A former Hawaii attorney says the commission relied on a flawed legal theory when it approved a controversial wind farm in Kahuku over objections of residents and the Hawaii Consumer Advocate in 2014.

Despite repeated concerns raised by community members and the North Shore and Koolauloa neighborhood boards, the project鈥檚 developer, , and used an erroneous legal argument to push through AES鈥 wind farm, says Ryan Hurley, a Honolulu attorney who served as a PUC lawyer from October 2013 to November 2014. The law required the commission to complete an environmental review first, Hurley says.

鈥淯nfortunately, the PUC agreed, and in direct contradiction to the State Consumer Advocate鈥檚 position and the PUC鈥檚 own precedent, approved the project without a public hearing or waiting for the EIS,鈥 Hurley, who once worked on the matter for the PUC, wrote in a detailed letter to Civil Beat. 鈥淲ith PUC approval being the hardest and only truly discretionary approval, this virtually guaranteed the project would be built.鈥

A plan to build more wind turbines in Kahuku has led to protests by residents who say the community already has more than its fair share, including these which started operations in 2011. (Nathan Eagle/Civil Beat/2019)

Hurley is a self-described wind and solar energy proponent, and he has a resume to prove it. Besides working for the PUC, he’s also worked for the Blue Planet Foundation and the Hawaii State Energy Office. But Hurley said the negative impacts of some projects outweigh the positives.

鈥淚 believe the Na Pua Makani Wind project is one of these projects and should NOT be built,鈥 Hurley wrote. 鈥淭his project truly represents the 鈥榳rong鈥 way to develop a renewable energy project in Hawaii and exposes the many flaws in Hawaii鈥檚 regulatory and permitting systems.鈥

Ryan Hurley, a former PUC attorney, said he wants to raise awareness about flaws in the process approving the Kahuku wind farm. Ryan Hurley

鈥淲hile the developer and HECO like to tout the 鈥榤any neighborhood board and community meetings鈥 held during the permitting process,鈥 he added, 鈥渢hey fail to mention what the community actually said, or that the neighborhood boards actually opposed their project.鈥

He also said the PUC approved a deal that pays the developer more for power than necessary.

鈥淭he price of the Na Pua Makani project was bad for the ratepayer in 2014 and is still bad today,鈥 he said. 聽The project was approved with a price of almost 15 cents per kilowatt-hour at a time when the PUC was approving solar projects at 13-14 cents per kilowatt hour, he said. Recent prices for solar farms with battery storage have dropped below 10 cents per kilowatt hour, he said.

HECO declined to comment.

AES officials did not comment specifically about the allegations, but the company issued a statement saying it was committed to working with the community and willing to address concerns.

“We remain in close touch with people throughout the North Shore community 鈥 including those who have lingering questions about our project,” said the statement by Mark Miller, chief operating officer for AES’s U.S. power generation businesses. “We are here and ready to talk to anyone interested in learning more.鈥

Hurley鈥檚 comments come as Na Pua Makani faces intense protests from residents opposing the project. As of late last week, Honolulu police had made at least 111 arrests related to the protests.

The project also faces separate legal challenges from two environmental organizations: and .

State Sen. Gil Riviere, who is a director of Keep the North Shore Country, echoed Hurley鈥檚 argument that the developer, utility and regulators largely ignored community concerns. He described the community outreach as a sham, part of “a playbook used by all the developers” to meet with concerned citizens without using any of their input.

鈥淭hey engaged the community,鈥 Riviere said. 鈥淏ut every time, the community said, 鈥楴o. Go away. We don鈥檛 want it.鈥欌

Keep the North Shore Country has filed a lawsuit challenging the Hawaii Board of Land and Natural Resources鈥 acceptance of a conservation plan and license to kill certain numbers of endangered Hawaiian hoary bats as an incidental side effect of the project. After the board accepted the plan over a hearing officer’s recommendation to reject the plan, Keep the North Shore Country appealed the board鈥檚 decision to circuit court, which upheld the board’s decision. The organization has appealed the court’s ruling to Hawaii鈥檚 Intermediate Court of Appeals.

Life of the Land鈥檚 challenge focuses on the PUC鈥檚 approval of the contract between the wind farm and HECO, which the PUC approved. It centers on the license to incidentally kill some of the endangered bats, an alleged project 鈥渟ite control鈥 requirement, the price HECO will pay for power from the wind farm, and a failure by the PUC to analyze the project鈥檚 effects on greenhouse gas emissions.

Hawaiian Electric has sought to rebut the claims, noting, among other things that Life of the Land had previously argued in favor of wind projects as a way to address greenhouse gas emissions when opposing a Big Island proposal to build a generator fueled with cut-down trees.

Earthjustice attorney David Henkin is among those who raised concerns about the legality of the PUC approving the Kahuku wind farm before the EIS was complete. Dan Lin/Civil Beat

Hurley鈥檚 argument takes a different tack. Although Hurley raises concerns about price and environmental problems, he focuses more narrowly on the PUC鈥檚 decision to approve the project before an environmental impact statement was accepted. At the time, two leading environmental lawyers, David Henkin of Earthjustice and Denise Antolini of the University of Hawaii, William S. Richardson School of Law, both said the PUC鈥檚 action likely violated Hawaii鈥檚 environmental review law.

The Hawaii Consumer Advocate at the time, Jeffrey Ono, was also pushing for the PUC to wait for the environmental review to be completed before approving the wind farm. Ono鈥檚 rationale was the EIS could inform a decision on whether the project was in the public interest: specifically whether its benefits outweighed its negative impacts on the community.

鈥淭he EIS process should provide a detailed record of all pertinent health, safety, and aesthetic impacts and allow the community the opportunity to share its concerns,鈥 Ono wrote. 鈥淭he Commission could then take these findings and weigh them against the positive energy cost benefits this project could have in serving all Hawaiian Electric ratepayers.鈥

Jay Griffin, the current chairman of the PUC, declined to comment. But he noted the issues raised by Hurley now were thoroughly discussed in the commission鈥檚 decision and order approving the project in December 2014.

In the order, the commission noted that the Board of Land and Natural Resources was the agency in charge of the EIS process and that it would decide whether to accept the statement. The commission didn鈥檛 have to wait, it said.

鈥淭he commission concludes that it is not necessary to await the outcome of the EIS before approving the PPA at issue here,鈥 the commission said. 鈥淭he EIS proceedings are designed to address different matters, in particular, to address the objectives of the State’s environmental policy as set forth in HRS 搂搂 344-3 and 344-4.鈥

Kahuku wind turbine sections arrive at the Kahuku Agriculture road entrance off of Kamehameha Highway.
Kahuku wind turbine sections arrived at the Kahuku Agricultural Park entrance off of Kamehameha Highway last week as demonstrators protested. Cory Lum/Civil Beat

In an interview, Hurley said the point of raising the concerns again now is to show opposition to the wind farm isn鈥檛 new, and that there were legitimate legal questions surrounding the process that鈥檚 often cited to justify the project.

It鈥檚 not just about the Na Pua Makani project, which he called 鈥渁 horrible idea鈥 that 鈥渟houldn鈥檛 be built.鈥

More broadly, he said, it鈥檚 about a process that at times fails to allow meaningful participation by the public.

鈥淲e鈥檙e going to sour the communities on these because they feel they don鈥檛 have a voice,鈥 he said.

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