A $6 Billion Plan for Hawaii's Long-term Prosperity

Dr. Martin Wachs recently wrote an important article on public investment for transportation and jobs. (See blog post below.) He observed that Democrats and Republicans, liberals and conservatives, rural and urban elected officials—all seek funding for roads and transit projects in their districts, asserting repeatedly that these expenditures will create jobs. He correctly asserts that construction jobs do not inherently have higher economic impact than other new jobs. Construction may generate construction jobs but it also is a huge cost item in and of itself and puts a lot of stress on city and state budgets. (All states except North Dacota have deficits.) Finally Wachs says that a shovel-ready project in no way assures that it will have long-term net economic benefits.

Given Wachs’ sound, detailed and impartial assessment, you now can make your own decision between Plan A and Plan B for Honolulu, Hawaii.

For about six billion dollars you can choose either A or B defined as follows.

Plan A

• Mufi Hannemann's 20 mile, 21 station elevated heavy rail with 3 park-and-ride facilities and no power plant. All of it is a taxpayer subsidized project.

Plan B

• 11 miles of reversible HOT lanes that will improve the Central Oahu-to-town tidal traffic problem by over 30%.
• 3 Superferry vessels to connect our islands and provide a resiliency backbone when an island is hit by a disaster.
• A small Hawaii-based international airline with round-trips to Beijing, Shanghai, Osaka, Moscow, Dubai, Singapore, Sao Paolo and Frankfurt, e.g., Aloha Worldwide.
• A coal power-plant that will reduce Oahu's oil dependency by 15%. All these can be done as incentivized private projects, or public-private partnerships.
  

Which plan is best for Hawaii's long term economic prosperity and which one is best for short term political pork?

You know that the correct answer is Plan B. Why are about 75% of Hawaii's politicians choosing Plan A? Because they care about themselves, because doing the same thing again and again is less work, and because they are told what to do by special interests (their party, big money supporters, and unions.)

UCLA/RAND Expert on Transportation, Jobs and Economic Growth

Dr. Martin Wachs [1] recently wrote important article on public investment in transportation, and jobs. It dispels the sweet sounding myths promoted by politicians, contractors and unions. The full article can be found here [2]. Key excerpts are given below.

Democrats and Republicans, liberals and conservatives, rural and urban elected officials—all seek funding for roads and transit projects in their districts, asserting repeatedly that these expenditures will create jobs. President Obama vigorously sought to create jobs through transportation spending in the recent economic stimulus package. This seemed familiar: in 1991, when signing the historic Intermodal Surface Transportation Efficiency Act (ISTEA), President George H.W. Bush stated that the value of the bill “is summed up by three words: jobs, jobs, jobs.”

Transportation projects are not all equally effective at creating jobs or stimulating economic growth. Sound transportation investments lower the costs of moving people and goods. Short-term job creation, while vitally important to economic recovery, should not cause us to ignore the longer-term view.

Transportation dollars should be spent on programs that most enhance long-term economic productivity. ... For example, building an ill-advised rail line might give a local economy a short-term boost in employment, only to saddle taxpayers with large operating deficits in the future.

Building the Interstate Highway System created many construction jobs, but it would be a huge mistake to interpret that employment as the system’s contribution to the economy. Workers who drew salaries from the construction program benefitted, but far less than the travelers and shippers of goods who have used those facilities every day for six decades.

By building an effective transportation network, government transportation spending draws jobs to those industries that benefit from the investment. At the same time, this moves jobs away from activities that would have been financed in the absence of the transportation investment. So while transportation investment can “create jobs,” it can also destroy them.

Public officials often mention that each billion dollars of transportation infrastructure investment will create over 30,000 new jobs. This estimate relies on what is called the “multiplier effect.” Construction workers spend their income to buy hamburgers, television sets, and automobile insurance, so a given dollar of construction expenditure ends up having more than a dollar’s worth of impact, thus “multiplying” the effect of the expenditure. Unfortunately, asserting that any expenditure will create a specific number of jobs is not well supported by evidence. Actually, in the short term, construction jobs and expenditures on steel and concrete are economic costs [that weigh heavily on the budget.]

To create or preserve jobs in the short term, it might be more effective to use federal dollars to subsidize the operations and maintenance of transportation systems. Dollars spent on operating bus lines, for example, are spent largely on labor and thus quickly recirculate in the local economy. By contrast, dollars spent on capital or construction projects may include costly expenditures on concrete and steel imported from outside the US. Construction jobs do not inherently have higher multipliers than jobs driving buses.

Identifying a project as shovel-ready in no way assures that it will produce long-term net economic benefits. Simply equating any transportation investment with jobs and gains for the economy cannot remain a sound basis for public policy. America needs to do a better job of systematically evaluating alternative investments.

One way to judge a public investment is to determine whether or not it generates a rate of return to society that exceeds the return earned on other investments in the private or public sectors.

NOTES

[1] Martin Wachs is Professor Emeritus of Civil and Environmental Engineering and City and Regional Planning at the University of California, Berkeley, and former Director of the Institute of Transportation Studies and of the University of California Transportation Center. He is also former Chair of the Department of Urban Planning at UCLA. He is currently a Senior Research Associate at the RAND Corporation (wachs@rand.org).

[2] TRANSPORTATION, JOBS, AND ECONOMIC GROWTH, Access, No. 38, University of California, 2011

Hawaii Energy Cost: Double U.S. Average and Likely to Stay There

Another disadvantageous first for Hawaii, and most of it due to our price of electricity.* We are hooked on oil and the future does not bode well for us because actually it may be cheaper to stay with oil.

Notably crude oil pricing today is at $80. Oil prices may decline further to around $50/barrel (in year 2000 constant dollars) for more than a decade because:

1. China, India and Germany are focusing on coal. Brazil on ethanol.
   
2. The success of fracking and other unconventional methods for extracting natural gas (see below.)
3. The expected reduction in the political turmoil of oil producing countries.
4. The localized success of electric vehicles and the continues improvements in vehicle MPG.
5. The modest introduction of additional large nuclear plants, wind and solar installations.

There is great attention focused on natural gas, worldwide. According to The Economist, August 9, 2011 existing and potential assets (in parentheses) of natural gas for a half dozen countries are as follows, in trillion cubic meters. These are truly vast energy deposits:

• Argentina 0.4 (21.9)
• Australia 3.1 (11.2)
• Canada 1.8 (11.0)
• China 3.0 (36.1)
• Poland 0.2 (5.3)
• USA 7.7 (24.4)

As a result of all these, the likelihood of large price drops in the development of renewable technology is less rosy. This is a major loss for Hawaii which is too tiny to absorb the costs of developing technology.

(*) ENERGY COST INDEX 2011: RANKING THE STATES, August 2011.

Data Sources for the chart with data from SBEC: Gas price index from gas prices provided by the AAA’s website www.fuelgaugereport.com accessed on July 22, 2011, and electricity cost index is an index of state’s average revenue per kilowatt-hour for electricity utilities (data for 2011 through April from the U.S. Energy Information Administration).

It's August 6 in Hiroshima, and 1945 in Detroit.

Image 1: Man-made devastation (1945) ...
Image 2: ... and spectacular recovery (2010) in Hiroshima, Japan.
Image 3: One hopes the same for Detroit and other decimated American cities.
But the happenings in Washington, D.C. give no such hope.

Trains Helped Kill the Greek Economy – They’ll Kill Hawaii’s too

“Some years back a Greek finance minister, fed up with his country's waste and extravagance claimed that he could save money by shutting down the national railway and driving around its passengers in taxis.” [1]

Too bad he didn't execute his plan for the closure of the railways. In 2009 the Greek railways collected $250 million in fares and posted a net loss of $1.4 Billion. A Billion wasted here, and a Billion wasted there … the rest is history for the Greek economy. Greece is now in a debt crisis.

In 2000 a Greek colleague and I conducted research on Greek railroads and we developed models which predicted that the rail freight service would soon carry nothing [2]. No way, they said. Four years later the freight operations of Greek shut down for good. Unfortunately, investment on Obama-like medium-speed rail passenger service continued unabated in Greece. So the budget hole got even bigger.

The lesson here is that public investment in non-performing infrastructure will eventually swamp the budget and saddle current and future generations with a heavy debt burden. Non-performing is any infrastructure in constant need of subsidy whose contribution to the economy is less than its true cost. Roads cost a lot, but contribute much more to the economy, health and safety of the population. Trains cost even more, but offer much much less.

What do you think the future holds for our tiny island that "wants" a five to seven Billion dollar train?

What do you think the future holds for the car-dependent, and highway and airport vested state of California which still plans for a $35 Billion “high speed rail”? A lot of good answers can be found in the article: High Speed Rail and Social Equity. Basically, the only high speed rail that makes sense (and money) is the 340-mile Shinkansen. All the rest, including California's, are A Fast Track to Nowhere.

The lessons about trains "modern" trains can be summarized by three common sense idioms, as follows.

You can’t teach an old dog new tricks. Trains went obsolete for a reason. You can’t solve 21st century mobility problems with 19th century technology. There are always a few exceptions, but Greece, California and Hawaii trains have nothing exceptional.

Those who refuse to do arithmetic are doomed to talk nonsense. One can write a book on this but I will mention only three rail related “math” of Honolulu mayor Peter Carlisle: (1) Get Honolulu’s financial house in order ... by spending over five billion on rail, (2) HART will cost us nothing, and (3) The Ansaldo contract will save Honolulu tens of millions in rail costs. All of them pure nonsense.

They are taking Honolulu for a (train) ride. Biased politicians, biased government officials and their paid consultants deceive the public in order to get elected, become chief of a new division and make millions, respectively.


[1] The Economist, July 2, 2011, p.8.
[2] Paravantis, John A. and Panos D. Prevedouros, Railroads in Greece: History, Characteristics and Forecasts. Transportation Research Record, No. 1742: 34-44, 2001.

Honolulu Rail in Illegal Pact with Local Unions

UCLA Urban Planning Professor Brian Taylor sent me this brief but informative article about California's proposed High Speed Rail: High Speed Rail and Social Equity.

It contains a lot of interesting points and many of them such as construction cost, jobs, "green" transportation and equity apply to Honolulu's proposed heavy rail. However, one passage caught my attention:

"Since the federal regulations currently applicable to transportation infrastructure construction prohibit local hiring preferences, it is unlikely that there will be many jobs for low income people and people of color." No jobs for locals and Hawaiians?

True! The Code of Federal Regulations 23 CFR. §635.117 part (b) reads as follows: “No procedures or requirement shall be imposed by any State which will operate to discriminate against the employment of labor from any other State, possession or territory of the United States, in the construction of a Federal-aid project.” The rail project is clearly a Federal-aid project.

Contrast the facts above this fact from the recent past: Labor Unions Sign Rail Agreement with Honolulu City Officials. The goals of the RTSA include utilizing local labor for high quality work, on time and on budget. The mayor also stated that the agreement will avoid slowdowns and work stoppages.


This “partnership is a working relationship,” said Mayor Hanneman beside labor union leaders, in a conference room packed with reporters and laborers alike. In attendance were signatories to the agreement including: Ronald Taketa of the Hawaii Carpenters Local 745, Joe O’Donnell of the International Brotherhood of Ironworkers Local 625, Peter Iriarte of the International Union of Bricklayers & Allied Craft Workers Local 1, Vaughn Chong of the International Union of Painters & Allied Craft Workers Local 1791, Peter Gamban of the Operative Plasterers’ & Cement Masons’ International Association Local 630 , and William Mahoe of the Operating Engineers Local 3.

And all of it is illegal!

Solar Power Plant on Oahu Does not Pass Muster

A five megawatt facility with solar thermal collectors is planned on DHHL lands. The provider and contractor is a local firm that has a smaller deployment on the Big Island.

The Big Island facility has used millions of taxpayer money in the form of technology credits to provide basically a tiny amount of usable energy, if any. As shown in the list below, depending on the source, the Big Island facility is mentioned as being able to generate 2000 KW (2 MW), 500 KW or 100 KW and to be feeding power to HELCO, the Big Island utility. The watt (W) is a measurement of electric power; KW is kilowatt and is equal to 1,000 watts; MW is megawatt and is equal to one million watts.

• Source (1) says that the power purchasing agreement started in January 2010 for 2 MW.
• A description of the same Big Island facility specifies 2 MW for $20 million invested using 1,008 solar concentrating panels on 4 acres of land; see source (2). That's $10 Million per MW which is expensive. It comes to $10 per watt whereas rooftop photovoltaic (PV) panel system costs about $5 per watt (See note 1).
• The company’s CEO said to me in person —and in source (3) cited below—that the facility produces 500 KW. That's $40 Million per MW which is absurdly expensive because now the cost is $40 per watt.
• The Nevada based electric generator manufacturer who sold the Green Machines that presently operate on the Big Island facility in question specifies two 50 KW generators. So the 4 acre site has a maximum power generation of just 100 KW; source (4). The CEO of the Big Island facility is quoted saying this: “The delivery and performance of the Green Machines have allowed us to fully utilize our solar field…” This means that indeed all that this facility can do on a sunny day without clouds is 100 KW. Now the cost per MW is clearly in the stratosphere at $200 Million per MW or $200 per watt.

The reduction from all this information is that 1,008 panels and 4 acres are required to produce 0.1 MW which is mostly used internally and none of it is sold to HELCO. Unlike a PV system, this concentrated solar panel system requires a lot of electricity to operate pumps, valves, and sun-tracking motors. This means that the amount of electricity sent to the grid is less than the 100 KW stated above, which further increases the cost per MW.

Oahu's daily needs exceed 1,200 MW. If this technology were to power Oahu it would require 48,000 acres and zero cloud cover over the panels 365 days a year. In addition a very large quantity of water would be needed to cool down the generators.

It appears that this locally developed technology of micro solar collectors (sun tracking troughs) can physically produce a small amount of electric power, but it does so at an exorbitant cost, especially when compared to other environmentally benign renewables such as PV.

Given all these facts, now I have several questions:

1. Were 1,008 solar troughs, that cost millions of dollars in high technology tax credits, installed for HECO TV commercials, politician photo ops, and investor enrichment?
2. Does HECO and the PUC have any idea as to what works, what doesn't and at what cost?
3. How can a solar plant with 1,008 collectors produce 2 MW per day and have zero sales to the utility? My home solar panels produce 0.0016 MWh per day and HECO knows all about it.
4. Have we legislated mandates that promote unreasonable ratepayer charges? Right now Hawaii power customers pay over 250% more for electricity than the mainland. Why do we develop policies and select options that make this premium go even higher?
5. One of the five stated purposes of Hawaii's PUC is to "Foster and encourage competition or other alternatives where reasonably feasible in an effort to provide consumers with meaningful choices for services at lower rates that are just and reasonable." Purchasing power from a power generating facility at a cost exceeding 22 cents per KWh is very expensive. Why does the PUC entertain rates higher than 25 cents per KWh specifically for “Concentrating Solar Power” as stated in the Feed-in Tariff (FIT) rates?
6. This preferential rate for a single technology is twice the baseline FIT rate of 13.8 cents per KWh for other renewable energy technologies. Why?
7. Such a discriminatory pricing begs another question: Is Hawaii so desperate for a local success story that we waste millions of taxpayer and ratepayer dollars in uncompetitive overpriced technologies?

My questions point to a lack of due diligence or breach of fiduciary duty on the part of the utility industry in Hawaii, its regulators and our legislators. The governor must obtain an understanding of the realities of the renewable energy game in Hawaii. Or perhaps the governor is the problem – I mention it as a possibility, but I suspect that he's never received an unbiased briefing.

Hawaii’s energy arena needs clear metrics and performance based contracting, not fake promises and preferential treatment. Hawaii needs fact-based energy leadership, not rhetoric and commercials!

LINKS CITED: Source (1), Source (2), Source (3), Source (4), Note (1): A Price Point for Rooftop Solar Panels

Traffic Accident Investigation on Oahu: Stuck in the 1980s.

Civil Beat's Alia Wong has aired the festering problem of Honolulu Shutting Freeways Longer Than Other Cities which is indicative of Oahu's multilayered traffic mismanagement.

As far back as 1998 I wrote this opinion in the Star Bulletin: It takes too long on Oahu to investigate accidents.

Although the HPD is usually confronted with traffic crashes that are "manini" compared to those on the mainland, where jack-knifed trucks get mangled with several other vehicles, it takes hours instead of minutes to deal with incidents.

An incident on Kalanianaole Highway on Dec. 12 prompted me to write this letter. It was reported that at about 1:30 p.m. a car veered into a moped about half a mile east of Aina Koa Street.

At 2:30 p.m. I joined the queue, which had extended for more than a mile on H-1 freeway. It took 28 minutes to drive 1.5 miles. At the crash site, I saw a smashed moped, a car on the shoulder and at least six police vehicles.

Most streets around Kahala Mall were jammed. Waialae Avenue was gridlocked and the off-ramp was overflowing onto the freeway, creating a hazardous situation. At 4:30 p.m., police were still investigating and the queue on H-1 had reached Kokohead Avenue.

I estimate that this three-hour traffic "management" incident trapped more than 9,000 vehicles and more than 12,000 motorists. It caused more than 6,000 people hours of delay, increased the risk for secondary accidents, and resulted in more than 1,500 gallons of additional fuel consumption.

The mayor and the chief of police must remove the archaic and inefficient procedures for incident management and give our officers the education and training needed to get in step with contemporary national practice.

I am subcommittee chair of the Freeway Operations committee of the U.S. Transportation Research Board and I have assisted Attica Tollway in several operational issues. Some of my work on Freeway Incident Management has been published in professional, refereed venues, as follows:

• Incident Management Simulation on a Two Freeway Corridor in Honolulu. Proceedings of the 6th ITS World Congress, Toronto, November 1999.
• Video Incident Detection Tests in Freeway Tunnels. Transportation Research Record, No. 1959: 130-139, 2006.
• Automated Incident Detection and Automated O-D Generation for Freeways, Panel Session 539 on NEW TECHNOLOGY FOR FREEWAY OPERATIONS, Annual Meeting of TRB, Washington, D.C., 2006.
• Freeway Incidents – US, UK and Attica Tollway: Characteristics, Available Capacity and Models, Transportation Research Record, No. 2047: 57-65, 2008.

In all these years I have never been consulted by the city or state departments of transportation, or the traffic division of HPD. Apparently, all of them know all there is to know. And the results are obvious.

MEGA RAIL IN A MICRO CITY

Article published in New Geography. Also appeared in the Washington Examiner, NCPA, Hawaii Reporter and elsewhere.

An exorbitantly costly rapid transit heavy rail project has been proposed for the small Hawaiian island of Oahu, where the leading metropolis, Honolulu, ranks 53rd in population among U.S. cities, with less than 950,000 people. If the project moves forward it will be the world's only elevated heavy rail in a metro area with a population of under four million.

Nothing about this 20-mile long rail project makes sense, except for its politics and its cronyism. It is projected to cost $5.3 billion according to the financial analysis of the city, or $7.2 billion, according to the state. For comparison, the Blue Line between Los Angeles and Long Beach that opened in 1990 has the same length and would cost roughly $1.5 billion to build now.

Cities worldwide and in the U.S. have shown a clear preference for light rail. The only rapid transit (heavy rail) system built in the US since 1990 is the one in Los Angeles in 1993; another was constructed in San Juan, Puerto Rico in 2004. In the same period, 19 light rail systems were installed.

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Big Projects in Hawaii - Why Are They Stuck?

Big projects are complex. So the question why big projects get stuck can generate enormously complex responses. However, the answer boils down to a simple bottom line: Because they don't make the grade!

There are 10 basic dimensions that account for the reasons that big projects succeed or fail. Each project has its own complex set of technical, legal, institutional and financial requirements but 10 basic reasons cover the fundamental requirements.

A project needs to fulfill a major need (or mitigate a major problem), at a low cost, with a large share of it paid by outsiders, and with minimal environmental impacts and implementation risks. It is also important that a project has a strong local advocacy and a weak opposition, and some political support at all levels. A project has a better chance if it utilizes advance technology or is ahead of its time based on proven engineering (e.g., maglev trains, fiber based structural components, etc.) A sound business plan means that a scenario of reasonable adversity keeps the project's balance sheet solvent and subsidies are kept to a minimum even for government projects.

Table 1 presents the 10 fundamental requirements and theoretical scores using a scale where 5 is best and 1 is worst. As a result, a project that garners 50 points is “excellent” and would likely be built at a breakneck speed. Thirty or more points are needed for a project to be deemed “good,” therefore worthy of serious consideration for implementation. Projects with less than 30 points are deemed to be fair or bad and should be avoided.


There have been many high scoring projects such as the successful establishment of Costco and Wal-Mart in Hawaii in less than 10 years, the H-Power and AES power plants on Oahu, the 10 miles of Tampa’s reversible toll lanes built in less than 7 years for less than $400 Million, and the I-35W bridge replacement in the Twin Cities costing $234 Million (completed 3 months early and is Light Rail-ready,) just to mention a few.

Job creation is not a factor. While privately funded projects typically generate new jobs, several taxpayer funded projects tend to be make-work projects. In addition, the job creation aspect is partly accounted for by the Local Advocacy and Political Push factors.

Table 2 presents a sample of 8 big projects in Hawaii and their scores for the 10 basic requirements based on my ratings. Three local projects made it because they deserved it, two failed because they deserved it, and three big ones are predicted to fail. Other experts may assign different scores but the average scores of a handful of unbiased assessors with knowledge of all facets of a project should yield a reliable overall score for a proposed project.


Both the H-3 freeway and the grand expansion of the Honolulu International Airport (HIA) including its controversial reef runway had major cost and environmental problems, but their superior payoff (by providing needed roadway and runway capacity), sound business plan (by paying for themselves in the long run), and generous federal cost sharing garnered them a good score. They got done and work well.

Similarly the Hawaii Convention Center had a lot going for it. The main issue was its location. Once this was resolved, the project was built expeditiously. Its business plan was and still is weak.

Two recent project failures in Hawaii are unique. Both are water transportation projects, and both were implemented and then failed. Both should never have been started. This is particularly true for TheBoat that never had a credible business plan or solved a problem. It removed the equivalent of 2 to 4 buses from the road at a cost of $32 per commuter trip. The (sometimes nauceous) commuter paid only $2; all the rest was public tax subsidy.

The SuperFerry was a fitting transportation addition in the island state of Hawaii but it needed a super-sized investment in order to succeed; roughly four times what was actually available. It needed three fully debugged vessels with no need for custom docking platforms, and it needed media campaign and political greasing similar to the 2006-2008 pro-rail blitzkriegs. Given these requirements, it is questionable that a marine company can make a profit at the level of investment needed for establishing a competitive service. There have been several attempts since before statehood, all leading to losses and closures.

At least three large projects are currently "on the table" in Hawaii: The city's rail project, B.R.Horton's Hoopili project in Ewa (over 12,000 residential units), and the Big Wind project where wind turbines on Molokai and Lanai will generate 400 MW of electric power to be used on Oahu via submerged cables.

None of these projects make the grade. This does not mean that they will not be built. But it does mean that building them is not a good idea and that the monies should have been better spent on other projects and opportunities. Here is why.

Both Rail and Big Wind fulfill a major need but with archaic or problematic technology. Their project proponents have greased the wheels well and they enjoy strong political support, but both projects are very expensive for what they offer and the cost share by outsiders is small or nil. They have large impacts mostly borne by non-users. Both have strong local advocacy and opposition so that's a wash.

Hoopili and Big Wind have credible business plans but their externalities are not accounted for, e.g., Hoopili and surrounding developments require their own freeway lane to/from town, but none is being built. As a result, over 100,000 existing residents will suffer much worse congestion upon Hoopili’s completion and occupancy (even assuming rail is there.) In addition, both the rail and Hoopili obliterate a large portion of prime agricultural land in central Oahu.

A major externality of rail and Hoopili that is not accounted for in their direct costs is the loss of a major portion of prime agricultural land on Oahu. This is a huge loss for an overpopulated remote island.

The 20 mile rail should be replaced by 11 miles of High Occupancy and Toll (HOT) lanes and point-to-point express buses. Hoopili's 12,000 units should be replaced with 12,000 units in Kalihi and Kakaako. Big Wind should be replaced with geothermal power plants on Maui and Big Island, and coal, solar and biomass on Oahu.

The scores for HOT Lanes and Better Energy are shown in Table 3 below. These are good projects that should get done!

Note 1: Those who desire a better understanding on why big projects get or don’t get done may read articles on Megaprojects by Oxford University professor Bent Flyvbjerg, and Utah University's study on Bootleggers, Baptists and Enterprising Politicians, that is, the alliance of profit-driven interests, groups of uncompensated advocates, and opportunist politicians that form the tripartite support alliances needed for a big project to muddle through the project development process.

Note 2: On June 23rd at the Plaza Club, HVCA and ThinkTech present Big Projects in Hawaii - Why are they stuck? Contact: Jay Fidell, ThinkTech Hawaii, jay@fidell.com, (808) 780-9254 for information.

A Price Point for Rooftop Solar Panels

With a flurry of proposals being floated around for renewable and other forms of energy, it is good to establish practical and realistic reference costs or price points.

In June 2011 COSTCO Wholesale through Costco.com offered for the first time a home or small business rooftop photovoltaic system with a maximum power of 5060 Watt for a cost of $18,000, which includes shipping and handling.

Such a large and involved system requires a city permit for installation and an inspection by the utility. A licensed electrician is strongly recommended for the installation. All inclusive, this system installed would cost about $25,000 or just under $5 per Watt. (This does not include Federal and State tax credits which in Hawaii would total roughly $9,000.)

The system's literature states that it will generate between 462kWh and 924kWh of electricity per month depending on placement, longitude, latitude and hours of sun exposure. By Hawaii standards, this system is big. For example, my home which houses 3 adults and 2 children consumed 420 KWh in 32 days, based on an April 2011 HECO bill. That's why I have a 1,600 Watt PV system on the roof. My system cost $13,000 or $8 per Watt installed about a year ago. Indeed PV prices are coming down fast.

Remember this figure: $5 per Watt installed. Next time a politician, legislator, salesman or contractor makes you an offer that is substantially higher either for a residential installation or as part of a utility Power Purchasing Agreement, then you are likely being taken for a ride as a customer, taxpayer or ratepayer.(1)

It should be added that the system referenced above is not the least expensive one. One can find solar panels of Asian manufacture that are sold by the palette at an even lower cost.

UPDATE: Google creates $280-million solar power fund, Los Angeles Times, 6.14.2011.

Note(1): We need to be mindful of special circumstances such as shipping and labor costs in Hawaii, specific solar exposure at each location, etc. Careful design is needed and PV is sensitive to proper orientation and as little cloud cover as possible. Given Hawaii's cost premium "substantially higher" in Hawaii (for residential installations under 4 KW) is over $7 per watt, assuming an easy installation; see note below.

Note(2): The low cost pricing assumes an easy installation and minimal safety risk for the installation crew; i.e., one floor high roof. Installations can be problematic, thus expensive.

Wind Power Misrepresentations and Lessons for Hawaii

Wind Power Generation: From the UK to NY State provide ample evidence that even a 27% capacity factor is high.

• Wind power’s actual contribution to the UK’s energy supply: The findings, based on real-time energy production from Nov 2008 to December 2010–26 months–were sobering. Wind generated at substantially below the 27% capacity factor, and low wind events (defined as output falling below 10% of capacity) occurred over one third of the time.

Much like Hawaii (1) New York state conducted a pre-deployment study: The study concluded that New York could support a 10% penetration of wind into its grid system with turbines reliably operating at 30% average capacity factor or better.

Then NY state installed over 1,200 MW of wind power, which is coincidentally the amount of daily power needed for Oahu. So... what happened?

• No wind project in New York achieved a 30% capacity factor, and most are operating at well below this figure including Maple Ridge 1 and 2 touted by wind proponents as a premier wind site. Maple Ridge was forecasted to have a capacity factor of 34% prior to construction but has consistently operated around 25% — a significant performance reduction.

• Noble Environmental’s projects produced at even lower levels. When the company sought community acceptance of its projects in upstate New York, the founder of Noble insisted their projects would operate at 30-35% capacity. In the tax agreement signed with Clinton County, NY, Noble went so far as to sweeten the deal by offering to pay a bonus of $1000/MW every time the annual capacity factor of any of their projects exceeded 35%. Result: Noble’s upstate projects operated with a 20% to 22% capacity factor in 2010.

Companies will misrepresent to get the public contracts. As we will see in the future, this happens in Hawaii as well.

Finally the article clearly describes the future in Hawaii as forecast by NY state, if Big Wind materializes:

• NY ratepayers who are subsidizing wind development in the State are also receiving considerably less than promised. Square miles of New York’s most rural areas have been transformed into industrial power plants.

Hawaii version:

Hawaii ratepayers are subsidizing large wind farms in the State are also receiving considerably less than promised. Square miles of Hawaii’s most rural areas in Kahuku, on Molokai and Lanai have been or will be transformed into industrial power plants totaling about 500 MW (in theory, of course.)

Note (1) Take a look at my article: Wind Energy for Hawaii: Great for Profits, Not so Great for Power

Renewable Energy and Hybrid Cars. Still Only at 1%.

The emphasis on renewable energy sources for the generation of electricity has a number of similarities with light duty hybrid vehicles (hybrid cars) for transportation.

Flash back to the late 1990s when hybrid vehicles where known to automotive engineers, car aficionados and some environmentalists. The odd looking 4-door Toyota Prius and the rain drop looking 2-door Honda Insight where oddities among mass produced cars. Similarly at the same time there were wind mills and solar panels worldwide, and the Puna Geothermal plant in Hawaii among other renewable energy applications.

Since then both hybrid cars and renewables had an exponential growth, at surprisingly similar pace and for substantially different reasons. Unlike renewable energy mandates, hybrid cars won their market on their merits such as quiet operation, lower maintenance and substantially higher fuel efficiency. To date their worldwide market share is about 1% among light duty vehicle fleets, and in approximate terms, 60% of hybrids are in the US, 18% in Japan, and 8% in Europe. (These change depending on the year of reference.)

Renewable energy power plants on the other hand could not develop a profitable case because of the much lower cost per watt of electricity produced by coal, natural gas and nuclear power plants. Extensive wind (Germany, Denmark) and solar (Spain) developments required major subsidies. Various studies have indicated that they actually caused losses in total national employment (e.g., King Juan Carlos university estimated that each green job cost 2.2 jobs in Spain,) and caused electricity rates to go up. This is a lose-lose outcome.

Recent data, as shown below, indicate that renewables are the fastest growing among energy sources.


Nuclear energy suffered a setback due to the catastrophe in Japan in March 2011. All countries with plans for expansion of nuclear plants will continue except for Germany. Germany has set a goal of de-nuclearization by 2020. The loss in energy generation will be replaced mostly by coal and renewables. This is another lose-lose outcome due to added pollution and the heavy use of new resources to create machines to produce power that was produced by existing nuclear power plants.

Despite governmental mandates for renewables, if their electricity production is converted to equivalent tons of oil, then their share is, much like the hybrid cars, only 1.3% in 2010, as shown below.


Given the high cost of power plants and the even higher sunk cost of the existing power infrastructure, it is likely that renewable energy will take many years to provide substantial global energy generation. China’s, India’s and Germany’s focus on coal, and US’ focus on natural gas do not support a vast expansion of the global renewable share any time soon.

Exceptions will be isolated locations such as Hawaii and Iceland (geothermal), Brazil (biomass and biofuels) and others, based on local source availability and other factors.

Source of Data: The Economist, June 11, 2001, p. 78.

Renewable Energy Sources Require Vast Amounts of Natural Resources

The National Center for Policy Analysis expertly summarized Robert Bryce's "The Gas Is Greener" which appeared in the New York Times on June 7.

In April, California Gov. Jerry Brown signed into law an ambitious mandate that requires the state to obtain one-third of its electricity from renewable energy sources by 2020. Twenty-nine states and the District of Columbia now have renewable electricity mandates, and there is also support at the federal level, says Robert Bryce, a senior fellow at the Manhattan Institute.

But while energy sources like sunlight and wind are free and naturally replenished, converting them into large quantities of electricity requires vast amounts of natural resources -- most notably, land.

Consider California's new mandate.

• The state's peak electricity demand is about 52,000 megawatts.
• Meeting the one-third target will require (if you oversimplify a bit) about 17,000 megawatts of renewable energy capacity.

Let's assume that California will get half of that capacity from solar and half from wind. Most of its large-scale solar electricity production will presumably come from projects like the $2 billion Ivanpah solar plant, which is now under construction in the Mojave Desert in southern California. When completed, Ivanpah, which aims to provide 370 megawatts of solar generation capacity, will cover 3,600 acres -- about five and a half square miles.

• The math is simple: to have 8,500 megawatts of solar capacity, California would need at least 23 projects the size of Ivanpah, covering about 129 square miles, an area more than five times as large as Manhattan.
• While there's plenty of land, projects as big as Ivanpah raise environmental concerns.
• In April, the federal Bureau of Land Management ordered a halt to construction on part of the facility out of concern for the desert tortoise, which is protected under the Endangered Species Act.

Wind energy projects require even more land -- the Roscoe wind farm in Texas, which has a capacity of 781.5 megawatts, covers about 154 square miles.

In the rush to do something -- anything -- to deal with the problem of greenhouse gas emissions, environmental groups and policymakers have determined that renewable energy is the answer. But all energy and power systems exact a toll, says Bryce.

Hawaii's renewable energy mandate is among the nation's most ambitious. Hawaii law requires electric utilities to meet a renewable portfolio of 10%, 15%, 25% and 40% by December 31, 2010, 2015, 2020 and 2030, respectively.

The lesson for Hawaii where flat space and any space in general is at a premium is that land-hungry renewable energy options are not likely to be a major part of the solution.

Brookings' Pro-transit Report Gets Slammed by Its Own Data

One thing stuck with me from the X-Files: The Truth Is Out There!

Like the City's EIS which clearly show that after spending $5.5 Billion the transit share will increase from 5.6% now to 6.6% in 2030, and that congestion with rail in 2030 will be far worse than it is now, other transit reports although word-smithed to tell a pro-transit story, actually reveal how poorly transit does, particularly rail transit.

In May 2011, The Brookings' Institution published the pro-transit report Missed Opportunity: Transit and Jobs in Metropolitan America where it made major proclamations like:

• The typical metropolitan resident can reach about 30% jobs in their metropolitan area via transit in 90 minutes.
  

The typical commute in the nation is about 30 minutes and if one has a private vehicle, he or she can reach over two thirds of the jobs in the metropolitan area. But in transit, he or she can reach only an (astounding) 4%, by Brookings' own survey numbers!

Wendell Cox had a good time this study in his Transit: The 4 Percent Solution.

• Among the 29 metropolitan areas with a more than 2,000,000 population, the 45 minute job access average was 5.6 percent, ranging from 12.6 percent in Boston to 1.3 percent in Riverside-San Bernardino.

CATO Institute's Randall O'Toole adds this: Simply putting transit close to jobs, however, doesn't mean people will ride it. The Brookings Institution recently ranked San Jose as the second-most transit-accessible urban area in America, while Chicago was ranked 46th. Yet the Census Bureau says only 3.4% San Jose commuters use transit, compared with 13.2% Chicago.

Finally let's not forget that many transit surveys are biased. They exclude, walk, wait and transfer time losses, much like the City's proclamation that Kapolei to downtown will be about 40 minutes. This excludes the access time to the Kapolei station which by itself is at least 15 minutes from the time one leaves home to the time that the train leaves the station. Add at least 5 to 10 minutes to reach the office and he or she more time commuting to work than by car, has no car to run errands or do other things after work, and has to repeat the long commute on the way home.

All this inconvenience for $5 a day leads to the ultimate result: It's a 4% solution indeed!

Price of Rail Environmental Study Doubled

Hawaii Reporter obtained this major admission from the City: The cost of the EIS doubled from the original $86 Million to $156 Million. This does not include the likely required Supplemental EIS, Preliminary Design and Final Design. All said, soft costs (paperwork, media and other fees and expenses) for the Hannemann/Carlisle boondoggle will reach one half Billion dollars, which is what other cities pay for fully installed light rail systems!

Honolulu rail is now squarely into SCAM territory.

EPA: 946 Pages to Regulate 0.5% of the Problem

The Environmental Protection Agency (EPA) recently issued 946 pages of new rules requiring that U.S. power plants sharply reduce their emissions of mercury and other air pollutants.

EPA Administrator Lisa Jackson claims that while the regulations will cost electricity producers $10.9 billion annually, they will save 17,000 lives and generate up to $140 billion in health benefits. There is no factual basis for these assertions, said Willie Soon, a natural scientist at Harvard, and Paul Driessen, a senior policy adviser for the Committee for a Constructive Tomorrow.

America's coal-burning power plants emit an estimated 41-48 tons of mercury per year. U.S. forest fires emit at least 44 tons per year; cremation of human remains discharges 26 tons; Chinese power plants eject 400 tons; and volcanoes, subsea vents, geysers and other sources spew out 9,000-10,000 additional tons per year.

All these emissions enter the global atmospheric system and become part of the U.S. air mass. Since US coal power plants account for less than 0.5% all the mercury in the air, eliminating every milligram of it will do nothing about the other 99.5% our atmosphere.

Source: Willie Soon and Paul Driessen, "The Myth of Killer Mercury," Wall Street Journal, May 25, 2011.

Rail Still Facing Key Hurdles

Construction crews are working on the rail project near Waipahu High School. Many think that construction for the city’s proposed elevated rail project has started but it’s not true. Read my article the Filipino Chronicle (page 8).

Edinburgh Light Rail Halted. The Usual Suspects. The Usual Results.

Edinburgh Light Rail called Edinburgh Trams is the second great example of what’s in store for Honolulu. The first one is Tren Urbano in San Juan Puerto Rico where the system was build at twice the original cost and five years after opening it has failed to reach 50% of its opening year ridership forecast.

The “usual suspect” is present in all three projects. Edinburgh, San Juan and Honolulu have the same consultant who prepared the rail project estimates. Here are the results so far in Edinburgh, Scotland:

• Project originally scheduled to open in July 2011. Rescheduled to 2014 if at all.
• Original cost was $640 million but now it over $1 Billion.
• 72% of the construction work remains to be done but only 38% of the budget is left.

Read full article in Hawaii Reporter.

Renewable Energy in Hawaii: Dr. Takahashi's Take

Retired UH professor Patrick Takahashi was the creator and past director of Hawaii Natural Energy Institute (HNEI) at the UH. His books on energy are fundamental readings. One of his most comprehensive posts about renewable energy for Hawaii is linked below.

Will renewable electricity be limited in Hawaii?

I am glad that he and I agree on

1. the weak potential of wind power ("capacity factor means that a 400 MW wind farm could well only provide 100 MW on average to Oahu")
2. the good potential of biomass
3. the vast potential of geothermal power

for Hawaii.

One part that he has not delved into but holds promise for Hawaii if it develops vast amounts of renewable energy is Ammonia, which holds the key to electricity and transportation fuel and food production. See Ammonia as a Transportation Fuel and Fertilizer.

Renewables and Reliability of Power

After reviewing the 2009 power reliability reports submitted by utilities to the PUC I discovered that:

• Oahu power utilizes less than 2% renewables. It has the highest reliability: HECO SAIF in 2009 was 1.1%,
• Maui power utilizes about 17% renewables (wind and biomass). It has the middle reliability: MECO SAIF in 2009 was 1.6%,
• Hawaii power utilizes about 33% renewables (geothermal, wind, hydro). It has the lowest reliability: HELCO SAIF in 2009 was 3.1%,

where, SAIF is System Average Interruption Frequency (0% is best)

HELCO reported that 20,660 customer interruptions (16% of all interruptions) were related to Independent Power Producer (non-HELCO Generation) sources. In 2009 Hamakua Energy Partners (HEP) and Pakini Nui Windfarm were the non-HELCO generation sources that caused customer interruptions. Geothermal did not have any negative effect on HELCO's SAIF.

The lesson here is that unless the right renewable energy sources are selected, reliability in the provision of power will deteriorate.

AFTER 6 YEARS AND $300 MILLION SPENT, ONLY 49% SUPPORT RAIL

The Star Advertiser published on Monday, May 16, 2011 results from a recent simple poll conducted by Ward Research. The results are remarkable. They speak volumes of the public's desperation for relief from traffic congestion and since this is the only project on the table, they barely are going for it. If asked, most would tell you that they want rail so that the other people can use it. Less than 5% of commuters will switch to it. However, the survey missed the opportunity to ask about this.

The 50.6% majority of the 2008 elections has been reduced to 49%. Incredibly, the ratio of Yes/No in 2008 was 1.10 and the ratio of Yes/No in the Star Advertiser survey is 1.09! This is devastating for the Honolulu rail lobby.

Compared to 2008, the pro-rail folks got a pro-rail President. They got Oberstar to fly over Oahu on a helicopter and proclaim it a good project. They spent millions in mass media ads and monthly mailers to households. The Council had multiple junkets to rail cities. Senator Inouye, Congresswoman Hirono, US DOT Secretary LaHood and Federal Transit administrator Rogoff descended to Honolulu last month and promised (again) approvals and monies. They got the union and special interests constantly harping rail everywhere including being on the agenda at almost every monthly meeting at Neighborhood Boards. Result?

Any desirable project with such arsenal of weapons would have had over two thirds of the public supporting it. Rail got only 49%. And, from the same survey, only 12% believe the city's cost estimates!

Has the project reached a tipping point? The project is beyond its tipping point to destruction. The tipping point came in 2010. Let me explain: In order to succeed, mega-projects (defined as any project over one half billion dollars) need a major champion with decision making power and a lot of money. In our case the champion was Hannemann and the money was the Congress.
In 2010 Hannemann was trounced, and the TEA party made it widely known that the US is in deep debt. And they helped change the control of Congress from liberal to conservative. Then Abercrombie revealed that the state had a $1.5 Billion debt. Then Congress obliterated President Obama's high speed rail and cut many new infrastructure projects. Rail New Starts were cut by 20% to just $1.6 Billion in FY11. We are well beyond the tipping point when it comes to new rail projects.

The irrelevant person in all this is our one issue mayor who as recently as yesterday issued an announcement proclaiming that everything is dandy.(1) Let's not forget that jokes are his strength.

The only unfortunate thing is that I and all the anti-rail groups never had the funds and media support needed to present our points on a equal basis. It is very satisfying to see that long before a successful lawsuit we are clearly achieving the stoppage of this disastrous project.

Note (1): MAYOR SETS THE RECORD STRAIGHT ON RAIL PROJECT FINANCING
http://www1.honolulu.gov/refs/csd/publiccom/honnews10/mayorsetstherecordstraightonrailprojectfinancing.htm

Honolulu's Special Interests Enrichment

The price tag for preparation of the Honolulu rapid transit project’s environmental impact statement was originally $86 million but has since bulged to $156 million, a City spokesman confirmed today. The current value is $156,211,000 and it is due to expire July 11 of this year. Read full article in Hawaii Reporter.

This does not include the cost of the Alternatives Analysis which was in the order of $20 Million.

Recall that in 2007 Tampa opened 10 miles of elevated reversible toll lanes ($1.50 toll per trip). Planning, design, and construction were completed in seven years for a total cost of $320 Million. In comparison, the Honolulu Rail Gang will spend $320 Million for planning, design, lobbying and PR, and 90% of it comes from local taxes.

Wind Turbines on Fire

I doubt that The Blue Planet Foundation would use any of these wind turbine images for its letterhead. Perhaps its advocacy should also be commensurate to the facts.

Electricity Travels at the Speed of Light. State PUC Is Sightly Slower.

On December 26, 2008, an island-wide outage occurred on Oahu during a severe lightning storm that resulted in a loss of electric service to HECO customers ranging from approximately 7 to 20 hours.

On January 12, 2009, the PUC initiated an investigation of the outage.

In March 2009, HECO submitted an outage report prepared by its expert consultant, which concluded that the island-wide outage was triggered by lightning strikes.

In January 2010, the Consumer Advocate submitted its Statement of Position that HECO could not have anticipated or prevented the outage through reasonable measures and could not have reasonably shortened the outage and restored power more quickly to customers. The Consumer Advocate further stated that penalties should not be assessed for the outage, but recommended that numerous studies be performed with the objective of preventing or minimizing the scope and duration of future power outages.

As of May 9, 2011, the PUC's investigation of the 2008 outage is still open.

Portland's "High Capacity Transit" Success... All 2.3% of It!

Interesting excerpts of an actual evaluation of Portland's MAX light rail in 2011:

• High Capacity Transit is desirable when there are large numbers of people moving to geographically constrained destinations within a short period of time – such as commuters traveling to downtown San Francisco or midtown Manhattan. (Nothing in common with Honolulu.)

• MAX was supposed to be a “catalyst for transit-oriented development” (TOD) at Cascade Station near the airport, but IKEA, Target and Best Buy are built away from the MAX stop and serviced by large parking lots. RESULT: 2.2% use MAX. (This will happen to the Ewa mall by Bishop Estate, Pearl Highlands, Pearl Ridge and Ala Moana Center.)
  

• Gresham Civic Station is a suburban location that has been intensively planned for more than 25 years, with expectations that this would be a showcase for suburban TOD. The entire area was bare dirt when MAX opened in 1986. Eventually, much of the site was built-out. RESULT: Although there are hundreds of apartments close to the newest MAX station at Gresham Civic Center, only 2.25% the tenants actually use light rail. (This will happen to Ho'opili and other pie in the sky TODs.)
  

• The two-day observations at Cascade Station were perhaps the most revealing in terms of assessing the oft-made claim that light rail is a “catalyst for development.” Light rail is not only irrelevant to the commercial success of Cascade Station, it is a barrier to continued development due to density requirements near rail stations. (Maybe Honolulu developers will wake up to reality.)
  

Finally, a quote describing real Transit Capacity (which is of course why I have been advocating a managed bus system since 2000):

• For comparison, the highest-throughput mass transit facility in America is a simple busway managed by the Port Authority of New York-New Jersey (PANYNJ). On weekdays between 6:00 a.m.-10:00 a.m., PANYNJ operates a 2.5 mi eastbound contra-flow Exclusive Bus Lane (XBL) along westbound Route 495 to Lincoln Tunnel from the New Jersey Turnpike. The XBL carries 1,700 buses and 62,000 passengers each morning, on average, saving about 15-20 minutes in travel time. This averages about 1 bus every 8 seconds for a 4-hour period, with roughly 37 seated passengers per bus.

Full Report -- CASCADE POLICY INSTITUTE: The Myth of High Capacity Transit, May 2011.

Got Wind? YES. Got Power? NO.

Press Release by First Wind:

Honolulu, HI—March 24, 2011—First Wind, an independent U.S.-based wind energy company, and Hawaiian Electric Company held a ribbon-cutting ceremony today to mark the commencement of commercial operations of the Kahuku Wind project. State, local and community leaders gathered at the project site on Oahu’s North Shore to recognize the environmental and economic benefits of the 30 MW project, which features an innovative battery storage system and has the capacity to generate enough renewable energy to power up to 7,700 Oahu homes each year.

My investigation five weeks later (April 30, 2011)

A picture is worth a thousand words... watch this:



(Alternate link if this video does not load)

The bottom line is that both HECO and government got it wrong. Even when wind is present, the turbines are doing nothing.

Problems Big and Small. Sensible Solutions for All.

[This is an enriched version of my TEA 2011 speech at Hawaii Capitol on April 15, 2011]

We got big Problems. So does everybody else… states, the whole country, other countries. What we need is Sensible Solutions. Instead we get more government solutions and more taxes.

Pension accounts for city and state government employees will be broke soon-- they face huge account deficits and Hawaii leads the way in this. Their solution? Tax pensions or bury their head in the sand. The sensible solution is to raise the retirement age to 70 years of age.

Homelessness. Their solution? Build more public housing. The sensible solution is to take care of the homeless needs and provide transitional housing. Transition the homeless back to normal life. Do not warehouse them. Empower, consolidate and better organize non-profits that care for the homeless. Set limits on the benefits that the homeless receive.

Power. We pay the most for electric power. We complain about the price of gasoline but it’s only 15% more expensive than the mainland average. Our electricity is about 300% more expensive. Whose fault is this?

The legislature's with their "green" objectives that put into effect without any cost analysis, the PUC's controls, and HECO's monopoly. The monopoly buys wind and solar power for 15c per KWh and sells it to ratepayers for 30 to 40 cents.

The sensible solution is to deregulate. Within 20 years we can have a competitive energy market with solar, geothermal, coal, OTEC, biomass, algae, etc. distributed power providers.

Planning is a big problem. We have the Oahu Metropolitan Organization (OMPO) that coordinates all transportation plans in the city and county of Honolulu. But the key people on the all-important policy committee are the Transportation Committee chairs of the Senate and the House. For many years they are both from Maui. So the county of Maui decides the transportation plans of the county of Honolulu. This absurdity is going on for a decade now and has lead to gross miss-allocation of funds with Honolulu at the losing end.

Traffic is a big problem. We need roads to move over 90% of the people who use vehicles. Instead government plans to waste 6 billion dollars to help the 1% of people on the rail. And cutback TheBus in the process.

TheHandiVan is a costly service. Its archaic and inflexible booking system requires 1 or 2 day advance reservations. This inconvenience costs $35 per rider. TheHandiVan services can be fully substituted by private modified vans of which there are several on island in private transportation. They provide quick and courteous service, local jobs and a modest profit at about $25 per ride. TheHandiVan is proof that Sensible and Government do not go together.

Waste Management is a problem. Their solution? Business as usual: Landfills and expensive, fake recycling. Best solution? Privatization and incentives for remanufacturing. The private sector can deal with landfill issues, burning and recycling. Or sending trash to mainland or Asia. Leave environmental requirements as is, and let the private sector find the solution set including the remanufacture of recycled paper, plastic, fats, oils and lubricants.

Pavements and potholes. Their solution? Neglect, followed by expensive contracts and sloppy pothole plugging by city crews. The sensible solution is to go on routine pavement maintenance so that our local refineries can plan their asphalt production. (I understand one of them has quit making asphalt because of the unpredictability of demand.) Sign 10 year contracts with quality guarantees and price discounts. Get the City out of the pothole repair business.

Sensible Solutions have these basic ingredients: Less centralization, less taxation, less regulation and greater private sector participation.

Flywheels

Every vehicle on the road has a flywheel. It smooths out the fuel explosions in each cylinder and makes gear change possible.

An over-sized flywheel can propel a light vehicle but due to the constant speed transitions in regular traffic this application is problematic.

A "mega-sized" flywheel can become a formidable energy storage device that can avert blackouts, facilitate the smart grid and even store energy from daytime production (solar) for nighttime consumption.

This Washington Post article... Reinventing the (Fly)Wheel contains a lot of useful development including the first in the nation 20 MW electricity power plant located in Massachusetts.

The New York Times Investigates Hawaii's Big Wind

I sent this message to my friends in the media today.

I find it a bit ironic that we have to read a newspaper from 5,000 miles away to find out what's going on at our back yard: Hawaii Doubles Down on Big Wind

In it there is this comment: "U.S. EPA, questioned why the state considered only two alternatives." My immediate reaction to this concern? ... Because in Hawaii we plan like dictators: Like Heavy Rail or Nothing!

My thoughtful reaction is here: Wind Energy for Hawaii: Great for Profits, Not so Great for Power (I note that the Star Advertiser did not publish this submission.)

My energy plan in one page is shown below.



A huge part of Hawaii's future rides on its energy plan. I must tell you that I do not like what I see so far. I was at a public forum with the Governor and PUC Chair Mina Morita last night. Their heart is in the right place but they seem to have received tremendously biased information and we'll be spending billions for minor payoff. (Obviously we are developing a tradition on this.)

I look forward to your frequent investigative coverage of Hawaii's energy plan. Please set any green glasses you like to wear aside. Open your minds and your wallets and then look at the issues.

Please remember that next time "global warming" comes up Hawaii's way ahead in the green accomplishment scale because of our ...
... fleet of smaller cars used over shorter distances,
... lack of need for heating oil,
... lack of guzzling heavy industry
... household energy improvements (we're tops or near tops in the nation on sun water heating and photovoltaic panels,)
... use of cold ocean water to cool high rises, etc.

Given that we already pay 230% to 300% more than the U.S. average for electricity (30 cents versus 10 cents for a KW-hour), we need to be extremely careful with expensive and inefficient proposals for renewable energy sources.

Natural Gas for Transportation

Here is the summary of congressional action from Townhall.com: Last week was the culmination of a process begun years ago. A bill was introduced to Congress that could end American dependence on foreign oil. What is called the New Alternative Transportation to Give Americans Solutions Act -- more simply put, the NAT GAS Act -- was introduced to Congress on April 6. It has bipartisan support. It ought to pass and pass promptly. It could be called the Boone Pickens bill.

This article from Center for American Progress provides on the realities of natural gas usage in heavy vehicles as a transitional fuel for the next five to 10 decades. It will not end US dependence on oil but it has a good potential to substantially curb it as shown below.

Pension Congestion? Life is a Freeway. Lift the Limit from 65 to 70.

In 1940, an American enjoyed 12 years of life upon retirement, on the average. In 2007, an American is expected to enjoy over 17.5 years upon retirement. This long retirement period of 17.5 years is both the good news and the bad news.

The good news is of course that we all wish to live long lives and the outlook is good. The bad news is that retirement systems worldwide cannot support so many retirees living for so long.

This is one area where indeed Hawaii is not alone, but its government employee retirement system is among the five most troublesome in the U.S. George Berish, an expert in the field, has explained this in a series of articles in the Civil Beat.

The critical measure for the future health of a state's or country's overall retirement system health is the Support Ratio. This is the number that shows how many working people support one retiree.

In 1970 the U.S. had 5.3 workers supporting one retiree. In 2010 the number of workers per retiree dropped to 4.6. This is alarming enough but it gets much worse. In 2050 the estimation is that there will be only 2.6 workers per retiree, so over 25% of their earnings will have to go to the retirement fund to support retirees. At that point overall taxation will surpass 60%, and in theory it is best to move to another country.

Not so fast!

Read my full article in HAWAII REPORTER.

Transportation 2050

In March 2011 the European Commission published a proposed rulemaking for long term transportation standards in Europe titled TRANSPORT 2050. I drafted a similar policy for the US and developed this side by side 2-page presentation.

You may be interested to see the EU's proposed draconian measures against the automobile: Halve the use of gasoline, diesel and LPG fueled cars in cities by 2030 and phase them out in cities by 2050.

While EU's planning for a CO2-free utopia continues unabated, China picks up all the slack: In 2010, China's 18 million vehicle sales far surpassed U.S. light-duty vehicle sales of 12 million, making China the world's largest new car market. From 2003 through 2010, China's vehicle population grew at an annual rate of 18.6%, far faster than even the most ambitious projection.

For Every Green Job, Four Other are Lost

A few posts below you can read my opinion about Wind Energy for Hawaii
http://fixoahu.blogspot.com/2011/04/wind-energy-for-hawaii-great-for.html

Today I was sent this revealing study done at the UK:

Part of the summary in offshoreWIND.biz reads as follows: A study of renewable energy in Scotland shows that for every job created in the alternative energy sector, almost four jobs are lost in the rest of the economy.

Not only has the sun set on the British Empire, but the promise of wind apparently is deserting it as well. A new study called “Worth The Candle?” by the consulting firm Verso Economics confirms the experience of Spain and other countries: The creation of “green” jobs destroys other jobs through the diversion of resources and the denial of abundant sources of fossil fuel energy.

Here is the full report: “Worth The Candle?”