Honua Ola agrees with Commissioner Asuncion’s Dissent which opines that Honua Ola and Hawaiian Electric met their burden for approval, that there will never be an analysis that would be deemed sufficient in the PUC Majority’s subjective eyes, nor a set of conditions or outcome upon which the PUC Majority would approve this project, and that the PUC Majority decision not only prejudices Honua Ola but also deprives the community of benefits that could be realized.
Honua Ola Bioenergy Files Motion for Reconsideration, Clarification, and Further Hearing of the PUC Majority Decision to Deny Renewable Energy Project Issued by Commissioners Griffin and Potter
On June 2, 2022, Honua Ola Bioenergy (Hu Honua Bioenergy, LLC in legal documents) filed a Motion for Reconsideration, Clarification, and Further Hearing with the Public Utilities Commission (PUC) seeking to reverse the 2-1 PUC Majority decision issued by Commissioners James Griffin and Jennifer Potter to reject Honua Ola’s renewable energy project on Hawai‘i Island. Commissioner Leodoloff Asuncion issued a dissenting opinion stating that Honua Ola and Hawaiian Electric met their burden for approval.
Warren Lee, president of Honua Ola, said, “We believe the decision by Commissioners Griffin and Potter was in error because the PUC Majority exceeded its authority by considering issues outside the Hawai‘i Supreme Court’s mandate to only consider greenhouse gas (GHG) emissions, and misused its discretion by relying on erroneous findings of fact and applying a ‘clear and convincing standard’ instead of the ‘preponderance of the evidence’ standard. In addition, the PUC Majority disregarded the plain language of the relevant statute HRS 269-6(b) and substituted its own policy interpretation, and also violated the Hawai‘i Administrative Procedure Act and Honua Ola’s constitutional rights.”
Honua Ola’s motion also highlights that the PUC Majority generated evidence outside the scope of the proceedings without providing an opportunity for parties to meaningfully respond. The motion also states that the PUC Majority treated Honua Ola differently from other prior renewable energy projects, that received PUC approvals following GHG emissions analysis, by applying a different and unattainable standard for approval. Incredibly, despite Honua Ola’s pledge and financial commitment to plant and grow more trees than it harvests (in the millions of trees), the PUC Majority was not convinced that such trees would remove emissions from the atmosphere and that GHG emissions would be reduced.
BACKGROUND
- The PUC has approved power purchase agreements between Honua Ola and Hawaiian Electric twice previously in 2013 and 2017. The PUC’s approval in 2013 allowed Honua Ola to proceed with construction at an initial cost of $175 million. The PUC’s approval in 2017 directed Honua Ola to build the plant to completion and begin producing energy as soon as possible, resulting in a total investment of approximately $520 million to date. The 2017 approval order was signed by current PUC Chair, James Griffin, who is leaving his position, effective June 30, 2022.
- The PUC’s 2017 order was challenged in the Hawai‘i Supreme Court by Life of the Land (LOL) because the PUC failed to explicitly consider GHG emissions in its written decision. Importantly, Honua Ola and Hawaiian Electric had provided the PUC with evidence showing a reduction in emissions prior to the 2017 order, but the PUC failed to describe this evidence in its 2017 decision.
- Because of the PUC’s error, the Hawai‘i Supreme Court remanded the matter back to the PUC in April 2019 and directed the Commission to hold an evidentiary hearing on GHG emissions.
- The PUC refused to follow the Hawai‘i Supreme Court’s instructions and did not hold an evidentiary hearing. Instead, led by Chair James Griffin, the PUC issued a decision on July 9, 2020, denying a competitive bidding waiver between Honua Ola and Hawaiian Electric, effectively killing the project. The PUC made this decision even though it had twice previously approved a competitive bidding waiver between Honua Ola and Hawaiian Electric in 2008 and 2017.
- On September 16, 2020, Honua Ola filed an appeal with the Hawai‘i Supreme Court requesting that the PUC’s 2020 decision be vacated, and an evidentiary hearing conducted on GHG emissions.
- On May 24, 2021, the Hawai‘i Supreme Court unanimously ruled in favor of Honua Ola, holding that the competitive bidding waiver was still in effect and that Honua Ola and the PUC were in the same position as they were following the Supreme Court’s opinion issued in 2019. The Supreme Court again directed the PUC to hold an evidentiary hearing addressing GHG emissions, just as it had instructed in 2019.
- The Hawai‘i Supreme Court’s opinion sent a clear message to the PUC that the scope would be limited to consider GHG emissions and to ensure that LOL would be allowed to participate in an evidentiary hearing. The hearing took place over a five-day period from March 1 to March 7. However, the PUC required that the parties address additional issues outside the scope of the Supreme Court’s instructions, including the pricing impacts of the project.
- As a condition of approval, Honua Ola committed in writing to the PUC that its facility will be carbon negative, the first renewable energy project in Hawai‘i to make that promise, and backed that up with several financial and operational commitments, including its offer “to adopt any reasonable modifications and/or additional conditions ordered by the Commission that will enable the Commission to hold Hu Honua accountable and enforce any conditions of approval” as was detailed in the filing of its post-hearing brief to the PUC on March 29.
- Honua Ola is 99% complete and could be ready later this year to begin producing clean renewable bioenergy for 14,000 homes and businesses. Fast-growing, non-native eucalyptus planted decades ago as a crop to replace sugar cane would be Honua Ola’s primary feedstock. Invasive species, including albizia, strawberry guava and gorse could also be used to produce renewable energy while eliminating them from the environment.
- Honua Ola will support the State of Hawai‘i’s clean energy goals, revitalize East Hawai‘i Island’s agricultural sector, and create permanent, long-term jobs for the next 30 years to help support the island’s economy.