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HomeMy WebLinkAbout2011-04-07 EXHIBITB WINDWARD PLANNING COMMISSION COUNTY OF HAWAIÒI HEARING TRANSCRIPT APRIL7, 2011 Hu Honua BIOENERGY LLC (SMA 221) A regularly advertised hearing on the application of was called to order at 10:14 a.m. in the County of HawaiÒi, Aupuni Center Conference Room, 101 Pauahi Street, Hilo, HawaiÒi, with Chairman Zendo Kern presi  COMMISSIONERS PRESENT: Zendo Kern, Dean Au,Wallace Ishibashi, and Stephen Ono STAFF PRESENT: Julie Mecklenburg (Deputy Corporation Counsel), Daryn Arai (Planning Program Manager), Phyllis Fujimoto (Staff Planner), Jeff Darrow Cottle (Staff Planner). APPEARANCES: For the Applicant: Jodi Yamamoto For the Planning Director and Planning Department: Amy Self For the Sixteen Intervenors: Steven Strauss For remaining intervenors: Robert Ferrazi and Elaine Munro And approximately 64 people from the public in attendance. ABSENT AND EXCUSED: Rell Woodward and Takashi Domingo APPLICANT: Hu Honua BIOENERGY LLC (SMA 221) Discussion and action on the Hearings OfficerÓs report and recom Special Management Area Use Permit No. 221 which originally allo coal storage area and a coal burning energy plant and related im request is to allow a change in fuel source from coal to biomass and to construct support facilities and infrastructure at the fo Power Plant, Makahanaloa, South Hilo, HawaiÒi, TMK: 2-8-8:104 (formerly 2-8-7: Portion of 53). KERN: Next item on the agenda is Hu Honua Bioenergy LLC (SMA 22 amendment to an existing SMA permit. And we already had the pre that was quite in-depth. From both sides, a lot of public testi gave us a presentation; and the planning staff gave us a very in going to forego doing that whole in-depth presentation again. I highlight some of the things that have changed between now and t the process. So, Jeff? 1 EXHIBIT B DARROW: Thank you, Mr. Chairman. This is the application subm Bioenegy LLC. TheyÓre requesting an amendment to Special Manage 221. This meeting is for discussion and action on the hearings recommendation on the amendment to SMA Use Permit No. 221 which establishment of a coal storage area and coal burning energy pla The amendment request is to allow a change in fuel source from c existing facility, and to construct support facilities and infra power plant. Since our initial public hearing, which was on May 7, 2010, they granted standing in a contested case by the Planning Commission. proceedings were held by hearings officer Robert Crudele. This was held from October 18th to ndth the 22, as well as October 27, for a period of six days. A site inspection was also conducte st as part of the proceedings. On March 21, I'm sorry March 21, 2011 the hearings officerÓs recommendation report was submitted electronically to the Planni 2011 the exceptions to the report were filed by Attorney Stephen intervenors. And on April 6, 2011 a statement in support of the recommendation report was submitted to the Planning Department b Planning Department. Since our last initial hearing, there have been submitted to the Planning Commission, and those have been p KERN: Thank you, Jeff. Yes, we have received many letters, muc questions for staff, Fellow Commissioners? Okay seeing none let issue that we're dealing with is a request for oral argument; an us from Stephen Strauss, the attorney for the sixteen intervenor give Mr. Strauss three minutes to, actually, yeah, weÓre going to give Mr. Strauss three minutes just to give us his side of why he wants to have an oral argument. We will bring up a, have a motion, have some discussion, and figure out whether weÓre going to grant the oral argument part of it or not. So as of right now please raise your right hand. Do you swear to tell the truth before the Windward Planning Commission today? STRAUSS: I do. KERN: All right, name and address and you may begin. STRAUSS: My name is Stephen Strauss. I reside at 29-2173 Old Mmalahoa Highway in Hakalau. Thank you for the opportunity to address the Commissio preliminary matter before we deal with the issue of oral argumen the constituency of the Commission itself. I presented a couple Corporation Counsel and asked her to confirm whether Mr. Ishibas in one of those photographs, or two of those photographs. And it appears that he is, and it also appears that he is wearing a Hu Honua T-shirt. And we think that this is a significant appearance of impropriety, if not actual impropriety, that requires his recusal, and that he should not be ruling on the motion for oral argument, he should not be ruling this case. So IÓd ask you to take that up first before you deal 2 EXHIBIT B KERN: Okay, we will take that under consideration. Having disc Corporation Counsel, I'm not sure if there's a major action that the Commissioner to do that, but we will take that under conside STRAUSS: Thank you. I'd also like to make these photographs a photographs here. May I provide these to Mr. Darrow? KERN: Yes. STRAUSS: Thanks. We filed a written request. It was a couple the need for oral argument. I would assume that was available a that. I do want to state a couple of other additional reasons that have arisen why oral argument is necessary. First, is this on? KERN: Yes. STRAUSS: Okay. First, with respect to the transmission to the presume may become part of the record is identified as No. 07-01 It is an attempt by Hu Honua to insert a traffic plan or traffic study into the record. The hearing was closed February 25, 2011. This is dated March 14, 2011. It member of the public. ItÓs an attempt to introduce evidence into the record by an applicant. And it's improper and it should be stricken. So that's one of the r There is no opportunity to contest that traffic plan because the hearing was already closed. The purpose of the contested hearing is to test evidence, not having been dealt with by the hearings officer and the parties. The second is that this matter should really be stricken from th this - the hearings officer did not complete his job, that's why we need oral argument today. That prevents you from doing your job. Under the rules, your rules, there are findings of fact that are submitted by any party, thos with in the decision. Because this was referred to a hearings o can't do that because you weren't present at the hearing, you di to do that, he didn't do that. If you look at his findings of fact and his conclusions of law, essentially he adopted the background report of the County Planning Department. He did not deal with evidence that was submitted by the applicant, I'm sorr other intervenors over the course of six days of testimony. Bec findings of fact and conclusions of law, it must be incorporated. It must be dealt with in the final decision. And because his recommended decision doesn't do it, i th it back. As of February 25 the hearing was closed. You have 90 days to render a decision. th Your next hearing I understand is May 4. Under the rules the 90 days is, my calculation is th May 27. So you would still be able to send it back to the hearings of do his job correctly so you can do your job correctly; and then th addressed timely at the May 4 hearing. So those are some of the issues in addition to what I presented here that we would address in oral argument. 3 EXHIBIT B KERN: Very good, duly noted. Thank you very much. Okay, Fello we have now before us is to basically decide whether or not, to grant the oral argument or to not grant the oral argument, and to move forward. Will the applican want to have a three-minute rebuttal -? Right hand, please. Do before the Windward Planning Commission? YAMAMOTO: I do KERN: Name and address, and go ahead. YAMAMOTO: Sure. My name is Jodi Yamamoto. My address is 1125 Honolulu, HawaiÒi. With respect to whether or not oral argument should be granted, our position is that the record speaks for itself. It is complete. The hear soundly based in the evidence presented at the hearing, and shou Mr. Strauss mentioned, the record, there's quite a voluminous re do not see the need for any oral argument with respect to these 4-24, I believe, which discusses the agenciesÓ requirement to ma to all proposed findings of fact. Mr. Crudele is the hearing officer, he is not the agency. So while he's not required to make a specific finding with respect to each and every propose finding of fact, the Planning Commission should, in fact, do that in its final decision. So what I'm saying here is the hearing officerÓs report is complete, itÓs well-foun testimony and argument, considered thousands of pages of evidenc witnessesÓ testimony, 17 of whom were presented by the interveno speaks for itself. And at this point I think we are ready for a KERN: Thank you. Any questions, Commissioners? Seeing none, o make a motion? Commissioner Au? This motion is to either allow allow an oral argument. So if we allow the oral argument, Mr. S come up and argue more of the points that were in their findings then the applicant has a chance to orally argue. And to an exte contested case, to a degree, yeah, and we also have the chance t to speak on that request. So letÓs go ahead and do that, letÓs a moment. And then weÓll make our decision. Do you swear to tell the truth today before the Windward Plannin SELF: I do. KERN: All right. SELF: Amy Self, Deputy Corporation Counsel. I represent the planning director and the Planning Department. I really can't add too much more than what added, or just spoke about. But we did go through six days of hearings. It was of quite an extent, lots and lots of evidence. You can tell by the volumino 4 EXHIBIT B youÓve received. I don't see the need for even more oral argume enough information to make its decision; and this is one of the been involved with, with the hearings officer. So we would ask too that the Planning Commission go ahead and make its decision. Thank you. KERN: Thank you. Slightly out of order, but I'm in somewhat ag can't necessarily make the motion, but I am in agreement to move information here, and I did go through the DVD and looked at exh fried on information. So, but doing the best we can, so IÓm wil AU: I make a motion to not hear oral argument by Mr. Strauss. ONO: Second. KERN: Okay, and it has been seconded. Could you use the mike? ONO: IÓm sorry? KERN: Use the mike for the second. ONO: I second. KERN: So all in favor of denying the oral argument, aye? COMMISSIONERS: Aye. KERN: All opposed? Seeing none, so four votes denying the oral STRAUSS: Thank you, Mr. Chair. But what about the disqualific KERN: WeÓve taken that into consideration. As far as I know th will take that over to my Corporation Counsel for a moment. You But it is taken into consideration. STRAUSS: So you're proceeding? MECKLENBURG: I'd like to point out that the County Code of Ethics states that itÓs a conflict of interest for employees or officers in the County to solicit o favors, promises or services with the understanding that the sam or officers in the proper discharge of their official duties. It's also a conflict of interest to engage in any business transaction or activity or to have a financial interest, direct or indirect, which might reasonably tend to be incompatible with the proper dischar impair their independence of judgment in the performance of their official duties. So if there is any, if any Commissioner has any personal, financial interest, o influence which they feel would affect the proper discharge of their official duties, it is up to, it 5 EXHIBIT B is a requirement that the Commissioners recuse themselves from a I'd like to leave it up to any Commissioner to take this opportu appropriate at this time. KERN: So if I don't hear anything like that then, yes, we are p consideration and duly noted. Thank you. STRAUSS: Thank you. KERN: Okay so here we are. We have received the findings of fact and decision and order and certificate of service and this is what we are working on right impression that we had to formally do that by vote, but since th officer, this is what we are working on right now. As a Commiss changes and whatnot, if we see fit. But as of right now, this i off all of, the hearings officer recommendation, findings of fact and conclusions of law and decision and order. With that being said, weÓve already had tha to call one, two, three, six people at a time and swear you in, the process. So Robert Ferazzi, Patricia Ferazzi, Jim Thain, Jon Miyata, Jeno Encercio (phonetic) -. ENOCENCIO: Enocencio. KERN: Enocencio, sorry, and Kerry Glass. Very good, can I get hand. Do you swear to tell the truth today before the Windward P TESTIFIERS: Yes. KERN: Very good. And I will start with Robert Ferazzi. R. so: Robert Ferazzi, 28-. DARROW: Microphone. KERN: Yeah, microphone, please. R. FERRAZI: Robert Ferrazi, 28-338 and the Higa Road, PepeÒeke, HawaiÒi. KERN: One second. We are going to do the three, we have the th mind -. R. FERRAZI: I understand. KERN: Cool, thanks. R. FERRAZI: IÓll be very short. 6 EXHIBIT B KERN: Yeah -. R. FERRAZI: Thank you for letting me speak today. I'm very, ve the contest case hearing and I represent the PepeÓeke Point, not PepeÓeke Point, Gardens Association. I was very, very depressed when I got the report from your Mr. Crudele. And then I thought he would summarize some of the issues that we brought up Chairman said he read all of the evidence over there. If he has six days of producing evidence and talk, in my opinion, here has been ignored. There wasnÓt one point that we brought up that was mentioned in that report. I would hope that you would take some time to dig through that evidence and look at our findings. and beauty of this island; and I don't think this plant will do you. KERN: Thank you. Any questions from Commissioners? Seeing non Patricia Ferazzi, name and address, and you may begin. Please u P. FERRAZI: My name is Patricia Ferrazi, 28-338 Higa Road, Pepe. And my concerns are about the permit application itself, the amendment. And my back advanced degrees, and including areas of expertise in research d very weak as a document. There has not been the one year collec data. Some of the data was from the airport which has airflow p PepeÒeke area. Some of it was from Honolulu. So there is a deficiency have not complied with the basic requirements within the permit. My second concern is the fact that the monitoring stations, the wind direction was from the north. The prevailing wind direction is from the south. The rd amended, as of December 23 of last year, the correction still has not been made. But what even more significant is the fact that Hilo is here to the south will be three different sites one to three hours, some are 24-ho done is that it should include peak levels, and then the percent peak levels in respect to minimum requirements of EPA standards. incorporated into the permit. Again, I have research design exp deficiencies that should be included within the permit process. original testimony. That should have been incorporated by Hu Ho should include mean time. Mean time is not as significant as pe EPA standards. Any researcher would know that those are just mi included within a permit process. Another concern is the fact that, as I indicated you have Hilo t the collection, three spots that are within the permit. Then so are from the south. You have the plant itself. What it means - R. FERRAZI: You didnÓt say that quite right. 7 EXHIBIT B P. FERRAZI: You have the wind coming from the south, you have H collection, three collection sites, then you have the plant, and What it means is that the collection areas will not be covering gases. The plume will go further to the north. The problem is south. This was brought out to Hu Honua and itÓs either omission on their part, or else itÓs a direct commission of problems in terms of misrepresentation of d And I see my time is up so I cannot continue further. But I wou resubmitted with all this information corrected. KERN: Thank you for your testimony, I appreciate that. Any que none, thank you very much. Jim Thain? THAIN: Thank you. IÓm Jim Thain. KERN: Name and address, and you may begin. THAIN: Sure. IÓm Jim Thain. I represent Forest Solutions, P O to read a brief statement that summarizes our written testimony. submitted written testimony in favor of forestry and biomass pro element in the path to reducing HawaiÒiÓs dependence on imported highest and best use of the existing planted areas while acknowl economic challenges that this entails. We are a small Hmkua business started 14 years ago to manage the eucalyptus plantations. While the trees have perform market has not. The result is a mature renewable biomass resour replanting. We believe that forestry can be an integral part of development in HawaiÒi, providing stable jobs, a source of incom small businesses, while reducing our use of imported materials. and neighbors in Hmkua, we value the agricultural heritage of these lands and trust concur with us on the importance of a market for forest products KERN: Thank you very much. Any questions for the testifier? S much. Jon Miyata, name and address, and you may begin. MIYATA: Jon Miyata representing the Hawaii Island Chamber of Co Makanaa Street, Hilo, HawaiÒi. You know, again, weÓre here in s Bioenergy LLCÓs request. Hu HonuaÓs request to switch its fuel source from coal to biomass is a win-win situation. That is a cleaner source of energy. The proposed biomass fuel is renewable and will be grown locally on a sustainable basis. The plan will regulatory requirements for air emissions and water discharge. will further benefit our environment as the electricity generate existing from oil-burning plants, reducing the overall air emiss Once running, the plant would generate countless jobs, some of w the facility and many others which will be outgrowths or indirec the biomass supply side and other support activities. 8 EXHIBIT B With the ongoing environmental concerns and the continuing incre the Commission approve Hu Honua BioenergyÓs request. Thank you consideration KERN: Thank you very much. Any questions for the testifier? S much. Jeno Enocercio, ENOCENCIO: ItÓs Jeno Enocencio. KERN: Jeno Enocencio, right on. Thanks. ENOCENCIO: Jen Enocencio from Kalalau Ranch and Victory Gardens located just about Wainaku area, past Dodo Mortuary. That's the address, right at the curve bridge. We teach kids about agriculture, animal science and aquaculture; and these are to 12. WeÓve even got preschoolers come up feed the animals and about farming. ItÓs an ahupuaÒa system of living. And what we do is also integrate 100 years of sugar plantation era, namely contributions from the Japanese, Fi haoles. Everybody contributed something about how to survive in This is the stuff we teach. And when learning about the, and I'm also three generations of, third generation of sugar planters, processors, harvesters, truckers, and also processing of the sugar, wastewater management, polluti plant. So weÓve been in all that, in all the different mills th know, I come from that generation, local generation. And one of the things that really got to me was when the power p industry went down. That was a sad time for my family because o earth. And that's what Hu Honua is about, from the earth. When you think about that and about all the abundance of trees that we have over here, especially eu a natural resource, a renewable resource, to be able to put into that finite resource of petroleum-based products and oil, okay, and things as such. We can use this renewable energy, and be ab and efficient energy, not only for ourselves but maybe one of th hungry people like in Honolulu who is looking for all of this en In the meantime, what we do stress at our farm and our ranch is lesson plan to want to do, their kids to learn about hands-on, t When they come to our ranch we teach them about hands-on applica over here with energy, renewable energy, and plants such as biom will be able to learn and be able to understand how technology, and mathematics works, and how it can apply to everyday life. T ideas and concepts just by this generator being put to use for t is, for the public good. Because in essence this is the start, good. Geothermal is good. Thermal energy as far as from the oc all good. But we don't have that now. What we do have is that 9 EXHIBIT B do it. Go do it. LetÓs start the burn. Thank you KERN: Thank you very much . Any questions for the testifier? much. Kerry Glass, name and address, and you may begin. GLASS: Thank you. My name is Kerry Glass. IÓm at 28-468 Sug. I represent the owners association that own Sugar Mill Road, as we that was involved in the contested case hearing. There's couple to keep in mind. All along weÓve talked about and heard that th the old plant. Well, I donÓt think that would be very difficult keep in mind - that biomass is not clean. WeÓve produced a lot evidence that it is still not a clean situation for the environm so that's one of the reasons that we are against the project. WeÓve also heard a lot about the jobs; and jobs are certainly a in mind that weÓve been told directly by Helco that once Hu Honu Helco will end up shutting down another plant in the area. And They go away. So there may be some indirect, but I think the direct jobs just may not be there at the end of the day. And third, a little bit about the traffic and the associated eff you know, theyÓre going to run trucks only 12 hours a day. They thatÓs six trucks down to the plant. Those trucks have to come You start multiplying that out times, you know, days of the week around 50,000 truck trips a year going through the highways and With a stated 30% efficiency of the plant, of the burner down th trucks that go and feed the plant only three of them are going t them, the other seven are going to be just going up in smoke. T KERN: Thank you very much. Any questions for the testifier? S much. You may all have a seat. And the next six testifiers wil Takamine, Elaine Munro, George Martin, Scott Watson, and George Yokoyama. You all come up and have a seat. All right, can I get you all to raise your the truth today before the Windward Planning Commission? TESTIFIERS: Yes. I do. KERN: Very good. We'll start with Stafford Oyama. If you coul please, name and address, and you may begin. OYAMA: Stafford Oyama, address 688 Kinoole Street. IÓm here th Professional Protective Services. We're basically in support of Honua. ThatÓs it. KERN: Thank you very much. Any questions for the testifier? S 10 EXHIBIT B much. Yoshito Takamine, name and address, and you may begin. TAKAMINE: Good morning, Mr. Chairman and members of the Commiss Yoshito Takamine. I'm a retired member of the ILWU, Local 142, favorable consideration. KERN: Just one second, could you please put your address in the TAKAMINE: Address? KERN: Address. YOKOYAMA: Address. TAKAMINE: Honokaa, Honokaa. KERN: Is that kosher for the record? YOKOYAMA: Your home address. KERN: Some numbers on the street? TAKAMINE: Honokaa. KERN: Is that kosher for the record? NOMURA: Yeah. WeÓve got it on the sign-up sheet. KERN: Okay, thatÓs fine. Thank you very much. Continue on. TAKAMINE: Okay? KERN: ThatÓs good, yeah. Sorry. TAKAMINE: I want to commend Hu Honua for developing this projec unemployment rate for this County, which is higher than the othe nation, nation unemployment rate. Initially it will create 100 permanent, well-paying jobs after a year of construction. It wi alternative energy plan. Through the contested case hearing ordered by the Planning Commi exhaustive examination of this project. The hearing officer has provisions that this project be allowed to continue. It is for the public good, he concluded. ItÓs for the public good. I urge you, I urge you to approve this app 11 EXHIBIT B KERN: Thank you very much. Any questions for the testifier? S much. Elaine Munro, name and address, and you may begin. MUNRO: Elaine Munro, 28433 Overpass Road, PepeÒeke. Commissioners, what I would like to say is on behalf of myself, and I am very much opposed to you reasons are that it seems like it would be an easy decision base intersection in PepeÒeke, but thatÓs not really the perspective that I take. I look at of Hmkua coast highways that these 50,000 trucks a year will be trave only on the beauty of the Hmkua coast but on the tourism. The impact on tourism certainly has to be considered, and it hasnÓt been considered. There are that have not been represented. There are businesses up and dowmkua coast. There are tourist spots, tourist businesses that rely on showing off tmkua coast. Now the traffic is one issue. We're not talking about just norm double axel logging trucks. The other issue is that of the cutting of the logs. WeÓre talki Hmkua coast. Those eucalyptus trees go all the way down to the sh seen logging and the impact of logging in Washington and Oregon, clear-cut trees. WeÓve not heard any kind of a plan as to how t how they will affect the scenic viewplane of the Hmkua Coast. WeÓve not heard about the impact on the rural residents of the Hmkua coast and how it will impact them. Why? Because all of this has really been about one parcel in PepeÒeke and one intersection in PepeÒeke. We really should be looking at the broader scheme, how it's going t the Hmkua coast, the residents , the tourists and the viewplane. We have one letter that was sent to me from someone who I met ju talked about how the pristine beauty of the Hmkua coast would be forever changed. I'm not against jobs, but we really need to look at tourism. We need to impact an area much greater than just PepeÒeke Point. Thank you. KERN: Thank you very much. Any questions for the testifier? S much. George Martin, name and address, and you may begin. MARTIN: George Martin, 28-2819 Kapehu Place in PepeÒeke. Thank you, Chair and ladies and gentlemen of the Commission, for the opportunity. It's not opportunity to come and speak in favor of something like I'm doi that is sometimes it makes you wonder what people are doing. Bu above and beyond whatever was expected of them. They met the re requirements, not only with regards to the law but within the co given our knowledge of fuel oil and the price, seeing what is ha mentioned earlier it's about time we start the fire and let thes be doing, which is producing energy, clean energy, at a cheaper said. I hope you guys can vote in favor of it. Thank you. KERN: Thank you very much. Any questions from the Commissioner 12 EXHIBIT B you very much. Scott Watson. WATSON: Hello. Thank you for letting me speak today. My name 27-102 Lali Place in Hilo. I'm also the owner of Lot 23 which i to the power plant. So I'm the most directly affected by their opening of this plant. I share all the common concerns, the environmental concerns everyone else in quality, noise pollution, the groundwater, they've been dancing unregulated large truck traffic is a big concern of mine, discha ocean. My personal concerns here, my lot faces the power plant. I have ocean, or the pollution added to the ocean in the 11 years since about to allow them to put 21,000,000 gallons of polluted water that IÓll swim in every day, and surfer friends of mine do also. The trucks coming down the highway, if one truck loses its brake go straight into my lot. It will crash into my house. ThereÓs thing. Fifty thousand trucks, there's going to be one accident, at least. So it's just like a tsunami, it's going to come. ItÓs when is it coming through my door? So trucks and the highway. My conclusion is what is the vision for Hmkua? It's all up to you guys. Do you want to make it industrial or do you want to make it beautiful agriculture, w beautiful part of our coast line, unobstructed by anything right opportunity to make this the prettiest place on the whole island generating energy isnÓt I think what we need to do. Thank you. KERN: Thank you very much. Any questions from Commissioners? very much. George Yokoyama, name and address, and you may begin YOKOYAMA: George Yokoyama. I represent Hawaii County Economic 47 Rainbow Drive, Hilo, HI 96720. You have my testimony. I won wanted to add one crucial thing there. This big island, we have in the entire state, number one. WeÓve got the highest food sta and added to that we have the highest welfare clients, tentative been that way for over 20 years. After the sugar plantations we this is the opportunity to create good paying jobs, livable wage from the federal government, a renewable energy project, about $700,000, and what we did was partnered with the community college and about 30 of the low inc through the training. Some got their certificate, and theyÓre r the people you can provide livable wages for the first time. Th Thank you. KERN: Thank you very much. Any questions for the testifier? S all may have a seat, appreciate your testimony. Okay, now I'll 13 EXHIBIT B McCollough, Bill Walter, Rosemary Gonzalez, James Todd, and Mary raise your right hand. Do you all swear to tell the truth today Commission? TESTIFIERS: I do. Yes. KERN: Okay, very good. We'll start with Alex Gacula. GACULA: My name is Alex Gacula. I am representing the Hawaii C Opportunity Council. KERN: And your address, please. GACULA: And my address is 421A Kukuau Street, Hilo, HawaiÒi 96720. I'm here to testify because in Hilo alone we need jobs, you know. Because just like in the sugar plantations, and then the power plant is on for so a power plant generation. Right now, you know, it's good for th because they need jobs. And then just like I am, you know, I re know, just like the young generation right now they move out fro have jobs here. That's all I can say. Thank you. KERN: Thank you very much. Any questions for the testifier? S McCollough? MCCOLLOUGH: Yes. KERN: Name and address, and you may begin. MCCOLLOUGH: My name is Barton McCollough, 2177 AinakaheleStreet, Hilo, HawaiÒi 9672 (sic). For many years, the mill at PepeÒeke was a vital part of the island economy; and it was, and it's good to see something done to restore the jobs that wer the Hmkua coast. So I'm in support of this project. For me it's impo will use locally grown biomass. This means a boost of energy to means a way to sustain a rural lifestyle of the Hmkua coast. Rural lifestyle doesn't mean gentlemen farms or gated communities. It means working families a place they have known for generations. We cannot continue to consumers, consumers of electricity, and on the other hand refuse to take our part in what is needed to produce it. Our island pays some of the highest elect say the world. If we don't take steps to make it home grown, th everybody here. So Hu Honua plans to refurbish the plant and use they meet what EPA calls MACT, maximum achievable control techno health. And it has also responded to neighbor concerns regarding emissions, noise and traffic. So thank you for the opportunity to express my views. KERN: Thank you very much. Any questions for the testifier? S 14 EXHIBIT B Walter, name and address, and you may begin. WALTER: Bill Walter, 1 Keaau Road, Keaau, HawaiÒi 96749. You k conveniences of modern life. You look at the lights, people hav microphones cause we like to hear their voices. We like our car None of us like the inconveniences. None of us have chosen to live next to the Corolla factory or the Malibu factory in Everett, Washington, next to where the Boeing aircrafts are being built. We don't choose to do that. The problem we have today and the p decide, and I respect your being here and being the ones to deci plant will give us versus the inconvenience of those who end up difficult problem. I've listened with interest to many of the testifiers, and they talked about how they love the pristine agricultural beauty of Hmkua. And I couldn't help but remember, having grown up here like you all did, the pristine agricultural Hmkua coast where Peterbuilt 387s, large Peterbuilts, with chains in their baskets, in open baskets, deli dragging it along the road, dumping the mud, and using their Jak noise. But we all lived through that. I don't remember ever co was. That was the agricultural community of the Hmkua Coast. What we have today is a situation where they could be burning coal in that factory to make electricity -- that's what they have a right to do, they need th to produce about four times as much pollution than what this is. want to do that, letÓs not import the fuel from wherever it come pollution, let's use the fuel that's here, it's more efficient, let's do it in a way that is going to create much less pollution road to a better environment, I've got to tell you itÓs a lot be cane days. Shoot, we torched the darn fields before we harveste like that. But having gone down that road, they now find themse having to go through these processes; and I guess it illustrates that doesn't make your decision any easier. It still is the cas conveniences and someone ends up having to live near where they' KERN: Thank you very much. Any questions from any Commissioner you. Rosemary Gonzalez, name and address, and you may begin. GONZALEZ: Good morning, Rosemary Gonzalez, 28-3011 Beach Road, . First IÓd like to thank you for this opportunity, and also thank you for y lot of effort with all of the information you've received over t you that I was very disappointed with the hearing officerÓs reco none of the evidence that we had presented was taken into consid extremely disappointed if you will also support a company that a investment fund, and not one that's really interested in renewab efficient and sustainable for the Big Island. I am asking you t either reject the permit or have it resubmitted. And please rem 15 EXHIBIT B residentÓs lives, livelihoods. I have a little farm. I grew up please take into consideration that you have health, lives, and you for your time and consideration. KERN: Thank you very much. Any questions, Commissioners? Seei James Todd, name and address, and you may begin. TODD: James Butch Todd, and I live in Fern Acres, 11-1215 Orchi IÓd like to thank you for the work you've done for our County. on the Big Island for many years. I urge you to approve the Hu Amendment. The contested case hearing and that, the thorough job officer did in reviewing all the testimony and comments should m project's benefits are great and can be accomplished with the mi and the uncertain world energy picture, as we watch daily the tr other oil-producing areas, we must look to our home for our sour Honua can be operational in a year and a half, providing us with jobs, and the use for all those acres of tree plantations. Maha KERN: Thank you very much. Any questions from the Commissioner you. And Mary Bergier, name and address, and you may begin. BERGIER: Thank you. My name is Mary Bergier. I receive my mai Suite 315 in Hilo, but I do reside on Old Government Road in Hon. We donÓt receive mail service there, so thatÓs why I have a different address. My husband and I make our home in Honom. We relocated to this site from Oah in 1994. We moved here in time to experience the tail end of the sugar truck We then were able to experience the coal trucks that came and we We were beneficiaries of the rolling blackouts because of lack of sufficient power distribution. IÓd like to make a few points today. In my understanding, Hu Ho with a valid operating permit to operate a coal burning facility Legislature to pass a bond to convert this facility to a garbage That plan fell by the wayside because the gentleman who was spea pleased to see that Hu Honua Bioenergy is going to take advantag progressive form of energy with biomass. Some people are concerned that we will chop down all the trees o planted to be chopped down. Our Mayor, are former Mayor Kim, ma thought was really important. I'm trying to quote him but, of course, I can't really. It said, he said something to the effect that if we don't plant something that can be replanted with a market impact then we will be stuck with what volunteers to grow there. And will that be good? I think not. Having this facility need the eucalyptus trees is not only ecology of our island, plus it keeps a large span of area green. 16 EXHIBIT B Another point I like to make is that I'm very sorry, and I do me people that bought land and homes in the immediate area did not the potential of this facility. But as an active license realto it. Every time I showed property in that area, myself and the o talked about it quite openly and common place. So I encourage t get caught up in that civil matter. Hu Honua has a legal right they are only asking for the right to do it a little bit better. Thank you. KERN: Thank you very much. Any questions from the Commissioner you. You all may have a seat. And we'll take a quick five-minu RECESSED Î The Chair recessed the meeting at 11:10 a.m. RECONVENED Î The Chair reconvened the meeting at 11:21 a.m. KERN: The meeting will come back to order. Picking up where we I'm going to call Lester Seto, Claudia Rohr, Bridget Rapoza and raise your right hand. Do you swear to tell the truth today bef Commission? TESTIFIERS: Yes. I do. KERN: All right, very good. We'll start with Lester Seto, name begin. SETO: My name is Lester Seto and I live at 524 Hinano Street in Hawaii County Economic Opportunity Council. And you can tell a of the company and about the kind of character the company has b file of its workers. And at the Hawaii County Economic Opportunity Council we had the privilege of being partners with Hu Honua about two years ago in a training program because our agency is about employment and training; and so we worked wi program for pipefitters and welders with the community college. And Hu Honua sent four of their workers to be trained with our workers, there were about 2 workers for work time to go to the community college and encoura certification and training. And that really spoke volumes to me going to provide its workers with affordable wages and they're n employees. And so because of the great need of jobs which has a going to go into more of that. But I am very confident that if they are granted permission to operate, they are going to provide good decent jobs for our Coun KERN: Thank you very much. Any questions from our Commissioner you. Claudia Rohr, name and address and you may begin. ROHR: Claudia Rohr, 369 Nene Street, Hilo, HawaiÒi. As you know, or should know, IÓm in 17 EXHIBIT B court on challenging the agency appeal on my contested case stan on my concerns with the beauty of Hilo Bay. The Topliss case do impacts the views to and along the shoreline. Anyone walking al the Hilo down to Downtown is liable at some point to walk along every six minutes a truck could go by carrying logs or chips. T Kau to harvest lumber. They are going to be coming right direct the views towards our bay. Everything that the last matter enta and beautify and support the global views of our town, our side of the island, is for not if we don't consider the impact from this truck traffic. It upsets me very much, I used to ride my bike all the way to H one day I'll do that again. It's a beautiful ride. And the iss Plan, we support the Hilo-Hmkua Heritage Corridor as an economic concept starting with Downtown all the way up to Honokaa. The idea is that it was the right-of-way, that drew people, tourists. In the 1920s, the Hol on the tourists train, and theyÓd stop it on the trestles on the photographs. That still exists. As a B&B owner, every morning discuss what they're going to do. And basically they spend one mkua and one day towards Volcano; and now days theyÓre going down to Puna and doi the hot ponds, thatÓs very popular. In terms of Hmkua, itÓs really a two-day event. If you really want to see the historic sites, and go all the way up to Waipio Valley, and do e that people will be -. KERN: Thank you. ROHR: Spending money in restaurants Î. KERN: Thank you, your time is up. Thank you very much for your for the testifier? Seeing none, thank you. Bridget Rapoza, nam begin. RAPOZA: Bridget Rapoza. KERN: Please use the microphone. RAPOZA: Bridget Rapoza, Box 30, PepeÒeke. I don't think anybody here today would argue that we don't need renewable energy. We absolutely need renewab anybody would argue that we don't need jobs, we do. The economy seen. But I think there is a lot of misinformation that has bee Hu HonuaÓs current proposal is needed, is clean, or is healthy. is not needed. Helco has made it absolutely clear. The preside before us at a meeting in our community and told us they have su electricity for the next two decades. This is not needed. Ther 18 EXHIBIT B rates that result from Hu Honua's current proposal. Clean, ther this is cleaner than coal. Mrs. Berger (phonetic) or Bergie sat up here and said that they run the plant with coal. That is not true. They do not have a permit, and they relinquished it after they got that first draft. The original permit they had was based on a backdated boiler contract. There are questions as to permit. These are all things that were discussed in the hearing hearings officer's recommendation. Is it healthy? No, it is not healthy. And there is tremendous factually that it is not healthy and just the opposite. It is v your position you need to make a decision between the new jobs, and the health impact. But I think that it's clear also that th renewable energy on this island that are readily available that and community residents to the health impact that Hu HonuaÓs cur It's inconceivable that this is being pushed through without any assessment, let alone an environmental impact statement. I did for you today that makes it really clear one of the things that lot of the discussion has been based on political and emotional the union is supporting this. They have been promised that the But all of those things of the sugar days and the coal days were And this is the area before it was all changed to a subdivision. and you can see itÓs wide open land. This is an exhibit that ha CrudeleÓs report; and this is the current tmk map. And I would and study the two and see all of the differences. Your predeces approved six subdivisions down there. IÓll leave these for you. KERN: Thank you very much. Any questions for the testifier? S Kaleikini, name and address, and you may begin. KALEIKINI: All right, thank you. My name is Mike Kaleikini. I Japanese Chamber of Commerce and Industry in Hawaii. Our addres 96720. And, first off, Chair and Commissioners, thank you for a testimony. The Japanese Chamber of Commerce and Industry in Haw approval of Special Management Area Use Permit 221. What the Hu Honua project is bringing forth is in line with the goals and objectives of the Chamber. understand that if this project moves forward there will be 30 f there will be about 100 construction jobs to last for up to a ye economic situation, and in light of this the Japanese Chamber fu permit. This is also in line with the CountyÓs and the State's portfolio. And, again, thank you for allowing me to provide sup KERN: Thank you very much. Any questions, Commissioners? Seei 19 EXHIBIT B all may be seated. Thank you very much. So that concludes the hearing. What we're going to do is we're going to give the appl add to what they'd like to do. We're going to get the County, t and add anything that theyÓd like to. And we're going to give M add anything to that. This is all going to be under a five-minu each entity. And if the other intervenors would like to have a anything else at the very end, we can do that too. So this is k go-around. And then we'll get into some discussion and some mot and/or their representatives come forward? So we are going to d can use it all or not. YAMAMOTO: Five minutes? KERN: Yeah. YAMAMOTO: For each of us? KERN: For each of you. YAMAMOTO: Thank you. KERN: For each entity. The applicant, and then County gets fiv YAMAMOTO: Got it, okay. KERN: So, you two were sworn in. You were not. Please raise your right hand. Do you swear to tell the truth today before the Windward Planning Commission? MCQUAIN: Yes, I do. KERN: Okay, whenever you begin, state your name and address, an MCQUAIN: IÓm Richard McQuain, president of Hu Honua Bioenergy. My residence is 700 Richards Street, Honolulu, HawaiÒi. Mr. Chairman and Commissioners, I want to thank you for your time and effort. I know it's a lot of work. This has been got a lot of material. This has been through a lot of review, a Department, review by the hearings officer; he sat through six days of hearings, 21witnesses, literally hundreds of pages of documentation were provided to hi to say that he didn't consider everything that was there. ItÓs adopt after he had considered everything. Now among the things considered, there were 16 conditions that w recommendation that were also placed in the recommendation from the Planning Department. Hu Honua has agreed to those conditions. And if youÓll note, yo comply with all applicable county, state and federal regulations 20 EXHIBIT B case feel that the regulations that the state and the federal go inadequate. They are what they are. And we have strived to mee particular we have worked to meet the new EPA, industrial boiler on February 23rd which is the most, which is the strictest set o of our nature. Now since the evidentiary hearing, as was noted earlier, we finished a traffic study. That traffic study had to be reviewed by the Department of Transportation. A SMA permit, we've submitted that information record to the Count A complete archaeological survey was completed, submitted to Sta rd Office on February 3. Unfortunately due to the short staffing over here they have n their review. ThatÓs why it hasnÓt been submitted to this Count SHPDÓs response to that report. On the air permit the Department of Health issued a first draft, comments, voluminous comments were received. After consideration of those and looking at the development of the MACT, the department developed a second draft comment and review. Those comments have been received and the d them in preparation to submit the draft air permit to EPA for EP Now we made a concerted effort to listen to the concerns of the impacted by the project and to respond to those concerns in a re noise level. They were concerned about noise. WeÓve agreed to the property line. As an industrial facility, zoned industrial decibels. But we've agreed to 55, which is a daytime residentia We've routed truck traffic. Mr. Watson was concerned about a tr Road. No trucks are going to go down that portion of Sugar Mill right turn at railroad right-of-way, coming around on the south Now the process of developing a project of this nature is not one that's based simply on develop a concept and go push that concept and idea, but developing a co molding it in such a way that it meets all the regulatory requir and it meets the concerns of the public. That requires a substa changes are made throughout the process. That's what has happen would simply remind you again that should you approve our reques this job, thereÓs 20 megawatts plus of sustainable renewal energy fueled by a local renewable resource that will move the State and the County further down th portfolio standard goals, the elimination of the burning of 250, year and, as you've already heard from several people, jobs. I want to thank you again for the opportunity to address the Com case, but I sincerely believe that we have done what we need to requirements for the permit. Again, thank you. 21 EXHIBIT B KERN: Thank you very much. Any questions for the applicant? S seat. And the County would like to come up and Î. You are alr SELF: Yes. KERN: YouÓve got five minutes. SELF: Amy Self, Deputy Corporation Counsel. In light of the fact that there has been a lot of information provided to the Commission, as of yesterday, well, T we think that it may be better to continue the decision on this to give the Commissioners an opportunity to thoroughly review ev provided, and then make your decision after that, just to give y everything. Cause I know that a lot of information has been pro couldnÓt be helped because of the timing on the responses. But would recommend at this point. Thank you. KERN: Thank you very much. Any questions from Commissioners? very much. Mr. Strauss and the 16 intervenors. So youÓve been and youÓve got five minutes. STRAUSS: Okay, Steven Strauss, 29 Î. KERN: Microphone, please. STRAUSS: Steven Strauss, 29-21730 Mmalahoa Highway in Hakalau. I think that Amy's point is a good one. But, again, I think you have to send it ba you can make an intelligent decision because he didnÓt do his jo job, you canÓt do your job. You weren't at the hearing, you can findings of fact and conclusions of law that were submitted on t have no background to deal with it. In the time that you've allocated to me, I want to quote from th HeÓs the only one that testified about health, public health, in Honua presented no one qualified to testify about public health. qualified to testify about public health. The record is clear a UH Hilo professor. HeÓs got a PhD in chemistry and a PhD in tox for the State Department of Health in their Air Permit Division. He was asked whether he was able to measure the potential public project, and he said he couldn't. He could not measure the prop ÐThere were no factual data that I could see.Ñ For example Hu Ho scrubber.Ó But a scrubber can be inappropriately used. It cann capacity matching issues. There are a whole bunch of technical things that are not elaborated on or even elucidated at all. They are not made clear to me as a reader in order to base an opinion; 22 EXHIBIT B so I can't imagine how anyone, regardless of expertise, would be on that lack of information.ÓÓ Well, you folks are charged, not just the Department of Health, but you folks are charged with the public health, that if you approv public health. The only person to testify, the only qualified p says you can't do that. You can't make it because the data does environmental assessment or environmental impact statement ever He was asked to describe what a hazardous air pollutant is. He are from the Clean Air ActÈ. They are pollutants that are particularly toxic that are not covered under the six criteria of pollutantsÑ that the Department of Hea cases, responsible for the vast majority of public health impact again quoted, Ðis, I feel as a public health, former public heal toxicologist, that's a mistake. They need to be examined and at evidence of any kind that they had even been considered in any f He is asked about the particular fuel source that these folks wo essentially eucalyptus along the Hmkua coast. He says they Ðare susceptible to sea salt deposition, a lot of max flux. And there areÈextensive articles and then burning them. And whenever you burned carbon and chlor dioxins.Ñ So if you approve this plant youÓre going to be putting dioxins into our environment. ÐThatÓs exacerbated here because the ocean is very close and the a lot of chloride. So that combination of chlorine and carbon can produce extraordinarily large amounts of dioxins and furans which, again, are some of the most Hazardous Air Pollutants. I saw no address of this issue whatso faced with in attempting to approve this permit. The saying is when the applicant doesn't provide sufficient data to gauge even the power plant, and the County doesn't require them to do that, say go ahead we recommend approval of it, itÓs on your heads, it KERN: Thank you very much. Any questions? Seeing none, thank SELF: That sounded like oral argument to me, so I think we shou least respond to what he just said. KERN: Can I confer with my Corporation Counsel real quick. SELF: Sure. KERN: Three minutes. SELF: Thirty? KERN: Three. SELF: Oh. 23 EXHIBIT B KERN: No, that math doesnÓt work. But three minute is really g SELF: I just have two short things to say about what he just sp permit that youÓre determining. It is not an air quality permit, which is going to be issued by the DOH, the Department of Health. So the Department of Health has to determine whether or not they meet the standards, the EPA and the Department of HealthÓs standards for air quality. This is not what this Commission is doing. It is determining an SMA permit. And you are well aware of what the criteria for an SMA permit is. You grant SMA permits and deny permits all the time as a Planning Commission. That's what the Planning Commission does. 205A says. The criteria is right there, and you have your counsel to guide you through anything, interpretation of 205A. Also as he indicated the testimony of Dr. Michaud, yes, he did testify about air, health issues. But the problem is that when he was asked under oath whether he knew what the regulations, what the EPA and the Department of HealthÓs regulations require, he didn't know. He admitted that on the record that he doesn't know what the regulations say. This is what determines an air permit for Hu Honua, or anyone applying for an air permit. So they are required to meet the requirements of DOH and EPA for their air permits. Here they are required to meet the criteria for an SMA permit under HRS 205A. Thank you KERN: Thank you. YouÓve got a minute. YAMAMOTO: Great. Just to follow up a little on what Amy just s is tied into your SMA permit; and that is through the 16 conditi those youÓll see conditions that require that Hu Honua comply wi relating to air, water quality, and so forth. So even though yo determine whether or not the air permit is granted, you have the the SMA permit is granted and for some reason Hu Honua is not ab so forth, well, then you have the authority to revoke the permit Okay so that you have that tie-in. The second point I just wanted to follow-up on is with respect t laws and regulations that govern Hu Honua and everybody else. W and that as a concept. But the question here is whether or not they exist today, whether they be federal laws, state laws, or c that we would submit that weÓre, you know, entitled to a permit. KERN: Great. Thank you very much. Any questions from Commissi would like to give, there are few other intervenors that were no if they would like to come up and add anything -. Again this is add anything else. You're welcome to, so Î. R. FERRAZI: Kerry? 24 EXHIBIT B GLASS: I spoke. R. FERRAZI: But you want to talk about the road? GLASS: No. R. FERRAZI: Okay, weÓre happy. KERN: Okay. With that being said, everyone has had a chance to there; and now it's up to us to make some decisions. So I do ta said about potentially continuing this meeting. I think it's du th we put it off to the next meeting, which is May 4, itÓs about a year, just a little over, like a couple days over a year. It's a long time. I personally think make sure that everybody has really had a chance to look at all you know, the evidence, and all of the exhibits and really be ve And I know I've been putting a lot of time into it myself and there's a lot of information there. I'm not the guy to make that motion, but that's what I think. A know, if we did continue it maybe we could have the meeting done requirements and the public notice, that's about as soon as we c available. So I hope everyoneÓs, you know, if we do decide to c patience will persist for another month and weÓll be able to get entertain a motion -. th ISHIBASHI: Yeah, I make a motion that we defer to the next meet -. KERN: Okay. ISHIBASHI: Just to give us time to review the added documents w KERN: Is there a second? ONO: Second. KERN: And to clarify, weÓre continuing or deferring? Continue, ISHIBASHI: Yeah, continue. thth KERN: I'm going to make a quick clarification. We do have two and May 5 scheduled, just in the event that this takes a little bit longer do you want to continue that to the fourth and fifth? ISHIBASHI: Yes. KERN: Yes, okay. Is there a second? Is that good? 25 EXHIBIT B ISHIBASHI: Yes, the two days, fourth and fifth. KERN: Very good. Is there a second? ONO: I'll second. KERN: Second, okay weÓve got a motion that has been seconded. AU: I've got a question. KERN: Yes, Commissioner Au. AU: So are we going to go through all of this again? Are we go additional testimony on the fourth and fifth, or are we just goi KERN: The way I understand it is there is a possibility that wh if people want to have public testimony they can. I would imagi respect, you know, the time and that, you know, if theyÓve come theyÓve told us that, that we are listening - you know, we are h wouldnÓt take advantage of that. But there is every opportunity understand it, and staff can clarify that. ARAI: Commissioner Au, the public has a right to testify on any agenda. However the Commission at its discretion could, like to the testimony that is given either by, the amount of time that t Commission can also elaborate that, you know, if there are any p testimony previously will be given the opportunity to testify, a their testimony can be placed maybe later or whatever. It's rea general, they should be allowed to testify. KERN: Any other questions? Any other discussion? With that being said, Jeff? DARROW: Thank you, Mr. Chairman. The motion before us is to co thth May 4 and May 5 of 2011. With that I'll take the roll. Commissioner Ishibashi ISHIBASHI: Aye. DARROW: Commissioner Ono? ONO: Aye. DARROW: Commissioner Au? AU: Aye. 26 EXHIBIT B DARROW: And Mr. Chairman? KERN: Aye. DARROW: The motion passes four to zero. th KERN: Okay, so we will reconvene on the 4. Thank you all for your time and weÓll see you back here. The discussion ended at 11:58 a.m. Respectfully submitted, Sharon M. Nomura, Secretary Windward Planning Commission 27 EXHIBIT B