The case of the Big Island power plant is going back to the Supreme Court

Honua Ola Bioenergy’s relentless effort to begin producing renewable energy for the island of Hawaii enters another chapter Tuesday as the Hawaii Supreme Court hears hearings on the company’s latest appeal, a state public’s decision Utilities Commission, which rejected the company’s power purchase agreement with a subsidiary of Hawaiian Electric.

“We have a strong case based on the law, on the precedent of the PUC having twice previously approved our PPA, and on the evidence showing that Honua Ola will produce clean, renewable energy while preserving the environment of the Big Island.” Honua Ola Bioenergy president Warren Lee said in June after the company filed an appeal with the Hawaii Supreme Court. “We have met the permitting burden of commencing operations by presenting a comprehensive record of objective evidence, facts and analysis that meet the requirements established by the Hawaii Supreme Court.”

The hearing will be held at 5 p.m. at the University of Hawaii at the Manoa William S. Richardson School of Law in Classrooms 2 and 3. It will also be broadcast live.

Honua Ola Bioenergy was formed in 2008 to convert Hilo Coast Processing Co.’s legacy facility in Pepeekeo into a biomass facility that would burn eucalyptus trees. The plant used to burn sugar cane waste and coal. The plant, which is now 99% complete, would generate enough energy to power 14,000 homes.

The seemingly never-ending story has continued with the PUC for 15 years, including more than five years on the Supreme Court. The PUC issued a 2-1 majority decision on May 23 that dealt another setback to Hu Honua, also known by its legal name Hu Honua Bioenergy LLC.

But Honua Ola is hoping for a more accessible PUC this time if the Hawaii Supreme Court remands the case back to state agency.

Since the 2-1 draw with Honua Ola on May 23, former PUC chair Jay Griffin and commissioner Jennifer Potter have both resigned. Commissioner Leo Asuncion, who voted against Honua’s power purchase agreement with Hawaii Electric Light Co. in the May 23 order, is now PUC chairman, with Naomi Kuwaye and Colin Yost appointed as commissioners.

The Supreme Court previously ruled unanimously in favor of Honua Ola on May 24, 2021, overturning the PUC’s July 9, 2020 order and overturning the waiver of competitive bidding with HELCO, previously approved twice by the PUC in 2008 and 2017 had been.

The case was sent back to the PUC for further consideration, but the state agency again dismissed Honua Ola’s case in 2022.

The project will produce “significant” greenhouse gas emissions, according to the PUC ruling, while Hu Honua’s carbon sequestration plan is speculative and relies on “assumptions and unsubstantiated claims.”

“The Commission is not satisfied that the project will reduce (greenhouse gas) emissions and has concerns about the potentially significant long-term environmental and public health impacts of the project,” the PUC said in its decision.

In addition, the Commission found that the amended PPA is likely to result in high costs for tariff payers, both from the relatively high cost of electricity and from the potential crowding out of other, cheaper, renewable resources.

Honua Ola said in his recent response to the court, “The simple truth is that the PUC has again committed a reversible error in its misguided attempt to deny the amended PPA by any means necessary, regardless of the law or the evidence. ”

“The PUC continues to ignore, interpret or intentionally misinterpret the court’s specific instructions in HELCO I, which the court again reiterated in HELCO II: “in deciding whether to approve the amended PPA, specifically the reduction of to consider greenhouse gas emissions and to make such findings as this court needs to determine whether the PUC has complied with its obligations.”

———

Star Advertiser contributor Tim Hurley contributed to this report.

HEARING BEFORE THE HAWAII SUPERIOR COURT

>> When: Tuesday, 5 p.m

>> Where from: University of Hawaii at Manoa William S. Richardson School of Law, Classrooms 2 and 3

>> Live broadcast: Judiciary’s YouTube channel at YouTube.com/hawaiicourts