A planned waste-to-energy incinerator for Hawaii County is almost five months behind schedule, after the three finalists for the project asked for more time to complete their proposals.
Mayor Billy Kenoi, who vowed to have a facility on the ground before he leaves office in December 2016, said Tuesday that he still hopes his target will be met. After the proposals are submitted, a county panel will rank the bidders and then enter contract negotiations with the top-ranked firm.
Once a contract is ready, it must be approved by the County Council before work can commence. A myriad of state and federal permit applications are expected to add more time to the schedule.
“If more time will get us a better facility, a cleaner facility, a better price, then if it takes a few more months to get the best proposal on behalf of the county of Hawaii, it’s worth it,” Kenoi said. “I’m still hopeful that we can get a really good proposal before the County Council.”
The companies are Covanta Energy Corp., the operator of Honolulu’s HPower incinerator; Green Conversion Systems Inc., which recently was chosen to build an incinerator for the city of Los Angeles; and Wheelabrator Technologies Inc., which won a $125 million bid to build an incinerator in 2008 before the project was killed by the County Council.
The finalists had first been given three months to submit their proposals, which were first due Oct. 15. That deadline was extended to Dec. 2 and then to March 2.
In the interim, the companies have submitted 68 requests for clarification and details on issues from the amount of waste the county generates to how they should deal with Hawaii Electric Light Co. for energy sales agreements. They’ve also asked to scale down some reporting procedures, standards and verification aspects the county deems critical but they say add to the cost of the project.
The companies, in their written requests, say preparing the proposals costs a lot of money, and they want to be sure the county is serious about proceeding.
“The last time the County sought to procure this project, a proposal was accepted, negotiated and then rejected by County Council due to cost. We are very concerned that the Council may once again reject the proposed project due to cost and specifically note that the Council will ultimately consider this project does not exist today,” said a Green Conversion Systems representative in a question made public Oct. 29.
“The new Council members will need time to learn about this project and to engage their respective stakeholders in a meaningful dialogue about the project, before they can make an informed vote,” the unnamed representative added. “GCS believes that the additional time can be utilized productively by Council to engage in an outreach strategy to build public awareness and support for the proposed project.”
Several council members contacted Tuesday said they’re waiting to see the contract itself before spending a lot of time on the issue.
“It really makes no sense to examine it right now, when it’s subject to so much change,” said newly elected Hilo Councilman Aaron Chung.
Hilo Councilman Dennis “Fresh” Onishi, chairman of the Environmental Management Committee and the representative for the district where the facility will be located, said he’s waiting until the administration has more details about the project. Then he’ll schedule community meetings in Keaukaha and Panaewa homesteads, the closest neighbors to the planned facility.
But Kohala Council-woman Margaret Wille said a hearing is still needed to make sure the county has enough trash to support a facility. She said the math doesn’t work out, so she wants a presentation explaining it to the council.
“We need to have an adult conversation about this,” Wille said. “And the sooner the better.”
The county plans a 25-year contract. It’s not yet known how much the project will cost and what kind of financing arrangements the winning bidder will make. The facility is planned for a 7-acre parcel near the existing Hilo Landfill.
The county is working on a state Health Department permit to expand the life of the current landfill there by piling up the north slope more steeply. That would extend it from its current two-year lifespan to eight years.
Both the Hilo and the West Hawaii landfill could be used for ash disposal, county staff says. The ash disposal will be the county’s responsibility.