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June 2, 2018
COUNTY OF MAUI
COUNCIL OF THE COUNTY OF MAUI
The Honorable Mike White, Chairman
The Honorable Robert Carroll, Vice-Chairman
The Honorable Alika Atay
The Honorable Elle Cochran
The Honorable Stacy Crivello
The Honorable Don S. Guzman
The Honorable Riki Hokama
The Honorable Kelly T. King
The Honorable Yuki Lei K. Sugimura
Re: A TALE OF TWO CITIES
THIS PROJECT WILL BE PRIVATELY FINANCED, OPERATED, AND
MAINTAINED
1. ANAERGIA SERVICES - Renewable energy conversion and sludge processing
Wailuku-Kahului Wastewater Reclamation Facility (WWWRF)
2. ANAERGIA SERVICES - Waste-to-Energy Central Maui Landfll
Dear Chairman White, Vice Chairman Carroll, Council Member Atay, Council Member
Cochran, Council Member Crivello, Council Member Guzman, Council Member
Hokama, Council Member King and Council Member Sugimura:
The representations made by Anaergia that no cost will be incurred by the
County of Maui are highly suspect. This no-cost representation was made for Central
Maui Landfll Waste-to-Energy Conversion Project and is made again by Anaergia
Services for the Energy conversion and sludge processing for the WWWRF.
An agreement with Anaergia Services to build a waste-to-energy facility at the
Central Maui Landfll, touted by Mayor Alan Arakawa to save Maui County
nearly $1 million a year, will actually cost the county $835,000 more annually
than current landfll operations, according to an audit by CB&I Environmental
and Infrastructure.
“The analysis done by CB&I raises many concerns with the contract signed by
the mayor,” said Riki Hokama, chairman of the council Budget and Finance
Committee, which will review the audit Tuesday. “Instead of savings, the
county may now see higher costs in the amount of $35 million over the 20-year
life of the contract. Most important, I question the authority of the
administration to sign of on such a project with large cost implications.”
The waste-to-energy agreement was proposed by the administration as a “no-
cost” contract, so there was no legal basis for council approval of the contract,
Hokama said in a news release accompanying the audit.
Source: Audit: Cost for waste-to-energy plant is $835K. The Maui News. March
10, 2016, accessed June 2, 2018. http://www.mauinews.com/news/local-
news/2016/03/audit-cost-for-waste-to-energy-plant-is-835k/
_____________________
The Sierra Club Maui Group and Maui Tomorrow have fled a lawsuit
challenging the approval of an environmental impact statement for Anaergia
Services' project with Maui County for a renewable energy conversion and
sludge processing project at the Wailuku-Kahului Wastewater Reclamation
Facility. According to the plaintifs’ announcement of the lawsuit, the project
entails trucking sludge from wastewater facilities in Kihei and Lahaina to the
Kahului facility to be dried using methane gas byproducts of the plant’s
anaerobic digestion project.
The announcement says that Anaergia was the sole bidder for the project.
Anaergia holds a county waste-to-energy landfll gas contract, which an
independent auditor determined would cost the county $35 million more
than anticipated, the plaintifs said.
County ofcials have said Anaergia would develop the facility at no
construction cost to the county. In return, the county would pay 29 cents
per kilowatt hour for electricity produced at the plant. The cost of disposing
the sludge would be reduced from $103 to $80 per ton by switching from EKO
Compost to Anaergia, ofcials said.
Source: Suit challenges EIS approval for wastewater plant. The Maui News.
Accessed June 2, 2018 http://www.mauinews.com/news/local-news/2018/06/suit-challenges-
eis-approval-for-wastewater-plant/ [Emphasis Supplied]
______________________
MAUI ELECTRIC COMPANY (MAUI COUNTY)
RATE SCHEDULE 2017 AVERAGE CENTS/kWh
MAUI MOLOKAI LANAI
R" Residential 30.64 35.57 35.87
"G" Small Power Use Business 34.12 42.70 40.98
"J" Medium Power Use Business 29.35 34.52 38.60
"P" Large Power Use Business 26.83 27.23 34.02
"F" Street Lighting 27.57 33.07 35.05
Source: Hawaiian Electric Company. Accessed June 2, 2018
https://www.hawaiianelectric.com/billing-and-payment/rates-and-regulations/average-price-of-
electricity
It was the best of times, it was the worst of times, it was the age of wisdom,
it was the age of foolishness, it was the epoch of belief, it was the epoch of
incredulity, it was the season of Light, it was the season of Darkness, it was
the spring of hope, it was the winter of despair, we had everything before
us, we had nothing before us, we were all going direct to Heaven, we were
all going direct the other way—in short, the period was so far like the
present period, that some of its noisiest authorities insisted on its being
received, for good or for evil, in the superlative degree of comparison only.
Charles Dickens, A Tale of Two Cities
Respectfully submitted,
Clifton M. Hasegawa
President & CEO
Clifton M. Hasegawa & Associates LLC

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Maui County - Anaergia - Golden Fleece Award

  • 1. June 2, 2018 COUNTY OF MAUI COUNCIL OF THE COUNTY OF MAUI The Honorable Mike White, Chairman The Honorable Robert Carroll, Vice-Chairman The Honorable Alika Atay The Honorable Elle Cochran The Honorable Stacy Crivello The Honorable Don S. Guzman The Honorable Riki Hokama The Honorable Kelly T. King The Honorable Yuki Lei K. Sugimura Re: A TALE OF TWO CITIES THIS PROJECT WILL BE PRIVATELY FINANCED, OPERATED, AND MAINTAINED 1. ANAERGIA SERVICES - Renewable energy conversion and sludge processing Wailuku-Kahului Wastewater Reclamation Facility (WWWRF) 2. ANAERGIA SERVICES - Waste-to-Energy Central Maui Landfll Dear Chairman White, Vice Chairman Carroll, Council Member Atay, Council Member Cochran, Council Member Crivello, Council Member Guzman, Council Member Hokama, Council Member King and Council Member Sugimura: The representations made by Anaergia that no cost will be incurred by the County of Maui are highly suspect. This no-cost representation was made for Central Maui Landfll Waste-to-Energy Conversion Project and is made again by Anaergia Services for the Energy conversion and sludge processing for the WWWRF. An agreement with Anaergia Services to build a waste-to-energy facility at the Central Maui Landfll, touted by Mayor Alan Arakawa to save Maui County nearly $1 million a year, will actually cost the county $835,000 more annually than current landfll operations, according to an audit by CB&I Environmental and Infrastructure.
  • 2. “The analysis done by CB&I raises many concerns with the contract signed by the mayor,” said Riki Hokama, chairman of the council Budget and Finance Committee, which will review the audit Tuesday. “Instead of savings, the county may now see higher costs in the amount of $35 million over the 20-year life of the contract. Most important, I question the authority of the administration to sign of on such a project with large cost implications.” The waste-to-energy agreement was proposed by the administration as a “no- cost” contract, so there was no legal basis for council approval of the contract, Hokama said in a news release accompanying the audit. Source: Audit: Cost for waste-to-energy plant is $835K. The Maui News. March 10, 2016, accessed June 2, 2018. http://www.mauinews.com/news/local- news/2016/03/audit-cost-for-waste-to-energy-plant-is-835k/ _____________________ The Sierra Club Maui Group and Maui Tomorrow have fled a lawsuit challenging the approval of an environmental impact statement for Anaergia Services' project with Maui County for a renewable energy conversion and sludge processing project at the Wailuku-Kahului Wastewater Reclamation Facility. According to the plaintifs’ announcement of the lawsuit, the project entails trucking sludge from wastewater facilities in Kihei and Lahaina to the Kahului facility to be dried using methane gas byproducts of the plant’s anaerobic digestion project. The announcement says that Anaergia was the sole bidder for the project. Anaergia holds a county waste-to-energy landfll gas contract, which an independent auditor determined would cost the county $35 million more than anticipated, the plaintifs said. County ofcials have said Anaergia would develop the facility at no construction cost to the county. In return, the county would pay 29 cents per kilowatt hour for electricity produced at the plant. The cost of disposing the sludge would be reduced from $103 to $80 per ton by switching from EKO Compost to Anaergia, ofcials said.
  • 3. Source: Suit challenges EIS approval for wastewater plant. The Maui News. Accessed June 2, 2018 http://www.mauinews.com/news/local-news/2018/06/suit-challenges- eis-approval-for-wastewater-plant/ [Emphasis Supplied] ______________________ MAUI ELECTRIC COMPANY (MAUI COUNTY) RATE SCHEDULE 2017 AVERAGE CENTS/kWh MAUI MOLOKAI LANAI R" Residential 30.64 35.57 35.87 "G" Small Power Use Business 34.12 42.70 40.98 "J" Medium Power Use Business 29.35 34.52 38.60 "P" Large Power Use Business 26.83 27.23 34.02 "F" Street Lighting 27.57 33.07 35.05 Source: Hawaiian Electric Company. Accessed June 2, 2018 https://www.hawaiianelectric.com/billing-and-payment/rates-and-regulations/average-price-of- electricity It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way—in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only. Charles Dickens, A Tale of Two Cities Respectfully submitted, Clifton M. Hasegawa President & CEO Clifton M. Hasegawa & Associates LLC