HomeMy WebLinkAboutCOM 0563.006 2004-2006 A~' Pacific Biodiesel
40 Hobron Avenue
Kahului, Hawaii 96732
(808)877-3144
(808) 877-5030 Fax
www.biodiesel.com
TESTIMONY FOR PROPOSED Bill 184: to amend FY 2005-06 CIP Budget
To: HAWAII COUNTY COUNCIL
Keauhou Sheraton
March 22, 2006, 9:00 a.m.
From: Robert A. King Kelly T. King
President, Pacific Biodiesel, Inc. Vice President
40 Hobron Avenue Dir. of Marketing
Kahului, Maui 96732
808-877-3144
Dear Honorable Council Chair Arakaki and Honorable Councilmembers,
Thank you for your previous vote in passing this bill out of committee. We are hoping
today to see the full Council's passage of the amendment to the FY 2005-06 CIP budget. This
amendment would add $1 million to make the public improvements to the West Hawaii
Sanitary Landfill in the acreage set aside by the current landfill pennit for resource recovery to
allow fora 10-acre composting site with one acre of containment for mixing in biosolids, as
well as construction of receiving bays for biosolids and for FOG (fats, oils and grease). It also
sets aside acreage for future biodiesel production which would, after sufficient feedstock is
being collected, be funded and operated by the contractor perhaps in partnership with private
investors.
Pacific Biodiesel, Inc. urges the approval of the proposed resolution as much-needed
legislation to encourage the renewable fuel industry in Hawaii County. The environmental
benefits of renewable energy, especially from recycled waste oil feedstock, are well
documented. Benefits include landfill diversion, discouragement of illegal dumping, no
production of greenhouse gases, lower fuel emissions, as well as a step toward energy
security and sustainable energy. The used cooking oil collection is a very important first step
toward developing an industry that will require a local fuel crop source which will sign~cantly
impact the Big Island in a positive way. The added promise of eventually producing biodiesel
in the community has local economic benefits by keeping jobs, profits and taxes associated
with local energy production in the County. Consumers will also benefit as Pa~c Biodiesel
has made a serious commitment to keep biodiesel prices stable by tying them to cost of
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Ref. Ta '1'yra~ •
R~. pare MAR 2 Z 2006
production rather than following the ups and downs of the petroleum market. In the past ten
years, our product has had two price increases.
The biodiesel produced in Hawaii is 100 percent renewable fuel made from used
cooking oil which would otherwise be landfill material. On Maui, the partnership between the
biodiesel production plant and the neighboring co-composting operation is a key component in
the successful efforts to use 100°.6 of the waste stream from the biodiesel production. The co-
composting operation incorporates waste glycerol resulting from the biodiesel refining process
as well as utilizes the wastewater from the process. This unique and wonderful partnership
resulted in the presentation of the 2004 SWANA (Solid Waste Association of North America)
GOLD AWARD to Maui EKO Composting and Pacific Biodiesel. The biodiesel refinery is not
possible at this size without a co-composting partner and the support of the County.
As all producers of alternative fuel find, however, the acceptance of these "nevd' fuels
too often depends on the bottom line and the cost factor has been a major barrier to the
success of this industry across the country. Government support is imperative to the growth
of sustainable, renewable energy. In order to begin production at relatively low volumes, we
will need support from the County. Ten years ago Maui County supported Pacfc Biodiesel
with a site at the local landfill, and the growth of the biodiesel industry in Hawaii owes much to
that assistance. Pack Biodiesel is willing to invest the capital to build the biodiesel facility,
but we need the site, utilities and permitting from the County. We may never get close to the
amount of subsidies currently afforded the petroleum industry, but we can, we hope, get the
assistance necessary within our State and Counties to further our efforts toward a cleaner,
safer, sustainable, more secure energy future which will eventually support diversified
agriculture along with recycling.
If more information is needed, please contact Robert King on Maui at 808-877-3144 or
808-283-4102 (cell), or Kelly King at 808-283-1954 (cell). We invite you all to come to the
Maui landfill to experience for yourselves the possibilities that exist for Hawaii County. Your
efforts to support recycing and the renewable fuel industry in Hawaii are vital to all those
concerned about our environment, our economy and our energy security.
Mahalo nui loa,
~ ~
Robert A. King Kelly King