2017-05-24 Environmental Management Commission Minutes

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ENVIRONMENTAL MANAGEMENT COMMISSION MINUTES May 24, 2017 West Hawai'i Civic Center Community Hale, Kailua-Kona, HI COMMISSIONERS PRESENT: James Fritz, Chair Richard Bennett, Vice Chair Jeffry Fear Jon Olson Rick Vidgen STAFF: William Kucharski, Director Diane Noda, Deputy Director Marcie Toguchi, Private Secretary Renee Schoen, Assistant Corporation Counsel Presentation by BioEnergy Hawaii on Waste to Energy Project • Presentation was done prior to the start of the meeting while waiting for quorum. • BioEnergy Hawaii, LLC (BEH) was established in 2006 by Pacific Waste, Inc. (PW) who is a waste collection and disposal company on the island of Hawai`i. • BEH is a project development company, specializing in material recovery and alternative energy projects in the State of Hawai`i. • Main objectives is to divert as much trash as possible from the Landfill, recover valuable products, and provide alternative energy. BEH will create three (3) end products, biogas, electricity and compost. • The sustainable cycle for this project will entail PW picking up trash from their clients and taking it to the resource facility where it will be sorted and items that can't go towards technology will be taken out. Will also provide separate bins to their clients for organics so it can be sorted at the source instead of at the facility. Any solids that come out will be mixed with greenwaste and create compost. • This project is by no means zero waste. They are anticipating about 30% residue (products they cannot use) which will go to the Landfill. • One end product will be biogas which will be pipeline quality renewable natural gas. BEH has an ongoing conversation with Hawaii Gas regarding these pipelines, and Hawaii Gas is interested in purchasing the biogas. Also had conversations with Electrical Utilities to purchase the electricity end product. • BEH has an arrangement of 40 years plus a 10 year option for 14.99 acre quarry in Waikoloa that's owned by Goodfellow Bros. The quarry is located 3.0 miles from Waikoloa Village, 3.5 miles from Waikoloa Beach, and 6.5 miles from the West Hawaii Sanitary Landfill. • Facility will be located in West Hawaii because they have a larger tonnage going into the Landfill, PW is larger on the west side, and BEH knew the South Hilo Sanitary Landfill would close so they didn't want to truck the residue to the west side. • Ulupono Initiative is an Equity Partner, and recently just signed an engagement letter with Bank of America/Merrill Lynch. Has also been in contact for the past year with Federal and State Regulatory Agencies, as well as the County of Hawai`i. • Secured $100 Million Special Revenue Bond for electrical generation. Has been modified since then to include biofuels and extend the timeframe. • Current proposal for project is to only accept trash from commercial haulers, however the way it's designed, tires could also be accepted but would need to be shredded first. • BEH has their EA completed. Next step is to go to the State Land Use Commission to submit their Special Use Permit. Estimated in 11 months all permits will be in line and ready to start construction. Construction time would be approximately 18 months.