September 15, 2023
Līhuʻe, Hawaiʻi – Yesterday, the Senate Ways and Means (WAM) Committee began the first of a two-day visit to Kauaʻi to receive progress updates from Department heads on statewide initiatives, utilizing information from community stakeholders and government officials to guide collective decision-making on legislation and budget appropriations to bolster regional and statewide planning and implementation efforts.
The Committee participated in discussions on pressing issues in energy sustainability, transit-oriented development, the impact of climate change on state facilities, healthcare, and housing.
A Strategic Direction for Energy
The first visit was held at Līhuʻe Airport, where Mark Glick, Chief Energy Officer of the Hawaiʻi State Energy Office (HSEO), presented the State’s strategy to achieve the 2045 one-hundred percent Renewable Portfolio Standards mandate. Glick highlighted how achieving this mandate presents opportunities for workforce and economic development, while strengthening the State’s resiliency against climate change and unforeseen disasters. Two specific areas that Glick and the Committee discussed were the current levels of firm renewable energy production and community-based renewable energy projects. The Senate urged incorporating more firm renewables into the energy portfolio, encouraging Glick to replicate Kauaʻi’s successful efforts to supplant intermittent with firm energy on other islands. Community-based renewable energy projects are renewable projects in which multiple subscribers can invest in and receive benefit from large scale projects. Recognizing the role that community-based renewable energy projects can play in closing energy and economic disparities across the state, the Senators requested more information from Glick, who will present this information at a future WAM site visit. The Committee also explored tools to allow the Public Utilities Commission to play a more proactive role in the State’s energy arena rather than retroactively through rulings on energy dockets.
“The Hawaiʻi State Energy Office needs to better articulate the phased execution of the State’s plan to transition to renewable energies, including developing a scaled workforce,” said Senator Donovan Dela Cruz (Senate District 17, Portion of Mililani, Mililani Mauka, portion of Waipi‘o Acres, Launani Valley, Wahiawā, Whitmore Village), Chair of the Ways and Means Committee. “This positions the Legislature to establish tax incentives, education pathways, and infrastructure to achieve our energy goals while developing a green economy.”
“In areas that are building solar farms and pursuing community-based renewable energy projects, I know that there can be a challenge for those on a small island like Molokaʻi,” said Senator Lynn DeCoite (Senate District 7, Hāna, East and Upcountry Maui, Moloka‘i, Lāna‘i, Kaho‘olawe and Molokini), Chair of Energy, Economic Development, and Tourism Committee. “Those who will have the opportunity to be community-based renewable energy project subscribers would pay a higher cost. My concern is how do you go about making sure that those on the program will not impact those who remain on the utility to pay a higher rate. We are going to look at this more in depth.”
Transit-Oriented Development
The second stop of the day was the Līhuʻe Civic Center, where Director of Business, Economic Development, and Tourism (DBEDT) James Tokioka, Transit-Oriented Development (TOD) Council Co-Chair Mary Alice Evans, and Department of Accounting and General Services (DAGS) Public Works Administrator Chris Kinimaka, presented plans for transit-oriented development on Kauaʻi and other neighbor islands. They used developments of the Līhuʻe Civic Center Historic District and Samuel Mahelona Memorial Hospital to showcase the positive effects that transit-oriented development can bring to communities across our State. Also in attendance was Kauaʻi Mayor Derek Kawakami, who applauded the collaboration between the State and County of Kauaʻi in maximizing transit-oriented development. Mayor Kawakami attributed much of the success of Kauaʻi’s transit-oriented development to the County’s subscription to and investment in multimodal transportation options. WAM members were impressed with the results of transit-oriented development efforts on Kauaʻi and encouraged the TOD Council to similarly engage the other counties to replicate the success of Kauaʻi County. The Committee also stressed the importance of leveraging transit-oriented develop to generate synergies between neighboring facilities and their programs and services, such as co-locating teacher housing near education facilities and childcare facilities near job hubs.
"I wanted to be here to tell our Senators and Ways and Means Committee mahalo nui loa for all of your support, " said Mayor Kawakami. "Being that I used to be in the Legislature, I know that they get pulled in a million and one directions and it is hard to fulfill all of the wants and needs that our community desires. For us here in Kauaʻi County, being the smallest county, we have always been able to count on the Legislature, the Senate, and the Ways and Means Committee to always support us, especially during times of need and times of disaster.”
“When we think about transit-oriented development here in Hawaiʻi, we usually think about building around rail lines and creating density in places that are walkable, where people can live, work, and play,” said Senator Chris Lee (Senate District 25, Kailua, Waimānalo, Hawai‘i Kai), Chair of the Transportation and Culture and the Arts Committee. “On neighbor islands and here on Kauaʻi, where we have much more rural areas and a sense of place unique to each community, the strategies of transit-oriented development that create better, easier options for people to get around, in communities where it’s easier to live, work and play are still happening, but in a different way, led by the people in each community.”
The Future of Kauaʻi Community Correctional Center
The Committee then visited Kauaʻi Community Correctional Center (KCCC) and heard from Tommy Johnson, Director of Public Safety, and Luis Salaveria, Director of Budget and Finance, about the pressing need to revamp the Department of Public Safety and relocate KCCC because of climate change. Johnson shared his vision for the future of the Department as it transitions into the Department of Corrections and Rehabilitation, placing a greater focus on reduced recidivism and re-entry into society. Johnson and the KCCC staff also presented the Committee members with evidence for the risk of flooding in the facility and the difficulties of evacuating the facility in the event of an emergency, highlighting the urgency for which the facility needs to be re-located. Realizing that this relocation would cost the state hundreds of millions of taxpayer dollars, the Committee asked Director Salaveria to share innovative options to finance large scale State infrastructure projects through alternative financing mechanisms that would not be funded through the typical capital improvement project funding process and would have minimal impacts on union workers. The Committee members were excited about Salaveria’s innovative proposals. Although Salaveria agreed to meet with the members in the future to further discuss how the proposals can help finance other large State projects, he acknowledged that the State does not currently have the legal expertise to execute the contractual agreements necessary to realize the full benefits of alternative financing mechanisms. As the State looks to transfer risk and liabilities while minimizing our debt service, alternative financing mechanisms will help sustain essential programs and services.
“Upon listening to some of the new models for financing, I think it is prudent we explore these models,” said Senator Henry Aquino (Senate District 19, Pearl City, Waipahu, West Loch Estates, Hono‘uli‘uli, Ho‘opili), Vice-Chair of the Health and Human Services Committee. “There is strong interest in not just funding improvement projects for our correctional facilities, but also for schools and other needs that the State has at this point in time.”
Stability of Healthcare Systems
Committee members then paid a visit to Samuel Mahelona Memorial Hospital, where Dr. Kenneth Fink, Department of Health (DOH) Director, and Edward Chu, President and CEO of Hawaiʻi Health Systems Corporation (HHSC) presented on issues the State is facing in healthcare and discussed methods for financial stability and the future of the Samuel Mahelona Memorial Hospital. Fink noted that the current organization of DOH is convoluted, and that some responsibilities and services overlap across divisions and branches. Considering the intersection of public health, human services, and healthcare, Fink offered five proposals to restructure the State’s existing health and behavioral health services to offer the State more streamlined, cost-effective, and modern health system organizational plans. Chair Dela Cruz urged the members of the Committee to review Fink’s plans in anticipation of DOH’s proposed legislation and budget requests in the upcoming legislative session, and to prepare to review proposals from the administration to restructure how Hawaiʻi manages healthcare.
“The Senate is committed to strengthening career pathways to shore up our needs in the healthcare section – both within our public and private systems,” said Senator Aquino. “We have made tremendous strides and look forward to continuing the work ahead.”
Statewide Strategy for Housing – Ka Lei Momi HPHA Redevelopment
The final stop of the day ended in Kapaʻa, and highlighted a statewide vision for housing and specifically, public housing. Hakim Ouansafi, Executive Director of Hawaiʻi Public Housing Authority (HPHA) offered presentations on the status of the Ka Lei Momi redevelopment project and public housing development across the State.
The Committee held rigorous discussion on current housing issues, and also received updates from Ouansafi regarding the recent issuance of a master development contract for nine public housing sites statewide. Ouansafi then introduced Moe Mohanna, President of Highridge Costa Development Company, who was awarded the contract for the pipeline of public housing projects under the Ka Lei Momi initiative. Mohanna provided a brief introduction to Highridge Costa Development and laid out the initial plans for the Ka Lei Momi initiative, highlighting Hawaiʻi's critical need for affordable housing units while also explaining that the ongoing issue of a lack of affordable housing is something that can, and must be addressed.
“Investing in public housing is a crucial component of our State’s efforts to address our housing crisis,” said Senator Dru Kanuha (Senate District 3, Kona, Ka‘ū, Volcano,) Vice-Chair of the Housing Committee. “Ka Lei Momi is an enormous and innovative project that will renovate our aging public housing infrastructure in a modern manner and is projected to bring in over 10,000 additional new housing units over multiple phases throughout our State. I look forward to working with the Hawaiʻi Public Housing Authority and Ka Lei Momi's developer to ensure that the project is completed on time, on budget, and with integrity.”
The Ways and Means Committee will make more visits on Kauaʻi today.