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The Honolulu Advertiser
Posted on: Saturday, September 13, 2003

Polluters protest large fines

By Timothy Hurley
Advertiser Maui County Bureau

Two of Maui's largest industrial operators were slapped with hefty fines yesterday for violations of state and federal air pollution rules.

Hawaiian Commercial & Sugar Co. was fined nearly $2 million by the state

Department of Health Clean Air Branch, while Maui Electric Co. was fined $1.56 million. Those are believed to be among the largest penalties issued in Hawai'i for pollution violations.

Representatives of both companies expressed surprise and disappointment and vowed to appeal.

The fine against HC&S alleges the company burned substandard fuel in a biomass boiler at its Pu'unene Mill beginning in June 1975. The company discovered it was using the wrong type of fuel and voluntarily reported the problem in 2001, acting to correct the situation.

The $1.97 million penalty primarily estimates the economic gain to the company from burning the cheaper fuel, said Laurence K. Lau, deputy director of environmental health, in a statement.

He added that to set the penalty, the state considered that "HC&S brought the violation to our attention and promptly corrected the problem."

HC&S General Manager Stephen Holaday said the state had miscalculated the benefit to the company and that the fine would have a significant financial impact on the state's largest sugar producer.

As for Maui Electric, the state alleges two of the company's diesel engine generators at its Ma'alaea generating plant exceeded visible emission permit limits "many times" between February 1999 and June 2000.

Lau said the fine was based on the number and duration of violations. He said that while MECO is working with state officials, the problem remains unresolved.

MECO President Edward L. Reinhardt said in a statement that the company had reduced smoke visibility at its Ma'alaea plant by 90 percent since 2000. Reinhardt said he was "surprised and disappointed" by the fine because the company had been cooperating with the Clean Air Branch for five years.

According to state standards, a violation occurs when emissions can be seen at the stack for six minutes or longer, Reinhardt said.

He said a diesel engine produces smoke at startup and shutdown, when not all of the fuel is evenly burned. Visible emissions also occur after the engine is rebuilt, which happens every 18 months. These incidents amount to less than 1 percent of the generators' total running time, he said.

The smoke constitutes visual pollution, he said. The generators comply with all health-based air-quality standards.

Other utilities using large diesel generators have similar problems, Reinhardt said, and some states waive the requirements and permit smoke when the generators are starting, stopping or being broken in.

Contact Timothy Hurley at thurley@honoluluadvertiser.com or (808) 244-4880.