Friday, November 11, 2011

Greece Elects a Non-politician as its Savior Prime Minister

Dr. Lukas Papadimos became Greece's Prime Minister on November 11, 2011 through a consensus process that included the ruling socialist party, the opposition conservative party and the President of the Republic.

A member of no political party, Dr. Papdimos is a wise and unusual choice. A physicist and electrical engineer with a doctorate in economics, all from MIT, and professor of economics at Columbia University and the University of Athens. An academic and a numbers man.

Furthermore, Dr. Papadimos has had extensive experience in national banking affairs. Between 1980 and 1985 he worked at the US Federal Bank in Boston. Between 1993 and 2002 he was manager at The Bank of Greece. This was followed by the vice-presidency at the Central Bank of Europe until 2010 when he became financial adviser to the prime minister.

It appears that Dr. Papadimos is "what the doctor ordered" for Greece with its huge banking and debt financing crises. It remains to be seen whether the members of the Greek Parliament will re-orient their thinking around the goal of saving the country as opposed to their petty politicking, service to special interests, and focus on pet regional projects and re-election ambitions. (This may be too much to ask of parliamentarians who consistently did wrong for the country for decades.**)

I can only wish Dr. Papadimos the best of luck, and congratulate him for his bravery to pilot a half-sank ship in the middle of a hurricane.

=======================
(**) As an outside observer with a bit of knowledge of politics I am alarmed by the similarities among the Greek Parliament, the US Congress, and the Hawaii Legislature. Simply put, they keep making the wrong choices time and again, and driving the debt to the Billions and Trillions.

Like in Greece's past, all political "change" in the US and Hawaii has been fake. Until the knife reached the citizens' bones (as it has in Greece.) Although I hope for a big improvement, it may be too late and too painful to return Greece (and the US and Hawaii) to fiscal health and prosperity within a generation.

Thursday, November 10, 2011

OCCUPY'd by APEC 2011

Latest update: 11/19/11

Big events are critical for obscure regions because "they put them on the map." Everyone knew Greece quite well before the 2004 Summer Olympics. The Olympics were a success. What did Greece gain in tourism? A minor temporary bump, if any. (And a whopping debt from infrastructure preparations.)

Mature tourist destinations do not have much to gain from large media exposure. At least the Olympics was a long sports event and many people watched it here and there. Do you think people in China, Russia, Australia and the US paid much attention to APEC politicians?

Despite what hyperbola Abercrombie and Schatz serve for APEC, there will be very little gain for Hawaii from APEC. The tourist growth market for us hinges on visa rule relaxation for Chinese, Russians, etc. But that can be done only with prolonged bilateral negotiations.


So what did APEC 2011 do for the 99.9% of us?
  • And loss of business. Several small stores closed during APEC due to loss of access to them. Either the workers could not get to the store, or the customers were on the other side of the barricades.
  • And now, a week after APEC, several small businesses plan to file claims and/or a lawsuit for significant business losses for a week. Of course one week or 1/52nd means very little to a callous politician. (Gov. and LG statements come to mind.) But that 2% annual loss is a big part of the profit margin for some businesses.
  • And reallocation of emergency services.
  • And political visitors who do NOT pay the hotel tax.
  • And tremendous loss of tourism because agents did not book Waikiki for their clients.
  • And lost bookings from the 11/11/11 wedding extravaganza.
  • And mounting bills for security and other detail paid by local taxpayer.
  • And all those APEC shirts, last minute beatifications, free tickets for the "in crowd," etc.
  • And the top two of Honolulu's parks are police and security depots: Ala Moana and Kapiolani Parks.
  • And one APEC-related murder. Auwe!
Sample UH alert below...

.ALERT!
Find alternative routes/options if you were traveling or planning to travel on
UH Mānoa East West Road or near the APEC Hawai‘i Convention Center.
THERE IS A LOCK OUT IN THESE AREAS FOR APEC SECURITY.

1 Army Humvee, 2 motorcycle Honolulu Police officers and 100s of motorists caught in a jam...

Tuesday, November 8, 2011

APEC 2011 in Honolulu, Hawaii -- Embarrassments 1, 2, 3 and 4



Honolulu made a late, sketchily planned and underfunded effort to host the Asian Pacific Economic Cooperation (APEC) conference in 2011. APEC 2011 was largely forced on Honolulu by President Obama in 2009. Another beltway unfunded federal mandate, as usual.

This series is a partial tally of embarrassments during APEC 2011 (November 6 to 13).


1. SOPOGY at APEC's "See It" Exhibit at the Hawaii Convention Center. What an embarrassment! Not only they are not making energy at a cost effective rate they are a technological dead end as well given the 2011 dive in photovoltaic pricing.


2. Terrible road pavement on Ward Avenue between Kinau and King Streets, and the same on Beretania Street in front of our Police main station. What an embarrassment! Last month George, Esther, Francis, Katherine and other low traffic streets in Kaimuki got done. By George! This speaks volumes about messed up priorities.


3. The traffic lights on Kapahulu Avenue and McCully Street are out of sync. These are the only connections of Waikiki with the H-1 freeway. What an embarassment! We can't use computers to actuate green lights along arterials for motorcades so we spend thousands of dollars on police to block the flow of cross streets. I guess we might tell them that we apply third world-friendly traffic management.


4. Obviously the City has messed with the traffic lights. Now for no reason whatsoever Ward Avenue is gridlocked from the top of the hill to Beretania Street. Unbelievable mess this morning. See the 8:30 am snapshot below.

Friday, November 4, 2011

The Scariest Halloween Story: The Debt per Hawaii Resident

I am particularly jittery with the financial maelstrom in Greece, but our own back yard in Hawaii seems to be in a very bad financial condition.

Take a look at this article: Hawaii State Liabilities Climb by 60 Percent in Two Years; Expert Calls the News 'Shocking'

So the Hawaii State Health Fund liability comes to ... "a total of $14.0 Billion. (These numbers are for July 1, 2009)" and likely much higher right now. The article does not cover the government employee pensions liability which takes this total to over $23 Billion.

Budget & Finance Director Kalbert Young: "Credit downgrades impact taxpayers because they translate to higher interest rates and borrowing costs. As a result, taxpayers will have to pay more for government or they will have to accept a larger portion of their taxes going towards debt."

Actually his statement sounds like a single blow although it is really a quadruple blow to us:
  1. We need to pay more taxes so we'll have less take-home income.
  2. More of our taxes must go to pay down the debt and less will go to services and infrastructure maintenance and expansion.
  3. The lower bond rating and the corresponding higher finance charge means that the same infrastructure projects will cost more.
  4. In addition to their direct impact, points 1, 2 and 3 combined mean fewer jobs because we will have less to spend as individuals and families, have less to spend on projects, and less to pay for services.
To sum it up, the two major state liabilities combined (that is, health and pension which are constitutionally promised to government workers) mean that each person in Hawaii now owes more than $50,000. Then there is the federal debt which is approaching 15 trillion dollars. Simply divide by 330 million for your own share of $45,500.

But wait! The City and County of Honolulu has signed a Consent Decree with the EPA to fix its sewers and provide Secondary Sewage Treatment. The cost is no less than $4,500 per person on Oahu.

I bet you did not know that today you carry a "mortgage" in the amount of $100,000 (and climbing). But in reality only about a third of people pay substantial taxes and it is these same people that will shoulder this burden. A household with two high income earners (say a combined income of about $150,000) and two kids should face a "mortgage" of roughly one half million dollars. Lucky, you now "own" a second unit in Hawaii!

Right now in Hawaii, the only uku-billion project that is discretionary and deletable is the rail. If rail gets into construction, it will cost well more than seven billion dollars and open a hole to sink tens of millions of dollars for annual operations. And don't forget this: Given how tough things are going to get for us, a dollar spent on rail is a dollar not spent on a number of other far more critical needs.

Trick or Treat?
Kaboom!

(
I am five days late relative to Halloween, but that shouldn't be a big problem. This scare will last our lifetimes.)

John Pritchett's Hawaii's Unfunded Liabilities cartoon:




Friday, October 28, 2011

Honolulu Vehicle Registrations -- Taken for a Ride

The increase in the cost for vehicle registrations in Hawaii has been staggering. Although the consumer price index would justify roughly a 40% increase, the cost of registration has increased by 140%!

Councilman Tom Berg has listed all the recent state laws and city ordinances that caused all the increases in vehicle registration fees but it's hard to assess the cumulative effect of them by reading the legalese and the corresponding vehicle weights.

Thankfully, my 1999 Mazda Miata is still around so I can use past receipts for an annual accounting of the changes. The Miata is one of the lightest light duty vehicles out there so it basically represents the minimum registration fee in Hawaii. While we are at it, let's compare the registration increases in 11 years with the corresponding insurance coverage which has remained constant. Of course the value of the Miata has dropped substantially in 11 years, but the biggest portion of car insurance is liability. Despite its age, the Miata can cause the same liability in 2011 as it could in 1999.

Here are the numbers for my car along with Honolulu's Consumer Price Index, or CPI. CPI is an approximation of inflation and it basically says that something that cost $100 in Honolulu in 2000, it would cost $136 in 2011.

I write these while the Occupy movement is in full swing… Occupy gives a perspective of the "poor little guy" versus the "insatiable corporate interests."

Interestingly, the multinational corporate insurance gave little guy me a net 68 percent break in insurance cost in the past 11 years. This despite two claims totaling about $8,000 in damages due to other motorist errors.


On the other hand, the government (that typically proclaims to take care of the little guy) gave me a net 100 percent higher cost for car registration. And thousands of potholes that these fees are supposed to fix.

Tuesday, October 18, 2011

Did Commuting Patterns Change in the First Decade of the Millenium? Only a Little.

A New Geography article summarized the commuting data and results revealed by the 2010 Census. The winner was Telecommuting and the loser was Carpooling. Despite higher prices and huge media hype over shifts to public transit, the big surprise was the continued growth over the last decade in driving alone to work.

In summary,there has been no major change in commuting, even with the huge gas price increases. As the shift to personal mobility continues, the largest increases will like take place in telecommuting, which is the most energy-efficient form of transportation. Gains in transit have been minimal and should be expected to stay at around 5% on the mainland and around 7% in Honolulu.

Clearly these numbers indicate that a city like Honolulu with 950,000 people investing on a $6,000,000,000 heavy rail system is nothing short of ridiculous.

Wednesday, October 12, 2011

International Award on Sustainability Research

I am very pleased to have received this international award along with my research collaborators.

Out of 2,000 scientific papers submitted for the 2011 international conference of the World Road Association (also known as PIARC), 620 were selected to be presented at the conference and 8 received awards. One of the 8 was ours!

Lambros Mitropoulos is one of my doctorate students; he will be graduating at the end of 2011. Professor Teti Nathanail of Thessaly University spent summers 2009 and 2010 at UH-Manoa.
Another paper with Dr. Nathanail was published the U.S. Transportation Research Board: "Risk Assessment for the Transportation of Hazardous Materials through Tunnels." (Transportation Research Record, No. 2162: 98-106, 2010.)


The full paper is titled: LIFE CYCLE ASSESSMENT THROUGH A COMPREHENSIVE SUSTAINABILITY FRAMEWORK: A CASE STUDY OF URBAN TRANSPORTATION VEHICLES

Monday, October 10, 2011

Honolulu Heavy Rail Is an Energy Black Hole

Energy and Honolulu rail is an angle that I did not have time to look at in detail, until last week when my students did some energy analysis of Honolulu’s proposed rail. They discovered this June 2008 article by Sean Hao: Rail's use of energy subject of debate in the Honolulu Advertiser.

Of note is that the rail will consume about 20 MW of energy which is about 20% of the capacity of HECO’s new palm oil plant. Unfortunately peak rail travel coincides with peak demand for electricity around 6 PM, which means that rail will stress HECO’s generators.

Now if you believe the city’s numbers which are based on incredible ridership projections and substantial bus route eliminations, Table 4-21 of the Final EIS shows that the rail project will save 2,440 million British thermal units (BTU) of energy each day, or about 610,000 million BTU per year.

Hao correctly added that: “Any evaluation of the energy savings generated by rail also needs to consider the massive amount of energy required during construction. For example, construction of the fixed guideway will require between 3.7 trillion and 4.9 trillion BTU of energy, according to Parsons Brinckerhoff.”

This quote reveals two startling facts:

First the unnamed Parsons Brinkerhoff source clearly lied to Hao by stating roughly half the correct amount of BTU. The 2008 Draft EIS, Table 4-34 on page 4-159, shows that the rail’s Airport alignment will require 7,480,000 MBTU. That’s 7.5 trillion BTU, not 3.7 trillion.

Second, by dividing 7,480,000 by 610,000 we get 12.2. That’s how many years it will take to make up the construction energy loss by the purported energy savings. But in reality these 12 years are an understatement because Hawaii's vehicle fleet is much smaller in engine size (more economical) than mainland fleet and the adoption of hybrid and electric vehicles is vastly bigger on Oahu. In addition the national averages are based on low vehicle occupancy, whereas Oahu has among the highest transit and carpooling rates, so BTU per passenger mile is way lower than mainland.

The City's BTU savings estimate may be wrong by a factor of 3 or larger, so it will take so many years for rail to "make up" its construction energy waste that before break-even is reached, rail will need multiple component replacements, repairs and refurbishments. So an energy black hole it is!

On the other hand, our 2008 simulation estimates using the DEIS traffic numbers show that rail is a net energy loser without even counting the huge energy consumption during construction. In comparison, a properly designed and operated HOT lane system will save energy (motor fuel and oil.)

Fuel Consumption for One Peak Hour (in US gallons)
Change from Base of ~97,000 gallons

ALTERNATIVE

Motor Fuel

Motor Fuel plus Diesel at HECO for Rail

Rail: 6.5% traffic reduction

-2.6%

-0.3%

Rail: 3.25% traffic reduction

-0.4%

1.9%

HOT Lanes and Four
Underpasses

-40.5%

-40.5%

Tuesday, October 4, 2011

Volt, Prius or CRV? Numbers Make the Choice Obvious.

The fully worded question is: How does the extended-range GM Volt Electric Vehicle compare with Toyota’s fourth generation hybrid Prius and Honda’s popular compact SUV the CRV?

I was not inclined to immediately dismiss the GM Volt as an expensive failure, (e.g., Chevy Volt is Automotive Version of Solyndra) and the October 2011 issue of Consumer Reports (CR) encouraged me to look into this different car.

Although CR did not award the Volt its coveted Recommended status, some of its critique is excellent for a compact car with unconventional technology:
  • “Responsive steering makes the Volt feel fairly nimble in turns.”
  • “The Volt was secure at its handling limits.”
  • “The ride feels solid and firm yet compliant.”
  • “Braking distance was very good overall.” And this one:
  • “The Volt is amazingly inexpensive to run on short trips.”
The last one has twice the significance for Honolulu. Because of the compactness of the land, we make many more short trips in Honolulu than motorists in spread out mainland cities with about one million population. But our electricity cost is roughly three times higher than mainland US.

Does a Volt make a good choice? We can arrive at an answer by comparing it to two popular choices in Honolulu like the Toyota Prius and the Honda CRV. (1)

CR compared their $43,000 Volt to a $26,500 Toyota Prius and a $18,500 Hyundai Elantra. It excluded the purchase cost. Based on gasoline and kilowatt-hour costs, CR found that Volt is cheapest for 30 mile trips, is similar to hybrids for 70 mile trips, and loses its advantage as trips get longer.

To get to a better answer I used both Honolulu and US mainland prices for fuel and electricity, 30 mile and 70 mile trips, an 8 year/100,000 mile horizon (that’s when Volt's battery warranty expires), US and Hawaii tax incentives, and resale value at the end of 8 years. One component that remains uncertain in these half life-cycle cost estimations is maintenance.

In 8 years, Prius and CRV will make extensive use of their internal combustion engine. They would need about 20 oil changes and a few component replacements which should cost $1,000 to $2,000. Also both of them may require transmission repairs which are not applicable to the Volt. Both Volt and Prius have regenerative braking so they may not need brake pads before 100,000 miles but the CRV will likely need two sets of front brake pads and rotor resurfacing. Brake costs for the CRV for 8 years and 100,000 miles may come close to $1,000. Maintenance and repairs play a role in life cycle cost.

Insurance, finance charges, license, annual registration and safety inspections were not included because they are similar for all three cars for the same driver at a given location, e.g., registration and insurance rates vary widely by state. (As of this writing I am not certain that Volt is subject to Smog Test where applicable.) These costs do not affect the bottom line choice.

Discounted parking and other perks for EVs were not included. Currently EV perks in Hawaii are as follows:
  • Special electric vehicle license plates.
  • Free parking at State and County facilities including meters.
  • Free parking at UH parking structure.
  • Exemptions from high occupancy vehicle lanes.
For some users these perks may amount to more than $1,000 per year, at taxpayer expense (e.g., a stall occupied by an EV cannot be occupied by a fee-paying vehicle, so EV user gains amount X and taxpayer loses parking revenue X.)

A big unknown is the durability and replacement cost of Volt's battery. GM's warranty is for 8 years and 100,000 miles. Note that California requires 10 years/150,000 miles. As a result, Volt buyers will not receive California's $5,000 incentive. This limitation is not applicable to Hawaii.

The Prius' entire hybrid system (which includes the hybrid battery pack) is warranted for 8 years/100,000 miles. A battery replacement with a new one at a dealership costs roughly $4,000. There are lower cost options such as Re-Involt Technologies in North Carolina: “...batteries for the Prius 2001-2010 are $1675.00 plus shipping and your old battery.”

The table above details my estimates for the usage of these three cars in Honolulu using monthly gasoline prices and my own electricity bills to determine the actual bottom line cost of HECO’s price to the household. This price was then reduced by 6 cents, a discount that HECO offers if the EV is charged at home overnight. I assumed that this preferential treatment will last for the 8 year horizon in my analysis. HECO installation of a appropriate meter, purchase and installation of a 240V charger add over $2,500. There is a $750 incentive for the 240V charger.

Despite Honolulu’s expensive electricity, use of the Volt exclusively for short trips is much cheaper than its competitors. Honolulu Volt owner’s running cost comes to $595; the same cost at an average U.S. mainland city is $283.

Then I used a mix of 5 trips of 30 miles each and 2 trips of 70 miles each, per week, to arrive at my bottom line estimates. With such usage, the Volt, Prius and CRV will cost $1,150, $992 and $2,044, respectively, to run for 12,500 miles per year in Honolulu, and $698, $843 and $1,738, respectively, to run for 12,500 miles per year at an average mainland city.

Volt is the cheapest to operate on short and medium trips on the mainland, and Prius is the cheapest to operate on short and medium trips in Honolulu; about $150 cheaper than the Volt and more than $1,000 cheaper than the CRV. HECO’s high price per kilowatt-hour takes a toll on Volt.

Using Edmunds.com’s True Market Value(2), a flat documentation fee, 4.5% tax (GET in Hawaii, 8% sales tax on mainland) and applicable incentives, I arrived at the following cost estimates:

CRV has a purchase price of about $26,000 and Prius is about $29,500. Volt is $31,500 after $7,500 in federal incentives and $4,500 in Hawaii incentives have been deducted. These prices include destination charges and regional adjustments of about $750 (an add-on to car cost in Hawaii.) Due to lower state incentives and higher sales taxes, the Volt is about $3,000 more expensive on the US mainland. The other two are about the same as in Hawaii.

The bottom half of the table above is the bottom line. I arrived there by estimating today’s resale value of the three vehicles for 8 years in the future, using Edmunds.com. Both CRV and Prius have an over 10 year history on the market so their used car value is reliable. There are no estimates for the year-old Volt, so I assumed that it will have a resale value equal to the Prius.

Bottom line is that in Honolulu over 8 years and 100,000 miles the CRV will have a total cost of $33,775, the Prius will cost $27,888 and Volt comes in the middle with a total cost of $31,080. Mainland estimates are in the same order with only the CRV costing about $1,500 less than Hawaii due to the cheaper gasoline price.

With analysis like this, one can run “what if” scenarios quickly. What if average gasoline price for the next 8 years increases by a whopping 50% over the 18-month average I used? This would take Honolulu’s average gas price to $5.43 per gallon. In this case, the bottom line for the three cars will be as follows: the CRV will have a total cost of $41,963, the Prius will cost $31,861 and Volt would come in the middle at $32,589 (... plus registration, insurance, maintenance, parking and other applicable fees ... and the charger for the Volt.)

But over 75% of Oahu’s electricity comes from oil and this is not likely to change by much in the next 8 years. So if gasoline goes up by 50%, then electricity will go up by at least 30%. This increases Volt’s bottom line cost to $34,394. So even with very expensive gasoline Prius is cheaper than the Volt by $2,500.

All estimates indicate that Volt is a losing proposition to its buyer and it is certainly a losing proposition to the taxpayer because tax incentives of $12,000 are involved in the sale of every Volt in Hawaii. A Volt buyer could have gotten a much lower priced hybrid car and $12,000 of taxpayer monies could have gone to far more worthy causes. Parking incentives and the tax credit for the home charger may also add several thousand dollars of taxpayer subsidies.

Even the most extreme of “green” advocates cannot argue that the environmental benefits of each Volt over a Prius are worth $10,000 to $20,000 depending on location and taxpayer subsidized perks.

The Volt is a huge “miss” for GM, a manufacturer that could least afford a costly “miss,” and the total financial blunder from this vehicle is attributable to misguided policies (of the familiar liberal type.) Billions more will be spent on mandated EV chargers at parking lots, and on government fleet purchases of Volts.

Postcripts: (1) What about the all electric Nissan Leaf? Look for my updated coverage that will include the Leaf once reliable data become available, most likely early next year. (2) Edmunds.com is a reliable publication that I also used in my doctorate dissertation to determine car values in the late 1980s. It includes a “True Cost to Own” estimator that takes into account most of the life-cycle categories mentioned in my article. It has no estimates for Leaf and Volt.

Monday, October 3, 2011

Where Are the Rail Construction Crews?

Gone racing!

A friend sent me several pictures and this note: "I was stuck in traffic for almost an hour at 12 noon in Waipahu on Farrington Highway on Friday going to lunch and back with the staff. Took a picture of the construction area -- not a soul was there. What a charade."



I have already covered the effects of debilitating construction that will be caused by the rail project. What we are observing now is pre-construction for soils testing and relocation of utilities. The nightmare will begin once elevated construction begins. But where are the crews?

As I said, gone racing. See for yourself:

Sunday, October 2, 2011

News Behind the News: Honolulu Rail on the Ropes

An update of the Honolulu Rail Project, and the Rail Lawsuit by UH professors Randy Roth (Law School) and Panos Prevedouros (College of Engineering.)

Friday, September 30, 2011

Rail Construction Delays Will Take Decades to Counterbalance

One thing that the public has not understood and the City has never explained or quantified is this: The impact of construction on daily traffic flow for 6 to 12 years.


Let's say that all attempts to stop the proposed heavy rail for Honolulu fail and the rail as shown in the picture above is going to full implementation. There will be 21 approximately football sized stations 40 ft. or higher in the air.

This will require extensive lane closures and in make cases long term full road closures. In addition to the stations there will be 20 miles of guideways in the middle of major arterial streets such as Farrington Hwy., Kam Hwy., Dillingham Blvd., Queen St. Their traffic will have to divert to other (already congested) parallel roads. Congestion will be paralyzing for a decade.


The congestion due to rail construction will be so bad in total, that rail's tiny traffic relief after it opens won't balance it out for over 50 years.

Let's work out a quick and rough estimate.
  • Call "A" the amount of traffic congestion today from the general Ewa/Makakilo/Kapolei area to town.
  • Say rail will take 10 years to be built and congestion on that corridor will be 50% worse on the average. So rail will make 5A of additional congestion.
  • Now let's say that rail will reduce congestion by a (very large) 10%, so every year thereafter rail will be saving the same folks 0.1A of congestion. (The real traffic congestion reduction will be 2% to 5% at best.)
  • How many years will it take to balance the additional 5A of congestion they suffered while rail was built?
  • 5A divided by 0.1A gives 50
  • 50 years
  • Two generations with zero benefit.
As I have mentioned to folks in Kapolei: The best day for their to Honolulu ... was yesterday. Rail or not, congestion will get worse. (That is, until real congestion solutions are implemented.)

Monday, September 19, 2011

Jade Moon Wants Louder Support for Her Train to Ruin

Jade used her MidWeek column, plenty of emotion and wrong information to paint a favorable picture for Honolulu’s proposed elevated rail which she wants and supports. (Read it here.)

Jade issued a call to action because the pro-railers are not being heard. “I think it’s time for rail supporters to come back out and make a little noise. Make yourselves heard again.”

At the same time, the City shamelessly uses tax monies to produce, print and mail hundreds of thousands of gloss fliers to households monthly, it produces TV programs including a regular spot on O’lelo, it gives rail propaganda shows with food and music at high schools and colleges, and Inouye, mayor or HART have at least one press release or pro-rail event every week.

Moreover, the Star-Advertiser routinely rejects anti-rail letters and MidWeek has refused my multiple offers to print my articles. Councilman Tom Berg is being shadowed by Go-Rail-Go every time he arranges a townhall meeting with rail on the agenda. Pro-rail unions flooded the Land Use Commission hearings on Ho’opili recently. But none of this is enough for Jade. She wants to make sure that anti-rail voices are swamped.

“Our future demands that we protect our environment, that we have viable transportation choices. Clean mass transit must be one of the options on the menu” she claims.

The energy required just to build the foundations, columns, structures and trains involved is enough to give an energy consumption and pollution stroke to anyone willing to quantify it. National statistics clearly show that hybrid cars are less energy demanding and polluting than heavy rail, and 4-cylinder cars are not far behind the hybrids. That’s by mainland standards which include substantial nuclear and hydro (clean) power and less than 3% oil. In contrast, over 90% of Oahu’s electricity comes from oil with little end in sight. It is the dirtiest electricity in the U.S.

Remember that a parked car does not pollute. A train runs less than half full most the time. Plus station lights, elevators, escalators, ticket machines, controllers, air-conditioners are on all the time. What a waste of resources!

Here is a green transportation alternative for Jade: Telecommuting. Since the turn of the millennium, more Americans telecommute than take trains. Also two years before the 2008 “rail referendum” on Oahu there was another one about bikeways and a whopping 72% were in favor. What did Mufi I (Hannemann) and Mufi II (Carlisle) do about bikeways? Where is Jade’s outrage for this green mode? Perhaps bikes are ignored because they aren’t HECO customers.

“It would revitalize the construction industry…” No, it’ll keep some of them busy for a few years. Then what? Megaprojects are not sustainable. All they do is create “bubbles” of temporary growth. This point is too myopic to discuss any further.

“…stimulate business and economic development and provide opportunities for employment.” Maybe, but correctly spent, six billion dollars can go way further for Oahu. Here is a suggestion: A $6 Billion Plan for Hawaii's Long-term Prosperity.

“Listen to the voices of the people who are tired of traffic hell.” I’d agree that by local standards the Kapolei to town commute is what Jade calls “traffic hell.” But Oahu’s congestion ranking is between 49 and 52 worse in the US according to the Texas Transportation Institute congestion index estimations: Mobility Data for Honolulu (2004 to 2009.)

“My biggest fear for rail is that it will somehow stumble into a legal no man’s land.” Jade got this right. Even if the Cayetano, et al. suit fails, even if the Bombardier complaints fail, there will be dozens of eminent domain and other suits. Big projects typically get stuck. One heiau in Halawa did it for H-3 Freeway. How’s several football field sized stations in Waipahu, Kalihi, Kakaako 40 ft. up in the air?

Rail for Oahu has been, is and will be a losing proposition. Manini traffic relief, huge visual and environmental impact, colossal cost to implement, and ridiculous traffic and court tie-ups once real construction begins.

Wednesday, September 14, 2011

Hawaii Solar Technology Choice

Q: Will the consumer gain or lose?
A: Lose big if a proposal gets approval

The technology battle is between Concentrated Solar Panel (CSP) and Photo-voltaic (PV). Here are the facts:

Why should Hawaii pay more for electricity generated from CSP than it does from PV? Hawaii’s leaders have proposed that HECO pay CSP developers up to 60% more than it pays PV developers for the same power. Even a modest size CSP facility will cost Hawaii 10’s of millions of dollars more in tax credits and electricity purchases. CSP (also known as Solar Thermal) is the most expensive of all energy options, as shown in the figure below. Choosing an obvious and unnecessary waste of money.


PV wins the Solar Technology Battle: Government and industry analysts say that CSP (also known as “solar thermal” technology) is losing the solar energy cost battle and is doomed (1,2.) The project developers are cancelling numerous CSP projects or converting them to PV (3.)

Hawaii’s Experience with CSP is even worse
. Hawaii’s first CSP facility cost approximately $20 million dollars to build and has a capacity of 100 kW (4,5,6.) The cost to build that CSP facility is approximately $200/watt while PV is less than $7/watt. Actual electrical output from the facility has not been made public.


Outrageous cost!
HECO buys renewable energy produced by geothermal, wind, PV, and biomass local suppliers at 12 to 22 cents per KWh. With the proposed CSP rate, HECO will be forced to buy solar energy at 31.6 cents per KWh. Such discriminatory favoritism is unjustified and insulting to electric power customers. For reference, the average price of electricity sold to mainland households is 11 cents per KWh. HECO’s rate is approximately three (3) times higher.
Bottom Line: Hawaii should not subsidize an expensive and unproven CSP technology when proven and less expensive PV options readily exist.

Call to Action:
The Governor and the PUC are preparing to approve a “highway robbery” deal with Sopogy for a multi-million dollar CSP deployment at Kalaeloa on Oahu. This deployment must not be approved. Call the Governor and the PUC and ask them to step away from this very costly proposal.


Note: Sent to Governor, Lt. Governor, the Public Utilities Commission and all Hawaii Legislators on Sept. 13, 2011.