FINDINGS OF FACT, CONCLUSIONS OF LAW, AND DECISION AND ORDER - Hawaii

electrical collector lines. Similar to the DC electrical wiring from the solar modules,the medium-voltage electrical collector lines would be installed in undergroundtrenching. Trenches for the electrical collector lines would be approximately 5 feetwide and 4 feet deep. In total, it is anticipated that the Project would includeapproximately 3,000 linear feet of trenching for the medium-voltage electricalcollector lines.25.The Project substation would further increase the voltage ofelectricity to allow for integration into the Hawaiian Electric electrical grid. TheProject substation and associated interconnection facilities would includeequipment such as free-standing steel switch structures, a transformer, breakers,utility poles, associated electrical lines, and centralized controls structure(s) forcommunication equipment. These facilities would be constructed immediatelyadjacent to the existing Hawaiian Electric ʻEwa Nui #42 46-kV sub-transmissionline which traverses the Petition Area. They would occupy up to approximately9,464 square feet and would include concrete foundations, pole structures,containerized structure(s) and security fencing. A short overhead electrical line,which is expected to be approximately 300 feet in length and includeapproximately three 60-foot-tall wood poles, would also be required forinterconnection with the ʻEwa Nui #42 46-kV sub-transmission line. Theinterconnection facilities would be owned and operated by Hawaiian Electric.26.Communication equipment would be installed to interface withHawaiian Electric’s supervisory control and data acquisition (“SCADA”) system9

so that the electricity generated and stored by the Project can be remotelycontrolled and dispatched. The Project would also include an emergencymanagement system that would allow all operations to be supervised and allsystem functions to be protected in response to real-time dispatch signals fromHawaiian Electric, as well as report production data, energy forecasts, and othersystem health data. This equipment would be housed within the various inverterslocated in each solar array area and in the Project substation, as well as withincentralized control structure(s) also within the substation footprint.27.Within the Project area, a series of new service roads would beinstalled to accommodate construction vehicles and to allow ongoing access foroperations and maintenance. These roads would have a compacted gravel bedwith a width of approximately 10 feet (plus compacted 5-foot shoulders), as wellas the required clearance and turning radius needed for emergency responsevehicles in accordance with fire code. The service roads would provide primaryaccess to each of the solar array areas, including the power conversion stations, aswell as the Project substation and interconnection equipment. The ample spacingbetween the rows of modules would allow for localized access within each of thesolar array areas.28.Fencing would be installed around the perimeter of the Project forgeneral security purposes. The fence is expected to be approximately 7-foot-tallchain link (or similar); no barbed wire would be installed. Gates would be installed10

for pedestrian and vehicular access. The total fenced portion of the Project area isexpected to be approximately 52 acres.29.Along with the solar and storage facilities, the Project area would bemade available for compatible agricultural activities at a lease rate at least 50percent below fair market rent. Based on an assessment of agricultural activitiesthat could be conducted in parallel with the solar energy facilities in the Projectarea, the most promising options include honey production and/or cattle grazingand production. These activities are compatible with solar energy production,well-suited to the site-specific conditions, and require minimal water resources.30.The beekeeping operation is expected to involve installation ofapproximately four beekeeping stations. The stations would be located within thefenced perimeter of the solar array areas and would be accessible via the proposedservice roads; in total, it is anticipated that the beekeeping stations could supporta total of 20-60 hives, with honeybee activity throughout the Project andsurrounding areas.31.Cattle grazing facilities have been incorporated into the site plan forthe Project to allow continued use of the area as part of a rotational pasture systemfor a livestock ranching operation managed by Henry Edward “Bud” Gibson andhis firm Rocker G Livestock. To maximize compatibility with the solar facilities,the Project area would be used specifically to graze and wean stocker-size (smaller)steer and heifers. The animals would be rotated through fenced portions of theProject area with rotation management based on rainfall levels and forage growth11

and volume. In addition to supporting ongoing agricultural operations, grazingcattle within the Project area would also provide a sustainable form of vegetationmanagement. The Applicant would work with Rocker G Livestock to installsupport facilities and equipment within the Project area.32.In the event that the proposed agricultural activities are determinedto not be viable or an agriculture partner ceases operations or an interest inpartnering, the Applicant would seek other potential partners for similaragricultural activities and would continue to make the Project area available at alease rate that is at least fifty percent below fair market rent for comparableproperties.33.Project-related construction activities are expected to includetransport and delivery of Project equipment and materials, site preparation,equipment installation, and revegetation and landscaping.34.The Project equipment would be transported to one of Oʻahu’scommercial harbors via a freight shipping company and offloaded to standardtransportation trucks. The trucks would deliver the equipment to the Project areavia existing state and county roadways. No roadway improvements or otherconstruction is expected to be required to accommodate the equipment transport.35.Initial site preparation would involve grubbing and vegetationclearing, along with installation of best management practices (“BMPs”). Clearingand grubbing would be phased, and soil would be temporarily stabilized asappropriate. Service roads and staging areas would also be established; it is12

anticipated that the staging areas would rotate throughout the Project area as theProject is built out, with these areas installed incrementally as needed. Clearing,grubbing, and grading would be conducted using equipment such as bulldozers,excavators, compactors, graders, and front-end loaders. Water trucks would beused to provide moisture for compaction as well as dust control as needed. BMPsto be implemented would be determined in accordance with applicable regulatoryrequirements, including those associated with the National Pollution DischargeElimination System (“NPDES”) program and the City and County of Honolulu’sRules Relating to Water Quality (Administrative Rules § 20-3), which requireapproval of a Stormwater Pollution Prevention Plan (“SWPPP”) and Erosion andSediment Control Plan (“ESCP”) prior to construction.36.Following site preparation activities, the general sequence forconstruction would involve installation of the following: (1) racking system, (2)concrete equipment pads and substation foundation, (3) solar photovoltaicmodules and associated wiring, (4) electrical collector lines, (5) electricalequipment, and (6) battery units. Grading for installation of the Project equipmentis expected to be limited to the areas comprising the equipment pads andsubstation foundation, as well as in localized areas within the solar arrays. Theposts for the racking system would be installed using a hydraulic pile driverand/or augur for pre-drilling, with approximate depths of 6 feet (depending onsoil conditions). In the event it is determined that the desired depth cannot beachieved, foundations would be pre-drilled and supported with concrete. The13

frames and other components of the racking system would be bolted to the posts,with the solar photovoltaic modules affixed to the frames. Trenches would beexcavated for the electrical and communications wiring using wheel- or trackmounted excavators (or similar). Following placement of the electrical lines, theexcavated soil would be backfilled into the trench and tamped back to theappropriate level of compaction per the design specifications. Although notanticipated, if the desired trench depth cannot be achieved (due to basalt rock orother prohibitive subsurface conditions), the electrical wiring or collector lineswould be covered with concrete slurry in accordance with the applicable electricalcode requirements. The equipment pads and substation foundation would involveexcavation up to approximately 3 feet in depth and installation of concrete. Certaininterconnection facilities would be supported by steel pier foundations, whichwould be installed to an approximate depth of 10 – 15 feet. Excavated soil wouldeither be used elsewhere within the Project area or hauled to an approved offsitefacility. Once the equipment pads and substation foundation have been installed,the battery units and various electrical equipment would be installed. All electricalequipment and wiring would be installed and inspected in accordance withapplicable code requirements and best industry practices.37.Following construction, areas that have been temporarily disturbedwould be revegetated for soil stabilization and erosion control purposes. It isanticipated that revegetation would involve application of hydroseeding, with asuitable mix of native and/or non-invasive grass species. Any species used for14

revegetation would also be considered in terms of compatibility with onsiteagricultural activities (e.g., forage for grazing stock and/or pollinator plants forhoneybees).38.In addition to revegetation of temporarily disturbed areas,permanent BMPs would be implemented to address long-term stormwaterrequirements. To the extent practicable, the BMPs would incorporate low impactdevelopment (“LID”) design strategies and source control measures, in accordancewith the requirements of the City and County of Honolulu’s Rules Relating toWater Quality. The specific strategies and measures would be identified as part ofa Stormwater Quality Strategic Plan, which would be submitted for approval priorto construction. Specific BMPs would address retention and biofiltration ofstormwater.39.Landscaping would be installed to provide visual buffering ofProject equipment from surrounding areas to the extent practicable. Species to beplanted would include ʻaʻaliʻi (Dodonaea viscosa), kuluʻi (Nototrichium sandwicense)and ‘ilima (Sida fallax). A temporary irrigation system (consisting of anapproximately 1000-gallon water storage tank, mainline and lateral piping, and inline drip tubing) would be installed, with a water truck used to fill/refill the waterstorage tank.40.Following construction and commissioning, the Project wouldgenerally involve passive operations for both solar power generation andagricultural activities. Normal operation of the Project would not require onsite15

personnel and, therefore, the facility would not be manned on a daily basis.Metering equipment would send solar photovoltaic system performance andproduction data to continuously-monitored servers; electronic notification wouldbe sent to the operations and maintenance team if these data indicate the system isunderperforming. If necessary, a technician would be dispatched to the Project toaddress any issues.41.Vegetation within the Project area would be managed throughoutthe life of the Project. In addition to possible livestock grazing as part of the onsiteagricultural activities, vegetation management could also include mowing, weedwhacking, and localized application of herbicide, if needed. Vegetation would beactively monitored to ensure the cover is sufficient for erosion control as well asfor agricultural purposes.42.Based on the approved power purchase agreement (“PPA”), theProject is expected to have an operational life of approximately 25 years. At thatpoint in time, the facility may be re-powered under a re-negotiated PPA (withsubsequent permits/approvals) or decommissioned. Decommissioning wouldinvolve removal of all equipment associated with the Project and returning theProject area to substantially the same physical condition as existed prior to Projectdevelopment. Decommissioning would occur within 6-12 months of theconclusion of Project operations.NEED FOR THE PROJECT16

43.Hawaiʻi is widely recognized as the most fossil fuel dependent statein the nation and is exceedingly vulnerable to fluctuations in resource availability.The need to reduce Hawaiʻi’s dependence on imported fossil fuels and increasethe amount of locally produced renewable energy is articulated by the HawaiʻiClean Energy Initiative and the State of Hawaiʻi’s Renewable Portfolio Standard,codified in HRS § 269-92 (“RPS”). The RPS specifies that the electric utilitycompanies that sell electricity for consumption in Hawaiʻi are required to userenewable energy for the equivalent of 30 percent of net electricity sales by 2020,40 percent by 2030, seventy percent by 2040, and 100 percent by 2045.44.The Project would generate and store electricity derived from solarresources, thereby providing clean, renewable energy for the island of Oʻahu. Itwould help to meet the state’s need for renewable energy by providing up to 12.5MW of solar energy and 50 MWh of battery storage, which is enough to provideelectricity for approximately 4,600 homes (based on average energy use). In doingso, it would directly contribute to the state’s renewable energy goals, fulfillingapproximately 0.5 percent of Hawaiian Electric’s RPS on average over the contractterm. The solar energy from the Project would replace a portion of electricity thatis currently generated by burning fossil fuels, thus reducing greenhouse gasemissions and other forms of pollution that are detrimental to the environmentand human health. In total, the Project is expected to offset the use ofapproximately 545,794 barrels of fuel and 64 tons of coal, and would decreasegreenhouse gas emissions by approximately 244,394 tons over its lifetime.17

45.Based on the 25-year fixed-price PPA, the energy produced by theProject would be sold at a price that is less than the current cost of fossil fuel powerand would help to hedge against long-term price volatility. Hawaiian Electricestimates the ratepayer savings (assuming a typical residential bill for 500kilowatt-hours) would be approximately 0.22 per month in 2022 and range up to 0.91 per month over the 25-year term of the Project. The Project would also helpto improve electric grid stability by enabling Hawaiian Electric to utilize storedsolar energy to meet peak demand.46.Project implementation would positively contribute to Hawaiʻi’seconomy by providing jobs and other forms of economic activity. It is estimatedthat construction of the Project would support a total of 118 jobs in the state ofHawaiʻi and approximately 11.3 million in labor income, with total economicoutput of approximately 20.2 million. Once operational, the Project wouldcontinue to contribute to the state economy over its 25-year lifespan, supportingapproximately 7.6 jobs in Hawaiʻi and approximately 0.7 million in labor income,with total economic output of approximately 1.2 million. Economic impactsrelated to decommissioning are expected to be broadly similar to those anticipatedduring construction.47.In addition to the SUP, the Project will require a Conditional UsePermit (minor), pursuant to the LUO, as well as construction permits.IMPACTS UPON RESOURCES OF THE AREAAgricultural Resources18

48.According to data published by the Natural Resources ConservationService, the majority of the soils within the Petition Area are identified as Mahanasilty clay loam (McC2, McD2, and McE2). The land capability classification forMcC2 is 3e if irrigated and 4e if non-irrigated (severe to very severe limitations oncultivated use due to erosion). For types McD2 and McE2, the land capabilityclassification is 4e if irrigated and 6e if non-irrigated (very severe limitations oncultivated use to unsuitable for cultivation due to erosion). Small areas of Molokaisilty clay loam (MuC, MuD) and Kawaihapai clay loam (KIB) are also present. Theland capability classification for MuC is 3e if irrigated and 4e if non-irrigated(severe to very severe limitations on cultivated use due to erosion); MuD has aclassification of 4e for both irrigated and non-irrigated conditions (very severelimitations on cultivated use due to erosion). Soil type KIB has a land capabilityclassification of 2e for both irrigated and non-irrigated conditions (moderatelimitations on cultivated use due to erosion). All of these soil types are generallydescribed as well-drained, with a medium to high potential for runoff. Overall, thesoils within the Petition Area have been highly modified over time as a result ofextensive cultivation for the previous sugarcane plantation.49.Based on the Agricultural Lands of Importance to the State ofHawaiʻi Classification System (“ALISH”), a portion of the Petition Area isclassified as prime agricultural land, which is considered to have the soil quality,growing season, and moisture supply needed to produce sustained high yields ofcrops when properly managed. Most of the land within the Petition Area is19

classified as other important lands, which is land other than prime or uniqueagricultural land that is also considered to be of statewide or local importance toagricultural use.50.Based on the Land Study Bureau soil classification system (“LSB”),the Petition Area includes approximately 46 acres of Class B soils, 37 acres of ClassD soils, and 14 acres of Class E soils. The Project would not involve construction ofany facilities on LSB Class A soils.51.The area within and surrounding the Petition Area was previouslycultivated as part of an extensive sugar cane and pineapple plantation thatextended across Oʻahu’s ʻEwa Plain. Since closure of the plantation in the 1990s,the Petition Area has not been cultivated and has been used intermittently for cattlegrazing.52.The permanent footprint of the Project facilities would occupy asmall fraction of the Petition Area, with the remaining area available forcompatible agricultural uses. The Project are

12. According to the Hawaiʻi National Flood Insurance Program, the Petition Area is located entirely within an area that has been designated as Flood Zone D, where analysis of flood hazards has not been conducted and flood hazards are undetermined. No portion of the Petition Area is within a special flood hazard zone. 13.