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Home My WebLink AboutCOM 0356.000 2004-2006 M~v~or M Harry Kim William Takaba Mrpnr 4' OL'rcmr _ Nancy E. Crawford irr -.'i,`` Uepum Uiae9or' 1r~ os.Mii~ County of Hawaii Finance Department _ . 2s nupuni Slmci, Room I IS • Hilo, Iluwofi )0720 _ f80N1901-6234 . Ivx (ROS)901-8246 July 8, 2005 Stacy K. Higa, Chairperson and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Operating Budget The U.S. Department of Energy, through the State of Hawaii Department of Business, Economic Development, and Tourism, has authorized a $95,602 grant towards the Department of Research and Development's Geothermal Outreach program. The purpose of this grant is to conduct a feasibility study for viable commercial geothermal direct use (GDU) enterprises in the Kapoho region of Puna on the Island of Hawaii and to coordinate community education and outreach programs to disseminate geothermal direct use information and to gather input and comments pertinent to the feasibility study. Enclosed is a resolution to authorize the Mayor to enter into an agreement with the State of Hawaii Department of Business, Economic Development, and Tourism. Also enclosed is a bill for an ordinance amending the Operating Budget by appropriating this Geothermal Outreach Grant. If there are any questions, please do not hesitate to call the Department of Research and Development. ~illiam~T~aba/ ~ Director of Finance APPROVED: F Harry Kim Mayor Enc. 2 cc: Research & Development Comm. No• .7 Ref. To: C? t33 vS~l3t Q~1 ~~`~Hawaii Countyis an Equal Opportunity Provider and Employer Rcif• Uate ~~tt Form B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Research and Development DATE: July 1, 2005 STAFF CONTACT: Margarita L. Hopkins PHONE: 961-8369 A. REQUEST: To authorize Mayor to enter into an agreement with the State Department of Business, Economic Development and Tourism (DBEDT) for a 'Geothermal Outreach' grant. This program of the US Department of Energy (US DOE) include a feasibility study for viable commercial geothermal direct use (GDU) enterprises in the Kapoho region of Puna on the Island of Hawaii and coordination of community education and outreach program to disseminate geothermal direct use information and gather input and comments pertinent to the feasibility study. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The Puna District encompasses the only Known Geothermal Resource Area in the State of Hawaii and it is the location of the Puna Geothermal Venture (PGV) geothermal power plant. The potential for geothermal direct use development in the Kapoho region of Puna District is significant due to the existence of PGV that is willing to provide hot water for non-electric uses and the prevalence of shallow thermal groundwater in the area. However, the lack of awareness regarding the availability of the resource and its benefits to agriculture and other business ventures and the perceived high capital costs of wells and other infrastructure needed to exploit available resources in the region hampered its development. This grant for $95,602.00 is awarded to conduct feasibility study and prepare a cost benefit analaysis for a direct use geothermal enterprise park in the Kapoho region of Puna, proximate to the existing PGV power plant and to coordinate community education and outreach program to bring stakeholders together, disseminate geothermal direct use information, gather input and comments pertinent to the feasibility study and other geothermal direct use issues. Should the feasibility study and related community education and outreach program encourage private and/or public investment into geothermal direct use, the region could see a dramatic expansion in the use of geothermal energy for non-electric purposes in the Puna District. SIGNED: " ~ DATE: .111E - 8 ~ Depa ant Head GRANT SUMMARY' (Supplement to B-52, Request for Council Action) "Type of Grant Appropriation bein ~ re nested: (New or an additional appropriation) i ® New (tor this fiscal year period). OR ? Additional appropriation (to an existing grant); is a druJ! agreemen! a/(ached.'' Has (he original grant na[i~ication been /ransmittecf to ®Yes ? No ('ounci!? ?Yes ? No Name of Grant Program: GEOTHERMAL OUTREACH Grantor: US DEPARTMENT OF ENERGY (VIA DBEDT) County Grantee Department or Agency: RESEARCH & DEVELOPMENT County Grantee Contact Person: MARGARITA L. HOPKINS Phone Number: 961-8369 Amount of Grant: $95,602.00 Grant Period (Commencement & Completion): 9/15/2005 to 2/28/2007 Purpose of Grant: TO CONDUCT A FEASIBILITY STUDY ON GEOTHERMAL DIRECT USE ENTERPRISES IN PUNA DISTRICT AND COORDINATE, COMMUNITY EDUCATION AND OUTREACH PROGRAM County Match required?: ®Yes ? No If yes, Matching Amount? $35,775.00 [3udgeted in account# In-kind? Explain: The value of the in-kind services of the project team is $33,975A0 (made up of County personnel (4) and Council staff) plus $1,800 for use of County facilities (half the rental required 1'or comparable private meeting rooms in Hilo) Explanation: The match consists predominantly of the project team's time and also the value of the use of County facilities for public information and Geothermal Working Group meetings. County's personnel requirements: Amount of new position(s)? Qty: 0 Permanent: ? ~hemporary: Duration:_ Full-time: ? Part-time: Time Element: Qty:O Contractual: ? I?xplain: Explanation: Additional Comments about Grant: The Hawaii Island Geothermal Working Group established under the Goepowering the West grant program will he actively involved in the community education and outreach portion of this grant. 'this grant has two main components: 1) prepare a cost benefit analysis and feasibility study for a geothermal direct use incubator ur enterprise park in Lhe Kapoho region of Puna, proximate to the existing PGV power plant, and 2) coordinate community and public ouu~each program to bring stakeholders together, disseminate geothermal direct use information and gather input pertinent to the feasibility study. nSZ Gran) Summaq Form