March 13, 2014 News Read > Hawaii Free Press

The state Legislature is tasked with the almost impossible chore of making the Hawaii Health Connector self-sustaining. As we detailed in this space last week, with current fees Hawaii's health exchange is at least 150,000 participants shy of being able to generate the $15 million a year it needs to be sustainable.

A bill making its way through the Legislature would put new fees on insurance companies that are not participating in the Connector to help shore it up. Currently, only Kaiser-Permanente and Hawaii Medical Services Association participate with plans available through the Connector.

... the companies are not going to eat those fees - they are going to pass them on to their plan participants in the form of higher premiums.

One could forcefully argue that Hawaii's decades-old Prepaid Healthcare Act made the exchange unnecessary here. A tweak or two might have provided insurance for the 4,500 or so who have signed up for insurance through the Connector.

March 9, 2014: Precisely as Expected: Abercrombie Uses Failure of Obamacare to Call for Single Payer

March 2, 2014: Star-Adv: State Should Dump Obamacare Exchange

read ... New fees for exchange

Bob Jones: Mike Wilson Should Withdraw

MW: Ben Cayetano says, “Wilson will be an excellent associate justice.” Abercrombie loves him. He’s very liberal and very environmental – worked for many liberal/environmental causes.

Good for me. Maybe not for others. Is this packing the court?

I’ve screened Wilson’s court rulings and find nothing alarming but also nothing brilliant.

For law intellectualism, I’d have selected Iolani’s Craig Nakamura, chief judge of the Intermediate Court of Appeals. Nakamura graduated from Harvard Law School and is a former assistant U.S. attorney.

Yes, he was a GOP appointee, but so is Supreme Court Chief Justice Mark Rechtenwald, and I don’t hear anyone complaining about his courtroom politics.

Or, Wilson could withdraw. I certainly would in his place.

Mike, do you want to be known in national media as Hawaii’s Supreme Court justice collecting $151,118 a year for being “unqualified”?

read ... Withdraw

HECO To Begin Importing LNG in Move to Cut Fuel Costs

SA: Hawaiian Electric Co. is pursuing an interim plan to bring liquefied natural gas to Oahu in shipping containers, while pressing ahead with a longer-term strategy to import bulk supplies of LNG to replace the fuel oil it burns in many of its power plants, a top HECO official said.

Moving ahead with containerized LNG shipments would give HECO quicker access to a lower-cost fuel option while it waits for all the regulatory approvals that are required to bring in bulk shipments, HECO Chief Executive Officer Richard Rosenblum said in an interview Tuesday.

Natural gas has the potential to significantly reduce the cost of generating electricity in Hawaii when compared with oil, according to a 2012 study commissioned by the Hawaii Natural Energy Institute.

"The thought was maybe we could get it earlier — a lower volume at a slightly higher price (than bulk shipments) — but that would bring costs down earlier for customers." Rosenblum said.

Clearing all the necessary regulatory hurdles to bring bulk supplies of LNG to Hawaii in specialized ships is expected to take until 2020 at the earliest, Rosenblum said.

HECO's LNG plan is in line with the Abercrombie administration's position that LNG can be used as a "bridge" fuel while the state continues its transition to renewable energy sources, Rosenblum said.

The decision to explore the use of shipping containers for LNG was driven by the realization that "2020 is a long time to wait," Rosenblum said. "We thought, is there something to bring that time frame down — a bridge to a bridge?" he said.

Rosenblum said HECO officials were encouraged that the state's gas utility, Hawaii Gas, received approval last week from the state Public Utilities Commission to bring LNG to Hawaii in shipping containers on a limited basis. Hawaii Gas is buying three LNG containers that each can hold about 10,000 gallons of the fuel. The company is also buying a mobile regasification unit to convert the LNG back to a gaseous state. Both the LNG containers and regasifier can be transported by tractor-trailer.

"Hawaii Gas got approval for containerized LNG on a small scale. We'll pursue it on a larger scale at a price that makes sense and at a quantity that makes sense. We hope to do that pretty quickly," Rosenblum said.

Meanwhile, HECO and Hawaii Gas have formed a consortium to coordinate bulk shipments of LNG to Hawaii, Rosenblum said. Pearl Harbor has emerged as the leading location for an LNG import terminal, although no final decision has been made, according to HECO and Navy spokesmen.

read ... Lower Electric Bills

Lawmakers again push for shipping law reform

WHT: Lawmakers in the state House and Senate are making another attempt at Jones Act reform.

The maritime law requires shipping vessels traveling between U.S. ports be American built, owned and manned. Critics say this leads to high transportation costs for Hawaii.

A few representatives, including House Speaker Joseph Souki, have signed onto the concurrent resolutions requesting Congress allow large ships transporting goods between Hawaii and the rest of the country be foreign built

read ... Jones Act

Billion Dollars Disappears: Abercrombie Not Worried

CB: Gov. Neil Abercrombie rallied reporters to the Capitol Wednesday so he could send a message to the public that the state Council on Revenues’ significantly downgraded economic forecast is no cause for alarm.

The council on Tuesday lowered its January projection of 3.3 percent growth in general fund revenues down to zero for 2014. The council also dropped its forecasts for 2015 and 2016 to 5.5 percent and 5 percent, respectively.

This means the state government will have almost $1 billion less to spend over the next two years than it expected, completely recasting the budget debate.

KITV: With the revised economic forecast and collective bargaining pay raises, that $844M surplus is all but gone.

AP: House advances $12.1 billion state budget

read ... What Me Worry?

Deaf vs Dumb at Legislature

Price: “High power makes you deaf, and low power gives you laryngitis.”

That is pretty much the situation at the Legislature during crossover time. Everyone is working around the clock to avoid two things: First, a deadlock among the majority, which can cause a special session, which no one wants because it’s an election year and there is a lot of campaigning to be done. Second, if important bills with strong opposition end up in conference committee, then a whole lot of trading is rampant as legislators go hunting for votes to pass the bill out of committee. That’s where the trading goes public, and at a conference-committee hearing everything is fresh and out in the open. It’s really exciting. There is no script in conference.

Most powerful leaders do not need or want passive, obsequious subordinates, but that’s what you will likely witness at a conference-committee hearing if you’re lucky. There are a few legislative leaders who fit this mold, including state Sens. Clayton Hee and Donna Mercado Kim. If you follow them around, you can observe their style.

The opposite of powerful legislators are those who influence others with smooth talk, hugs and promises to produce precious legislation and choice committee assignments for members of their “gang.” House Speaker Joe Souki is a classic example of influencing outcomes without using his position of power. The reason is that he serves at the pleasure of the majority and has to be able to count votes on proposals very accurately.

read ... Obsequious

$29.13/hr: Is Hawaii’s welfare as high as study claims?

KHON: Hawaii’s minimum wage is $7.25 an hour, but according a report by a public policy research organization, Hawaii’s welfare wage is more than four times that amount.

The study, conducted by the Cato Institute, claims that in 2013, a mother with two children in Hawaii received an average of $60,590, or $29.13 an hour. But is that number accurate and is it fair to taxpayers?

One legislator said there are a number of reasons that figure is as big as it is. First, the cost of housing. Those welfare recipients who can find housing may receive Section 8 subsidies, which would bring the bill up. Then, there is the cost of living in Hawaii....

“I’m all for social services and assistance, but I think that’s overboard,” said Honolulu resident Mavis Ruest....

Background: Hawaii Welfare Tops Nation at $29.13 per Hour

read ... Is Hawaii’s welfare as high as study claims?

Hawaii Lawmakers Juggle Multiple Tax Credit Proposals

CB: The Senate recently passed Senate Bill 3082, which would create an unspecified tax credit for employee training and equipment costs. (An early version of the bill put the credit at 20 percent.)....

One bill would create a tax credit for renewable fuel production. Others would establish a credit for employers who hire people with disabilities or hotel developers who want to renovate their buildings. Two more measures would give tax breaks to Hawaii residents who purchase backup generators for their homes or donate to charter school facilities.

In addition to advocating for a bunch of new tax credits this year, lawmakers could also revisit some of the proposals that were considered last year, such as a tax credit to help teachers cover the cost of extra classroom supplies.

The Tax Foundation of Hawaii, a nonprofit group that tracks all bills related to taxes and makes suggestions about tax policy in Hawaii, argues that such proposals are inherently unfair.

“Giving tax breaks to a select group of taxpayers comes at the expense of all other taxpayers,” the organization said in its testimony about the proposed tax credit aimed at stimulating manufacturing. “As such, it is an insult to all other taxpayers that they are not deserving of such tax preferences.”

That concern is echoed by two state agencies in their comments on Senate Bill 2322 and House Bill 1702, proposals that would establish a capital improvement tax credit to help tenants displaced by the state’s plan to redevelop some of its property at Honolulu Harbor....

House Bill 2371, omnibus legislation that would, among other things, create a new low-income tax credit and update an existing tax credit for low-income renters.

read ... Tax Credits

HART reveals rail station images; asks for a new loan

KITV: The Honolulu Authority for Rapid Transportation requested the sale of general obligation bonds to cover its capital budget for the upcoming fiscal year.

The amount of bonds being requested by HART is $1.5 billion dollars.

The City Council passed the bond bill Wednesday on first reading, but two more readings are required before final approval. The council and HART must also sign a memorandum of understanding before any bonds are issued.

The transit authority says all bond monies will eventually be paid back to the city.

Video: Concrete Brutality: HART Rail Stations Revealed

read ... New Loan

Chinese Railroad May Buy Ansaldo

PBN: Ansaldo STS USA, which is part of the Ansaldo Honolulu Joint Venture that has a $1.4 billion contract with the Honolulu Authority for Rapid Transportation, has named Roberto Passalacqua vice president of its rail and mass transit unit based in Pittsburgh....

Enrico Fontana, the rail project’s managing director for Ansaldo Honolulu JV, will report to Passalacqua. Ansaldo Honolulu JV also includes Ansaldo Breda

CNR Corp. and Insigma of China have expressed interest in buying Ansaldo Breda and Ansaldo STS, said Letty Ojeda, a spokeswoman for Ansaldo Honolulu JV.

2012: AnsaldoBreda and CNR conclude Chinese LRV deal

2014: Bad Company: Honolulu Rail Car Supplier Ansaldo Breda May be Sold, Liquidated

read ... Ansaldo names new division leader

Abercrombie: "I’m tired of fighting you"

Friends of Lanai: So where is Big Wind today? It appears that the cacophony of opposition took root. Abercrombie recently announced that Big Wind “...will not happen. I’m tired of fighting you [the Lana’i community]; it’s an unnecessary distraction to what Larry Ellison wants to do on Lana’i; and it will cost too much money.” Shortly thereafter, HECO announced, in a major change of strategy, that they no longer needed Big Wind from Lana’i; that in fact, they could reach the required RPS without it. The State’s Energy Office followed quickly behind, with the same “we don’t need it.” And for the first time since Big Wind had come into being, the PUC granted Friends of Lana’i intervenor status in the docket investigating Castle & Cooke’s progress – or lack thereof.

Is it still even a slim possibility? Yes, indeed. When Ellison bought Murdock’s shares of Lana‘i, Murdock kept the “rights to develop the wind farm.” Of course, no one other than the PUC and a slew of lawyers has actually seen these “rights.” They could simply be a face-saving gift to Murdock, never to be exercised. Or, they could be mired in onerous conditions, perhaps with severe time and/or financial constraints (e.g., he must have obtained 1/3 of the required permits before exercising those rights, or 75% of the financing…). They could be a ploy on Murdock’s part to sell the “project” to an unsuspecting third party. Or, lastly, they could actually lead to the construction of this industrial wind power plant on Lana’i. We just don’t know.

But we do know that Castle & Cooke has failed to demonstrate any progress on Big Wind, having done virtually nothing to advance the project since March, 2011.

read ... Abercrombie is Tired

Health Connector Updates thru March 8, 2014

Total for the period of Mar. 2, 2014 through Mar. 8, 2014

9,284 Unique Visitors to HawaiiHealthConnector.com

2,411 Calls received by our Customer Support Center

Total since October 1, 2013

21,317 Applications completed in the Individual Marketplace

4,969 Enrollments in the Individual Marketplace

476 Employers applied to SHOP Marketplace

31 Community Partners statewide

121 Certified Kōkua or In-Person Assisters

36 Certified Kōkua or Certified Application Counselors (CACs)

222,939 Unique Visitors to HawaiiHealthConnector.com

80,187 Calls received by our Customer Support Center

read ... 308 in Last week

Could Sharks be taking a bite out of Hawaii's Tourism?

KITV: "People get scared out of the water, they don't want to go snorkeling, we get the question all the time, 'what about sharks,'" said Lynette Nelson-Peavy, Aqua Adventures Maui.

Sharks were responsible for 14 attacks across Hawaii in 2013, eight of those were on Maui and two of those were fatal. Aqua Adventures is a family owned company that's been giving snuba and snorkeling tours for more than 10 years, but recently business has dried up.

"I should be running a full boat right now, every day. We're running at half capacity, about 16, 15, 11, sometimes eight when I should have 36 people," said Nelson-Peavy.

Tourists make up more than 90% of the companies cliental, but last years shark attack statistics appear to have them scared off.

"When it goes on national news or viral in regards to a shark attack here on Maui, we always seem to see a lull in numbers," said Nelson-Peavy.

Background: Anti-Aquarium Nuts Attack Big Isle Fisherman For Catching Delicious Tiger Shark

Read ... Sharks?

Senator wants probe into whether UH sports TV contractor got 'preferential treatment'

HNN: "I think UH should have shopped around," said State Sen. Will Espero (D- Ewa, Ewa Beach), who asked UH to investigate whether university officials gave Oceanic "preferential treatment."

"It certainly raised the red flag about whether UH was getting the best deal from Time Warner," Espero said.

State Sen. Sam Slom (R-Hawaii Kai, Kahala) said the new deal appears to favor Oceanic Cable.

"That may or may not be true, but that's the appearance. And I think from a taxpayer's standpoint and from a voter's standpoint, I think people expect more of the university," Slom said.

Sources familiar with the negotiations said UH officials were worried that if UH didn't make a deal with Oceanic Cable before its exclusive negotiating window expired at the end of last month, the company could have cut UH out altogether and negotiated directly with the Mountain West conference for football rights, taking away a major portion of UH sports broadcast income.

The Mountain West conference holds ultimate media rights for all its members, sources said.

Background: Local Connection: UH’s Lost Opportunity

read ... Preferential?

Electricity: Parker Ranch Pays $680K, Waimea Hospital $1.2M

BCH: Normally, you wouldn’t think the cost of electricity would clobber ranchers, but in Hawaii, high power rates are the central competitiveness issue. In fact, the owners of the mammoth Parker Ranch on Hawaii’s big island have calculated their “per cow” electricity costs.

Much of the famed ranch’s 130,000 acres is rich grazing land on a high plateau between Hawaii’s twin 13,000 ft. volcanos. Parker Ranch is one of the nation’s largest beef producers, with much of its product sent to the mainland. The ranch has an extensive water system with large reservoirs, water tanks and troughs, but much of the water must be pumped.

That’s where the electricity costs come in. Parker’s electricity cost per calf is $40 per year and rising, compared to $12 for its competitors. Parker runs about 17,000 head of cattle on its ranch, meaning their annual electric bill is about $680,000.

In Waimea, the small town where the Parker Ranch is headquartered, the electric bill for the town’s 33-bed community hospital was $1.2 million last year, compared to an average $350,000 on the mainland.

The Hawaiian Electric Company (HEC) predicts that Hawaiians, who currently pay $160 per month, will pay $300 a month by 2020 and $1,200 per month by 2040....

read ... $40 per cow

Bill would put property crime criminals behind bars, not probation

HNN: Victims want the burglary cycle broken, not their businesses.

There is a community meeting on this subject Thursday night at 7:00 at Kailua District Park. Among the expected panelists are a judge, prosecutor and prison personnel. The public is welcome to attend.

read ... Behind Bars

Global Horizons Settlement: Farm worker rights groups to share $800,000

YH: The long-running Perez-Farias v. Global Horizons case saw its final chapter Tuesday with a ruling from U.S. District Judge Robert Whaley approving distribution of the remaining funds to two legal-aid groups, Columbia Legal Services and Northwest Justice Project, as well as Radio KDNA in Granger and the Laurel Rubin Farmworker Fund, which supports internships for law students working on farm worker issues.

The other $1.2 million from the 2012 judgment went to some 600 farm workers the court determined had been discriminated against when the growers turned to an unlicensed contractor to hire workers from Thailand.

read ... Settlement

Zimmerman vs. Roseanne Barr

LI: Robert Zimmerman Sr. and Gladys Zimmerman have filed suit against comedienne Roseanne Barr, nearly two years after Barr published their home address on Twitter in the aftermath of their son George Zimmerman Jr.’s killing of Trayvon Martin in self-defense.

(Zimmerman successfully argued at trial that he shot Martin in necessary self-defense, and he was acquitted by a unanimous jury.)

The Orlando Sentinel reports that the suit, filed in a Florida circuit court, accuses Barr of attempting to incite “a lynch mob to descend” on their home and carry out “vigilante justice.”

Zimmerman’s parents say that Barr’s tweet of their home address compelled them to flee their home in the middle of the night, and they remain unable to return and in hiding for fear of violence.

They also point out that their son George did not live with them, and they had nothing whatever to do with his shooting of Trayvon Martin in self-defense.

read ... Zimmerman vs. Roseanne Barr

AG Louie Warns Other States about Anti-GMO Activists

SL: “This is a national movement,” Hawaii Attorney General David Louie said at the recent gathering of attorneys general in Washington. “Don’t think that it’s not coming to you.” In Hawaii, the issue has been hot at both the state and local levels. Two measures were considered but died in the state’s legislature this year, but a new ordinance approved last year on the “Big Island” of Hawaii bans new genetically engineered crops, though it exempts those that are already being grown there, most notably the Rainbow Papaya. Last fall, the Kauai County Council adopted a measure that limits biotech crop and pesticide use on the island of Kauai.

read ... Coming to You

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