coordinated ~&l review of an application (see Appendices D and E). An effort was ~~ made to monitor developments relating to the anticipated 500 fU.."~ megawatt geothermal/cable project. The various developments are ' summarized below .

.status ef the Consor~ium ...... ~#Y &1~/~ld ?y9f.ut. ~ -sfp!lts

f!e4r.t~-t,.-- Y..-vy"~.!rhe Hawai P' Electric Compan/s Request for Proposals issued in May 1989 cal~d for two responses, one technical and one commercial, due November 1, 198#t and December 1, 1989, respectively.

wltt(f'~ Five proposals were received and evaluated by a tea~o~Hawaiia.n

Electric Company,~state~nd c~Hsultan~ perseHae~ )~kd ,suu.-~ pus~ li-11a ~· ~.,..~~+w-e.~.. -?f~ C.~J ··->_....~

The proposals were evaluated twice, resulting in the same short listing of two firms in January 1990. One firm has .usoeqtle"~ly dropped out of consideration, and negotiations between Hawaiian Electric Compa~And the remaining firm, Mission P~~ of California, are ongoin~~this writing. Due to the slow ~~~f ~negotiations with M1ssion Power, Hawaiian Electric Company has given up on its hope of signing a power purchase contract by the end of the year, and instead hopes to conclude an arrangement some time :Rext yGa.r ~;., I~, I •

0 ~+-<-r-Current Status of Geothermal Development Activities

CA..f-rc:.. _ ~~ V..t..-t -+u....-~ L.()~wt-e.d ~ d 1 .ru.:f1rm,J_..,

_ .--- The Tru it e h ~al p o:le'ct has (iril:ltt ~~~lls from the ~~fG~~well pa ana a stea£ rG~ource i~ one area has beeH found ~hat.

oP' ,i~ G~ceurafJi"~. Hm:e,Jer, at this wri~inq it is anticipated that it will take several moreJ\ wells to determine whether there ~ e>tpl•l <Uc>f<

(~ l'r&~-C..DWf' ~~ ~ +->1 ~ jfAM'~ -f.,

c" ~ A '7""J.h Vl~ 't~ ~

C- ~:~;.=;~'Z;:1J:x::ll~ :~:::4o~~~t~l·~ · Plans are in preparation to move to a new site, pending approval of the Department of Land and Natural Resources.parsaaRt ~o ~rtle's

up to 100 megawatts of geothermal energy capacity. There has been no change in the company' s plan to negotiate a contract to sell 25 megawatts of power to the Hawaii ~~ ~ Electric Light Company once the resource is proven. --- ,rl1J;-;)(-~I.l.<7

1) G~ v.:; o~ f ~tt J f'CAJI1~ The Puna Geothermal Venture project began clearinc;l" for theA P"

Pw.eNplant site in September 1990. The last pf the 51 permit conditions

. ~~~the Hawaii County Planning Commissio~Geothermal Resource Permit \""f were met with approval. ef the emergency response plan and the

recej pt gf the $250, 000 iR state funds for an asset repar: ation f,uJ;ui. 'f'he pr: oj ect is bfihind schedule 1 but has Rot ohaREJed its plan tg pre"iide powe:r; to Hawaii Eleetrie LiEJht Company on line be!'o:te""" .:t.ae QREi-af I_99"6J\ ?.w-rliA~tt~ A-s&~+ :ft.~ ~~ G4.<~~-H, ~~~ -t-sfe:..~/t;h~.L ~/h...

C rJ~ "1) ~ f'V~'/.JUYj7~~.I "A.7.~/~ ~~ ,J,,f7 <ff,~~ NT. '/i,,,. k- l:>t.Ji-ruf-.

l ,:J)~,...,, A The jE:n1.v. rs~ty_.......-o~wl§.1.1.'s. proJ .~.¥ J ompJ,.eted o e of our pproved orat y well and is at )~lis )'~

~-k, '-..; ri~g a work n th second ell. . _ , ~. \. ~=:,~/; _ . 5et~ft-hc' 06s~~,.; ~0 ~ ~ - tatus of the Join~ng Team •

~ 7"Ac.. ~ /~rh~ .e.-tf.rlx -n, CcJ.orclti?AJf'~ ~d esf"lltblt;/, ~vt on. May ~gver:Agr Wa i bee designated Mr Sasumtl ORo,

~arljer appointed Geothermal Coordinator, a. coordinator of ~ integrated monitoring team to monitor and ~;J?late geothermal activities in the Puna district. This t~~~ ~e~d combine State departmental resources and personnel and~t-iWd cooperate with and offer assistance to Hawaii County agencies .. tO;s:ttes~Jc'ften:t they ~:re

.w.:i 11 ing to participate in the effort. re ~ j;he Natural Energy Laboratory of HawaiiA p ore the possiDlli ty of using part of the former HGP-A power plant structure O..t~) to house the integrated monitoring team and to expl~~~ the ~ possibility of using portions of the net revenues from th~~I~ of h. steam from the HGP-A well to acquire fiee~.monitoring equipment. ~

J'rf, dh o..clcl, m~ ~&1~~ ~ this writing there have been two meetings of this group; ~

an inventory of monitoring equipment has been prepared and plans for cross training of selected personnel have been established. A geothermal program planning workshop is being planned. ~~~ ~

Status of the Interisland Cable Study

In September 1990 a contract was completed to study the technical feasibility of an interisland cable syste~hat would be able to carry 500 megawatts of electrici~~petween~slands over some 200 miles~ at depths of up t~fK~~ 1,ooo feet, and that would have a life expectancy of 30 years. Two types of tests took place - laboratory tests, completed in November 1988, and at-sea­tests that were completed in November 1989. In both tests, the type of cable to be used met or exceeded the established requirements.

(~c-luJ..- ~J(~Y"bl.,~ Sf, /1 It' 1 r &*' ~ .-fa P&ll ~ u,_

tV =,f'-4- ,

Status of Master Environmental Impact Statement

~ this writing it is anticipat&a that the notice of preparation for a programmatic environm~n~l impact=statement and for a federal National Environmental P~~~~ion Act environmental impact statement will be submitted in early 199~upon completion of the majority of the activities in the master development plan and transmission corridor route selection process. At this time" the master development plan ~has been prepared in draft form. The process---of developing this plan has included extensive public partic~pa~ion. 7Th& plan includes an ~malysis ef overland .....

• transm,ss1op cor~1ders.

Mitigation and Monitoring Workshop

In June 1990 the U.S. Department of the Interior and the U.S. Environmental Protection Agency jointly sponsored a workshop on mitigation and monitoring. The Department took this opportunity to alert the members of the Interagency Group about the meeting and coordinate with the sponsoring agencies attendance by members of this group. The workshop proved very informative especially with regards to the requirement for a federal environmental impact statement.

1990 International Symposium on Geothermal Energy

In August 1990 the Geothermal Resources Council held its international symposium in Kailua-Kana, Hawaii. The symposium was

, co-chaired by..-ec'!eEiter William F. Quinn, Chairman of the Governor's ~..,~dvisory Board on the Geothermal/Cable Project. There 'tas a w~G;o

f(..t ,~ ee'tiol'l on geothermal development in Hawaii in which 15 papers were ~c,dJ'I presented on current geothermal issues in the State.Gf Hawa H .. -Mr.

Manabu 'l'ai!Jemori ;pr&ii&ntea Mr. Williaiu \i. Pa'ty'~paper entitled "Geothermal and Cable Development Permitting Act" (see Appendix F) which summarize~ the role of the Interagency Group and its progess

$ - ~ to date, ~ r-Y'~"-+e4 @ (kt. ., J;kp~tl.\.~ .

Newspaper File

A chronological file of newspaper articles regarding geothermal activities in the State of Hawaii has been maintained. The file has been useful in monitoring and assessing public information and opinion regarding the proposed geothermal/cable project.

--

Future Plans for the Interagency Group

The Interagency Group for Geothermal and Cable Development Permitting has finalized the consolidated application permit form, and has drafted operating procedures to be utiliz7.d when an app~ication is submitted for the proposed~500 megawatt;interislan~c~t~ proJect. q~ et~d~rr.w

. t . . d tit«Nl ~ . . . . It 1s an 1c1pate that ~ appl1cat1on w1ll be rece1ved ~ ~ after the Hawaiian Electric Company has completed its negotiated power purchase agreement with Missieft Power CompaRY in 1991. ~ S".ekc.ttc:t '- J _L •

\AIH DY'T7UK--J

statistics

The following are statistics of activities accomplished by the Geothermal/Cable System Development Program staff for the period January through October 1990.

1. Assitance Rendered 76

2. Investigations Undertaken 20

3. Meetings Coordinated/Attended 20

4. Special Reports Completed 7

--o· ·~.:~7£~:~:~~~.~!iE:·:: ,:. ~~ .· ... .. :~ .Jf! H~T~-~ ~-~9-! ~ 1990

~~t?:J~:ri~ifi.·;:~:. t_~: --~'1.-d'urft!llct . • .~'J: ' . ..,-, .

was: a ,-IJ:lodel.: ol-~· ~ · · · · ~at« t , · .·•• • taaGit ·" :r-~=·fid·:;A_·.'-way;-~ 'buc~W'~'~- ~-:Vei.f. large and vexy l»asic:· ~ Also r think John Mita:: SbOtiJtl r,e· ' asked- or allowed- to ~op his recent letter's information.. He brought out. that evesr" if geother_mal were fullj- on' ··line today, 1t would only cut intoi -not cut off - the use :rates' of "residual oil,.~ the only oil that Helco uses anyway for generat:: ing electricity. Cars, businesses, and jet pfanes-l~Se - be- said,- 99-percent of the imported . oil brought to Hawaii. So unless we­wish to park most people's cars "for the duration" and gtound· all jet planes, and thus all those­tol,lrist dollars, there is just· no way to ever "cut down!"- on "imported oil"! Not for us .here, or in Japan either .... · -

Does anybody here really hon­estly believe that the kind· of people who can't even: run sew. age -downhill without spilling·- it all over the- beaches; aDd· take twice or three times as long·--. and more money too! -to build a simple Wailoa Bricige over, from wrong plans only too~ lately 'noticed - are somehow Or other going to efficiently ana above all economically "export" iJower across one of the most treacher­ous ocean currents known?· I don't think you· do personally; I know I and many others whO-·m principle favor geothermal deve­lopings certainly do notE 1.1te wholly cynical "let it fall apart first" attitude of Helco ~ as Elise Walden's Aug. 19letter Iet~s us all know of - is an "Exhibit A" case in point. - ,. · •

So, just one iittle question: WHO is going to PAY foir the BILLION$ that the coming "energy exporting" $chem~ to Oahu i$ GOING TO CO$'l'?'E$pe­cially when the "resource'' turns out to be "less than anticipated" just about time the first BIL­LION or $o are "down ·the tubes"? .The same little,=peaple who are being readied for the S&: L $crewing$ upcoming for $ome $500 billion$ .... ?' .. i r;.: .. ·, t~

Frederick Allen hAsher Volcanoes National Park

·,;: : ...... c· · - \.til

-L-::::·:-~~~::;~~~J~

. ~. Geo: editorial

tkl:ineLV tbaa -~ ~. ...~. ·• adcoDiplei~\ ~salalrt.bemial~ ·: pir@'~~ ~ Oil!. aetUalc,_.a ..

·· ""' ~·· ; . c:uu- apenenee 1m · CWIP' . f'ol"DfaitS~ow tbat sgJ.ar therMal. is

'!FJt;'Ttie editorial of <Aug. 19> titled rimreo-~ 25 percent cheaper "Isle geothermal & the Persian __ then geo!- . 7:· ~- . _ Glllf"' represents a new IGS iD' Both 50lar tliermal anG efm pro-geo propaganda. It· ia- one . ciency invesbneuts have a lead thing to express your opinion. in time of less tbaDik two years, as favor of geothermal, as you have opposed of six years for .large done in the past, but to pretend to scale geothermal. If the Mideast give a balanced, two:sided crisis. heightens our sense. of approach while failing to accu- urgency, then. all the more_ rear rately represent the real issues is son. to go wtth ~ore qwcldy_ particularlyinsidious. . ~- ._ available technologies, whi_chare

We all agree that Hawaii milst· also cheaper and more reliable. reduce its dependence on foreign The .editorial touts the oil, and the Persian Gulf crisis "proven" nature of geothermal. highlights the urgency. However-, But geothermal· has in fact been the- need to choose the best proven unreliable on active val­solution has not changed, nor canoes. Iceland is the only geo­have the insurmountable prob- logically comparable situation, Iems..with geothermal in Hawaii. and Iceland has cancelled phase • Energy efficiency investments 2 of its geo development plans a~ replace more oil than geoth- due to the unreliability of geo

.... errilal at a. fraction of the cost. wells in an active volcanic reg­without environmental sacrifice ion. And even in California, the or health hazards. Our electric unexpected depletion of geother­bills could be reduced through mal has resulted in cancellation proven; available-- efficiency of further planned development, investments, as opposed to the and huge lawsuits over who will increase geothermal will bring. pay for the losses <answer- the Helco is already asking for a ratepayers>. massive rate increase· based on At the recent geothermal con- · OrmatiPGV 25 MW prpject - ference, many geothermal scien- . and this is before the multi-bil- tists stopped by the hospitality lion dollar cable cost kicks in. . ·l suite sponsored by opponents of

-~· l.J&!! ·~ geo in Hawaii. and many of our

concerns and objections were validated b3£ these experts. . ~·

The- "botuJm line" in the<_edi- -~~ ' ' ~~,-~\

torial states thatprivatedeVerop-ers are lined up ready to invest in Hawaiian geothermal. Ferhaps the editor is overlooking the fact that these private developers are not willing to go forward. without the ongoing government subsi­diizng of g~ exploration and promotion. We the taxpayers are paying millions to entice- these developers. And the solar tl'ler­mal people, Luz International, has been willing to come to Hawaii for years, but have met with antagonism from the state administration and the Hawaiian Electric monopoly.

The oil crisis should ·indeed spur us to action. Let's open our eyes and choose the best answers . for Hawaii, rather than fixing our blinders ever more tightly and continuing the geothermal tunnel vision that continues to delay true energy independence for _ Hawaii. .. . .. _

Russell RUderman ··'Pahoa

A Report of t~e 1991 Legislature

GEOTHERMAL AND CABLE DEVELOPMENT PERMITTING

~ I I

Prepared by the

Department of Land and Natural Resource

State of Hawaii

in response to

Section 1960-11, Hawaii Revised Statutes

Honolulu, Hawaii

'<

,.

A Report of the 1991 Legislature

GEOTHERMAL AND CABLE DEVELOPMENT PERMITTING

Prepared by the

Department of Land and Natural Resource

State of Hawaii

in response to

Section 196D-11, Hawaii Revised Statutes

Honolulu, Hawaii

December 1990

,--1

JOHN WAIHEE

Governor

BOARD OF LAND AND NATURAL RESOURCES

William w. Paty, Chairperson, Member at Large

Mess• w. ~ealoh~, Member at Large

John Y. Arisumi, Maui Member

-Her~er~ ¥. Ara~e, Hawaii Member

Herbert K. Apaka Jr., Kauai Member

Wil.liam-W-:-~br-¥-l:ieA-, Oahu Member

DEPARTMENT OF LAND AND NATURAL RESOURCES

William W. Paty, Chairperson and Member

Board of Land and Natural Resources

Manabu Tagomori, Deputy Russell N. Fukumoto, Deputy

,_ -

/ "' ~----.,

CONT,ENTS

INTRODUCTION

PROGRAM DEVELOPMENTS

Status of Permit Center Personnel Activities Statistics

GEOTHERMAL/CABLE SYSTEM DEVELOPMENT STATUS

APPENDIX A - Act 301 Session Laws of Hawaii 1988

APPENDIX B - Chapter 185, Hawaii Administrative Rules

APPENDIX C - Draft Application Form and Instructions

APPENDIX D - Draft General Guidelines for Processing the Consolidated Permit Application

APPENDIX E - Draft Joint Agreement

APPENDIX F- "Geothermal and Cable Development Permitting Act", speech prepared by William W. Paty and presented at the Geothermal Resources Council 1990 International Symposium on Geothermal Energy in Kona, August 21, 1990

GEOTHE~MAL ~D CABLE DEVELOPMENT PERMITTING

STATE OF HAWAll

INTRODUCTION

Act 301, Session Laws of Hawaii 1988, was signed into law by Governor John Waihee on June 13, 1988. This Act reads, in pertinent pan, as follows:

" ... A major and fundamental difficulty in the development of both geothermal resources and a cable system is the diverse array of federal. state, and county land use, planning, environmental, and other related laws and regulations that currently control the ~ndertaking of all commercial projects in the State; ... the complexities, the magnitude m the scope and cost, the fundamental interrelationship between the development of geothermal resources and a cable system, the inherent requirement for the coordinated development of the geothermal resources and a cable system, the substantial length of time required to undertake and complete both developments, and the desirability of private funding for both developments require that affected state and county agencies be directed to pursue and develop to the maximum extent under existing laws the coordination and consolidation of regulations and controls pertinent to the development of geothermal resources and a cable system; ... A consolidated permit application and review process for the development of the State's geothermal resources and the cable system should be established by an Act of the legislature."

In fufillment of the goals and mandates set forth in Act 301, SLH 1988, the Department of Land and Natural Resources initiated efforts to develop and implement a consolidated permit application and review process for geothermal resource and cable development projec~ 1~i~ annual report, required by the Act, documents the Department's initial five quartef eff'ortSJ.!d "' implement this program and summarizes the ongoing activities related to the development of geothermal resources and an underwater cable system.

Act 301, Session Laws of Hawaii 1988, (see Appendix A) requires that the Department of Land and Natural Resources establish a consolidated permit application and review process in which county and state agencies would be required to participate and in which all Federal agencies having jurisdiction over any aspect of the project would be invited to participate.

The Act, now codified as Chapter 1960, Hawaii Revised Statutes, calls for the following actions to be undertaken: the establishment of an Interagency Group to perform liaison and assistance functions; the adoption of an interagency agreement designating members of a permit review team; and the identification of all applicable permits required for any project, including the regulatory responsibilities of each agency and the applicant. The joint interagency agreement would establish a timetable for regulatory review, the conduct of required hearings, and other actions relative to the permitting pocess.

Chapter 1961), HRS, also sets forth the transfer of certain regulatory functions of the Department of Transportation and the Land Use Commission to the Department for purposes of geothermal resource and cable system development permitting. In addition, the statute requires that the Department of Land and Natural Resources implement a process for the resolution of administrative and/or procedural conflicts between agencies; establish a program to monitor compliance of all permitted activities; and provide any streamlining mechanism that may assist agency and public review of permit applications.

The statute also charges the Department with the responsiblity to provide permitting and regulatory informational services, and to establish a repository of laws, rules, and related information concerning geothermal/cable developments. Lastly, the statute prescribes that the Department implement, and utilize other measures as appropriate to carry out the consolidated permitting application process effectively and efficiently.

This annual report reviews the Department's accomplishments and the status of ongoing activities to faCilitate the permitting process governing the development of one of Hawaii's more significant energy resources. ·

2

PROGRAM DEVELOPMENTS

The "Geothermal and Cable System Development Permitting Act of 1988" (Chapter 196D, HRS), went into effect on July 1, 1988. The Department of Land and Natural Resources took immediate steps to implement the provisions of this Act through its Division of Water and Land Development.

Establishment of Permit Center ~ /11fv·p/ 118 7

. A Permit _Jnf~rmation an? Coordination Center was establishedA as a part of the consohdated applicauon and review process. As required by the Act, the Center serves to provide permitting assistance to potential applicants, in addition to housing the mandated repository of laws, rules, procedures, permit requirements and review criteria of all agencies.

Personnel

During 1988, a consultant was contracted to begin the immediate task of preparing administrative rules to implement the provisions of Act 301, including a draft of an intra­agency conflict resolution process. In addition, the Department initiated recruitment of additional personnel to get the permitting program underway.

During the first quarter of 1989, a geothermal cable analyst and a secretary were hired to staff the Geothermal/Cable Permit Center. Their initial assignment was the promulgation of administrative rules to implement th: Act. A peripheral task of the Center's personnel -:vas to (l' .............. schedule and help c_onduct the meetmgs of the Interagency Group. _ 1 •. /'/l'v·i~ (.~~~ ·· . , ?,·

L: .L/ / ·tl .. 1 . 1 I a. 4 _J.fl I ,.; ... !' .•• ,. -t,. / ~ . '· I • . J {.~ V..._ r· ~tv1. ··, ·J'~r• l u,· / ,~ A.--c.,_, "'~. . , /'. . _.../,.

7 t- ,,_.,,. ' .C,..- . ' .. / "I/, (( ,./'/ G /).r"--..,_'..--....:..._ . j! ,.,.._ ·t,, )'.:.~- • "~ ·~ I ?f-., ... -y~I Z- a .... ~ '""' ' ' ?. V 7 · A.'~",~--·1:~' ~~i(<-r/l ..... ·f c.---.......... t::t·~-Y.. ~"'Y'Jl~. ;;t/.. -6--({ ;~-,--t-/,,_, .. 1? c.~J'l ,1,./'c;::"(. ... F9rmauon of mterage Grou~ ,.,.?..., .... t::. u . ~ /' . ' > ·."''' 'lt...; lt/c·r : ... ~ 5.../jj,t,. t:_, <''ifJ 1~ ~~~ ~ •-1- I . ( tt l,...a-• ...- .

I · In the effort to establish the called-for Interagency Group, the Department spearheaded an initial organizational meeting of agencies sharing regulatory jurisdiction over geothermal/cable development projects. At this meeting, held in September of 1988, an overview of the status of geothermal development in the State was presented by the Department. The Interagency Group was formed and member agencies were requested to submit all available information relating to their respective permitting processes.

The materials and information subsequently received consisted of applicable statutes, regulations, application forms, and agency review requirements. These were compiled into a repository of information concerning permits required for any proposed geotherma.Vcable development systems.

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A second meeting of the Interagency Group was held in February 1989. At this , r," . , .- /t. meeting, member agencies and their staff were updated on the current status of proposed and -/· I :· ~ : r

on-going geothermal development activities in the state. In addition, discussions were held and I

comments solicited concerning the proposed administrative rules. . / 'I , / ~ I~- ~ z- /' ~;_ ,O.Al 1 ,'..I'

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Administrative Rules

Throughout the second and third quarters of 1989, staff of the Geothermal/Cable Permit Center continued to work with the Interagency Group to fmalize the administrative :uies. Comments from the Group and other interested parties were reviewed for incorporation mto a fmal draft of the rules. Statewide public hearings on these rules were held in June 1989 on the islands of Kauai, Oahu, Maui, and Hawaii.

During the public review and comment period, concerns were raised regarding the transfer to the Land Department of cenain functions and responsibilities of the Land Use Commission relative to geothermal resource development activities. Concerns were also raised in connection with the authority of the Department and with its designated role as the lead agency for the geothermal permitting process. These issues were resolved, and language in the draft administrative rules were clarified to ensure that no agency's authority or jurisdiction under existing statutes would be invalidated by the Act's consolidated permit application and review process.

In August 1989, the Board of Land and Natural Resources adopted the proposed. administrative rules, which were subsequently approved by the Governor and became effective as of September 5, 1989. The newly promulgated rules are identified as Chapter 13-185, Hawaii Administrative Rules, and are entitled "Rules of Practice and Procedure for Geothermal and Cable System Development Permit£tng" (see Appendix B}.

j),,c·--~ ,f/... ~ ~· LJ-'d In~Y~A M the adminiStrative rules .aF& now in place, the Department will be

disseminatfiil' the rules, · formation on permitting procedures, and other relevant material that would benefit the using public, which would include not only the project developers and regulating bodies but th segments of the public who would be greatly affected by permitting d .. 1/....J ,.. ..

~ ~ . .. .,._ ·- ~- { .. ,)~tilt·····""'~ , v v_ ~ ., .~ .. eCISlOnS .. t·.~-·-t· ,:-r·, .... / 'I ,.~.:,.i·/31," m. ,,, :t: . ~ .\.~-~ .... ~~ .. , '"~ ,, ,(..{ •.r

)_.,,, ·./ t .:·K p 1-'tet,,.lc-, / / '1 _l!.<4-"t,; ·.r}-(:·t-..:',. .. ~7 /'tL-j<-~ ""J ~,._/,e-~7' .. :; , '_j'

. ' '·. , ;' • •. , r •··-"'-""'ri .&.-' • ./.. , '/ ;( . V 1 ill/ )F"' ! '' .

Other Activitie~ . 0 , ""./ JJ·"' •Y '~ · ... f .~ ·· · .... ., r J; 1<-J( (-~ ~(J..- •<- • .:-.. r'1!1_ / t~;~~· I. , r n{e Department has Ei:lse entered into a contract with the Research Corporation of the

University of Hawaii (RCUH) to provide additional services to facilitate the the consolidated permit application and review process. Among other things, the contract provides for the hiring of a library science specialist and public relations officer to assist the Department with the operation of its permit information and coordination center. The activities covered by this contract will be undenaken during the fiscal year i 990 9t. 11 'II- f ,;.,.. ~

The Department has ~;1~J a ..QI:aA consolidated permit application/approval form f.,. proposed projects. In addition to the consolidated application form, sever~<'o"tp~E.f rms and checklists essential to the implementation of the review process have been . · The--erafi­::master~ppli€-at-ion--and-relared-fonns- have- been distributed- to.--tM--membel:s~-lntMagwey­Group---for-·their-teview and· ·comment; and should be finalized and readjt-fur-ttse-by the first-quarter· of 1990:·

The,»'c9r.lc and activities completed by the Permit Information and Coordination Center during the ~alendar year have been summarized in the table below. The data are presented as follows: number of requests for assistance/information that were received and acted

4

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upon; number of inquiries or investigations that were conducted to gather pertinent information; number of meetings conducted t.for -to-the-preparatiefl-.Q{-the-a4ministrative -rules ·and­

-.appliGation-formg; and the number of special projects undertaken.

. , . - .

1. Assistance Rendered .... / 2. Investigations Undertaken 3. Meetings Conducted 4. Special Projects Completed

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GEOTHERMAL/CABLE SYSTEM DEVELOPMENT STATUS

The State of Hawaii views geothennal energy as the only large-scale, indigenous, non­fossil-fuel energy resource that is commercially viable. At the same time, Hawaii envisions the development of an interisland submarine transmission cable as a vital part of its energy future. Because geothennal resources in the State are predominantly located on the island of Hawaii, a Hawaii Deep Water Cable Program (HDWC Program) was conceived in October 1981 to determine the technical and economic feasibility of developing a submarine transmission cable system between the islands of Hawaii and Oahu. The program addresses the major technological, construction, operational, economic, and regulatory problems and risks associated with the submarine cable project.

As part of the HDWC Program, the fabrication of a 26,000-foot long wire cable having similar hydrodynamic characteristics as the proposed commercial cable was completed. More recently, the temporary deployment and testing at sea of the surrogate cable was conducted during the period of November 16-22, 1989.

In May 1989, Hawaiian Electric Company (HECO), in its efforts to decrease its dependence on imported oil and to strengthen the State's economy, published a Request for Proposals to design, construct, install, fmance, operate and maintain a project entailing the generation of electricity from geothennal resources on the island of Hawaii and the delivery of 500 megawatts (MW) of electricity to Oahu. A conference for potential respondents was held by HECO in June 1989. At that time, organizations having the technical, managerial, and fmancial expertise to develop the project, or cause it to be developed through others were invited to respond to the Requst for Proposal.

In September 1989, HECO interviewed and identified five candidate parties who submitted technical and commercial proposals to HECO. Based.upon itS- reyjew_of the submitted-pmposals,.-HECO _ wllLnegotiate--one··or more implementing· agreements -h¥ ....Dei: ember .of._l.099:-The development of the project may poliliibly result in separate undertakings for the development of the geothennal resource and the transmission of the developed energy.

The consolidated permitting process will assist the development of the overall project by coordinating and the multitude of State, County, and Federal agency jurisdictions and expediting permits.

To date, no p~oject-related application has been received for processing under the consolidated permitting procedures. No identifiable problems have arisen to date. Accordingly, the Department recorrunends neither any changes to the present consolidated permit application and review process nor any change to the statute at this time.

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·,·

GEOTHERMAL AND CABLE DEVELOPMENT PERMITTING ~TATE OF HAWAII

INTRODUCTION

:.e~~~ LCAIN., "~ 1-tAwA.'tl·

Act 301, ~1988, was signed into law by Governor John Waihee on June 13, 1988. This act reads, in pertinent part, as follows:

" ... A major and fundamental difficulty in the development of both geothermal resources and a cable system is the diverse array of federal, state, and county land use, planning, environmental, and other related laws and regulations that currently control the undertaking of all commercial projects in the State; ... the complexities, the magnitude in scope and cost, the fundamental interrelationship between the development of geothermal resources and a cable system, the inherent requirement for the coordinated development of the geothermal resources and a cable system, the substantial length of time required to undertake and complete both developments, and the desirability of private funding for both developments require that affected state and county agencies be directed to pursue and develop to the maximum extent under existing law the coordination and consolidation of regulations and controls pertinent to the development of geothermal resources and a cable system; ... A consolidated permit application and review process for the development of the State's geothermal resources and the cable system should be established by an act of the legislature."

This report documents the Department of Land and Natural Resources' initial five quarters of effort in implementing Act 301.

METHODOLOGY

The Geothermal and Cable System Development Permitting Act of 1988 went into effect July 1, 1988.

Pursuant to the requirements of Act 301, the Department of Land and Natural Resources through its Division of Water and Land Development, took steps to implement the Act.

Initially these steps included hiring a consultant and assigning additional tasks to ex1stmg staff during the period while Act 301 staff were being recruited. An initial draft of administrative rules to implement the Act was prepared by the consultant, as well as a draft of a proposed conflict resolution process. An Interagency Group was named. Background information was prepared by Division staff, and a number of speakers were gathered, and an initial meeting of the Interagency Group was coordinated and hosted by the Division on September 29, 1988. At that meeting the members and others were asked to submit all information available relating to the respective permitting processes - administrative rules, forms and timetables. This material was collected to start a repository of information on permits required for geothermaVcable system development.

The Division drew up plans for an office to house a "geothermal/cable permit center" and the consultant made arrangements for the Department to lease approximately 450 square feet of space at 677 Ala Moana Boulevard, Room 509.

On January 17, 1989 a planner and a secretarial position were filled to staff the GeothermaVCable Permit Center. Initially these positions were housed at the Division's office in Room 227 of the Kalanimoku Building. Their assignments initially were to work toward completion and adoption of the administrative rules for Act 301 so that the consolidated permitting process could be implemented as soon as possible. A peripheral task was to participate or observe, as appropriate, in meetings with developers currently preparing permit applications, although the timing of these applications would precede the implementation of the consolidated permitting process. Observing these meetings brought staff up to speed with various permitting requirements and with the existing method of permit processing.

An additional assignment for 301 staff was to review the files, prepare background material and coordinate a second meeting of the Interagency Group. This meeting took place on February 14, 1989. Members were updated on the status of various geothermal activities in the state, and on the status of the administrative rules for chapter 196D, HRS (Act 301, SLH 1988).

Clerical staff was assigned to make preparations to occupy the new office space - order supplies, furniture and equipment to serve the two staff and one consultant that would occupy the office space.

The GeothermaVCable Permit Center was occupied from March 6, 1989. Staff's continuing assignment was to work with the Interagency Group members and others to finalize a draft of the administrative rules that would be approved for public hearing. Inputs from Interagency Group members and others were incorporated into a final draft which was approved for public review and for public hearings which were held simultaneously in Hilo, Kahului, Lihue and Honolulu on June 21, 1989. (An earlier May 30, 1989 hearing date had been set but had to be postponed due to a 1989 statute that went into effect early in May that lengthened the required amount of time between public notice and public hearing. Therefore the public hearing initially scheduled for May 30, 1989 was rescheduled for June 21, 1989 to conform to the requirements of the new statute.)

Between the time of publishing the rules and the end of the period for public comment, many comments were received from both public officials and from members of the public.

Division staff and Attorney General staff worked with these comments to redraft a final version of the rules that was adopted by the Board of Land and Natural Resources at their meeting in Lihue on August 11, 1989. The concerns that many had raised involved issues of "home rule" in connection with functions of the Land Use Commission transferred to the Department of Land and Natural Resources, and in connection with the role of the Department relating to other agencies' permitting functions.

These concerns were addressed by working with the concerned individuals and their representatives and clarifying the language in the administrative rules to make it evident that in the case of the transfer of functions from the Land Use Commission to the Department, the functions did not change, only the body administering them, and in the case of agencies' existing permitting functions, by making it clear in the language that no agency's authority or jurisdiction under existing statutes would be invalidated by the consolidated permitting process.

On August 24, 1989 Governor John Waihee approved the administrative rules, and on September 5, 1989 the rules became effective.

Additional tasks completed by the 301 staff included concluding a contract between the Department and the Research Corporation of the University of Hawaii to provide for additional services required by the Act but which the Department did not have

the capability to provide. These services included services in library science and public relations, to address the information and repository development functions of the Act. The activities provided for in this contract will be undertaken during fiscal year 1990-91. Also, a number of forms were developed for administrative purposes, including the Geothermal/Cable Development Consolidated Application form, originally drafted in fall 1988, which has been revised into a final draft form ith the assistance of members of the Interagency Group.

WORK DURING THE PRECEDING YEAR

Activities of the 301 staff from January 17, 1989 through September 30, 1989 included preparation for and participation in meetings both within and outside of DOW ALD, drafting and redrafting rules, preparing administrative aids such as application forms and information forms, providing information to parties interested in geothermal permitting, requesting information of others, drafting contractual documents, and setting up a new office. These activities have been summarized in the table below, in terms of information requested on the center, information the center requested, meetings attended, and projects undertaken by the center, for the period 1/17/89 through 6/30/89 and for the first quarter of 1989-90.

STATISTICS

Information Information Projects Requested Requested Meetings Undertaken of Center by Center Attended by Center

1/17/89-6/30/89 l/17 /89-6/30/89 l/17/89-6/30/89 1/17/89-6/30/90

7 8 43 13

7/1/89-9/30/89 7/1/89-9/30/89 7/1/89-9/30/89 7/1/89-9/30/89

16 1 16 2

DEVELOPMENT STATUS OF THE PROJECT

Hawaiian Electric Company (HECO) in May 1989 published a request for proposals for the 500 MW project and associated interisland cable. HECO held a workshop for interested developers on June 5, 1989, and interviewed five declared proposers on September 5, 6 and 7, 1989. Technical proposals are due to HECO on November 1, 1989, and commercial proposals on December 1, 1989. One or more power purchase agreements will be negotiated for signature by October 1, 1990, with the intent of resolving a decision by December 31, 1990.

PROBLEMS ENCOUNTERED

During the development of the administrative rules for 196D, HRS, there was considerable concern expressed on the part of the public regarding a number of potential adverse affects of geothermal development. Adverse impacts on health, safety, property values, view planes, culture and the environment were among the concerns expressed by residents of the Puna District of the Big Island and others. These concerns, though not directly relevant to the proposed permitting rules for geothermal and cable system development, nevertheless came up during the public discussion of the proposed rules. Many members of the public expressed open hostility and distrust of government in connection with negative experiences of the existing geothermal experimental plant at Kapoho, known as the HGP-A plant.

Many of the community's specific concerns have been addressed through formal and informal mediation sessions and meetings that have taken place among concerned members of the public, the government entities having jurisdiction over aspects of the project, and the developers. However, at this writing the protests and public demonstrations against geothermal development are continuing. It appears clear at the time of this writing (November 1989) that action is needed to inspire confidence in government and confidence in the possibility that geothermal energy can be developed in a safe and environmentally sound manner. Steps are being taken to increase public awareness of successful geothermal developments elsewhere, and to involve the public in the geothermal development planning process.

Without public confidence in government and in government's approach to geothermal development, the effort to coordinate geothermal permitting will face serious challenges through individual challenges to each permit required.

As expressed above, much of the public testimony received on June 21, 1989 at the hearings held simultaneously in Hila, Kahului, Lihue and Honolulu had little to do with the rules themselves, but related to the concerns discussed above. As to public testimony pertinent to the administrative rules themselves, these concerns centered on concern that the rules would usurp local authority. These concerns were addressed in the final version of the rules that became effective September 5, 1989. Nevertheless, there is a need to make expository information available to the public regarding the statutory limitations of the rules. Measures are being taken to provide additional public information about the rules, specifically to the effect that the rules do not usurp county powers or, for that matter, any agency's authority under existing statutes. There is a need to stress to the public and to concerned officials that these rules are intended to coordinate permitting activities, not to bypass them in any way.

LEGISLATIVE ACfiONS THAT MAY BE NEEDED TO IMPROVE THE CONSOLIDATED PERMIT APPLICATION AND REVIEW PROCESS

To date, no specific recommendations have been identified to improve the consolidated permit application and review process. Once applications have been received and the process is tested, suggested changes may be forthcoming.

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I

I STATE OF HAWAII

DEPARTMENT OF LAND AND NATURAL RESOURCES

REF:WRM-DK

Honorable Frank F. Fasi, Mayor City & County of Honolulu Honolulu Hale 530 South King Street Honolulu, HI 96813

Attn: Mr. Calvin Ching

Dear Mr. Fasi:

P. 0. BOX 621

HONOLULU. HAWAII 96809

1991 Report To The Legislature On Geothermal And Cable Development Permitting

AQUACULTURE DEVELOPMENT PROGRAM

AQUATIC RESOURCES CONSERVATION AND

ENVIRONMENTAL AFFAIRS CONSERVATION AND

RESOURCES ENFORCEMENT CONVEYANCES FORESTRY AND WILDLIFE LANO MANAGEMENT STATE PARKS WATER AND LAND DEVELOPMENT

Enclosed, please find a copy of the 1991 Report to the Legislature on Geothermal and Cable Development Permitting. The report includes an update on the status of the geothermaVcable system, current geothermal projects and proposed geothermal developments and activities.

I would like to call your attention to two items among the appendices that require your review and comments prior to implementation by the Interagency Group. These are Appendix D, the draft General Guidelines for Processing the Consolidated Permit Application and Appendix E, the draft Joint Agreement.

Please review these documents and respond in writing with your comments before July 1, 1991 if you have any changes to propose. Thank you very much for your continued assistance and cooperation.

Very truly yours,

WILLIAM W. PAlY enc.