TESTIMONY OF HENRY CURTIS (JP-T-3)

Q. Please identify yourself and who you represent.

A. My name is Henry Q Curtis. I am Executive Director and Vice President of Life of the Land (“LOL”). My curriculum vitae is provided in JP-EXH-200.

Q. Are you Sponsoring Exhibits

A. Yes. I am sponsoring exhibits JP-EXH-201 through JP-EXH-274

Q. What are your assumptions?

1. The Joint Participants are allowed to address Issue 1h: With respect to Hawaii Gas’ purchase and use of imported [liquefied natural gas (“LNG”)] as part of its gas utility operations, [Hawaii Revised Statutes] § 269-6(b)’s requirement that:

In making determinations of the reasonableness of the costs of utility system capital improvements and operations, the commission shall explicitly consider, quantitatively or qualitatively, the effect of the State’s reliance on fossil fuels . . . and greenhouse gas emissions. The commission may determine that short-term costs or direct costs that are higher than alternatives relying more heavily on fossil fuels are reasonable, considering the impacts resulting from the use of fossil fuels.

In effect, whether the commission should disallow as unreasonable Hawaii Gas’ LNG costs due to the effects of Hawaii Gas’ use of imported LNG on the State’ s reliance on fossil fuels and greenhouse gas emissions.”[i] This requires that the commission establish some type of greenhouse gas accounting methodology that is understandable, reasonable, in the public interest, and can withstand a legal appeal.

            In the recent HECO-NextEra merger proceeding, the Gas Company proposed the standard to be used. “The Commission should not approve a sub-optimal acquisition of a public utility franchise, any more than the state of Hawaii should accept a sub-optimal offer for the purchase of public land. Thus, the issue to be explored in this docket is not only whether the Proposed Transaction will do no harm, but whether the Proposed Transaction will create the maximum possible positive public benefit.”[ii]

A given energy player can strive for greenhouse gas (“GHG”) reductions, reduce emissions only as required by law, be indifferent, be a climate denier, or work to undermine the climate change movement. The commission should not give equal weight to utilities that are at very different places on the climate change spectrum.

1. What is the purpose of your testimony?
2. Renewable Energy is preferable to fossil fuel even though it may have higher initial financial costs. To compare renewables with fossils, a life cycle financial cost analysis needs to be conducted. This allows for an apples-to-apples comparison. Similarly, natural gas, coal, and petroleum have different emission impacts at different stages of their lifecycles. An apples-to-apples comparison of emissions requires a lifecycle analysis; one that includes the relative potency of different greenhouse gases. The purpose of my testimony is to explain in detail two very different accounting methodologies that address greenhouse gas emission. Each methodology can be narrowly applied to commission regulation of utilities. The older producer-based methodology hides impacts and confuses the public. The newer consumer-based methodology provides a much cleaner, clearer, more relevant approach that can easily be applied to Issue 1h.

The Hawai`i Public Utilities Commission (“Commission”) is familiar with both systems. The commission is financed through a production-based fee. “Public utilities are required to pay an annual fee of one-half of one percent (0.5 percent) of the gross income of each respective public utility’s previous year’s business.”[iii]  Examples of Consumption-Based Taxes include the Sales Tax,  Hawai`i Barrel Tax, and Value Added Tax (VAT), while an example of a Quasi Consumption-Based Tax is the Hawai`i General Excise Tax (GET)[iv].

Q. What are the Chief Differences between the two Methodologies

A. The Production-Based GHGE Accounting System (“PAS”) is well esatblished, serving as the basis for the Kyoto Protocol, the United Nations Framework Convention on Climate Change, and the Intergovernmental Panel on Climate Change (“IPCC”). The PAS methodology has several well-identified weaknesses including the promotion of leakages, the failure to regulate international travel, and climate injustice.

Starting about a decade ago, an alternative Customer-Based GHGE Accounting System (“CAS”) was developed. This newer, more visible approach, has been adopted by progressive communities, states, and nations, as a complementary way of accounting for emissions. The CAS methodology is much more in alignment with the cost-causer principle, environmental justice, the United Nations Sustainable Development Goals (“SDG”), promoting consumer choice, and allowing consumers to understand their greenhouse gas impacts. Furthermore, the CAS methodology is very transparent and easily understood.

1. In a nutshell, how would the commission handle each approach.
2. Each methodology is an accounting system. The PAS system would determine the greenhouse gas emissions at a power plant per BTU of power generated (“Φ”). The CAS system would determine the embedded greenhouse gas emissions per BTU of power generated (“Ω”). Thus, Ω would include both Φ and the other components of a life cycle analysis.
3. Why is this important?
4. The Hawaiian Electric Companies acknowledge that climate change is real. Their major life cycle emissions of their fuels are accounted for in Φ. The Gas Company is a climate denier. The Gas Company`s Ω is significantly greater than their Φ. Put in English, the Gas Company`s fuel has large, hidden emissions which distort the value of their fuel.
5. Isn`t CAS simply an outlier philosophy not embraced by the mainstream?
6. No, CAS is not an outlier philosophy. World Bank (2016): “While the production based emissions of the early industrialized countries has begun to decrease, their consumption based emissions have continued to grow, with the gap between the two becoming increasingly significant.”[v] International Monetary Fund (2017): “Most advanced economies have become net importers of emissions since they tend to emit less in producing the goods and services they export than what their trading partners emit in producing the goods and services they import. In recent years, efforts have been made to develop a consumption-based accounting of emissions to incorporate emission transfers via international trade.”[vi] Yale University: 2018 Environmental Performance Index (EPI) Report. “Climate change must be understood as an inescapable international problem.” The problem is that “consumer goods produced in one country are often exported to another, raising the question of whether responsibility for emissions should rest on the producing or consuming country.”[vii] IPCC Chair (2017): “The role of lifestyles/behaviour/consumption in relation to climate change mitigation received relatively little attention in past IPCC reports. Important elements include consumption-based GHG emissions, insights into how social practices and patterns of economic development shape GHG emissions and how interventions can promote climate change mitigation. This would entail an “actor-oriented” approach requiring authors to draw to a greater extent on social science literature.”[viii]

Q. Should the CAS Apply Only to this Proceeding?

A. The Commission introduced the Power Supply Improvement Plan (“PSIP”) process in HELCO docket no. 2012-0212. Then the Commission expanded the PSIP to other utilities. Similarly, the Commission can address a climate change methodology in this proceeding, and then open up an investigatory proceeding to examine the issue across all utilities.

Q. What is Life of the Land`s philosophy?

1971. Life of the Land was founded in February 1970 and filed its first motion to intervene in a commission proceeding in 1971. We were granted participant status, appealed the final decision and order to the Hawai`i Supreme Court, and won the case. I came to the organization in 1994 and have been involved in more than 40 proceedings with the Commission. Life of the Land is Hawai`i’s own energy, environmental and community action group advocating for the people and `aina for more than 48 years. The mission of Life of the Land is to preserve and protect the life of the land through sound energy and land use policies and to promote open government through research, education, advocacy and, when necessary, litigation. Life of the Land believes that every man-made project has environmental, cultural, climatic, geographic, economic, justice, transparency, and labor impacts. Life of the Land believes in examining projects from the macro perspective (life cycle analysis, footprint, web-of-life, cradle-to-grave, zero emission, holistic, interdisciplinary, cross-silo) and from the micro perspective (definitions, assumptions, anomalies, leakages, externalities, intended and unintended side-effects, in-the-weeds analysis). SWOT Analysis (Strengths, Weaknesses Opportunities, Threats) is important. The issue of climate change must not be siloed. Climate change is impacted by the use of, and changes to, land, water, air, energy, fuel, forests., etc. In making the analysis manageable, it is absolutely critical that major source of greenhouse gas emissions are not “accidentally” excluded from the analysis. Life of the Land has raised climate issues in numerous Commission dockets and proceedings, including proceedings such as 2005-0145 and 2007-0346, which were opened more than a decade ago.
1972. How Important is Transparency?
1973. The Blue Planet Foundation informed the commission of their new Island Pulse program in 2013: “a new web application, will encourage households to change their energy habits by enabling users to see their real-time energy usage and allowing them to select from different scenarios (e.g., upgrading their refrigerator to an Energy Star appliance) that will show cost and energy savings.”[ix]

“Thanks to the kokua of Blue Planet Foundation and Hawaiian Electric Company (HECO), Mid-Pacific has on loan its very own Island Pulse display board. This visual dashboard visualizes energy use on the island of Oahu [] and serves to answer basic student questions about where the power we use actually comes from. Better yet, the display also prompts students to think about their impact on the world and pose valuable questions. For example, most people viewing the display for the first time are amazed to learn that coal generates a significant amount of power on the island.”[x]

The Commission reviewed the HECO Companies Integrated Resource Planning process and concluded by issuing its Inclinations in April 2014 (D&O 32052): “HECO Companies should be prepared to anticipate and enable the energy choices that customers will demand [] and to provide customers with critical information to make sound energy choices.” (page 11)

This year the Commission stated, “The HECO Companies’ proposed [] DR programs are trailblazing for their breadth and attention [] offering customers increased choice and economic benefit.”[xi]  It`s all about customer choice.

1. What are metrics?
2. Metrics are a method of measuring something, or the results obtained from measuring something. Last spring, the commission wrote, “In this time of great transition in Hawaii’s electric power industry, the commission concludes that it is beneficial to implement regulatory mechanisms that explicitly encourage exemplary utility performance. Decoupling, as well as the performance-based incentive mechanisms considered in this docket, are strategies that seek to serve this general purpose.”[xii]
3. What are greenhouse gases?
4. The world`s net Greenhouse Gas Emissions (“GHGE”) is a specific quantity in any given unit of time.

“Many of the chemical compounds in the earth’s atmosphere act as greenhouse gases. When sunlight strikes the earth’s surface, some of it radiates back toward space as infrared radiation (heat). Greenhouse gases absorb this infrared radiation and trap its heat in the atmosphere, creating a greenhouse effect that results in global warming and climate change. Many gases exhibit these greenhouse properties. Some gases occur naturally and are also produced by human activities. Some, such as industrial gases, are exclusively human made.  What are the types of greenhouse gases? Several major greenhouse gases that are the result of human activity are included in U.S. and international estimates of greenhouse gas emissions: Carbon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O), Industrial gases: Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), Sulfur hexafluoride (SF6), Nitrogen trifluoride (NF3).”[xiii]

“Greenhouse gases trap heat in the atmosphere, which makes the Earth warmer. People are adding several types of greenhouse gases to the atmosphere, and each gas’s effect on climate change depends on three main factors: How much? How long? How powerful? [] These greenhouse gases don’t just stay in one place after they’re added to the atmosphere. As air moves around the world, greenhouse gases become globally mixed, which means the concentration of a greenhouse gas like carbon dioxide is roughly the same no matter where you measure it.”[xiv]

1. Is Hawai`i working on the climate issue?
2. Yes. The Hawai`i Climate Change Mitigation and Adaptation Commission released the “Hawaiʻi Sea Level Rise Vulnerability and Adaptation Report” (“SLR Report”) in 2017.
3. What is the role of Hawai`i in Measuring Global Emissions?
4. The observatory near the summit of the Mauna Loa volcano in Hawaii has been recording the amount of carbon dioxide in the air since 1958. This is the longest continuous record of direct measurements of CO2 and it shows a steadily increasing trend from year to year. This curve is commonly known as the Keeling Curve, named after Charles Keeling, the American scientist who started the project.
5. How are the Mauna Loa Monitoring Station and the Sea Level Rise Report Relevant?
6. The Hawai`i border may be relevant as a regulation boundary, but not as a greenhouse gas boundary. Adding greenhouse gases anywhere raises greenhouse gas emissions everywhere. Let me use a bathtub analogy. Add water to a plugged bathtub, and the entire water level rises. Electric grids on Hawai`i islands operate similarly. Frequency and voltage disturbances are felt rapidly accross the entire system. The SLR Report and the Moauna Loa monitoring station are measuring the global greenhouse gas issue. These two metrics fit well with Ω. They involve Hawai`i-based metrics that reflect events happening globally. By contrast, Φ pretends that Hawaii emissions are divorced not only from global emissions, but also from Hawai`i non-point source GHGEs.
7. Are GHGE impacts following a Linear Path?
8. No. Impacts are non-linear and are increasing. Jeff Mikulina, Blue Planet Foundation, presented compiled climate data to the Climate Commission.

One slide dealt with the “Emissions Gap Report 2017” published by the UN Environment Programme (October 31, 2017). Blue Planet`s “Key takeaways. We don`t have a lot of time. Simply emulating the US NDC as an emission target fails to achieve the desired goal of preventing catastrophic climate change. Hawaii faces a greater burden because it`s emissions are currently 3x the average global resident. With abundant renewable resources, no indigenous fossil fuel, and progressive leadershiip. Hawaii has an extraordinary opportunity to lead.”

Emissions Gap Report 2017: “What are we aiming for? Keeping temperature increase well below 2oC and pursue 1.5°C as the goal of Paris Agreement [] Will this be sufficient to stay well below 2°C? Without enhanced ambition the likely global average temperature increase will be in the range of 3.0 – 3.2°C by the end of the century. The carbon dioxide budget for the 2oC scenario will be close to depleted by 2030, and the 1.5° C budget exceeded by far.”[xv]

1. How are Greenhouse Gas Emissions Accounted for?
2. How the global GHGE total is divvied up among the different players depends upon the accounting systems, and various assumptions, policies, regulations, historic practices, etc.
3. Describe to Production-Based GHGE Accounting System
4. The PAS metric states that if you produce a greenhouse gas, you are credited with the emission. The PAS works when most manufacturing was within the country, just as traditional utility regulation exists well for one-way flows of electricity from central generators to customers.
5. Is the PAS Metric Transparent?
6. No. Whether it is world trade, or electricity produced on a grid, movement now goes in all directions. Developed Countries (“DCs”) exported manufacturing to Less Developed Countries (“LDCs”), with lower environmental standards, and then DCs buy the goods produced by the LDCs, saving high labor costs, and shifting the production emissions to LDCs. Residents continue to buy the same goods, but have outsourced and hidden the emissions.

A given manufactured product can have components from numerous developing regions and countries, each recording some of the emissions.

1. Who Relies on PAS?
2. The United Nations Framework Convention on Climate Change (“UNFCCC”) requires countries to submit annual National Emissions Inventories and follows the guidelines from the Intergovernmental Panel on Climate Change (“IPCC”) regarding the allocation of GHGE: “emissions and removals taking place within national (including administered) territories and offshore areas over which the country has jurisdiction.” However, GHG emissions that arise in international territories, including those from international aviation and shipping, are only reported as a memo and are not allocated to individual countries. The Kyoto Protocol relies on the production-based GHG accounting framework.
3. What Weaknesses Occur in PAS Analysis?
4. Production-based GHGE accounting evades the cost-causer principle. Embedded emissions are separated into smaller pieces and attached to numerous global accounts. Several scientific studies have found that developed countries have effectly reduced their emissions by outsourcing to less developed nations.

The Kyoto targets were completely offset by net emission transfers, also known as leakage. Individual developed countries include net exporters  (Australia and Canada) and net importers (US, Japan, most of the European Union). American investors poured money into China to manufacture goods for the U.S., and China gets blamed for the increased emissions. Global GHG emissions continue to increase. Trade now accounts for more than a quarter of all GHGE, resulting in a growing gap between production emissions and consumption emissions. Rich countries are outsourcingh their emissions. Consumers may think that their policies are reducing emissions, but without knowing the embedded emissions in their consumption, they may be off target. Net emissions transfers, also known as “demand-driven carbon leakage” pose a serious threat to the globe. Relying only on production-based creates inefficiencies and can drive up GHGE. A Hawai`i based wind farm is held in place through a gigantic hole filled with concrete, a material accounting for five percent of global greenhouse gas emissions, (Wikipedia 2018), while imported fuel extraction and production are excluded from Hawai`iʻs accounts.

To make a cellphone, one must extract raw materials including trace elements, manufacture, and ship the final product. Resource extraction and the manufacturing of the smartphone’s components are high energy-intensive, and they are often polluting processes. The total emissions are the same whether consumption-based or production-based accounting is used. The difference is in the allocation of responsibility.

A Fair Compromise to Break the Climate Impasse: A Major Economies Forum Approach to Emissions Reductions Budgeting (2013) by Marco Grasso et al noted, “The ‘production-based’ or ‘territorial’ approach to counting emissions is centered on `emissions and removals taking place within national (including administered) territory and offshore areas over which the country has jurisdiction`. The problem with this approach is that countries like China, increasingly the ‘workshop of the world,’ end up with emissions counted against them when vast amounts of the products they make are consumed elsewhere. Europe’s dropping carbon emissions are instead largely the result of ‘offshoring emissions’ generated in the production of goods and services it consumes.  The problem is not solved, but some nations appear to be doing better in reducing emissions due to this current production-based accounting.” [xvi]

“We know that China is producing much of what the world (and especially the west) is consuming, and since this is not taken into consideration when calculating national GHG emissions, the numbers are distorted. It makes is easy to put much of the fault on China, while we, the consumers, tend to overlook the fact that our consumption patterns have a large environmental impact as well.”[xvii]

“For years now, carbon dioxide emissions in the United States and Europe have been steadily falling — an encouraging sign of progress in the fight against global warming. But on the flip side, emissions in developing countries like China and India have been growing at a very rapid clip. So, one natural question to ask is just how closely these two things are related. That is, are rich countries just “outsourcing” their climate pollution to poorer countries, by shifting their factories overseas? The answer is basically yes.”[xviii]

“Production-based accounting and national production-based emissions targets contribute to the deadlock in climate negotiations by deflecting attention away from consumption patterns and by accentuating tensions among the climate regime’s underlying norms.” [xix]

“Using a multi-regional input output (MRIO) model we find that CO2 emissions embodied in internationally traded goods accounted for 27% of the total energy-related CO2 emissions in 2005, up from 22% in 1995. [] The highest carbon leakage occurred in the United States (1,250 Mt CO2 from consumption originated from non-Annex I countries).[xx]

1. Is the PAS Just?
2. No. The PAS system promotes Climate Injustice. “Despite having achieved an unprecedented decrease of Greenhouse Gas (GHG) emissions within its territory, lowering them by 13 percent from 1990 to 2010, the European Union’s carbon footprint has increased by 8 percent during the same period. This paradoxical phenomenon is the result of our increasing demand for goods and services, which is mainly satisfied by importing products from developing countries that typically have more carbon-intensive industries.” [xxi]

“Currently, when GHG emission targets are being discussed, they are following the Intergovernmental Panel on Climate Change (IPCC) guidelines, which allocate emissions according to the principle of geographic responsibility, meaning that the emissions are assigned exclusively on the countries that release them. This Production-based (or territorial) accounting, though, fails to address the impact of trade on global emissions.”[xxii]

“In the first round of Kyoto targets the emissions saved were completely offset by net emissions transfers from non-Annex B to Annex B, referred to as carbon leakage.”[xxiii]

“Emissions embodied in trade are rapidly increasing and there is thus a growing gap between production emissions and the emissions associated with consumption. This is a growing concern due to the absence of a global cap and significant variation in country-level mitigation ambitions. Robust measurements of consumption-based emissions are possible and provide new insights into policy options.”[xxiv]

The watershed landmark CAS analsis was published in 2008.

“It’s been a long time coming, but a team led by Glen Peters, of the Centre for International Climate and Environmental Research in Oslo, has finally published a comprehensive “consumption-side” analysis of global greenhouse-gas emission, one that takes international trade fully into account. Estimates of `outsourced emissionsʻ or `embodied carbonʻ have been knocking around for a while now, but this one is different.  This time the study – Growth in emission transfers via international trade from 1990 to 2008 — is comprehensive, and this time the publisher is the Proceedings of the US National Academy of Sciences, and that’s going to make the results, and their implications, harder to ignore. What consumption-side carbon accounting means is that, if a widget is manufactured in, say, China and then shipped to, say, the US – where it is “consumed” – the carbon embodied in the widget goes not on China’s books, as per the usual practice, but on America’s.  The difference makes a difference.  In fact, since 1990 – the Kyoto Protocol’s baseline year – 75% of the growth in the North’s consumption-based emissions took place in China. [] Their CO2 emissions are helping support my consumption.” [xxv]

“Currently, when GHG emission targets are being discussed, they are following the Intergovernmental Panel on Climate Change (IPCC) guidelines, which allocate emissions according to the principle of geographic responsibility, meaning that the emissions are assigned exclusively on the countries that release them. This Production-based (or territorial) accounting, though, fails to address the impact of trade on global emissions.”[xxvi]

Not only does the U.S. have a financial trade deficit, but the U.S. have an even greater CO2 trade deficit. Below is a table for “CO₂ intensity of goods imported and exported by country.[xxvii]”

1. Did the Hawai`i Legislature Recognize the Weakness of PAS?
2. Yes. The Hawai`i State Legislature was akamai to this issue with the passage of Act 234 SLH 2007 (HB 226 SD2 HD2 CD1). “There is established the greenhouse gas emissions reduction task force [] shall prepare a work plan [] The work plan shall include but is not limited to the following objectives [] Recommendations to minimize “leakage” or a reduction in emissions of greenhouse gases within the State that is offset by an increase in emissions of greenhouse gases outside the State.”

Customers currently can view Energy Pulse to determine what energy sources are being used, in real time, to produce electricity that they are buying. These same customers can not see, now or on a delayed schedule, any information on the GHGE that they are using.

Thus, customers can see their part in moving Hawai`i off fossil fuel (a term not defined by state law, but which we mean coal, oil and natural gas), but they can`t see their part in dealing with what the Legislature has stated is “the overriding challenge of the 21st century” which “poses immediate and long-term threats to the State`s economy, sustainability, security, and way of life.”[xxviii]

The State Constitution states that people have a right to a clean environment. Significantly harming every sector of the Hawai`i biosphere and destoying large parts of the Hawai`i econsystem is clearly counter to continued runaway greenhouse gas emissions.

1. Have Other Places Adopted CAS?
2. Yes. CAS is being used in the City of Oakland, City of Emeryville, Sonoma County, the State of California, Oregon, Minnesota (assisted by Synapse), New York City, and numerous other places like the United Kingdom. Similarly, the Commission must adopt CAS to give consumers a transparent way to save humanity.
3. When did the CAS System Come Into Vogue?
4. The first comprehensive CAS study, “CO2 Embodied in International Trade with Implications for Global Climate Policy” by Glen P. Peters*and Edgar G. Hertwich was published in the American Chemical Society (ACS) Publication “Environmental Science & Technology” in January 2008.[xxix]

“Some analysts have begun suggesting that a consumption-based approach be used in negotiating emissions reductions.”[xxx]

“Catching up with the growth of ‘emissions embodied in trade’, a rising chorus of researchers and activists advocate a reallocation of responsibility, a shift from production-based to consumption-based accounting, which would provide a more realistic picture of ‘how and why human actions affect CO2 emissions’. The growth of Chinese CO2 emissions is driven by consumption in the west rather than by an increase in welfare in China. Why should China be held accountable for CO2 released for the benefit of American T-shirt wearers? In fact, the carbon footprint of a person is not a function of what they produce, but of what they consume, much of which will be imported from other nations still doing the dirty work of manufacturing.”[xxxi]

The 12th Conference of the European Society for Ecological Economics (ESEE) 2017. Corvinus University of Budapest – Budapest, Hungary. “Emissions in a decarbonised economy? Global lessons from a consumption-based investigation of Iceland using MRIO analysis by Jack Clarke, Jukka Heinonen, and Juudit Ottelin (Iceland, Finland). “Carbon neutrality plans tend to ignore the indirect (embodied) emissions in goods and services demanded by the society. Global consumption-based analyses have clearly demonstrated the importance of accounting for emissions embodied in products, particularly those traded internationally [] Such assessments also depict how far away the carbon neutrality target is for many regions. As a result consumption-based emissions accounts are becoming increasingly relevant for policy and decision making [] More than half of total [Islandic] consumption-based emissions are produced in other countries and are embodied in imported products [] ‘low carbon illusions’ could be extremely detrimental to effective greenhouse gas reduction on a global scale, as cities will believe they are doing the right thing but in reality their emissions responsibility will silently increase.”[xxxii]

1. How Progressive is it to rely on the CAS system
2. Consumption-Based Accounting fits snuggly in with several environmental, justice, and equity concepts: polluter-pays principle, cost causer principle, and the precautionary principle; as well as economic efficiency and transparency. Those responsible for consuming embedded GHGE should be responsible for their carbon footprint contribution to global climate change. Consumption-based accounting schemes have been around for about a decade.

“The salience of cross-scalar justice issues therefore becomes apparent when one looks at the interconnected nature of supply-demand patterns and consequent consumption-based emissions. For example, global trade in oil and gas amounts to roughly $1.2 trillion per year and two-thirds of all oil and gas is traded internationally in addition to another $1 trillion in annual revenues from the extractive industries sector, of which coal is the largest contributor.”[xxxiii]

“The difference between industrial production and domestic consumption” can be dealt with using a concept variously called embodied emissions, consumption-based emissions, embodied energy, or embodied carbon. Wealthy countries have to a large extent exported or outsourced their climate and energy crisis to low and middle-income countries, deliberately or otherwise” Some call this colonialism. Oxfam calls extreme carbon inequality.[xxxiv]

1. Who is Using CAS?
2. Sonoma County, California: “Better understanding of consumption helps individuals reduce our contribution to climate change.”[xxxv]

Oakland, California: “The consumption emissions approach provides a more thorough portrayal of the emissions for which the community is responsible and holds the potential to inspire deeper emissions reductions. For these reasons, the City also conducts a consumption-based analysis.” [xxxvi]

Emeryville, California: “The consumer has the opportunity to consume more sustainably and the producer has the opportunity to produce more efficiently. [] Strategies to reduce consumption-based emissions also have the potential to benefit the local economy. Whereas traditional inventories can appear to benefit from a GHG reduction when production is outsourced, a consumption-based lens supports strategies for localizing and cleaning production, which creates local jobs and stimulates economic activity.”[xxxvii]

San Francisco, California: “San Francisco, with Green Cities California, publishes one of the first consumption-based greenhouse gas inventories in the nation. Unlike the traditional GHG emissions inventory which only accounts for carbon emissions associated with energy use in buildings and fuel burned in local vehicles, the consumption-based inventory looks at carbon impacts of the full lifecycle of goods and services.”[xxxviii]

Oregon: “DEQ utilizes two types of greenhouse gas inventories: the in-boundary inventory and the consumption-based inventory. [] The consumption-based emissions inventory supplements the in-boundary inventory by estimating the emissions – both in-state and elsewhere – associated with consumption by Oregon residents, businesses and governments. More than half of these consumption-based emissions occur in other states or nations and are not included in the in-boundary inventory. Together these inventories tell a more complete story of how Oregon contributes to climate change and, by extension, opportunities to reduce emissions.”[xxxix]

Minnesota: “Consumption = a `root cause` of environmental impacts” Consumption-based accounter is “better from an environmental justice perspective – we see the `outsourced emissionsʻ”.[xl] “Synapse provided technical support to the Minnesota Pollution Control Agency in its estimation of a consumption-based inventory of greenhouse gas emissions for the state.”[xli]

California:“Consumption-based emissions inventories (CBEI’s) combines emissions from transportation and heating fuels used by households with emissions embodied in the life cycle of energy, food, goods and services they consume, regardless of where those emissions were produced in global supply chains. In contrast, production-based inventories traditionally used in CEQA and general plan discussions count emissions where they physically enter the atmosphere.”[xlii]

New York City: “Like other large cities, NYC’s vibrant economy drives significant GHG emissions beyond its boundaries. Consumption-based emissions accounting captures the direct and life cycle GHG emissions from products and services that residents consume. [] A consumption-based GHG emissions assessment therefore cuts across [] emissions categories, bringing together direct and indirect emissions sources. It reflects complex international supply chains, lifecycle emissions, and is defined by the boundary in which consumption occurs. The City will evaluate consumption-based emissions accounting methodologies and their ability to complement the insight provided by the City’s sector-based Global Protocol for Community-scale GHG emissions inventory (GPC). Using both approaches may encourage more holistic GHG emissions assessments, provide additional perspective through which to understand NYC’s contribution to climate change, and identify additional opportunities for action.”[xliii]

Maryland: “The consumption-based approach can better reflect the emissions (and emissions reductions) associated with activities occurring in Maryland, particularly with respect to electricity use (and efficiency improvements) and is particularly useful for policy-making.”[xliv]

Qatar: “Production-based emission inventories are often misleading, especially, where the domestic consumption of locally produced emission-intensive products is minimal. Using a conventional approach such as per capita emissions to gauge the country’s status is evasive. In countries with high levels of export volume, it is appropriate to use consumption-based emissions to determine their accurate contribution to global emissions. With an ever-increasing global trade, the embodied emissions (imported emissions in the form of products) are high. Many advanced countries show that if the consumption-based accounting is taken into consideration, the emission, on average, is 11% higher than production-based emission accounting.”[xlv]

Global Cities: “The C40 Cities Climate Leadership Group (C40) connects 90 of the world’s greatest cities, representing 650+ million people and one quarter of the global economy”[xlvi] Consumption based GHG emissions of C40 cities (March 2018) “[C]ities that have high consumption-based GHG emissions, are recommended to use consumption-based GHG inventories alongside their sector-based GHG inventories or incorporate key supply chains into the latter. This would encourage more holistic GHG emissions assessments; enable decision-makers to consider a wider range of opportunities to reduce global GHG emissions; and provide an additional perspective with which to engage other stakeholders in climate action.”[xlvii]

Iceland: “[T]here is still seemingly little consideration of accounting for embodied emissions, or the fact that emissions are fundamentally driven by human consumption.”[xlviii]

Kauai (UHERO Study): The Global Protocol for Community-Scale Greenhouse Gas Emission Inventories (GPC) [] provides a clear framework for calculating and reporting city-wide GHG emissions, consistent with IPCC Guidelines.[xlix] Understanding how activities within Kauaʻi induce upstream and downstream emissions can have important implications for actions within the County.[] Although there are likely upstream emissions related to fossil fuel extraction and production, these are optional to report on under the GPC guidelines and can be reported separately from other estimates.”[l]

The UHERO Study included thoughts about an apples-to-apples comparison of alternatives.  “Localities produce emissions both upstream and downstream from local activities. These are reported as scope 3 emissions in the GPC. Products that are shipped to and from Kaua`i produce GHG emissions from shipping and production. For example, 88% of food consumed in Hawai`i is imported (DBEDT, 2012). Whether this induces relatively more or less GHG emissions would depend entirely on relative agricultural practices. Further, the issue of “leakage” should always be considered when thinking about cross-border emissions. For example, one way to reduce externalities related to shipping is to encourage locally produced goods with low-GHG production practices. While this would almost certainly increase a jurisdiction’s emissions it may decrease global emissions. An important consideration might be to move away from production-based GHG accounting entirely and towards consumption-based accounting (Afionis et al., 2017)[li].”[lii]

1. Would CAS be Useful in Hawaii?
2. The Ω approach would enable Hawai`i to rely on an apples-to-apples comparison of the full emissions of each renewable energy and fossil fuel source. Life-Cycle Analysis (LCA) can determine the major GHGE inputs for each fuel. Input-Output Models (IOMs) designed to measure the embedded cash flow can easily be applied to embedded GHGE.
3. Is CAS more important for some regions?

2003. Yes. High levels of distortion occur when PAS is applied to places with heavily dependence on the trading pf goods with high embedded greenhouse gases. Environment Hawaii published trade reports in 2003. They noted that DBEDT statistics from an early year in this millenia showed goods and service imports to Hawai`i of $14.954 billion, exports of 2.194 billion, resulting in a hefty trade deficit of -$12.760 billion. This goods and services deficit was offset by military spending and tourism. The Hawai`i GDP in 2002 was $55 billion (Hawai`i 1997). Thus, the trade deficit for goods and services was about 27% of GDP, offset by additional imports of money from the military and tourists, many who flew here. Hawaii has very large differences in its Φ and Ω. Put another way, if an unanticipated tsunami passed over Hawai`i killing everything, the global change to GHGE will be significantly different that Hawai`iʻs reported emissions under the PAS system.
2004. What other Studies Support CAS?
2005. There are numerous studies which support CAS. “Viewing carbon emissions through a consumption lens provides useful insights to inform a local sustainable consumption strategy. Consumption Based Emissions Inventory (CBEI) is one tool gaining traction among local, regional and state governments such as San Francisco CA, Portland OR, Eugene OR, King County WA, and the states of California and Oregon.  A recent example from the San Francisco Bay Area region utilized the CoolClimate tool for another approach to CBEI.”[liii]

“The UK’s territorial emissions have been going down, while the UK’s consumption-based emissions, overall, have been going up. The rate at which the UK’s consumption-based emissions have increased have far offset any emissions savings from the decrease in territorial emissions. This means that the UK is contributing to a net increase in global emissions. We conclude that there are two main reasons for the fall in the UK’s territorial emissions, neither of which were a result of the Government’s climate policy: the switch from coal to gas-fired electricity generation in the 1990s, which was driven by privatisation of the electricity sector; and the shift in manufacturing industries away from the UK in response to the pressures of globalised markets.”[liv]

“Overconsumption by some people is contributing to dangerous climate change, while other people hardly get by. This paper hopes to stimulate thinking about how consumption-based carbon emissions accounting can help us develop a better understanding of the effect of consumption patterns on emissions, and also how to enable sustainable consumption patterns. Sustainable consumption together with sustainable production patterns are integral to the 2030 global agenda for sustainable development, specifically to Sustainable Development Goal (SDG) 12. By exploring the role that increasing consumption plays in driving carbon emissions, consumption-based carbon emissions accounting might provide us with new insights into challenges to and opportunities for driving the shift to a low-carbon economy.”[lv]

“From the standpoint of a consumer, consumption-based emissions are the full scope of emissions they can control and take steps to mitigate. This paper uses a simple method to calculate consumption-based emissions for different types of New Zealand households.”[lvi]

“Consumption-based accounting of greenhouse gas emissions paints a different picture of who is to blame for global emissions, and experts say ignoring the consumption side in international treaty negotiations leaves out a huge part of the whole picture.”[lvii]

“This research quantifies the extent to which the US has shifted the environmental impact associated with the goods it consumes to other countries through trade. To achieve this, we use a life-cycle, consumption-based approach to measure the environmental impacts embodied in US trade activities for global warming potential (GWP), energy, toxics, and the criteria air pollutants. We use these values to determine the amount of environmental impact “leaked” from current, production-based approaches to analyzing national environmental trends for the years 1998-2004. We find that with reasonable assumptions about the environmental intensity of imports and exports, this leakage exceeds 10% for all studied impacts, exceeds 25% for GWP, energy, and most criteria air pollutants, and exceeds 80% for lead emissions and toxics. By including the environmental impacts embodied in trade activities into national environmental accounts, we provide consumption-based, US per capita, environmental impacts, which we use to evaluate the relationship between income and environmental impact. We find evidence for rising per capita environmental impacts with rising income in the US, contra the Environmental Kuznets Curve. The paper concludes with a discussion of the implications for international environmental policy of increasing embodied emissions in trade.”[lviii]

1. Does CAS regulate Out-Of-State Operations.
2. No. Hawai`i can`t regulate most activities beyond state borders. However, Hawai`i can be informed of out-of-state events which enable informing Hawai`i residents of the ways that they can reduce their GHGE footprint. This approach is clearly within our laws. PAS masks the footprint. CAS promotes transparency, visibility, and personal choice. CAS captures leakages.
3. Do laws and regulations support the use of CAS?
4. Yes. The United Nations Sustainable Development Goal (“SDG”) number 12 (“SDG 12”) is titled, “Ensure sustainable consumption and production patterns.” Target 12.8 states, “By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature.”[lix] One can`t target what one doesn`t measure. Sustainable consumption can`t occur if consumption involves products without metrics.

Article XI, Section 9 of the State Constitution addresses environmental rights. “Each person has the right to a clean and healthful environment, as defined by laws relating to environmental quality, including control of pollution and conservation, protection and enhancement of natural resources. Any person may enforce this right against any party, public or private, through appropriate legal proceedings, subject to reasonable limitations and regulation as provided by law.”[lx]

Article I, Section 2 of the State Constitution addresses rights of individuals. “All persons are free by nature and are equal in their inherent and inalienable rights.  Among these rights are the enjoyment of life, liberty and the pursuit of happiness.”[lxi]

1. How does the State Constitution, Laws, and Regulations Support the CAS approach?
2. The Hawai`i State Constitution states that people have a right to the enjoyment of life, liberty and the pursuit of happiness and a clean economy. Instituting a production-based greenhouse gas emission system, which favors exporting emissions for Hawai`i consumption can lead to perverseness and harm every Hawai`i resident. Clearly, this is inferior to a consumption-based greenhouse gas emission system, which can accurately measure how Hawai`i impacts global greenhouse gas emissions.

The Aloha Spirit is codified in HRS §5-7.5(a)  “Aloha Spirit” is the coordination of mind and heart within each person.  It brings each person to the self.  Each person must think and emote good feelings to others.  In the contemplation and presence of the life force, “Aloha”, the following unuhi laula loa may be used: “Akahai”, meaning kindness to be expressed with tenderness; “Lokahi”, meaning unity, to be expressed with harmony; “Oluolu”, meaning agreeable, to be expressed with pleasantness; “Haahaa”, meaning humility, to be expressed with modesty; “Ahonui”, meaning patience, to be expressed with perseverance. These are traits of character that express the charm, warmth and sincerity of Hawaii’s people.  It was the working philosophy of native Hawaiians and was presented as a gift to the people of Hawaii.

“Aloha” is more than a word of greeting or farewell or a salutation. “Aloha” means mutual regard and affection and extends warmth in caring with no obligation in return. “Aloha” is the essence of relationships in which each person is important to every other person for collective existence. “Aloha” means to hear what is not said, to see what cannot be seen and to know the unknowable.

Exporting emissions for our consumption is not consistent with aloha.

Act 32 SLH 2017 states, “The legislature finds that not only is climate change real, but it is the overriding challenge of the 21st century and one of the priority issues of the senate.  Climate change poses immediate and long-term threats to the State’s economy, sustainability, security, and way of life. Hawai`i has a tradition of environmental leadership, having prioritized policies regarding conservation, reduction in greenhouse gas emissions, and development and use of alternative renewable energy.”

HRS §342B-72 calls for “real, permanent, quantifiable, verifiable, and enforceable” reductions. Increasing emissions by exporting emissions harms everyone.

HRS  §269-6  General powers and duties.  (b)  The public utilities commission []  shall explicitly consider, quantitatively or qualitatively, the effect of the State’s reliance on fossil fuels on [] greenhouse gas emissions.  The commission may determine that short-term costs or direct costs that are higher than alternatives relying more heavily on fossil fuels are reasonable, considering the impacts resulting from the use of fossil fuels.

1. Didn`t the Commission limit the discussion to Hawai`i?
2. The Commission asserted that the Constitution is geographically limited to State boundaries (Order No. 33795). That does not imply that external issues are excluded from the conversation. The Commission can and has taken notice of out-of-state events. Act 32 SLH 2017 states that if the U.S. refuses to meet its global responsibilities, Hawai`i will do so anyway, by complying with an international accord approved in Paris. Thus, Hawai`i will expand its boundaries, and be in accord with international treaties, not national laws.
3. Has the Nature of an Electron Change?
4. Yes. The Commission recognizes that historically, an electron is an electron, but today, it isn`t. Electricity produced during the day has different charistics than electricity produced at night. The Commission`s adoption of time-of-use rates and peak pricing schemes are examples of this. Each electron, each unit of energy, has locational, time-of-use, reliability, and GHGE characteristics that distinguish it from other electricity. Similary, each unit of energy has an accompanying unit of emissions. The commission has yet to assign a value to that emission.
5. What is the Position of the Joint Participants?
6. The Joint Participants assert that the commission should disallow as unreasonable Hawaii Gas’ LNG costs. The Joint Participants further assert that having a disconnect between consuming goods and being responsible for the greenhouse gas emissions generated in making those goods is irresponsible, leads to misallocation of GHGE, promotes exploitation of less developed countries, promotes the misperception that less developed countries are responsible for rising global GHGE, will distort solutions needed, violates the Aloha Spirit, and shifts the blame to others.  It is an act of climate injustice. Global environmental leadership does not support blaming others for our use of greenhouse gases embedded in the products we consume.
7. Has the Commission taken a position on Climate Change?
8. For the very first time, the Commission took judicial notice of climate change laws in Order 35267. The Commission has not researched, analyzed, considered, reviewed, or taken a position on any GHGE accounting system in any docket proceeding. The adoption of consumption-based accounting does not preclude the adoption of production-based accounting, however, the production-base greenhouse gas emission accounting system by itself allows leakages from national greenhouse gas inventories.
9. Are the participants filing exhibits in this proceeding?
10. Yes. The Commission issued Order No. 35112, dated December 18, 2017, Approving with Modifications, the Parties’ Proposed Procedural Order, pp. 5-6 “In order to reduce unnecessary reproduction of documents and to facilitate this proceeding, identified matters of public record, such as reports that HG has filed with the Commission, published scientific or economic statistical data, material and textbooks, technical or industry journals relating to utility matters, and specified parts of the record in previous Commission dockets, shall be admissible in this proceeding without the necessity of reproducing each document in its entirety; provided that the document to be admitted is clearly identified by reference to the place of publication, file or docket number, and the identified document is available for inspection by the Commission and the Parties; and further provided that any Party has the right to explain, qualify or conduct examination with respect to the identified document. The Commission shall rule on the admissibility of the identified documents as evidence prior to issuing its final Decision and Order. In addition, the Parties may enter into stipulations that such documents, or any portions of such documents, may be introduced into evidence in this case, subject to Commission approval.”
11. Is the Commission`s Web-Based Records Complete?
12. No. The Commission maintains an exhaustive but incomplete record of all files in all regulatory dockets opened in the last two decades. Life of the Land`s extensive submissions on climate change and environmental justice in docket no. 2005-0145 were never added as electronic documents to the Commission`s Document Management System files, but are available in hard copy form at the Commission`s office.[lxii] We are including testimonies of Kat Brady (LOL-T-1) and Jeffrey Mikulina (LOL-T-5) in that docket as exhibits in this proceeding.

Jeff Mikulina testified, “Due to the complex nature of global climate change, it is difficult to quantify the impact of any single source of greenhouse gas emissions. Such difficulty, however, should not prevent a sober analysis of the collective impact of all anthropocentric sources of greenhouse gases. When the collective impact of greenhouse gas emissions threaten substantial environmental damage, each individual source is implicated (and new greenhouse gas contributors should receive even closer scrutiny, as they are proposed after recognition of the problem has occurred). Simply claiming that each source makes a de minimis contribution to the problem does not provide an escape from the realities of global climate change. Yet such rationalization – that a more substantial greenhouse gas source is always available to blame and unilateral action would do little to diminish the threat – has successfully prevented any meaningful response to avoiding global climate change.”[lxiii]

The Joint Participants are attaching many web-based publicly available exhibits to their testimony.

1. Is this filing the only Chance the Participants Will Have to Present Their Case?
2. Possibly. The Commission asserted  that Information Requests may be submitted to the Joint Participants, and if so, they can reply. In addition, an Evidentiary Hearing might be held, and that briefs might be requested after the Commission issued its important interim rates. Or none of that will occur. Therefore this may be the only opportunity to present any positional statement. Therefore, with relunctance at doing it at this point, I offer additional testimony that would normally be reserved for a legal brief.
3. How did the Commission limit testimony by the Joint Participants?
4. The Commission issued Order No. 35267 (“Order 35267”), dated February 6, 2016.[lxiv] Plaintiffs may discuss climate change, limited to one bureaucratic legalese sentence, with a double negative, and double dependent clause: “In fact, whether the commission should disallow as unreasonable Hawaii Gas’ LNG costs due to the effects of Hawaii Gas’ use of imported LNG on the State’s reliance on fossil fuels and greenhouse gas emissions.”[lxv] The Commission made it clear that the plaintiffs may not discuss “evidence of a causal connection between greenhouse gas emissions and climate change”, “amount of interim rate increase”, “HG’s proposed tariffs, rates, charges, and rules,” whether the Commission should “banned or prohibited” the “use of LNG”, “fracking” or “`climate intense` projects,” and “a clean and healthful environment beyond the State’s borders.”[lxvi]
5. What is left to discuss?
6. The plaintiffs focused on greenhouse gas accounting. We examined the PAS and CAS systems and explained why the CAS system must be adopted. What is a total mystery is how the Commission will use this information, because we can`t discuss applying it to the rate case.
7. What Role Will Participant Testimony Play?
8. The Commission granted a record number of participants into a rate case recently. The Commission allowe six participants into the HECO rate case, docket no.  2016-0328. The Commission then asked the parties but not the participants to enter into settlement talks. HECO and the Consumer Advocate filed Settlement Agreements on November 15, 2017 and March 5, 2018. The Commission issued Interim D&O 35100 on December 15, 2017 and Order 35335 on March 9, 2018, modifying the first and approving the second. Examining the four documents  (two settlement agreements and two Commission rulings) reveals that there were a maximum of two footnotes in any of the four documents, merely stating that the participants were admitted and filed documents. There was only one exception. There is an outstanding issue with one participant. For the rest of us, we were no more than window dressing, admitted, restricted, and disposed of.
9. Is the Commission mandated to analyze GHGE?
10. The Public Utilities Commission has been mandated to consider greenhouse gas emissions since 2011. Senator Gabbard introduced SB 1482,[lxvii] which is codified as HRS §269-6(b): “the commission shall explicitly consider, quantitatively or qualitatively, the effect of the State’s reliance on [] greenhouse gas emissions.”[lxviii] The Commission have never acted on this provision. Representative Cynthia Thielen wrote HB1328 HD1 SD1 SLH 2003,[lxix] codified at §269-54, “The consumer advocate shall consider the long-term benefits of renewable resources in the consumer advocate’s role as consumer advocate.”[lxx] The consumer advocate occassionally asks Information Requests on environmental issues, but rarely does the issue ever reach a statement of position, and never for climate change. The Commission asserted that if the Consumer Advocate addresses climate change, the participants can then file Information Requests to the Consumer Advocate.[lxxi] The Commission has a mixed record on transparency. The Commission issued Order No. 35224 in docket no. 2017-0352, dated January 12, 2018. “In subsequent order, the commission intends to establish performance incentive(s) for the HECO Companies that will reward exceptional performance in acquiring renewable energy projects through this round of competitive procurement [] and encourages any stakeholders with innovative proposals to file comments with the commission on this topic by January 29, 2018.” The Commission refused to allow intervenors into the proceeding, and only sent the request for all energy stakeholders to provide input to HECO and the Consumer Advocate. Practically all stakeholders were oblivious to the notification.
11. What would the Participants Settle For?
12. The Joint Participants assert that the commission should disallow as unreasonable Hawaii Gas’ LNG costs. The Joint Participants want the true costs and lifecycle impact of greenhouse gas emissions factored into fuel decisions made by the commission. Climate Change threatens Hawai`i residents, and our rights promulgated by the Hawai`i State Constitution. At the very least, the commission must adopt a policy on greenhouse gas emssions, and that it be consistent with Hawaii’s commitment to the Paris Climate Agreement. We believe that applications such as this Gas Company filing must require provide both the financial cost and the embedded GHGE associated with their operations, in an easily to understand way, such as Ω/kWh and Ω/BTU.
13. Why Should the Commission adopt the CAS?
14. The Commission must adopt some system. The CAS is the only reasonable, transparent approach that enables utility customers to understand the ramification of their energy choices.
15. Could the Commission adopt another system?
16. Theoretically, yes. But any system would need to be presented and analyzed to make sure that it is just, reasonable, transparent, and in the public interest. No such system has been presented by any other party or regulator. The participants would expect that they would have due process rights to review any other proposed system before its adoption.
17. Are there separate Kanaka Maoli issues?
18. Yes. “Hawai`i Revised Statute § 1-1 is an example of the enduring interplay between traditional law and Western law. It codifies custom in Hawai`i, adopting English and American common law except as modified by Hawaiian custom and tradition, or the judicial precedents of the kingdom of Hawai`i. Thus, the statute gives great deference to Hawaiian traditional custom and usage, which comprised Hawai`i law from the first arrival of Polynesian voyagers until the Declaration of Rights was passed in 1839.
    “Another example of this blending of legal ideas and cultures is Hawai`i Revised Statutes § 7-1, which adopts wholesale section 7 of the 1850 Kuleana Act. That provision was intended to preserve the rights of maka’āinana, or native tenants, to continue subsistence lifestyles, by conferring rights to gather specific items for personal use, access other portions of the ahupua’a (traditional land division) for various purposes, and secure water for domestic use. Today, section 7-1 and other laws continue to confer special rights to kuleana land owners, regardless of whether they are Native Hawaiian.
    “In addition to existing statutory provisions, in 1978, Hawai`i’s state constitution was amended to transform protections for Native Hawaiian rights and practices into a constitutional mandate. Article XII § 7 placed an affirmative duty on state and county agencies to preserve and protect Native Hawaiian rights”[lxxii]
19. Has Life of the Land prsented climate change positions in previous dockets.
20. Yes. Fore example, Life of the Land`s Opening Brief in docket no. 2005-0145 stated, “The future of the planet is at stake. Global warming and climate change are no longer theories. The debate is over. The consensus among the majority of scientists is that human activity is causing the climate to change and that the burning of fossil fuels is the largest contributor to global warming. The identification of humans as the main driver of global warming helps us understand how and why our climate is changing, and it clearly defines the problem as one that is wathin our power to address. Because of past emissions, we cannot avoid some level of warming from the heat-trapping emissions already present in the atmosphere, some of which (such as carbon dioxide and nitrous oxide) last for 100 years or more. However, with aggressive emission reductions as well as flexibility in adapting to those changes we cannot avoid, we have a small window in which to avoid truly dangerous warming and provide future generations with a sustainable world. This will require immediate and sustained action to reduce our heat-trapping emissions through increased energy efficiency, expanding our use of renewable energy, and slowing deforestation (among other solutions).”[lxxiii]

“Three Life of the Land witnesses testified on climate change (LOL T-1. T-2, T-5) and another five referred to climate change. There was no direct or rebuttal testimony by other parties regarding Climate Change. HECO did not cross-examine any witnesses on climate change related issues.”[lxxiv]

Life of the Land continued to discuss climate change in 2007. Dr. Charles Pe`Ape`A Makawalu Burrows provided testimony on Hawaiian values and climate change.

“I am Charles Pe’ape’a Makawalu Burrows, president of Ahahui Malama i ka Lokahi, a Hawaiian environmental organization dedicated to the conservation of native  ecosystems both here in Hawaii and globally. Our mission is to develop, promote, and practice a native Hawaiian conservation ethic that is grounded in ancient tradition, is relevant to our times, and is responsible to both Hawaiian culture and science in order to protect Hawaii’s native cultural and natural heritage through research, education, and active stewardship. I currently serve on the Kaho’olawe Island Reserve Commission, the OHA Native Hawaiian Historic Preservation Council, the United Church of Christ Environmental and Energy Task Force, the U.S. National Ramsar Wetlands Council and am a board member of three Kailua environmental and cultural organizations. My academic degrees are: B.S. in Biology and Chemistry from Linfield College; M.S. and M.Ed. in Environmental Science and Biology from Oregon State University; an Ed.D. in Instructional Technology and Educational Change from Indiana University. I was a science educator for 40 years starting in Oregon and 30 ending at the Kamehameha Schools in 2000 when I retired.”[lxxv]

“My academic and professional career in education centered on environmental and ecological courses that involved Hawaiian conservation values and cultural practices. This curriculum not only included classroom lectures and laboratory investigations but also experiential education in Hawaii’s varied ecosystems on all the major islands. My students and members of our school’s environmental and hiking club during my teaching, traveled to New Zealand, the Cook Islands, Easter Island, Alaska, the 5Southwest and even Russia, in a cultural and ecological educational exchange.  As a result of these encounters with indigenous peoples, we found that we have similar conservation values and cultural practices in our relationship with the environment. One of the most important conservation value that is shared by indigenous peoples – whether they are Polynesian, Native Americans, Alaskans or even Indonesians – is the “theology of place” or spiritual ecology that transcends a physical place to become a place of consciousness that evolves into who they are as human beings. Gregory Cajete, in his book A People’s Ecology says that the Pueblo Tewa Elders use the metaphor, pin peye obe, (look toward the mountain), which is to remind people of the long view on future generations. “Look to the mountain,” reminds us that when dealing with the landscape we must think in terms of many thousands of years and not for immediate and unsustainable economic gains.”[lxxvi]

“Kanaka Maoli, indigenous Hawaiians, also regard certain areas as “wahi pana” or sacred places. Examples of this are Kualoa, Oahu; Haleakala, Maui; and Mauna Kea, Hawaii. Hawaiians of old and even today, e.g. the Protect Kaho’olawe Ohana and the Kaho’olawe Island Reserve Commission, view the island and the ocean waters surrounding it as a “pu’uhonua”, place of refuge, and a wahi pana embodied by Kanaloa as a living spiritual entity.”[lxxvii]

“Hawaii as an archipelago state, compared to the continental states, is a macrocosm of what will happen to its native ecosystems, economic, social and political systems, if immediate changes are not made to reduce global warming and the consequences of climate change nationally and globally.”[lxxviii]

1. What is the purpose of discovery?
2. Many facts are in contention. The American system of law is based on a belief that the truth will emerge when special interests and public interests are involved in adversarial interactions that are judged by relatively open-minded decision makers. Cross-examination is the process whereby adversaries can probe the allegations, seeking to separate the wheat from the chaff; the truths from the half-truths; and sound reasoning from wishful speculation. A healthy cross-examination allows decision-makers to make informed decisions based on verified truths.

An article on discovery appearing on the American Bar Association web site, state, “Discovery in civil suits is broad. The Federal Rules of Civil Procedure provide that parties may discover anything that is relevant and unprivileged. As a consequence, parties are consistently required to produce evidence against themselves if the damaging evidence is within the bounds of an appropriate discovery request. This principle goes both ways. The practical result is that by the close of discovery, assuming discovery is conducted ethically, diligently, and thoroughly, each party possesses exhaustive amounts of information obtained from the other. A civil attorney then has the opportunity to analyze, distinguish, and dismantle the legal and factual theories advanced by the opposing party. Thereafter, while many things may be in doubt at the time of trial, each side’s evidentiary strengths and weaknesses are theoretically unsurprising to the other side.”[lxxix]

Rule 26 of the Hawai` Rules of Civil Procedure (“HRCP”) states, “Unless otherwise limited by order of the court in accordance with these rules, the scope of discovery is as follows [] It is not ground for objection that the information sought will be inadmissible at the trial if the discovery appears reasonably calculated to lead to the discovery of admissible evidence.”Q. Did the Gas Company takes seriously the Information Requests filed by the Joint Participants?

1. No. We asked 85 questions to which the Gas Company objected to all of them, asserting that they were “vague, ambiguous, irrelevant and outside the scope.” This included answers to fundamental questions:  Does the Gas Company believe that fossil fuels cause climate change? Please provide a copy of the Gas Company’s official position on climate change. Does the Gas Company believe that climate change is a problem? Is smokestack emissions or life cycle analysis, a better metric, for calculating how a given fuel use will impact climate change? Why? Is the Gas Company familiar with the term “embedded greenhouse gas”. Has the Gas Company examined the embedded greenhouse gas content of the fuel it buys? Does the Gas Company believe that the majority of climate change MAY be caused by things other than fossil fuel? If so, please elaborate.
2. What is the Gas Company`s position on climate change?
3. The Gas Company is the lower level of a multiple level organization. The ultimate controller is Macquirie Group, a major climate change denier.

Macquarie Infrastructure Corporation (MIC) owns Hawai`i Gas.[lxxx] Alicia Moy, Hawai’i Gas president and CEO: “I report to our board, Hawaii Gas board, I also report to the CEO of Macquarie infrastructure Corporation.”[lxxxi] “Macquarie Infrastructure Corporation is externally managed by a subsidiary of Macquarie Group [] Macquarie infrastructure Corporation “ultimately rolls up to Macquarie Group, yes.”[lxxxii] Thomas K. L. M. Young, Hawai`i Gas Executive Vice President and Chief Operating Officer: “But during Ms. Moy`s testimony, we established, did we not, that the Macquarie Infrastructure Company is managed by a Macquarie affiliate and, furthermore, that its ownership and its controlling ownership is through the Macquarie Group; correct? A. I believe so.”[lxxxiii]

MIC is a climate denier, forced by some regulators to submit greenhouse gas data. The annual MIC proxy statements don`t mention greenhouse gases or climate change.[lxxxiv] The MIC Environmental, Social, and Governance (ESG) Report (May 2017) stated, “the EPA has attributed climate change to increased levels of GHG emissions. As a result, BEC [Bayonne Energy Center] and other power generators are required to monitor their GHG emissions.”[lxxxv]

The Gas Company is part of Macquarie Group. Macquarie Group Chairman Peter Warne addressed climate change at the Annual General Meeting in 2016: “There are two sides to this debate.”[lxxxvi]

The Macquarie Infrastructure Corp 10-K report filed in Februuary 2017 states, “Climate change is receiving increased attention and there is an ongoing debate as to the extent to which climate is changing, the possible causes of any change and its potential impacts. Some attribute global warming to increased levels of greenhouse gases, including carbon dioxide, which has led to significant legislative and regulatory efforts to limit greenhouse gas emissions. The outcome of federal and state actions to address global climate change could result in significant new regulations, additional changes to fund energy efficiency activities or other regulatory actions. These actions could increase the costs of operating our businesses, reduce the demand for our products and services and impact the prices we charge our customers, any or all of which could adversely affect our results of operations. In addition, climate change could make severe weather events more frequent, which would increase the likelihood of capital expenditures to replace damaged physical property at our businesses.”[lxxxvii]

1. What is your Conclusion
2. The Gas Company does not believe in climate change and doesn`t care that their fuel has the greatest amount of embedded greenhouse gases of any fuel sold in Hawai`i.
3. Haven`t some entities asserted that both gas and oil well use the same extraction equipment, and therefore have similar embedded GHGE?
4. My discussions with Hawaiian Electric Company executives indicate that there are extraction methods used in North America where Hawai`i Gas gets some of their fuel, and their are other extraction methods elsewhere that provide fuel for Hawaiian Electric that do not use the same extraction methods. If one cares as much for the survival of the planet as one does for the short-term financial costs, one has to consider PAS and CAS. The PAS system indicates that Hawai`i consumption of gas is preferable to oil. The CAS system indicates that Hawai`i consumption of  oil is better than gas. If Hawai`i uses the PAS rather than the CAS system, Hawai`i emissions will be lower, and global emissions will be higher. Using PAS we can brag about our low emissions while frying the planet.
5. What are the Next Steps?
6. There are several methodological analysis that push the focus in the correct direction.[lxxxviii] Life of the Land has introduced some documents in previous dockets revealing a potential methodology for determining embedded GHGE. Since embedded GHGE is superior, and should be adopted, and since neither the applicant nor the regulator has disputed that approach, nor offered any other approach, and since the Joint Participants are not permitted to discuss rates, the solution is in the current hands of the commission, and ultimately, the courts.

One approach would be to start with analysis by UHERO. For the past twenty years, the University of Hawai`i Economic Research Organization (UHERO) has asserted that it conducts rigorous, independent economic research on issues that are both central to Hawaii and globally relevant. Dr. Makena Coffman, an Associate Professor with the UH Department of Urban and Regional Planning and a Research Fellow with UHERO was lead author of “An Economic and GHG Analysis of LNG in Hawaii”, published in October 2014.

“Natural gas is often touted as a `clean` energy source because it produces fewer GHG and particulate emissions than coal and oil in combustion. [] There is a high degree of uncertainty in understanding the emissions profiles of the various methods of natural gas production due to discrepancies in field measurements along with methods of modeling the different input variables essential for a complete lifecycle analysis [] Unconventional sources of natural gas generally tend to have higher lifecycle GHG emissions, but also greater variation depending on the source [] Uconventional sources of natural gas tend to require additional production steps, such as hydraulic fracturing, as well as flaring and venting. [] Liquefied natural gas also involves liquefaction and regasification activities, both of which contribute to the full lifecycle emissions profile of generating power from natural gas. [] The State of Hawaii adopted binding GHG emissions targets in 2007. Act 234 requires Hawaii to reduce its statewide GHG emissions to 1990 levels (excluding aviation) by January 1, 2020. It also urges the minimization of `leakage`, or the export of Hawaii’s emissions elsewhere. The Department of Health (DOH) developed rules [] If these rules are expanded to include upstream production emissions, this perceived reduction in GHG emissions would decrease – though the magnitude depends on sourcing and production practices.”[lxxxix]

The UHERO Study suggests a holistic life cycle analysis involving gathering greenhouse gas emission metrics from the various life cycle emission points: production (well equipment industrial extraction, hydraulic fracturing, flaring, venting, leakage), processing (liquefication, regasification, (leakage and venting), transmission (leakage and venting), storage (leakage and venting), distribution (leakage and venting), and combustion.

The commission could discount recoverable gas company tariffs and rates based on the failure of the Gas Company to advance policies that are reasonable and in the public interest.

FOOTNOTES

[i] Public Utilities Commission Order No. 35267, dated February 6, 2018 and Public Utilities Commission Order No. 35346, dated March 16, 2018

[ii] The Gas Company, LLC, dba Hawaii Gas’ (I) Proposed Additions and Modifications to the List of Issues Set Forth in the Commission’s Order No. 32695 and (II) Proposed Procedural Order; pp. 3-4, dated March 23, 2015, Docket No. 2015-0022

[iii] Hawaii Public Utilities Commission Annual Report for Fiscal Year 2017, p. 70 https://puc.hawaii.gov/wp-content/uploads/2017/12/PUC-Annual-Report-FY2017.pdf

[iv] Final Report Selected Issues with the Hawaii General Excise Tax. Report Prepared for the 2010-2012 Hawaii Tax Review Commission. July 22, 2012. “The GET is imposed on a broader set of transactions than any other sales tax, but there is a similar intent to impose a consumption based tax. Nonetheless, state sales taxes differ dramatically from levies on consumption because of the imposition of the taxes on many intermediate purchases (business inputs). The GET is imposed on total gross receipts of businesses, which differs from some but not all states, which generally levy the tax on the total purchase price of consumers. http://files.hawaii.gov/tax/stats/trc/docs2012/sup_120724/GET-Dr.Fox.Final.revised.pdf

[v] Pursuing an Innovative Development Pathway: Understanding China’s NDC [nationally determined contribution]. The World Bank team working on this report was led by Xueman Wang, with contributions from Grzegorz Peszko, Carter Brandon, Garo Batmanian and Maja Murisic.

http://documents.worldbank.org/curated/en/312771480392483509/pdf/110555-WP-FINAL-PMR-China-Country-Paper-Digital-v1-PUBLIC-ABSTRACT-SENT.pdf

[vi] Emissions and Growth: Trends and Cycles in a Globalized World (2017) by Gail Cohen, Joao Jalles, Prakash Loungani, and Ricardo Marto. International Monetary Fund WP/17/191

https://www.imf.org/~/media/Files/Publications/WP/2017/wp17191.ashx

[vii] https://epi.envirocenter.yale.edu/2018-epi-report/climate-and-energy

[viii] Chair’s Vision Paper (with inputs from IPCC Vice-Chairs and Co-Chairs of Working

Groups and TFI) AR6-SCOP/Doc. 2, p. 2

CHAIR’S VISION PAPER Submitted by the Chair of the IPCC, with inputs from IPCC Vice-Chairs and Co-Chairs of Working Groups and TFI, AR6 Scoping Meeting, Addis Ababa, Ethiopia, 1 – 5 May 2017

https://www.ipcc.ch/apps/eventmanager/documents/46/220520170356-Doc.%202%20-%20Chair%20Vision%20Paper%20.pdf

[ix] Blue Planet Motion to Intervene, Docket No. 2012-0036, dated July 23, 2013

[x] http://www.midpac.edu/news/2016/10/island-pulse-on-campus.php

[xi] HECO Company`s Demand Response docket no. 2015-0412, Commission D&O 35238, dated January 25, 2018, pages 84, 91

[xii] Order No. 34514, dated April 27, 2017, in docket no. 2012-0141

[xiii] https://www.eia.gov/energyexplained/index.cfm?page=environment_about_ghg

[xiv] https://www3.epa.gov/climatechange//kids/basics/today/greenhouse-gases.html

[xv] https://uneplive.unep.org/media/docs/theme/13/egr_2017_presentation_fnl.pptx

[xvi] Assistant Professor of International Environmental Policy, University of Milan-Bicocca, Italy; J. Timmons Roberts, Ittleson Professor of Environmental Studies and Sociology, Brown University Non-Resident Senior Fellow, Brookings Institution. https://www.brookings.edu/wp-content/uploads/2016/06/Climate-Global-Views-WebReady.pdf

[xvii] Climate Change: Is China Being Unfairly Portrayed as an Environmental Villain? Candidate Anna Lygre Solvang. Student No 625042. Academic Year 2015/2016. http://tesi.eprints.luiss.it/19156/1/625042_SOLVANG_ANNA%20LYGRE.pdf

[xviii] A closer look at how rich countries “outsource” their CO2 emissions to poorer ones (April 2017) by Brad Plumer, Former Senior Editor, Vox. https://www.vox.com/energy-and-environment/2017/4/18/15331040/emissions-outsourcing-carbon-leakage

[xix] Global Environmental Politics Volume 13, Issue 1. https://www.mitpressjournals.org/doi/abs/10.1162/GLEP_a_00151?mi=3hb74z&af=R&searchText=discourse%2Band%2Bcoherence

[xx] Counting CO2 Emissions in a Globalized World: Producer versus consumer-oriented methods for CO2 accounting. Martin Bruckner, Christine Polzin, Stefan Giljum. DIE Research Project “Development Policy: Questions for the Future” Bonn 2010 Discussion Paper / Deutsches Institut für Entwicklungspolitik. https://www.files.ethz.ch/isn/120592/2010-09e.pdf

[xxi] EU’s environmental policy is blatantly incomplete. The consumption side is missing. Politheor: European Policy Network. http://politheor.net/eus-environmental-policy-is-blatantly-incomplete-the-consumption-side-is-missing/

[xxii] Ibid.

[xxiii] An integration of net imported emissions into climate change targets by Kate Scott and John Barrett. Environmental Science & Policy. Volume 52, October 2015, Pages 150-157. Open Access funded by Natural Environment Research Council under a Creative Commons license. https://doi.org/10.1016/j.envsci.2015.05.016

[xxiv] Consumption-based GHG emission accounting: a UK case study (2013) by John Barrett et al. https://www.tandfonline.com/doi/abs/10.1080/14693062.2013.788858

[xxv] A comprehensive study of “outsourced emissions” by EcoEquity, part of the Earth Island Institute. EcoEquity is a small, activist think tank founded in 1999 that has had an outsized impact on the global climate equity debate. http://www.ecoequity.org/2011/04/finally-a-comprehensive-study-of-outsourced-emissions/

[xxvi] Ibid.

[xxvii] Consumption-based accounting of CO2 emissions by Steven J. Davis and Ken Caldeira. Proceedings of the National Academy of Sciences (March 23, 2010). 107 (12) 5687-5692; https://doi.org/10.1073/pnas.0906974107. Edited by William C. Clark, Harvard University

[xxviii] https://www.capitol.hawaii.gov/Archives/measure_indiv_Archives.aspx?billtype=SB&billnumber=559&year=2017

[xxix] https://pubs.acs.org/doi/abs/10.1021/es072023k

[xxx] Climate Justice for a Changing Planet: A Primer for Policy Makers and NGOs by Barbara Adams and Gretchen Luchsinger, United Nations, New York and Geneva, 2009. http://unctad.org/en/Docs/ngls20092_en.pdf

[xxxi] A climate of injustice: achieving fairness in a sustainable economy (July 13, 2017) by Riccardo Mastini. Although some have criticised the Paris agreement as unfair for western countries, we may need to go even further towards consumption-based accounting to limit climate change and support an inclusive economic model.

https://www.opendemocracy.net/riccardo-mastini/climate-of-injustice-fairness-in-achieving-sustainable-growth

[xxxii] http://esee2017budapest.org/wp-content/uploads/2016/06/ESEE-2017-Proceedings.pdf

[xxxiii] New frontiers and conceptual frameworks for energy justice (w2017) by Benjamin K. Sovacool et al. Energy Policy 105 (2017) 677–691. https://www.sciencedirect.com/science/article/pii/S0301421517301441

[xxxiv] Of embodied emissions and inequality: Rethinking energy consumption (2018) by Lucy Baker, Policy Research Unit (SPRU), University of Sussex, United Kingdom. Energy Research & Social Science Volume 36, February 2018, Pages 52-60 Energy Research & Social Science. https://www.sciencedirect.com/science/article/pii/S2214629617303110?via%3Dihub.

[xxxv] Sonoma County, California Regional Climate Action Plan: Climate Action 2020 and Beyond http://rcpa.ca.gov/wp-content/uploads/2016/10/CA2020-Booklet-English-online.pdf

[xxxvi] City of Oakland, California, 2013 Greenhouse Gas Emissions Inventory Report (2016): http://www2.oaklandnet.com/oakca1/groups/pwa/documents/report/oak059097.pdf

[xxxvii] City of Emeryville, California Climate Action Plan 2.0 (2016) Both consumption-based and production-based methodologies are valid http://www.ci.emeryville.ca.us/DocumentCenter/View/9327

[xxxviii] San Francisco, California Climate Action Strategy Milestones found in “2011: Consumption-Based Greenhouse Gas Inventory”. https://sfenvironment.org/cas/milestones

[xxxix] Consumption-based Greenhouse Gas Emissions Inventory for Oregon. Department of Environmental Quality. http://www.oregon.gov/deq/mm/Pages/Consumption-based-GHG.aspx

[xl] Minnesota: New Tools for Putting Life Cycle Thinking into Action. Minnesota Pollution Control Agency (MPCA) Product Stewardship Speaker Series (2012). https://www.pca.state.mn.us/sites/default/files/20120223cioci.pdf

[xli] http://www.synapse-energy.com/project/minnesota-consumption-based-emissions-inventory-support

[xlii] General Plan Guidelines (2017) Governor`s Office of Planning and Reseach (OPR). http://opr.ca.gov/docs/OPR_COMPLETE_7.31.17.pdf

[xliii] New York City: 1.5C Aligning New York City with the Paris Climate Agreement. The City of New York, Mayor Bill de Blasio. https://onenyc.cityofnewyork.us/wp-content/uploads/2017/10/1point5-AligningNYCwithParisAgrmtFORWEB.pdf

[xliv] Maryland Greenhouse Gas Emissions Inventor Documentation (2011) http://mde.maryland.gov/programs/Air/ClimateChange/Documents/Documentation%20FINAL.pdf

[xlv] Qatar’s National Emission Inventory Report (2016) Emission Inventories 1995-2015 by Sayeed S. Mohammed, Qatar Environment and Energy Research Institute, Qatar Foundation/Hamad Bin Khalifa University https://www.researchgate.net/profile/Sayeed_Mohammed3/publication/323545226_Qatar’s_National_Emission_Inventory_Report/links/5a9b7efd45851586a2ac375b/Qatars-National-Emission-Inventory-Report.pdf

[xlvi] https://en.wikipedia.org/wiki/C40_Cities_Climate_Leadership_Group

[xlvii] http://www.c40.org/researches/consumption-based-emissions

[xlviii] The carbon footprint of an Icelander: A consumption based assessment using the Eora MRIO database (2017) Jack Challis Clarke. Faculty of Civil and Environmental Engineering University of Iceland. https://skemman.is/bitstream/1946/27675/2/JCC%2001091988-4549%20FINAL%20THESIS%20.pdf

[xlix] http://www.c40.org/programmes/the-global-protocol-for-community-scale-greenhouse-gas-emission-inventories-gpc

[l] A Scoping Study for Climate Action Planning in Kauai (October 16, 2017) by Maja P. Schjervheim (MA student Department of Urban and Regional Planning UH Mānoa), and Makena Coffman (a professor with the University of Hawai`i Economic Research Organization (UHERO)). http://uhero.hawaii.edu/assets/StudyForClimateActionPlanningKauai.pdf

[li] Afionis, S., Sakai, M., Scott, K., Barrett, J., & Gouldson, A. (2017). Consumption-based

carbon accounting: does it have a future? Wiley Interdisciplinary Reviews: Climate Change,

8(1). http://onlinelibrary.wiley.com/doi/10.1002/wcc.438/full

[lii] Ibid.

[liii] Urban Sustainability Directors Network (USDN). http://sustainableconsumption.usdn.org/initiatives-list/estimating-consumption-related-emissions

[liv] Based Emissions Reporting (2012), UK House of Commons: Energy and Climate Change Committee. https://publications.parliament.uk/pa/cm201012/cmselect/cmenergy/1646/1646.pdf

[lv] Chewing over consumption-based carbon emissions accounting. This project is supported by the International Climate Initiative (IKI). https://www.international-climate-initiative.com/fileadmin/Dokumente/2017/171218_Consumption-based_Carbon_Emissions_Accounting_publication.pdf

[lvi] Greenhouse Gas Emissions in New Zealand: A Preliminary Consumption-Based Analysis (2014).  Carl Romanos, Suzi Kerr and Campbell Will. Motu Working Paper 14-05. Motu Economic and Public Policy Research. http://motu-www.motu.org.nz/wpapers/14_05.pdf

[lvii] Outsourced Emissions: Counting Imports Jacks Up U.S., European Greenhouse Gas Totals: China Exports Nearly a Quarter of Its Emissions; U.S. Imports More Than 10% by Dave Levitan, Insideclimate News (2010) https://insideclimatenews.org/news/20100311/outsourced-emissions-counting-imports-jacks-us-european-greenhouse-gas-totals

[lviii] Trading Away Damage: Quantifying Environmental Leakage through Consumption-based, Lifecycle Analysis (2007). D. Asher Ghertner and Matthias Fripp. Ecological economics, 63 (2-3). pp. 563-577. DOI: 10.1016/j.ecolecon.2006.12.010 https://www.academia.edu/567342/Trading_away_damage_Quantifying_environmental_leakage_through_consumption-based_life-cycle_analysis?auto=download

[lix] https://sustainabledevelopment.un.org/sdg12

[lx] http://lrbhawaii.org/con/conart11.html

[lxi] https://www.capitol.hawaii.gov/hrscurrent/Vol01_Ch0001-0042F/05-Const/CONST_0001-0002.htm

[lxii]  Commission`s DMS: Docket No 2005-0145. Filing: 08/17/2006 Life of the Land’s Direct Testimonies & Exhibits, filed (IN ONE BLACK BINDER AND CD) 1 pg

[lxiii] Jeff Mikulina, Written Direct Testimony, LOL-T-5, docket no. 2005-0145, dated August 17, 2006

[lxiv] (1) Denying the Motions to Intervene, and Granting Participant Status in Lieu of Intervention; and (2) Re-Stating The Commission’s Procedural Order

[lxv] Order 35267, pp. 60-61.

[lxvi] Ibid., pp. 61-62

[lxvii] SB 1482 https://www.capitol.hawaii.gov/Archives/measure_indiv_Archives.aspx?billtype=SB&billnumber=1482&year=2011

[lxviii] HRS §269-6  General powers and duties. https://www.capitol.hawaii.gov/hrscurrent/Vol05_Ch0261-0319/HRS0269/HRS_0269-0006.htm https://www.capitol.hawaii.gov/Archives/measure_indiv_Archives.aspx?billtype=SB&billnumber=1482&year=2011

[lxix] https://www.capitol.hawaii.gov/session2003/status/HB1328.asp

[lxx] §269-54 General powers; duties https://www.capitol.hawaii.gov/hrscurrent/Vol05_Ch0261-0319/HRS0269/HRS_0269-0054.htm

[lxxi] Order 35267, p. 63

[lxxii] “Avoiding Trouble in Paradise: Understanding Hawai`i’s Law and Indigenous Culture” by D. Kapua`ala Sproat was published by the American Bar Association (ABA) Business Law Today, Volume 18, Number 2 in November/December 2008. Sproat is an Assistant Professor with Ka Huli Ao Center for Excellence in Native Hawaiian Law and the Environmental Law Program, and former board member of Life of the Land. https://apps.americanbar.org/buslaw/blt/2008-11-12/sproat.shtml

[lxxiii] Life of the Land`s Opening Brief in docket no. 2005-0145, dated March 2, 2007 p. 14

[lxxiv] Ibid. pp. 14-15

[lxxv] Life of the Land. Testimonies & Exhibits. Docket 2007-0346 re Biofuel Contract, p. 118:17-31

[lxxvi] Ibid. pp. 118:33—199:6

[lxxvii] Ibid. p. 120:11-16

[lxxviii] Ibid. 120:30-33

[lxxix] Discovery: Criminal and Civil? There’s a Difference by Katharine Larson. https://www.americanbar.org/groups/young_lawyers/publications/tyl/topics/criminal-law/discovery_criminal_and_civil_theres_difference.html

[lxxx] https://www.macquarie.com/mgl/com/mic/portfolio/gas-production

[lxxxi] p. 3878, lines 23-25, Transcript of Evidentiary Hearing for Docket No. 2015-0022, Volume XVIII, dated February 8, 2016, transcribed by Adrianne Ho.

[lxxxii] Ibid. p. 3879, line 20 – 3880, lines 9-10

[lxxxiii] Ibid. p. 3928, lines 7-11

[lxxxiv] https://macquarie.gcs-web.com/static-files/eacce370-9e97-4d18-96a1-f95820862625

[lxxxv] https://static.macquarie.com/dafiles/Internet/mgl/com/mic/investor-center/reports-%26-presentations/mic_2017_esg_report_final.pdf?v=2

[lxxxvi] https://www.marketforces.org.au/climate-change-denial-goes-mainstream-at-macquarie-agm/

[lxxxvii] https://macquarie.gcs-web.com/static-files/7810f3ca-ecdd-44ee-b611-fc1b1709bd09

[lxxxviii] (a) “Bay Area Consumption-Based Greenhouse Gas Emissions Inventory Bay Area Regional Collaborative January 4, 2016 David Burch Principal Environmental Planner.” http://www.baaqmd.gov/~/media/files/planning-and-research/climate-protection-program/consumption-based-ghg-inventory-ppt-pdf.pdf?la=en

(b) “A Consumption-Based Greenhouse Gas Inventory of San Francisco Bay Area Neighborhoods, Cities and Counties: Prioritizing Climate Action for Different Locations”

https://escholarship.org/uc/item/2sn7m83z; (c) “Consumption based GHG emissions of C40 cities” (March 2018) http://www.c40.org/researches/consumption-based-emissions. (d) “Consumption-Based Greenhouse Gas Emissions Inventory for Oregon – 2005 Summary Report” Prepared for DEQ by Stockholm Environment Institute – US Center August 2, 2011:  “The convergence of financial and natural calamities has led some to wonder whether the same root cause – overconsumption – underlies both. In the words of New York Times columnist Thomas Friedman, “What if the crisis … represents something much more fundamental than a deep recession? What if it’s telling us that the whole growth model we created over the last 50 years is simply unsustainable economically and ecologically and that 2008 was when we hit the wall?” Even if such questions cannot be readily answered, the combined financial and ecological challenges do suggest the importance of examining the climate (emissions) implications of current consumption patterns. A better understanding of the links between the consumption of specific goods and services and greenhouse gas emissions is fundamental to informed purchasing decisions by Oregonians as well as to designing government policies that yield lasting global emission reductions.

http://www.oregon.gov/deq/FilterDocs/ghg-consbasedinvsummary.pdf (e) “Consumption-based Greenhouse Gas Emissions Input-Output Model”

https://motu.nz/our-work/environment-and-resources/emission-mitigation/shaping-new-zealands-low-emissions-future/consumption-based-greenhouse-gas-emissions-input-output-model/

[lxxxix] http://www.uhero.hawaii.edu/assets/WP_2014-10.pdf

EXHIBITS

200         Curriculum Vitae for Henry Curtis. See: Life of the Land`s Motion to Intervene in Docket No. 2017-0105, Exhibit 1, dated January 2, 2018. (a) See Also: Life of the Land’s Motion to Upgrade Status, Exhibit 3, Docket No. 2017-0122, dated June 2, 2017, (b) HELCO Rate Case, Movant Exhibit-3, Docket No. 2015-0170, dated December 23, 2016, (c) Joint Parties (LOL-KLMA-PPA) Exhibit-29, Docket No. 2015-0022, dated July 9, 2015, (d) Power Supply Improvement Plans, Exhibit 1, Docket No. 2014-0183, dated August 25, 2014, (e) Feed-in Tariffs, Docket No.  2008-0273, dated April 13, 2009

201         Pursuing an Innovative Development Pathway: Understanding China’s NDC [nationally determined contribution]. The World Bank team working on this report was led by Xueman Wang, with contributions from Grzegorz Peszko, Carter Brandon, Garo Batmanian and Maja Murisic.

202         Emissions and Growth: Trends and Cycles in a Globalized World (2017) by Gail Cohen, Joao Jalles, Prakash Loungani, and Ricardo Marto. International Monetary Fund WP/17/191

203         IPCC Chair’s Vision Paper (with inputs from IPCC Vice-Chairs and Co-Chairs of Working Groups and TFI) AR6-SCOP/Doc. 2, p. 2 CHAIR’S VISION PAPER Submitted by the Chair of the IPCC, with inputs from IPCC Vice-Chairs and Co-Chairs of Working Groups and TFI, AR6 Scoping Meeting, Addis Ababa, Ethiopia, 1 – 5 May 2017

204         A Fair Compromise to Break the Climate Impasse: A Major Economies Forum Approach to Emissions Reductions Budgeting. Brookings Global Economy and Development. Policy Paper 2013-02. Assistant Professor of International Environmental Policy, University of Milan-Bicocca, Italy; J. Timmons Roberts, Ittleson Professor of Environmental Studies and Sociology, Brown University Non-Resident Senior Fellow, Brookings Institution.

205         Climate Change: Is China Being Unfairly Portrayed as an Environmental Villain? Candidate Anna Lygre Solvang. Student No 625042. Academic Year 2015/2016.

206         Global Environmental Politics Volume 13, Issue 1. Norm Conflict in Climate Governance: Greenhouse Gas Accounting and the Problem of Consumption

207         Counting CO2 Emissions in a Globalized World: Producer versus consumer-oriented methods for CO2 accounting. Martin Bruckner, Christine Polzin, Stefan Giljum. DIE Research Project “Development Policy: Questions for the Future” Bonn 2010 Discussion Paper / Deutsches Institut für Entwicklungspolitik.

208         EU’s environmental policy is blatantly incomplete. The consumption side is missing. Politheor: European Policy Network.

209         An integration of net imported emissions into climate change targets by Kate Scott and John Barrett. Environmental Science & Policy. Volume 52, October 2015, Pages 150-157. Open Access funded by Natural Environment Research Council under a Creative Commons license.

210         Consumption-based GHG emission accounting: a UK case study (2013) by John Barrett et al.

211         A comprehensive study of “outsourced emissions” by EcoEquity, part of the Earth Island Institute. EcoEquity is a small, activist think tank founded in 1999 that has had an outsized impact on the global climate equity debate.

212         Consumption-based accounting of CO2 emissions by Steven J. Davis and Ken Caldeira. Proceedings of the National Academy of Sciences (March 23, 2010). 107 (12) 5687-5692; . Edited by William C. Clark, Harvard University

213         Climate Justice for a Changing Planet: A Primer for Policy Makers and NGOs by Barbara Adams and Gretchen Luchsinger, United Nations, New York and Geneva, 2009.

214         CO2 Embodied in International Trade with Implications for Global Climate Policy

Glen P. Peters* and Edgar G. Hertwich. Industrial Ecology Programme, Norwegian University of Science and Technology (NTNU), NO-7491 Trondheim, Norway Environ. Sci. Technol., 2008, 42 (5), pp 1401–1407 DOI: 10.1021/es072023k Publication Date (Web): January 30, 2008

215         A climate of injustice: achieving fairness in a sustainable economy (July 13, 2017) by Riccardo Mastini. Although some have criticised the Paris agreement as unfair for western countries, we may need to go even further towards consumption-based accounting to limit climate change and support an inclusive economic model.

216         European Society for Ecological Economics (ESEE) 2017 CONFERENCE 12th Conference of the European Society for Ecological Economics Corvinus University of Budapest – Budapest, Hungary 20th – 23rd June, 2017

217         New frontiers and conceptual frameworks for energy justice (w2017) by Benjamin K. Sovacool et al. Energy Policy 105 (2017) 677–691.

218         Of embodied emissions and inequality: Rethinking energy consumption (2018) by Lucy Baker, Policy Research Unit (SPRU), University of Sussex, United Kingdom. Energy Research & Social Science Volume 36, February 2018, Pages 52-60 Energy Research & Social Science. .

219         Sonoma County, California Regional Climate Action Plan: Climate Action 2020 and Beyond

220         City of Oakland, California, 2013 Greenhouse Gas Emissions Inventory Report (2016):

221         City of Emeryville, California Climate Action Plan 2.0 (2016) Both consumption-based and production-based methodologies are valid

222         San Francisco, California Climate Action Strategy Milestones found in “2011: Consumption-Based Greenhouse Gas Inventory”.

223         Consumption-based Greenhouse Gas Emissions Inventory for Oregon. Department of Environmental Quality.

224         Minnesota: New Tools for Putting Life Cycle Thinking into Action. Minnesota Pollution Control Agency (MPCA) Product Stewardship Speaker Series (2012).

225         General Plan Guidelines (2017) Governor`s Office of Planning and Reseach (OPR).

226         New York City: 1.5C Aligning New York City with the Paris Climate Agreement. The City of New York, Mayor Bill de Blasio.

227         Maryland Greenhouse Gas Emissions Inventor Documentation (2011)

228         Qatar’s National Emission Inventory Report (2016) Emission Inventories 1995-2015 by Sayeed S. Mohammed, Qatar Environment and Energy Research Institute, Qatar Foundation/Hamad Bin Khalifa University

229         Cities Climate Leadership Group CONSUMPTION-BASED GHG EMISSIONS OF C40 CITIES

230         The carbon footprint of an Icelander: A consumption-based assessment using the Eora MRIO database (2017) Jack Challis Clarke. Faculty of Civil and Environmental Engineering University of Iceland.

http://www.c40.org/programmes/the-global-protocol-for-community-scale-greenhouse-gas-emission-inventories-gpc

231         A Scoping Study for Climate Action Planning in Kauai (October 16, 2017) by Maja P. Schjervheim (MA student Department of Urban and Regional Planning UH Mānoa), and Makena Coffman (a professor with the University of Hawai`i Economic Research Organization (UHERO)).

232         Afionis, S., Sakai, M., Scott, K., Barrett, J., & Gouldson, A. (2017). Consumption-based

carbon accounting: does it have a future? Wiley Interdisciplinary Reviews: Climate Change, 8(1).

233         Urban Sustainability Directors Network (USDN). Estimating Consumption-Related Emissions.

234        Carbon-Based Emissions Reporting (2012), UK House of Commons: Energy and Climate Change Committee.

235         Chewing over consumption-based carbon emissions accounting. This project is supported by the International Climate Initiative (IKI).

236         Greenhouse Gas Emissions in New Zealand: A Preliminary Consumption-Based Analysis (2014).  Carl Romanos, Suzi Kerr and Campbell Will. Motu Working Paper 14-05. Motu Economic and Public Policy Research.

237         Outsourced Emissions: Counting Imports Jacks Up U.S., European Greenhouse Gas Totals: China Exports Nearly a Quarter of Its Emissions; U.S. Imports More Than 10% by Dave Levitan, Insideclimate News (2010)

238         Trading Away Damage: Quantifying Environmental Leakage through Consumption-based, Lifecycle Analysis (2007). D. Asher Ghertner and Matthias Fripp. Ecological economics, 63 (2-3). pp. 563-577. DOI: 10.1016/j.ecolecon.2006.12.010

239         Kat Brady, LOL-T-1, DN 2005-0145, Commission`s DMS Filing: 08/17/2006 Life of the Land’s Direct Testimonies & Exhibits, filed (IN ONE BLACK BINDER AND CD)

240         Jeffrey Mikulina, LOL-T-5, DN 2005-0145, Commission`s DMS Filing: 08/17/2006 Life of the Land’s Direct Testimonies & Exhibits, filed (IN ONE BLACK BINDER AND CD)

241         Avoiding Trouble in Paradise: Understanding Hawai`i’s Law and Indigenous Culture” by D. Kapua`ala Sproat was published by the American Bar Association (ABA) Business Law Today, Volume 18, Number 2 in November/December 2008. Sproat is an Assistant Professor with Ka Huli Ao Center for Excellence in Native Hawaiian Law and the Environmental Law Program, and former board member of Life of the Land.

242         Life of the Land`s Opening Brief in docket no. 2005-0145, dated March 2, 2007

243         Life of the Land. Testimonies & Exhibits. Docket 2007-0346 re Biofuel Contract

244         Discovery: Criminal and Civil? There’s a Difference by Katharine Larson.

245         Macquarie Infrastructure Company: Gas processing & distribution

246         MACQUARIE INFRASTRUCTURE CORP FORM DEF 14A (Proxy Statement (definitive)) Filed 03/24/17 for the Period Ending 05/17/17

247         Macquarie Infrastructure Corporation (MIC) Environmental, Social,

and Governance (ESG) Report (MAY 2017)

248         Market Forces: Your Money as a Force for Good.

Climate change denial goes mainstream at Macquarie AGM (28 July 2016)

249         MACQUARIE INFRASTRUCTURE CORP FORM 10-K (Annual Report) Filed 02/21/17 for the Period Ending 12/31/16

250         Bay Area Consumption-Based Greenhouse Gas Emissions Inventory Bay Area Regional Collaborative January 4, 2016 David Burch Principal Environmental Planner.”

251         A Consumption-Based Greenhouse Gas Inventory of San Francisco Bay Area Neighborhoods, Cities and Counties: Prioritizing Climate Action for Different Locations”

252         Consumption based GHG emissions of C40 cities” (March 2018)

253         Consumption-Based Greenhouse Gas Emissions Inventory for Oregon – 2005 Summary Report Prepared for DEQ by Stockholm Environment Institute – US Center August 2, 2011

254         “Consumption-based Greenhouse Gas Emissions Input-Output Model”

255

256         CO2 emissions production-based accounting vs consumption: Insights from the WIOD databases Version April 2012 Baptiste Boitier. World Input-Output Database (WIOD): Indeed, the de-industrialisation of the developed countries in favor of developing countries led to a displacement of the pollutant activities towards developing countries without a similar reduction of manufactured goods consumption in developed countries

257         The Big Picture: Working-Class Environmentalism

Daniel Aldana Cohen This is the 29th installment of The Big Picture, a public symposium on what’s at stake in Trump’s America, co-organized by Public Books and NYU’s Institute for Public Knowledge. Read IPK Director Eric Klinenberg’s introduction here. 11.16.2017.

258         Enterprise Honolulu (formerly known as the Oahu Economic Development Board) published a series of reports called the Economic Development Series (“EDS”). Two of the installments are important is this discussion: Installment #10: Imports, Exports and Economic Development (August 28, 2003)1 and Installment #11:  Export Enhancement and Import Substitution – Key Strategies for Hawai`i’s Prosperity (September 4, 2003)2.

Life of the Land * PUC Docket 03-0371: Distributed Generation * Statement of Position * 5-6 May 7, 2004

259         A Fair Compromise to Break the Climate Impasse: A Major Economies Forum Approach to Emissions Reductions Budgeting (2013) by Marco Grasso Assistant Professor of International Environmental Policy, University of Milan-Bicocca, Italy; J. Timmons Roberts, Ittleson Professor of Environmental Studies and Sociology, Brown University Non-Resident Senior Fellow, Brookings Institution.

260         Achieving the Paris Goals: Consumption-Based Carbon Accounting Marco Grasso Università degli Studi di Milano-Bicocca. Published in Geoforum, Volume 79, February 2017, Pages 93–96.

261         Norm Conflict in Climate Governance: Greenhouse Gas Accounting and the Problem of Consumption (2013) by Paul G. Harris and Jonathan Symons. Massachusetts Institute of Technology (MIT) press

Global Environmental Politics Volume 13, Issue 1

Accounting rules used for compiling national greenhouse gas inventories play a significant role in constituting the global climate change regime’s character. These rules have major political and policy implications. Production-based accounting and national production-based emissions targets contribute to the deadlock in climate negotiations by deflecting attention away from consumption patterns and by accentuating tensions among the climate regime’s underlying norms. These dynamics contribute to inefficient domestic mitigation policies, conflict over the norm of “common but differentiated responsibility,” weak international agreements, and continued political neglect of consumption as a driver of emissions. In contrast, consumption-based emissions accounting would shift attention from production to consumption

262         Chewing over consumption-based carbon emissions accounting. International Climate Initiative (IKI) of the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB). World Wiildlife Fund. Overconsumption by some people is contributing to dangerous climate change, while other people hardly get by. This paper hopes to stimulate thinking about how consumption-based carbon emissions accounting can help us develop a better understanding of the effect of consumption patterns on emissions, and also how to enable sustainable consumption patterns.

263         Analysing territorial and consumption-based Greenhouse gas emission accounts: Case studies of Barcelona and Hamburg. Clara Johanna Kempken. Joint European Master in Environmental Studies – Cities and Sustainability (JEMES-CiSu). Supervisor: Jannick Schmidt Co-supervisor: Maria Rosa Rovira Val. Date: 09.06.2016

264         Paris Climate Talks Day 1: oh, so pious by Pratap Pandey

Wednesday 02 December 2015.

265         Peters, G., Minx, J., Weber, C. and Edenhofer, O. 2011. Growth in emission transfers via international trade from 1990 to 2008. Proceedings of the National Academy of Sciences of the United States of America, 108(21): 8903–8908. doi: 10.1073/pnas.1006388108.

266         Peters, G., Davis, S. and Andrew, R. 2012. A synthesis of carbon in international trade. Biogeosciences, 9(8): 3247–3276. https://www.biogeosciences.net/9/3247/2012/bg-9-3247-2012.html

267         Policy Update: Managing carbon leakage. Glen P Peters. Pages 35-37 | Published online: 10 Apr 2014

268         EU’s environmental policy is blatantly incomplete. The consumption side is missing. Fivos Petsinaris. CLIMATE AND ENVIRONMENTAL POLICY, OP-ED20/07/2017. Politheor: European Policy Network.

269         Reducing Urban Greenhouse Gas Footprints (2017). Peter-Paul Pichler, Timm Zwickel, Abel Chavez, Tino Kretschmer, Jessica Seddon & Helga Weisz, Scientific Reports volume 7 re Berlin, Delhi NCT, Mexico City, and New York metropolitan area.

270         A closer look at how rich countries “outsource” their CO2 emissions to poorer ones (April 2017) by Brad Plumer, Former Senior Editor, Vox.

271         Austria’s consumption-based greenhouse gas emissions: Identifying sectoral sources and destinations Karl W. Steininger, Pablo Munozc, Jonas Karstensend, Glen P. Peters, Rita Strohmaierb, Erick Velázquezf. Global Environmental Change 48 (2018) 226–242

272         Final Report Selected Issues with the Hawaii General Excise Tax. Report Prepared for the 2010-2012 Hawaii Tax Review Commission. July 22, 2012. “The GET is imposed on a broader set of transactions than any other sales tax, but there is a similar intent to impose a consumption based tax. Nonetheless, state sales taxes differ dramatically from levies on consumption because of the imposition of the taxes on many intermediate purchases (business inputs). The GET is imposed on total gross receipts of businesses, which differs from some but not all states, which generally levy the tax on the total purchase price of consumers.

273         Emissions Gap Report 2017

274         UNFCCC Resource Guide Module 3: National Greenhouse Gas Inventories for Preparing the National Communications of Non-Annex I Parties Module 3 National Greenhouse Gas Inventories