SUPPORT DOCUMENT

TABLE OF CONTENTS

INTRODUCTION
ECONOMIC
ENERGY
ENVIRONMENTAL QUALITY
FLOOD CONTROL AND DRAINAGE
HISTORIC SITES
NATURAL BEAUTY
NATURAL RESOURCES AND SHORELINE
HOUSING
PUBLIC FACILITIES
Education
Protective Services
Government Operations
Health and Sanitation
PUBLIC UTILITIES
Water
Telephone
Electricity
Gas
Sewer
RECREATION
TRANSPORTATION
Thoroughfares and Streets
Transportation Terminals
LAND USE
Introduction and Analysis
Land Use Concepts
Agriculture
Commercial Development
Industrial
Multiple Residential
Single Family Residential
Resort
Open Space
Public Lands

INTRODUCTION

This section provides an overview of the General Plan with respect to its history, the program and planning process used in its development and the intended means of implementing the plan. The introduction also presents a discussion of the County's historical trends and alternative employment and population projections.

The County of Hawaii's General Plan is the policy document for the long-range comprehensive development of the island of Hawaii. The General Plan provides the direction for the future growth of the County. It brings into focus the relationship between residents and their pursuits and institutions, offering policy statements which embody the expressed goals for present and future generations.

General plan studies in the County of Hawaii were initiated in the late 1950's. The first of these studies, "A Plan for Kona," was completed in 1960 and encompassed the districts of North and South Kona. "A Plan for the Metropolitan Area of Hilo" was completed in 1961 for the districts of South Hilo and Puna. "The Kohala-Hamakua Region General Plan" was completed in 1963 and covered part of the district of North Kona and the districts of North and South Kohala, Hamakua and North Hilo. These regional plans were adopted by Ordinance No. 317 in July 1965, as the General Plan for the County. The district of Ka'u was the only area in the County not covered by this plan.

With the adoption and ratification of the County Charter in 1968, the General Plan emerged as a major policy document. Section 3-16 of the County Charter states:

The first General Plan document to be completed after the ratification of the County Charter in 1968 was adopted by ordinance on December 15, 1971 by the County Council. Upon adoption of the General Plan in 1971, the Council laid the foundation for establishing a comprehensive planning program for the County of Hawaii. This program consists of three interrelated parts arranged in a hierarchy described below.

The initial development of the General Plan program, undertaken between 1968 and 1970, investigated, analyzed, and evaluated concurrently all aspects of the County under a common or standard methodology. The General Plan program was funded through an agreement between the County of Hawaii and the Federal Department of Housing and Urban Development through the State of Hawaii Department of Planning and Economic Development. The initial General Plan study program was conducted over a 36-month period and was completed by the Planning Department with the technical assistance of professional consultants in the fields of drainage and flood control, historic sites, sewerage, economics, and water.

The 1971 General Plan required five and ten year comprehensive reviews and updates. The reviews and updates are intended to maintain the dynamism and flexibility of the General Plan and to accommodate major changes and trends which may occur within the

County. The County initiated a review of the Land Use Pattern Allocation Guide Map in 1978 and which led to several changes to the map. Other changes which were made include the addition of an Energy element and amendments to procedures for the comprehensive reviews and proposals for specific amendments to the General Plan.

The planning process utilized for the current comprehensive review and revision of the General Plan included an assessment of the General Plan elements relative to new data, laws, and methods of analysis. Each study element was then analyzed and evaluated in relation to all other elements, County and district goals, and the land use pattern. Potentially, a change in one element could affect other elements as well as the land use pattern. Similarly, a change in County and district goals could potentially be reflected in all elements and in the land use pattern.

The comprehensive review of the General Plan gathered and assessed the data related to each element in order to identify present conditions and problems and future possibilities. The study elements which are utilized in the General Plan included the following:

Each study element has been divided into sections which are described below.

Introduction and Analysis: Describes the element and summarizes findings, County-wide characteristics and features, trends, changes, and problems are discussed, as well as the outlook and opportunities for the immediate and distant future. The analysis also addresses the element's interrelationships with other elements.

Goals: Indicates the desired long-range directions and seeks to provide a cohesive and comprehensive framework within which social and economic programs and governmental effort can be coordinated.

Policies: States the methods or strategies which should be undertaken to attain the goals stated. These are action and program oriented and involve the formulation of standard procedures, program evaluation and review, rules and regulations, ordinances and laws, budgeting, specific projects, etc.

Standards: Concerned with qualitative and quantitative criteria by which situations can be evaluated or benchmarks established. Standards are basically "yardsticks" or indicators, minimum conditions or levels of quality necessary for the well-being of the public.

Courses of Action: Many study element require a more precise and definitive discussion of community concerns and problems. These sections attempt to identify specific alternatives on a community, district or regional basis.

As an aid to the understanding of the inter-relationship of the components of the General Plan, the separate elements of the General Plan may also be described as follows:

One of the most critical phases of the planning program is the implementation of the General Plan. It is the use of the plan rather than its mere existence which is of benefit. Public understanding and support are vitally necessary as the responsibility for the development of the island of Hawaii rests not only with the administrative and legislative branches of the County but with all people who live here. Widespread discussion will promote the understanding of unique and innovative concepts which are presented in the plan.

Implementation of the General Plan requires the development of middle and short range community, functional, and area plans. It also requires a systematic review of implementing ordinances such as the zoning and subdivision codes and the adoption of amendments to these codes in accordance with policies and standards of the General Plan.

The implementation of the General Plan is also related to the capital improvement and operating budgets. The capital improvements budget encompasses public improvements and facilities to accommodate the anticipated growth, and the County operational budget encompasses programs and services. Both are major components of the implementation of General Plan policies.

Implementation of the General Plan policies also require the adoption of ordinances to establish programs such as historic sites, housing, area improvement financing, areas of natural beauty and the like.

Although fifteen years have elapsed since the adoption of the County's planning program, all of the major components have yet to be put in place. Furthermore, the planning process must be viewed as a continuous non-linear and dynamic process instead of a static and linear one. Unanticipated opportunities as well as unexpected delays necessitate adjustments to programs, standards and policies. Nevertheless, standard procedures must be followed to insure implementation in a comprehensive and orderly fashion. The following procedures shall be required to provide the necessary guidance:

The County of Hawaii encompasses the island of Hawaii, which is the southeasternmost and largest island of the Hawaiian archipelago. The land area of the County is approximately twice that of all the other islands of the State.

The island of Hawaii has a diverse climate, topography, and scenic beauty. Environments range from dense tropical forests; majestic snowcapped mountains; active volcanoes; black, white, and

green sand beaches; deeply eroded valleys; and large expanses of grazing land. Each of the districts provide a variety of settings for human activity, land and resource utilization, or wilderness areas of minimal human intrusion.

Agriculture has played an important role in the County's economy throughout its history. In the late l700's, Hawaii began by provisioning ships. During the 1800's, sugar production and cattle ranching emerged as leaders of the modern agricultural industry. These industries dominated the island's economy and social fabric well into the 1900s.

Sugar, ranching and diversified agriculture continues to be an integral part of the County's economy. Commercial growing of nearly every tropical and semi-tropical product have been attempted here. From early experiments, the coffee, macadamia nut, papaya, and cut flower industries have emerged. Experimentation with new agricultural products will continue to contribute to the island's agricultural economic base. In addition, many of the County's manufacturing concerns are closely associated with agricultural activities.

Within the past twenty-five years, tourism has emerged as the primary economic activity on the island. Much of the economic growth experienced during this period can be linked with the expansion of the visitor industry.

In 1970, just prior to the adoption of the General Plan, the population in the County of Hawaii numbered 63,468. The 1970 census count was the first to show an increase, albeit small, since 1930. Population in modern history peaked at 73,325 during that year, largely as a result of the importation of labor for the sugar industry. The population decline between 1930 and the 1960s was primarily due to the increasing mechanization of the sugar plantation, limited job opportunities in other economic sectors, and the outmigration of residents. This decline was reversed during the 1960s with a modest growth of 2,140 residents between the 1960 and 1970 census.

Since 1970, the County's population has continued to grow. The 1980 census registered an island-wide population of 92,053 people representing a growth of 28,585 residents or a 45% increase over the 1970 census. Estimates prepared by the Department of Planning and Economic Development suggest a population of 106,400 in l985. These estimates represent the County's population approaching the island's native population in l779 estimated to have been between 100,000 to 150,000.

Table 2 summarizes the growth in Hawaii County's job count, by industry, from 1970 to 1984. The data indicates a shift of employment from agriculture towards tourism and other service categories. While there have been substantial increases in non-agricultural categories, farm and agricultural employment have

also increased, particularly in those districts which are not primarily dependant on the sugar industry. Another noticeable change is the absolute decline in construction and manufacturing jobs between 1970 and 1984.

The value of sugar, diversified agriculture and construction output increased during the 1970s. These increases together with net gains in the travel industry provided support for a period of unprecedented growth in employment and population in Hawaii County.

Hawaii County's employment expanded at an average rate of 3.4 percent annually since 1970 as compared to 2.3 percent between 1960 and 1970. The County added a total of 16,050 new employees since 1970. Since 1970, statewide employment increased at an average rate of 2.8 percent or more than 10,000 new jobs annually, compared to an average rate of 3 percent and about 6,500 jobs added annually during the previous decade.

Table 1. Population, Hawaii County

1930 - 1985

Change from Previous Census

Table 2. Job Count By Industry

1970-1984

The County's General Plan is a policy document which sets forth guidelines for future activities in the island of Hawaii for the next few decades. In order to plan for the future, it is necessary to understand both historical trends and future trends related to the number of residents and visitors to be served and the kinds of facilities and resources needed to fulfill their needs.

In traditional public planning efforts, entire plans have been based on the achievement of the projected levels of population. In many of these cases, where population numbers are goals, plans become obsolete when the projected number of residents is not achieved or is surpassed. Thus, the projections presented are not intended to be used as goals. Rather, this General Plan effort uses the projected levels of population as a guideline in land use planning. The projections represent what could reasonably be expected to occur in the future. The goals, policies, standards, and recommendations of this plan are intended to be flexible enough to cope with population levels below or above the projections stated in this section.

Employment and population projections for the County of Hawaii were developed through the analysis of relationships between economic activity, employment, and population. The analytical approach used entails the forecasting of employment in basic industries and the relationship that changes in employment have relative to population. An econometric model was developed and utilized to project total employment and population.

Basic industries which receive income from outside the County are assumed to be the foundation of the economy and the key to the development of the island. Industries which are considered basic are agriculture, tourism, the manufacturing of export products, and research and development.

Secondary industries are those enterprises which service basic industries and/or population. Retail and wholesale trade, bakeries, utilities, financial institutions, and local government are examples of industries in this category.

Three sets of projections were developed for the comprehensive review program, Series A, B, and C. The major variable in each of these projections was the rate of growth of the visitor industry. Plans for resort complexes and other factors were considered in the forecast of hotel rooms. It should again be emphasized that the projections are not statements of goals.

Series A is the most conservative projection. It assumes the demise of the sugar industry and modest expansion in the visitor industry. The overall 1985-2005 rate of growth for Series A of 2.0% per annum is less than the 2.9% rate of growth of employment in the County during the last five years.

SERIES A

POPULATION AND VISITOR INDUSTRY

PROJECTIONS, HAWAII COUNTY 1985-2005

EMPLOYMENT PROJECTIONS

HAWAII COUNTY, 1985-2005

Series B projections were developed as a medium series. These projections lie between Series A and C. Sugar employment is maintained and the overall per annum employment growth rate anticipated in Series B is approximately 3.7%.

SERIES B

POPULATION AND VISITOR INDUSTRY

PROJECTIONS, HAWAII COUNTY 1985-2005

EMPLOYMENT PROJECTIONS

HAWAII COUNTY, 1985-2005

Series C is an optimistic outlook of the County's future. It is assumed that 17,800 hotel rooms plus additional condominium units will be built in the County by 2005. The average annual growth rate of employment in Series C is 4.7%.

SERIES C

POPULATION AND VISITOR INDUSTRY

PROJECTIONS, HAWAII COUNTY 1985-2005

EMPLOYMENT PROJECTIONS

HAWAII COUNTY, 1985-2005

The economic activity experienced by the County over the past five years reflects growth in the County's population and employment. The projections indicate that there will be heavier dependencies on tourism. At present 9.1% of the County's employees work in hotels. By 2005 hotel workers may account for employment ranging from 10.7% in Series A to 14.8% in Series C.

Population Distribution

From the estimates of the islandwide resident population, other estimates have been made which attempt to project the distribution of population over the districts of the island. These are not intended to be included as population achievement levels for the districts, nor as firm statements or descriptions of future conditions. They are based on assumptions of potential employment growth rates described in the previous islandwide employment and population estimates, past district growth trends, and trends in the distribution of population over the island.

District Distribution

Year 2005

----------Series----------

ECONOMIC

The development of sound public policy requires an understanding of the economic factors affecting the planning area or region. Such factors are largely responsible for growth or lack of growth, and any planning effort which does not take them into account cannot be very effective. In varying degrees the other elements of the planning process are affected by the local economy.

The existence of population in any given area is based in part on economic reasons. Population usually settles, expands or declines in some correlation to economic opportunities or the lack of them. Besides affecting the number and density of population, economic activity has a direct bearing on income level, which to a certain extent determines the standard of living of the individual.

Different types of employment influence the social character of communities. The size and character of the population in turn define needs for housing, transportation, public utilities and facilities, special combinations of land use, recreation, and so forth. Economic studies are thus one of the necessary first steps in developing plans for public and private actions.

Government has a responsibility to identify, understand, forecast, protect and promote local economic sectors and to balance economic growth with desired environmental, social and other objectives of the host community. Government has many policy instruments available to influence and guide developments, investment, and operation of private and public interests.

The economy, however, should not be considered as the only goal of the General Plan. The planning process is geared towards the achievement of a higher quality of life for the residents of the County. Working towards the goals, policies, and standards of this element are only one aspect of accomplishing this desired end.

The Island offers several amenities conducive for economic growth. Many of these are natural amenities such as a favorable and equitable climate, scenic vistas, high mountains, deep oceans, active volcanoes, large land areas, and an environment fairly free of pollution.

Despite these amenities, there have been a number of problems that tended to retard or limit growth on the island. Most imported goods have to be transhipped through Honolulu. The distances from the population center of Honolulu, the mainland, and other markets have limited the growth of export products from the Big Island. With the exception of sugar, only products which are unique and/or have high value are successfully exported, such as macadamia nuts, flowers, coffee, and papaya.

As the island of Hawaii's population and tourism grows larger and the export volume increases, more favorable rates on overseas carriers may be instituted.

The relatively small population in the State, coupled with the distance to mainland markets, creates a disadvantage for local businessmen. This situation is commonly called a "pocket market." The size of the population does not allow for efficient operations, and when exportation is considered in order to expand the market, the entrepreneur is faced with high transportation costs.

Physical catastrophies, such as tsunamis, volcanic activity, flooding, and droughts, have also retarded growth on the island. In addition to actual physical damage, the fear of the recurrence of natural hazards presented a psychological barrier for investment. Measures to protect life and property have been planned and instituted throughout the County. Further control measures are reported in this plan.

The economy of Hawaii County has experienced significant changes over the past two decades. While agriculture remains an important part of the County's economy, it has been eclipsed by tourism as the primary contributor to the County's economy. Despite these changes, most of the communities maintain a rural character.

With sugar as its leader, agriculture currently constitutes a major economic sector of the island of Hawaii. Including processing, the agricultural industry accounts for about 10 percent of the island's employment. Besides sugar cultivation and processing, local agricultural pursuits consist of the raising of cattle and other livestock, the growing of coffee, macadamia nuts, papaya, flowers and nursery products, vegetables, and several processing plants which utilize locally grown products.

Agribusiness is basically conducted on two levels. On one end of the spectrum are the three sugar plantations which account for a large percentage of agricultural employment. At the other end are the small, family-operated farms and ranches. The latter accounts for about three-fourths of the people engaged in agriculture.

Hawaii County accounts for approximately one-third of the sugar produced in the State of Hawaii, over half of the beef consumed, all of the coffee grown, most of the macadamia nuts, and varying percentages of the other crops and livestock. The total value of agricultural marketings rose 181 percent from 1970 to 1984, in part a result of higher prices. The number of farms and livestock operations increased from 2,500 to 2,650 in the same period. Acreage in farms, however, declined 15 percent during the 1970 - 1984 period. Diversified agriculture (non-sugar, non-pineapple) has shown substantial growth on the island of Hawaii. The island accounted for 56 percent of the diversified crops in the state in

1984 while livestock on the island accounted for 27 percent of the state total. These shares have remained relatively constant since 1970. The island's total diversified agricultural sales total has risen by 271 percent between 1970 and 1984.

One of the most pressing problems faced by today's agricultural industries is their ability to attract labor. Agriculture is facing increasing competition for labor from other sectors of the economy, such as the rapidly expanding visitor and construction industries. There is also a demand for a greater number of personnel with technical and professional agricultural training. A related problem is the housing shortage which is found throughout the island.

Competition from urban forces for agricultural lands has intensified. The protection of prime agricultural lands, however, has long been a policy of the County of Hawaii.

The pocket market situation and transportation difficulties mentioned earlier in this section are limiting factors for the production of agricultural products for local consumption and export. The State Department of Agriculture, the Department of Planning and Economic Development, the University of Hawaii, the College of Tropical Agriculture, and the County have programs to assist the industry.

The opportunities for the expansion of agriculture on the Big Island seem to be immense. Export products grown mostly on the Big Island, such as coffee, papaya, macadamia nuts, and flowers, have expanded rapidly over recent years. These commodities and others, such as ginger, guava and other tropical fruits, have potential for growth. There are also new high value crops which have potential to be successfully cultivated here.

With the introduction of intensified pasture management and a feed lot operation located on the island coupled with changes in consumer patterns, there is also a potential for cattle ranching expanding.

Fishing and aquacultural activities are also basic economic sectors. The commercial fishing industry on the island accounted for $3.7 million in 1984. Fishing has long been a part of the island's economy while aquaculture has shown renewed emphasis only in recent times. This industry remains in its infancy with only a few operators. Recent activities at Keahole may hold promise for significant future expansion.

The deep cold coastal waters off Keahole Point are nutrient rich and pathogen free. Experiments with the water have proven successful growing media for a variety of marine products.

Manufacturing or processing activities in the County of Hawaii have mainly been related to the agricultural industry. About 50 percent of the employees in the manufacturing sector are involved in the processing of sugar. Other forms of manufacturing associated with agriculture include the processing of macadamia nuts, the production of jams and jellies, and preserved vegetables. The food processing enterprises, excluding sugar processing, accounted for approximately 700 employees in 1984, 30 percent of the total manufacturing employment.

Other manufacturing activities are service-oriented, such as bakeries, printing and iron works. These operations are usually located close to population centers or transportation facilities.

The visitor industry has become the County's major economic activity in the past decade. The number of westbound visitors to the island of Hawaii in 1970 was 446,400. By 1984, the count showed 760,900 visitors. The hotel inventory during the same period grew from 3,200 to 6,944 rooms. Employment in hotels, services, and trade also experienced similar increases.

The growth of Hawaii County in terms of employment, population, income and economic activity during recent years has been more closely tied to the visitor industry than any other sector of the economy. Employment opportunities spurred by the growth of this industry has been the catalyst for economic growth in the County.

The principal visitor destination area of the Big Island is the South Kohala-North Kona region in West Hawaii. The single most popular attraction is Hawaii Volcanoes National Park.

There is substantial investor interest in the visitor industry on the island of Hawaii. To date, over one billion dollars of planned construction of resort-residential complexes have been announced in addition to the substantial investment already in place. Most of these plans are for the Kohala-Kona coastal areas. Resort developments have also been announced for the district of Ka'u. By and large the west side of the island has dominated the visitor market and this trend is expected to continue into the future.

Continued investor interest in resort development in the County suggests an economic future that promises new jobs and more commercial, recreational, and cultural activities. Along with these promises of a "better" life is the realization that the visitor industry is sensitive to exogenous factors, such as the national economy. High quality development, however, seems less subject to these factors. The key to orderly growth lies in proper planning and controlled development.

To a limited degree, Hawaii County has participated in the research and development industry through the Mauna Kea and Mauna Loa Observatories, the University of Hawaii Cloud Physics Laboratory, Hawaii Volcano Observatory, and various agricultural research centers. The University of Hawaii at Hilo College has become a four-year institution and will play an increasingly important role in this community. The university complex itself is an important economic force.

The Natural Energy Laboratory of Hawaii (NELH) at Keahole is currently involved in research and development in energy, materials and aquacultural projects. Hawaii Ocean Science and Technology (HOST) park located adjacent to NELH is being developed for similar projects on a commercial scale. NELH will soon be involved in geothermal-related research at the Hawaii Geothermal Project site in Puna.

Further, interest has been expressed for several years in developing a space launching facility in Kau.

Technological advances are occurring in many sectors and is not limited to the "high tech" computer industries. These changes brought by such advances have and will continue to affect Hawaii's industries.

Secondary industries, such as government, construction, trades (retail and wholesale), utilities, financial institutions, and professional services are most often located close to population centers. Population usually locates close to employment centers which, in turn, are based on primary income generators, such as tourism or agriculture. Major transportation facilities also attract secondary industries.

The major governmental, service, commercial, transportation, and educational center on the island of Hawaii is the city of Hilo. Of the island's population, 30 percent resides within the city limits. Key to the growth of the city have been the transportation facilities. Until Kawaihae Harbor was constructed on the west coast of the island, Hilo Harbor was the only deepwater port in the County. Hilo's General Lyman Airport has been improved to accommodate inter-continental jets while Kona's Ke-ahole Airport has been receiving direct overseas flights.

In addition to the developing urban center at Kailua, there are many other communities throughout the island, which, for the most part, are small and rural in nature. These communities, ranging in population from 300 to 1,500, constitute the remainder of the "urban" areas of the County.

Employment opportunities have increased by over 13,000 jobs during the period 1970 through 1984. The industry category experiencing the largest increase was hotel employment, followed by retail trade. This is evidence of the impact that the visitor industry has had on stimulating the County's economy. Employment in secondary industries also expanded. The largest employment decrease was in the sugar industry which reduced labor needs in harvesting and processing.

The following table depicts the shifting of employment between the major sectors of the County's economy. It indicates that the County's economy has shifted from an economy dominated by agriculture in 1960 to a more diversified economy with a significant service-oriented component.

Much of the increase in employment, especially in hotels and retail trade, has been absorbed by the women in our population. The current ratio between Hawaii County's total employment and population is the highest in the State. The participation rate indicates that the County's labor supply has been largely utilized. This situation indicates that new labor demands may have to be partially met through in-migration.

Rising wage levels and more secondary workers caused per capita personal income to rise from $4,059 in 1970 to $9,396 in 1983.

Upon completing high school, an increasing proportion of the County's youth have pursued higher education. However, despite this trend, there is still scarcity of employment opportunities for the college-educated who desire to return to the island.

The population of Hawaii County has grown steadily since 1970. District estimates for 1984 also show changes in the distribution of population. The South Hilo district still contains over 40 percent of the island's population. The remainder of the nine judicial districts have resident counts ranging from 1,576 in North Hilo to 18,226 in North Kona.

The growth of district populations in the last twenty years is closely associated with the existence of visitor industry facilities

in an area. North Kona and Puna experienced the largest increases. The population of North Hilo and Hamakua declined. The district of Puna, in spite of the closing of the Puna Sugar Company, grew at an annual rate of 8.7 percent reflecting the continuing settlement on relatively less costly lots created decades ago.

The following is a brief analysis by judicial district for each district. The entire County, however, is an economic system and there are many interrelationships and interdependencies among the various districts. Each district is an integral part of the County and is treated as such. The courses of action shall be consistent with and supportive of the goals, policies, and standards set forth in the overall economic element.

Population increased in Puna as a result of employment opportunities in the city of Hilo and in agriculture within the district. Also contributing to this increase was an in-migration into subdivided areas.

Puna is primarily an agricultural district. The area also includes part of the Hawaii Volcanoes National Park, large undeveloped subdivisions, forest reserves, and several small concentrations of population. Most of the subdivisions were created prior to the Comprehensive Zoning Ordinance and are in agricultural zones.

Diversified agriculture in the form of truck farming in the Volcano area; papaya groves in the Kapoho area; and flowers, principally anthuriums and vanda orchids, in the Mountain View, Pahoa and Kapoho areas are important. The papaya and flower industries have experienced rapid growth in recent years. Factors currently inhibiting the growth of these industries are the shortage of labor, housing, processing requirements, and plant disease.

Geothermal resource utilization is a small part of the existing economy of Puna. Future potentials remain uncertain though they may be promising if implemented properly.

Except for the Kulani Prison project, there are no major government installations in the Puna district.

The visitor industry has very little visible effect on the Puna district other than some roadside stands. There are a number of visitor attractions frequented by tourists, such as the Kaimu Black Sand Beach, portion of the Volcanoes National Park, and the Painted Church.

Puna's population will probably continue to grow at its past rate. The major sector of its economy will continue to be agriculture, such as papaya, macadamia nuts and flowers. However, there are several problem areas which have already been mentioned as well as others such as capital requirements which have to be overcome for expansion. There is also potential for a limited amount of visitor facilities in the form of small accommodations and support facilities, such as recreational areas, botanical parks, and others. Puna also will continue to serve as a residential area for some people working in the city of Hilo.

Population growth has occurred primarily in the city of Hilo while the older plantation based communities on the Hamakua coast declined.

The city of Hilo (hereafter referred to as Hilo) is the County seat and the only metropolitan area on the island. Hilo also functions as the island's industrial, commercial, distribution and population core. Approximately 30 percent of all Big Islanders live in this city. The rest of the population is scattered in other settlements throughout the island.

Sugar is one of the largest single industries in the South Hilo area. Although plantings of sugar cane are found within the city limits, most of the cane is grown in the rural areas. Hilo Harbor serves as the primary shipping point for the sugar industry. A number of related industries are also located in the city, such as fertilizer distributors, petroleum product distributors, machine and equipment dealers, repair facilities, and some light manufacturing. Several crop and livestock businesses are located in South Hilo.

Hilo is also known as the Orchid Capital of the world, as flowers are grown extensively throughout the vicinity. In addition to orchids, anthuriums have been making remarkable progress in marketability.

Several kinds of manufacturing operations are located in Hilo, including the processing of food, fruit, sugar, livestock, and garment manufacturing. The forest reserves represent a large, virtually untapped economic resource.

With the establishment of a four-year college there is potential for further research and development industries in the city. Already established in Hilo are the University of Hawaii Cloud Physics Laboratory, agricultural experiment stations and astronomy related base facilities.

Tourism in Hilo grew then declined between 1970 - 1984, beginning with 1,308 hotel and condominium units available for visitors in 1970, then peaking at 2,152 units in 1976 and returning to 1,313 in 1984.

Commercial endeavors are being expanded. The largest project is the recently completed Prince Kuhio Plaza, anchored by Liberty House, Woolworth and Sears. Numerous other office buildings, shops, and services are serving the growing needs of the island community.

Hilo with its population size, harbor and airport facilities, higher education complex, and new investment has potential for economic growth. There are, however, some problem areas. Major public facilities, such as the airport facilities and the university facilities in Hilo, rely heavily on State funds and this County must compete with other areas of the State. A new shopping center has intensified the competitive situation between new and older commercial areas. Finally, the recent declines in the visitor and sugar industries in east Hawaii are resulting in some declines in allied sectors. New economic base activities in east Hawaii are needed if the city is to continue its role as the island's commercial and service center in the future.

Population in North Hilo has declined for more than 50 years. One of the major factors attributing to this decline has been the decrease in the demand for workers of the district's major industry, sugar. The major population and service center for the North Hilo district is Laupahoehoe.

Like Hamakua to the north, the North Hilo district is agriculturally oriented. On the arable lands of the lower elevations, which stretch from Honohina-Ninole to Ookala, sugar cane dominates the landscape, with smaller acreages of diversified crops scattered in between.

The Hamakua Sugar Company represents the single most important source of income and employment for the residents of this district.

Manufacturing in this area is limited to the processing of sugar cane. It is expected to remain stable as newer and better methods are utilized and as lands are more efficiently cultivated for sugar cane growing. The amount of land available for growing sugar cane, however, is limited.

At higher elevations are large tracts of grazing lands, native and planted forests, and the sparsely vegetated slopes of Mauna Kea. Some of the planted timber stands and certain species of native hardwoods have been logged.

Economic growth under present conditions is limited in the district. The young have continued to leave the area because of the lack of employment opportunities and social life. The mill at Ookala will cease operations and the demand for labor will continue to lessen. Diversified agriculture shows the greatest potential for growth.

Hamakua's population has grown over the past ten years. This has been largely due to increasing resort activity in the neighboring district of South Kohala and the continuing settlement of the rural homestead areas. There has been some internal movement in this district into the town of Honokaa, which represents the commercial and residential center of the district. There are several smaller communities strung out along the Belt Highway which

serve primarily as residential settlements related to the sugar plantations. At the higher elevations there are scattered homesteads and ranches. The towns of Honokaa and Paauilo act as the main trading areas for this district.

The economic mainstays of this area are sugar, cattle, macadamia nuts, and diversified crops. These are the greatest sources of income and employment for Hamakua. There are numerous cattle ranches and several different varieties of diversified crops at the higher elevations. Of these, macadamia nuts are expected to continue to play an important role in the future of agricultural development. Other crops grown in this area are taro, watermelons, tomatoes, and other vegetables. A cattle feedlot and slaughterhouse operation have been developed and should increase the role of the Hamakua district in the beef industry as well as promote diversification of sugar-related products.

Manufacturing is limited to the processing of sugar, macadamia nuts, beef and other food products.

At the present time Hamakua does not directly play a significant role in the tourism industry. There is a total of twenty hotel rooms which are primarily utilized by local travelers and construction workers.

The Hamakua area also serves as a residential community for people who work in South Kohala.

*Note: Kapaau Statistical boundary changed for 1970 census.

Population in North Kohala has grown only slightly in ten years. A major factor preventing a more substantial decline due to the closure of Kohala Sugar is development in South Kohala, particularly the Mauna Kea Beach Hotel.

Cattle, nursery products and macadamia nuts are the major agricultural products. On smaller acreages truck crops are grown. The cattle industry which utilizes the bulk of the land area is the second most important source of income for the area. The largest tracts of grazing land extend from the top of the Kohala mountains to Akoni Pule Highway.

There are several hundred acres of macadamia nuts in the area. All production from these orchards are transported out of the district for processing.

Another important source of income and employment is tourism and its related service industries. Major tourism facilities, however, are not located in North Kohala, although the area does contain many natural and historical amenities conducive to the development of tourist related facilities. There are many residents of this district who work in the adjoining district of South Kohala.

There are several sites in this district with the potential of becoming small resort areas. To date, however, no significant resort development has occurred in the district.

The major private landowners are the Kohala Sugar Company, Bishop Estate, Richard Smart and Kahua Ranch. Together with the State of Hawaii, these landowners account for 90% of the land in this district.

The Upolu Airport can serve a limited number of flights. There is no regular scheduled service to Upolu by the three primary inter-island carriers. With the completion of the Akoni Pule Highway, a circuit into the district was formed. Prior to the completion of this project, the North Kohala area was serviced by a single highway which wound through the Kohala mountains.

The primary economic activities of this area are tourism, cattle ranching, and diversified crops. Other activities which contribute to the economy are education and scientific research associated with the Mauna Kea observatories.

Kawaihae Harbor is the second deepwater port on the island. The Kawaihae small boat harbor add to the inventory of amenities in the district and provides limited recreational and commercial sport fishing activities.

The Mauna Kea Beach Hotel, which began operations in 1965, opened the door to the resort development of this area. The areas which surround proposed developments have attractions for tourists and residents alike. Hunting on the slopes of Mauna Kea and the Kohala mountains, deep sea fishing, hiking trails, historic sites,

sandy beaches, and a diversity of climate are some of these attractions.

There is considerable investor interest in South Kohala. The three large resorts in the district - Mauna Kea Resort, Mauna Lani Resort, and the Waikoloa Beach Resort - have the capacity to accommodate 8,000 hotel rooms and a like number of condominiums. This potential growth can become a major economic factor on the island. One of the emerging problems is labor supply and another is the availability of housing.

The cattle ranching industry utilizes most of the land area, and pastures are found from the higher slopes of the mountains down to the seashore. Parker Ranch, one of the largest privately owned ranches in the world, has its headquarters in Waimea. The cattle industry utilizes feed lot operations. This technique opens the door for the expansion of the cattle industry and silage crops.

Waimea is one of the most productive areas for vegetable crops on the Big Island. Cabbages, celery, lettuce, daikon (turnip), peppers, broccoli and carrots are grown here. Experiments are being conducted on different crops as well as on the improvement of those presently grown. The agricultural industry, especially truck farms, has potential for further expansion. This industry, faced with competition for resources from tourism and other urban forces, needs governmental assistance.

The educational sector includes Hawaii Preparatory Academy (HPA) with 600 students in grades K through 12, including 240 boarders from 23 countries. In addition, Parker School is a day school of 122 students. Parker School includes the New Kahilu Theatre which is among the top five theater facilities in the State. HPA is also building a performing arts center.

The Canada-France Hawaii Telescope has its base facility in Waimea. The base, which is under expansion, has a full time staff of 47 and an annual operating budget of $4.2 million. As several planned telescopes are built on Mauna Kea, additional base facilities may choose to locate in Waimea due to its desirable environment. In late-1986, the Keck Telescope base facility was announced for development in Waimea.

*Census boundary of Kailua expanded for 1980 census.

Spurred primarily by the employment opportunities created by the expanding visitor industry, population has increased in North Kona in the last ten years. Most of the population is located along the major highways of the district.

Tourism has expanded tremendously in North Kona, primarily in Kailua Village. Currently there are about 4,748 visitor units in the area.

The visitor industry is expected to expand at a rapid rate in North Kona. One major problem faced by this industry is attracting labor and providing housing for their employees. Investor interest in the area has caused land prices to soar, especially in coastal areas.

Kona has traditionally been a coffee producing district and population has centered around the mauka coffee areas. The coffee situation has taken a dramatic upturn in recent years after many years of decline.

Besides coffee, agricultural enterprises include cattle ranching and the growing of fruits (bananas and avocados), macadamia nuts, and vegetables, particularly tomatoes.

Timber and fishing are small industries in Kona. Logging of native hardwood at one time provided a major source of income in the district. The Kailua harbor is considered a major center for big game fishing and international tournaments are held annually.

Quarrying operations for building materials are also conducted in North Kona. Other forms of industrial activity include construction and printing.

The ownership pattern of land is characterized by a few owners holding vast parcels of land. In recent years a number of these owners have announced plans for large resort-residential complexes in Kona. An example is the Kamehameha Investment Corporation, which is the developer of Bishop Estate lands. Their master plan for the Keauhou area calls for the development of a resort-recreational destination area. This project is just one of several announced for North Kona.

There are several government projects of significance to the district's economic future. A small boat harbor at Honokohau has been constructed just outside of Kailua Village. This facility will complement the already world famous big game fishing of the area. Further north along the coast, the Keahole airport has been built. It replaced the old airport in Kailua which was considered inadequate to service the increasing air traffic in the area. Presently, the State is initiating an update of the Keahole Airport's master plan. Airport terminal and runway expansion is expected to be pursued after the master plan is revised.

Finally, the Natural Energy Laboratory of Hawaii at Keahole Point and the proposed Hawaii Ocean Science and Technology (HOST) Park adds the potential for the development of a new industry in Kona and further diversification of the economic base of the community.

South Kona's population has increased by 45.1 percent in the last decade. The major trade and population concentrations are along the Mamalahoa Highway at Kealakekua, Captain Cook, and Honaunau.

The primary economic activity of this district is agriculture, with the most important industry being coffee growing and processing. Macadamia nut orchards have increased in acreage due to the massive orchards in the Honomalino area.

Due to the upturn in coffee prices, the number of coffee farms has increased in recent years. Compared to other coffee producing areas of the world, the Kona coffee growers have a comparative disadvantage because of higher wages paid to laborers and the lack of technological advances in the industry. To date, there has been no successful coffee picking machine produced. Due to the higher unit cost of production, the profits of Kona coffee growers are relying upon high prices created by the gourmet appeal of the coffee. The marketing agreements between a variety of companies may stabilize this industry.

Also grown in the South Kona district are bananas, citrus crops (oranges and tangerines), avocadoes, winter tomatoes and other truck crops, and macadamia nuts which are expected to be one of the prime industries in the district. Cattle ranching is also one of the prominent industries in the district.

Manufacturing in South Kona is confined to coffee roasting and macadamia nut processing.

Unlike the North Kona area, the South Kona district has limited accommodations for overnight visitors. There are plans and proposals for developments, such as residential subdivisions and State park systems.

Population remained fairly stable in the Ka'u district. The major communities of Naalehu and Pahala experienced growth reflecting the plantations' effort to centralize these communities.

Located on the southern and eastern flanks of Mauna Loa, the Ka'u district is the largest on the Big Island. This massive district is made up of barren lava fields, lush green acreages of sugar cane, large tracts of grazing lands, forest reserve lands, and macadamia nut orchards.

Agriculture is the economic mainstay of the Ka'u region. Sugar cane, cattle, and macadamia nuts are grown here. The sugar company located here provides the basic source of income and employment for the majority of the residents.

Within the Ka'u area are several cattle ranches which utilize vast acreages of grazing lands. Although employment in this sector is not large, it plays an important role in the area's economy.

The macadamia nut industry, like the cattle industry, does not have a large labor force, but as more trees come of bearing age, employment will increase. Many acres in the Honomalino area are in macadamia nut orchards.

C. Brewer & Co., Ltd., the major landowner in this area, has a master plan for resorts along the Ka'u coast. They have developed golf and tennis facilities at Punaluu beach. The master plan includes the expansion of resort facilities there.

ENERGY

Nationally, for the remainder of the 20th Century, most of the energy demand will be met with fossil fuels and nuclear fission. In turn, fossil fuels are fast becoming a scarce world commodity due to the increasing demand. Hawaii is currently most vulnerable to dislocation in the global oil market, but is also endowed with a variety of natural energy resource alternatives which are renewable or inexhaustible and potentially low polluting sources of electricity. Hawaii's near total dependence on imported petroleum provides the incentive for the promotion of energy conservation and the development of technology to harness local natural (solar, hydrologic, and geothermal) energy resources, and to convert solid waste into an alternate fuel resource.

Petroleum provides approximately 60-65% of the Island's energy needs. One hundred percent of the petroleum products must be imported into the State in one of several forms. Most of the petroleum consumed in the State is imported as crude oil, which is then processed in the two local refineries Chevron and Hawaiian Independent Refinery, Inc. both located at Barber's Point, Oahu in the Campbell Industrial Park. Both refineries receive crude oil from Indonesia, Alaska, Africa, Malaysia, and the Persian Gulf. Petroleum products, primarily jet fuel, fuel oil, and liquid petroleum gas, are also imported from California, the Caribbean, Singapore, and other areas to meet the demand not met by the refineries. Synthetic natural gas which is widely used on the Island of Hawaii is also manufactured from petroleum on Oahu. Petroleum products are received on the Big Island at the Kawaihae and Hilo Harbors.

Under normal circumstances an estimated 30-day aggregate supply of most petroleum products is stored at the oil terminals and tank farms. A major interruption of petroleum supply due to a lengthy maritime strike, a disaster at the source of crude oil supply, the sinking of a petroleum tanker or barge, an aviation disaster at Campbell Industrial Park, etc. could seriously affect the County of Hawaii's petroleum supply. The island's economy is also vulnerable to interruptions in the supply of oil from the Middle East.

The County of Hawaii must decrease economic vulnerability and energy costs. To do so, the County must combine the efforts of energy conservation and the development of natural energy alternatives that reduce the dependence on imported fossil fuels and increase energy self-sufficiency.

Electricity is a major form of energy utilized on the island of Hawaii. The Hawaii Electric Light Company, Inc. which is regulated

by the State, owns 6 power generation plants in the County. Most of these plants operate on steam energy and burn imported fuel. Two of the Hilo plants generate power through hydroelectric means. A few sugar plantations generate their own power by burning bagasse, wood chips, coal and fuel oil, selling their excess to the utility company and often buying power when their demand exceeds supply.

Electricity sold in the County increased 125% between 1960 and 1969, despite a population increase of 3.5%. The average annual residential power used in 1960 was 3,084 kilowatt hours. By 1969 the average amount of power consumed per household was 4,845 kilowatt hours. The population increased from 61,332 in 1960 to 106,403 in 1984 and correspondingly the average annual residential consumption increased to 5,827 kilowatt hours.

Power rates on this island are among the highest in the nation. One factor which contributes to this situation is the present method of power generation. Most of the electricity is obtained through the burning of imported oil. The cost of fuel coupled with transportation costs cause higher rates. The two hydroelectric plants in Hilo cannot generate enough power to service the city's needs. Other factors creating higher costs are the small market and the sparseness of population in a relatively large service area.

Power generating plants will be faced with increasingly stringent air and water pollution standards. Heated water discharge into the ocean, for instance, may be affecting the environment. The effects, however, are not fully understood at the present time. More stringent pollution controls for a better environment could possibly result in higher costs of power.

Except in a few instances, most of the power lines in the County are overhead ones. Although underground wiring has an aesthetic desirability, there are several problems in establishing such a standard. Underground power lines will probably last longer but cost more to install, especially in rocky areas. There is a problem of common sharing of trenches with other utilities. Another problem concerns the repair of breaks, for while broken lines will probably occur infrequently, they will be more difficult to locate. There has been, however, considerable progress in solving the technological problems concerning underground power lines.

Consumption of power will continue to accelerate faster than population growth as people become more affluent. Utility companies will probably design new plants which are more efficient and less polluting. Studies of sources of energy other than the burning of fuel are being conducted.

Electrical Energy Self-Sufficiency for the Big Island

The County of Hawaii must strive to attain energy self-sufficiency in order to minimize the dependence on imported fossil fuels. A commitment by both the government and the public

must continue for research, planning, and development to attain the goal of energy self-sufficiency for the County of Hawaii.

As a result of the 1974 and 1978 oil crisis, there has been concern over Hawaii's dependence on imported petroleum. In 1974 and 1976, the State Legislature enacted several significant bills which were designed to promote the research and development of natural energy resources, and the conservation of energy in order to foster a greater independence from imported fossil fuels.

The State Legislature adopted Act 237 (Chapter 196, H.R.S.) in 1974, which among other things, created the position of a State Energy Resources Coordinator to review and formulate existing and proposed energy resource programs.

Also in 1974, the State Legislature established the Hawaii Natural Energy Institute (HNEI, Act 235) to foster development of local natural energy research at the University of Hawaii. The HNEI maintains cooperation and coordination between all levels of government and private organizations involved with energy related projects with potential for Federal funding, and serves as the central source of information on natural energy policies and programs.

Act 236, adopted by the State Legislature in 1974, established the Natural Energy Laboratory of Hawaii (NELH) at Ke-ahole (North Kona, Hawaii) to provide essential support facilities for future electrical energy research programs. The legislature selected Ke-ahole Point through the criteria for development of three of the proposed natural energy programs (OTEC, Biomass conversion, and direct solar energy utilization systems).

In 1976, the State Legislature adopted Act 189 which complemented the development half for energy self-sufficiency by the creation of tax incentives for the installation and use of "solar energy devices" and "alternate energy improvements" to promote energy conservation. These devices and improvements increase the level of efficiency, and decrease the utilization of electrical power which accounts for 42% of the total energy demand in the County of Hawaii.

In January of 1980 a final report prepared for the County of Hawaii entitled "Energy Self sufficiency for the Big Island of Hawaii" was released. The report recommended that the County government provide a favorable climate for energy savings and new energy production. It also recommended establishing an Office of Energy Coordinator. The Energy Coordinator is to:

In addition, the development of naturally occurring energy resources will become an increasingly important factor in determining future industrial activity on the Island of Hawaii.

1. Geothermal Energy

Geothermal Energy is natural heat energy from the earth that can be harnessed for direct thermal use and for electrical power generation. There are four basic ways in which this type of natural heat energy may be found: 1) steam; 2) hot water; 3) magma; 4) hot, dry rock. The construction of electrical power plants using hot water, brines, or steam separated from hot water or brine deposits is the most probable development of geothermal energy resources.

Geothermal drilling on the Big Island started in the early 1960's. Initial wells were either found to be unsuccessful or once drilled were not further developed.

In 1972, the Hawaii Geothermal Project (HGP) was organized to investigate the development of geothermal energy in Hawaii, and is a cooperative project involving Federal, State, County, and private funds. In April 1976, a successful well was completed near Kapoho in the Puna District, and HGP has since installed a power plant to demonstrate that geothermal energy is an economically viable natural energy alternative for the Big Island. The plant has been in operation for several years.

In 1983 and with subsequent amendments the Legislature amended the State Land Use Law, Chapter 205, Hawaii Revised Statutes, by authorizing the State's Board of Land and Natural Resources to conduct a county by county assessment of areas with geothermal potential for the purpose of designating geothermal resources subzones. Geothermal resource subzones may be designated within the urban, rural, agricultural and conservation land use districts. Only those areas designated as geothermal resource subzones may be utilized for the exploration, development or production of electrical energy from geothermal resources. Other amendments to the State Land Use law provide authority to regulate the direct use applications of geothermal resources.

In addition, the 1983 Legislature set criteria for legislatively designating geothermal resource subzones. Three geothermal resource subzones were established by this legislative method. The Board of Land and Natural Resources has subsequently designated the Kapoho, Kamaili, Kahaualea, and Kilauea Middle East Rift Geothermal Resource Subzones.

2. Hydroelectric Power

Hydroelectric power is one of the oldest generators of electrical energy. On the Big Island, hydroelectric power fulfills only a very small portion of the County's electrical energy demand.

On the Big Island, the percent of total demand supplied by hydroelectricity will probably remain insignificant due to the reliance on normal stream flows and the lack of impoundment required to store enough water for continuous or increased energy output. However, small scale hydroelectric units have been installed at Hawi and Waimea and others have been pro