There’s a major political power play that’s been going on for months as backers of Hu Honua Bioenergy, LLC, now known for some purposes as Honua Ola Bioenergy, try to save the floundering $500 million proposed wood-burning power plant from finally going under for good.

In the latest public move, Hu Honua filed an emergency motion yesterday (September 16, 2020) asking the Hawaii Supreme Court to overturn rulings by the Public Utilities Commission requiring the company’s proposal to go through the competitive bidding process that now applies to other renewable energy projects.

The appeal to the high court appears to be a desperate “Hail Mary” pass aiming to allow Hu Honua to proceed despite a series of adverse legal and regulatory rulings, and a host of additional legal, environmental, regulatory and financial issues that remain outstanding.

Meanwhile, two key senators have been flexing their political muscles behind the scenes for months in an attempt to pressure the PUC and the Ige administration into giving Hu Honua a political pass in order to proceed.

Glenn Wakai, chairman of the Senate Committee on Energy, Economic Development, and Tourism, and Donovan Dela Cruz, chairman of the powerful Ways and Means Committee, have both been putting the squeeze on departments and key employees on behalf of Hu Honua.

Privately, some of those who have been buttonholed by Dela Cruz, or have spoken to those who have been leaned on, describe the senate’s budget chair as aggressive and demanding. He has earned a reputation for threatening to cut budget line items for programs and agencies, or even the specific positions of key agency staff, if his “requests” and “recommendations” are not complied with. Dela Cruz is also rumored to be raising campaign funds for a gubernatorial bid in 2022.

Wakai has been accused of similar political bullying. It was bad enough that the Hawaii Tourism Authority hired an outside law firm to conduct an investigation of one instance several years ago, which found evidence Wakai had bullied and harassed agency employees.

The issue burst into public view again during this year’s legislative session. According to Civil Beat:

The tension between Wakai and DBEDT fueled a puzzling public airing of grievances during a session of the Senate Ways and Means and Economic Development, Tourism, and Technology committees last month when McCartney refused to discuss the state’s economic recovery plan with the committees. Wakai chairs the economic development committee.

At that time, McCartney declined to provide details, but told senators: ““It’s my duty as a director to protect my employees.”

Privately, I have been told McCartney was trying to shield employees in his department from direct pressure from the senators, who have tried to control the policy and even hiring decisions of agencies, including DBEDT, using their power over the state budget to bully agencies and their employees into doing the senator’s bidding. Employees fear speaking publicly about the outside political interference because of the threats to their jobs.

A July 20, 2020 email from Senator Wakai to PUC chair James Griffin, posted among public documents available on the Public Utilities Commission website, appears relevant to the allegations.

“Dear Jay,” Wakai wrote. “We talked earlier this year about the important role the PUC can play in expediting energy projects, so we can get our neighbors working again. It came as a shock to me that the PUC did just the opposite on July 9.”

Wakai was referring to the commission’s July 9, 2020 rejection of Hu Honua’s request to allow the project to bypass competitive bidding, and appears to acknowledge an earlier approach in which he sought to turn the PUC from a regulator of public utilities into a cheer leader charged with “expediting” energy projects, with specific concern for Hu Honua.

Wakai then attached a two-page letter, written on Senate stationary and signed by Wakai as chair of the energy committee, praising Hu Honua and attacking the PUC for an action that “pulls back the red carpet Hawaii rolled out to lure off shore investments.”

“I ask that the PUC reconsider its order on July 9,” and “allow Hu Honua to fire up operations before the end of the year,” Wakai wrote.

Wakai appears oblivious to the extended legal proceedings that culminated in the PUC decision, all within a highly regulated arena.

Wakai ends his letter with a statement: “I am not asking you provide any special treatment to Hu Honua, just fair treatment.” But his message to the PUC chair appears to have been, “just forget the law, ignore the process, and get this done.” That’s a request for special treatment, despite the pro-forma denial.

Another letter from Wakai and Michelle Kidani, Senate vice-president, and signed by eleven other senators, bemoaned the PUC’s action while praising the economic impact of the Hu Honua project. It suggests the bioenergy project could quickly fire up if the PUC would just step out of the way. The letter was reprinted by Henry Curtis’ Ililani Media website on August 25.

Similarly, a September 8, 2020 letter from Senators Wakai and Dela Cruz to Scott Glenn, director of the State Office of Energy, also on Senate letterhead, singled out Hu Honua, now referred for some purposes as Honua Ola Bioenergy, for special direct support. The senators demanded Glenn account for “efforts you have undertaken to date on this matter and what you will do immediately to advocate for this project.” The letter ended by implying that a failure to actively oppose the PUC ruling could prompt the senators to propose a rewrite of the statute establishing the energy office itself, which any agency head might interpret as a threat.

Of course, the two are speaking for themselves and not for the Senate.

That’s a point made by outgoing Sen. Russel Ruderman in an August 5 comment submitted to the PUC. Ruderman began by responding to Wakai’s July 20 letter to the PUC’s Griffin.

As a State Senator, I was stunned to hear Senator Wakai, Chair of our Energy Committee, provide such misinformation to you…Honua Ola’s power will cost 2 to 3 times that of other new power plants here on the Big Island, thus increasing our rates….Nothing in tree burning is ‘green,’ including toxic waste disposal near the ocean. And this operation could never be carbon negative as claimed, nor will it be carbon neutral….

I am mystified as to why an Oahu senator would involve himself in the disinformation campaign of this tree-burning facility on the Big Island. Unfortunately, Senator Wakai has on several occasions shown that he does not have at heart the interests of Big Island residents. I have watched him repeatedly propose toxic developments for our island with first talking to us or considering our desires. His words on our behalf once again ring hollow.

And while Hu Honua/Honua Ola’s politically influential backers seem to believe the project would be able to be up and running soon if the PUC’s ruling were somehow nullified, that assessment simply ignores the many legal, financial, and environmental challenges any attempt to revive the project would be facing.

Coming soon: Hu Honua corporate structure, affiliates, and investors remain largely unknown

See: Life of the Land’s Response to Order No. 37233