Opinion ID: 6494573
Heading Depth: 2
Heading Rank: 3

Heading: BLNR Administrative Proceedings

Text: BLNR’s review and ultimate approval of UHIfA’s application involved a series of events which are relevant to this appeal. As set forth below, these included BLNR’s grant of a permit, Kilakila’s appeal of that permit, a contested case hearing, ex parte communications involving the hearing officer, BLNR’s dismissal of that hearing officer and appointment of a new healing officer, Kilaki-la’s motions for disclosure of any additional ex parte communications, the new healing officer’s recommendation to BLNR, and BLNR’s grant of a second permit.
On November 22, 2010, BLNR held its first public hearing on the ATST’s MP and CDUA. On December 1, 2010, BLNR approved the MP and granted CDUP MA-3542 during its regular board meeting. CDUP MA-3542 permitted the construction of the ATST, subject to several conditions. Kilakila made three requests for a contested case hearing 11 prior to and immediately after BLNR’s approval, and BLNR took no action on the requests. Kilakila subsequently appealed to the circuit court, arguing that BLNR erred in denying Kilakila’s request for a contested case hearing and in granting CDUP MA-3542. 12 See Kilakila I, 131 Hawai'i at 207, 317 P.3d at 41.
While the appeal of CDUP MA-3542 was pending, BLNR granted Kilakila’s request for a contested case hearing, and on February 11, 2011, Steven Jacobson was appointed as the hearing officer. On June 2, 2011, Kilakila filed a motion to disqualify deputy attorneys general Linda Chow and Julie China from advising Jacobson or BLNR at the contested case hearing. Kilakila asserted that Chow and China could not serve as counsel for BLNR because “[t]hey have filed documents in circuit coui't arguing that the BLNR could legally grant a conservation district use permit for the [ATST].” On June 28, 2011, Jacobson denied Kilakila’s motion because he would not be relying on advice from Chow or China in making his recommendation to BLNR. Jacobson dismissed the motion without prejudice so that Kilakila could renew its motion after Jacobson issued his recommendation to BLNR. The contested case hearing was held over four days, from July 18-20 and on August 26, 2011. On February 23, 2012, Jacobson issued his proposed findings of fact, conclusions of law, and decision and order, recommending approval of the permit. On March 2, 2012, Kilakila renewed its motion, this time to BLNR, to disqualify Chow and China. Kilakila argued that Chow and China have “appeared as adversaries to [Kilakila] at hearings regarding the conservation district use application,” On March 12, 2012, Jacobson issued his final findings of fact, conclusions of law, and decision and order, which recommended that BLNR approve the permit to construct the ATST. On March 16, 2012, BLNR denied Kilakila’s March 2, 2012 motion, noting that while Chow and China appeared as counsel for BLNR in a prior circuit court proceeding, “the appearance by the deputy attorneys general as counsel for the Board in that circuit court proceeding does not disqualify the deputy attorneys general from advising the Board in this administrative proceeding.”
On March 19, 2012, BLNR filed Minute Order No. 14 “RE: EX PARTE COMMUNICATION[.]” The order explained to the parties that BLNR had been notified that Jacobson sent an email to UHIfA’s counsel on March 15, 2012. In the email, which was attached to the order, Jacobson stated that he had received “inappropriate ex parte pressure and activity by US Senator [Daniel] Inouye’s and the Governor’s offices” which “essentially required” him to submit an incomplete report and recommendation to BLNR. Jacobson had contacted “appropriate ethical offices” and was informed that disclosures were not required where: (1) neither UHIfA nor its counsel had anything to do with what the Senator’s and Governor’s offices were doing, (2) the Board and courts disregard the interim [proposed] report and recommendations and consider only the final report and recommendations (to the extent they consider them at all), and (3) Kilakila is not prejudiced by being shortchanged in time to respond to the final report and recommendations. The email from Jacobson concluded with a question to UHIfA’s counsel as to “whether any of you had anything to do with what the Senator’s and Governor’s offices were doing.” BLNR’s order noted that the email between Jacobson and UHIfA’s counsel “was an unpermitted ex parte communication[,]” which “call[ed] into question the Hearing Officer’s impartiality” in relation to his report and recommendation to BLNR. BLNR stated that it was considering the following actions in response to the ex parte communication: 1. Striking the Report and Final and Amended Report from the record; 2. Discharging the Hearing Officer, Steven Jacobson, as the hearing officer in this case; and 3. Retaining a new hearing officer to review the record of the proceedings in this case and to issue a new hearing officer’s report and proposed findings of fact, conclusions of law, and decision and order. The new hearing officer would be authorized to conduct additional fact finding as necessary. BLNR scheduled a hearing and invited the parties to file comments or objections to the proposed actions. On March 20, 2012, Jacobson filed a response to BLNR’s order, describing what he characterized as the pressure placed on him by the Governor’s office to release his recommendation and to consult deputy attorney general Chow: In this file, while preparing my report and recommended decision, considerable ex parte pressure was placed upon me to simply spit out a recommended decision quickly, so that the Board would have something before it, to approve. That pressure included requiring me to make daily reports to both the Health Department and the Board’s Chair as to how soon I contemplated finishing, what else I thought I needed to do, why I thought I had to do it, etc. The pressure included a “suggestion” that Deputy General Chow be given a role in completing the decision. I was advised that the pressure was generated by a staffer in US Senator In-ouye’s office, and applied through the Governor’s office. I was not asked to recommend a particular result, although the result Senator Inouye’s office wanted from the Board was clear. I did not see any evidence that anyone else (i.e., anyone in State Government), wanted any particular result, and the Board’s Chair, in particular, made clear that all he wanted to know was when this matter could be put on the Board’s calendar. My initial [proposed] report and recommended decision herein were filed as a result of “or else” pressure. The only way the pressure affected my initial [proposed] report and recommended decision was that they were incomplete. I made no substantive changes in light of comments by Ms. Chow. I then completed my final report and recommendations. In completing them, the only effect of the previous pressure upon me (which had been withdrawn) was that I very carefully went through everything UHIfA submitted, again, to be sure that I hadn’t missed something that those favoring the ATST Project might be hoping that I would miss. Again, nothing substantive was changed due to anything said by Ms. Chow. The final report and recommendations are entirely mine. UH responded to Minute Order No. 14 by “urg[ing]” BLNR to review the record and issue a decision without appointing a new hearing officer. In the alternative, UH requested that: “(1) the additional fact finding should be limited to a site visit; and (2) the new Hearing Officer should be required to respond to the Board within a reasonable time frame.” Kilakila also responded, requesting the appointment of a new hearing officer as well as disclosures of “any communications tending to show that external pressure was applied to affect the outcome of [the] proceeding.”
On March 29, 2012, following a hearing on the issue of the ex parte communications, BLNR filed Minute Order No. 15, which discharged Jacobson and authorized the appointment of a new hearing officer “to avoid even the appearance of impropriety.” BLNR concluded that the email from Jacobson to UHIfA’s counsel was “an unpermitted ex parte communication in violation of Hawai'i Administrative Rules (HAR) § 13-1-37.” 13 BLNR also struck Jacobson’s recommendation from the record and authorized the new healing officer to make a ruling regarding Kilakila’s standing, issue a new recommendation within sixty days of appointment, schedule a site visit with the parties, hold additional evidentiary hearings as necessary, and consider a supplemental environmental assessment dated February 10, 2012.
On March 30, 2012, Kilakila filed a motion for disclosure of BLNR’s communications regarding the ATST. Kilakila’s motion sought: [T]o have each member of the BLNR disclose any and all communication (written, electronic and oral) that mentioned or related to the University’s proposed Advanced Technology Solar Telescope except for (a) communications between board members; (b) communications between any board member and the Board’s counsel; (c) any board meeting when the ATST was a subject matter of the agenda. The request included “any and all communication with Senator Inouye or his staff, the Governor or his staff, politicians, union leaders and members and construction industry representatives that mentioned or related to the [ATST].” In support of the motion, Kilakila cited hearing officer Jacobson’s statements regarding the ex parte communications, as well as testimony from a former superintendent of Haleakalá National Park who also noted pressures from Senator Inouye’s office regarding the ATST: While serving as superintendent, I was well aware of Senator Inouye’s displeasure with my statements/eomments against the construction of the ATST. His staff assistant, James Chang placed heavy pressure on me to mute objections that the National Park Service had regarding the impacts of the ATST. For example, in a meeting with Mr. Chang, he strongly encouraged me to go along with the construction of the ATST project. When I stated it was my job to guard against such extreme impacts to this majestic national park, he indicated that he would go to the Secretary of the Interior to override my objections. UH opposed Kilakila’s motion, arguing that the request was a “fishing expedition” with no factual or legal basis. In reply, Kilak-ila asserted that it was aware of at least one ex parte communication between a member of BLNR and the Governor’s office. Kilakila attached emails obtained pursuant to a records request from the Governor’s office, which provided evidence of a meeting on March 21, 2012 between the Governor’s office, the Attorney General’s office, Senator Inouye’s office, and BLNR Chairperson William Aila to discuss the ATST. These include a March 21, 2012 email between Bruce Cop-pa, the Governor’s chief of staff, and another staff member. The staff member informs Coppa, “Jennifer [Sabas, Senator Inouye’s chief of staff,] requested a meeting today at 3 p.m. to discuss the telescope, hearings officer and funding issue. AG will be coming in and Chair Aila is pending.”
On June 24, 2012, BLNR issued Minute Order No. 23 granting Kilakila’s motion only “with regard to the meeting held on March 21, 2012[.]” BLNR informed Kilakila and UHIfA that a meeting occurred on March 21, 2012, in which Aila participated. BLNR noted that “[djuring the meeting the sole topic of discussion was when the recommended decision in this contested case would be issued by the hearing officer, Steven Jacobson.” BLNR concluded that no further action was warranted: In as much as no party was present during the meeting, there was no ex parte communication with the hearing officer or any member of the Board. Even if a party were present, the discussion ... comes within the purview of Hawaii Administrative Rule (HAR) § 13-1-37 as a permitted communication related to requests for information with respect to the procedural status of a proceeding. No further action is required regarding this communication. BLNR noted that Kilakila failed to “provide a time frame or context for the requested disclosures” and thus its “motion may encompass communications that occurred long before this matter was the subject of a contested case.” BLNR further noted that Kilakila failed to show any communications beyond what was allowed under HAR § 13-1-37 and that its motion was “based, at most, upon mere speculation.” Finally, BLNR concluded that it had not “acted in any manner other than as an impartial adjudicator” and that any prejudice to Kilakila had been rectified by the discharge and replacement of hearing officer Jacobson.
On June 8, 2012, Kilakila filed a motion to reconsider Minute Order No. 23. Kilakila alleged that the “sole topic” of the March 21, 2012 meeting could not have been the timing of the release of Jacobson’s recommendation because Jacobson had already issued his initial and final decisions at this point. Kilakila also requested communications between any member of BLNR and “anyone else” that related to the ATST: [F]or the sake of appellate court review, this Board should respond definitively as to whether or not there were any communications (oral, written or electronic) between any member of the Board and anyone else that mentioned or related to the University’s proposed Advanced Technology Solar Telescope with anyone (except for (a) communications between board members; (b) communications between any board member and the Board’s counsel; (e) any board member when the ATST was a subject matter on the agenda) from the time that Kilakila ’O Haleakalá requested a contested case hearing. On July 13, 2012, BLNR granted Kilakila’s motion in part, amending Minute Order No. 23: “During the meeting, the sole topic of discussion was when the final decision in the contested case would be issued, in light of Minute Order No. 14 [regarding Jacobson’s ex parte communication], filed on March 19, 2012.”
On July 16, 2012, the new hearing officer, Lane Ishida, filed a report, proposed findings of fact and conclusions of law, decision, and order, which recommended that BLNR grant the CDUP, subject to several conditions. To support his recommendation, Ishida made several findings, including that the ATST was consistent with the purposes of the conservation district and general subzone, would not cause substantial adverse impact to existing natural resources, and would not be materially detrimental to public health, safety, and welfare.
On September 27, 2012, Kilakila filed a second motion to reconsider Minute Order No. 23. Kilakila attached additional documents obtained from UH pursuant to a records request. Most relevant to this appeal are six email communications, which are summarized as follows: • January 30, 2012: Mike Maberry (UH-IfA), emailed Jennifer Sabas, Senator Inouye’s chief of staff, regarding the ATST. Maberry stated that he knew that Sabas had already spoken with Aila, “but as previously mentioned, Steve Jacobsen [sic] doesn't work for Aila he works for Fuddy. Would it be possible for you or someone to talk with Fuddy to see if it could be clarified that Steve’s work priority is to complete the Finding of Facts, Conclusions of Law and Recommendation in the ATST Contested Case?” • January 30, 2012: In response to Ma-berry’s email, Sabas emailed Bruce Coppa, the Governor’s chief of staff, stating: “can you reach out to loretta fuddy who apparently the hearing officer is on contract with rather than dlnr—uh and my feds are getting really really nervous about losing the money for the atst.” • January 30, 2012: Coppa responded to Sabas, stating: “I will speak with Loretta. I also spoke with Bill and asked to please help[.]” • January 31, 2012: Sabas responded to Coppa noting, “Thanks. This will be bad if we lose it.” • January 31, 2012: Maberry emailed Sa-bas regarding a potential meeting between the Governor’s office, Senator Inouye’s office, and BLNR regarding the ATST. Maberry noted that UH could not meet with BLNR until after BLNR acted on the hearing officer’s recommendation “or it could jeopardize the Contested Case.” • January 31, 2012: Sabas responded to Maberry regarding his inability to attend the proposed ATST meeting and noted that she could “carry the message and [could] also carry the uh message.” Kilakila contended that these documents demonstrated that “the applicant has acted in bad faith; immense political pressure has been applied in this case that is even greater than prior documents had revealed; and Williams Aila Jr. has received more ex parte communication than has been previously revealed.” Kilakila then sought the following disclosure: At a minimum, the BLNR must disclose information about Bruce Coppa’s ex parte communication with William Aila, Jr. and Jennifer Sabas’ ex parte communication with William Aila, Jr. ... If, in any of the ex parte communications, anyone communicated to any member of the Board the reasons that a decision needed to be expedited, this should be disclosed to Kilakila ‘O Haleakalá. On November 9, 2012, BLNR issued an order denying Kilakila’s second motion to reconsider Minute Order No. 23. BLNR noted that Kilakila “fails to show that any un-permitted ex parte communications occurred between the former hearing officer or any Board members and one of the parties in this case that would be a basis to reconsider this Board’s prior Order No. 23.” 10. BLNR’s approval of the second ATST permit: CDUP MA-11-04 On November 9, 2012, BLNR issued its findings of fact, conclusions of law, decision and order approving a second permit for the ATST, CDUP MA-11-04. BLNR made findings of facts concerning the parties to the contested case hearing, the procedural background of the permit application, the ATST project description, the Section 106 consultation 14 , the FEIS, and the anticipated benefits of the ATST. BLNR then made conclusions of law under HAR § 13—5—30(e)(1)—(8) (1994), which provides the criteria for “evaluating the merits of a proposed land use” and granting a CDUP: (c) In evaluating the merits of a proposed land use, the department or board shall apply the following criteria: (1) The proposed land use is consistent with the purpose of the conservation district; (2) The proposed land use is consistent with the objectives of the subzone of the land on which the use will occur; (3) The proposed land use complies with provisions and guidelines contained in chapter 206A, HRS, entitled “Coastal Zone Management”, where applicable; (4) The proposed land use will not cause substantial adverse impact to existing natural resources within the surrounding area, community, or region; (6)The proposed land use, including buildings, structures, and facilities, shall be compatible with the locality and surrounding areas, appropriate to the physical conditions and capabilities of the specific parcel or parcels; (6) The existing physical and environmental aspects of the land, such as natural beauty and open space characteristics, will be preserved or improved upon, whichever is applicable; (7) Subdivision of land will not be utilized to increase the intensity of land uses in the conservation district; and (8)The proposed land use will not be materially detrimental to the public health, safety, and welfare. The applicant shall have the burden of demonstrating that a proposed land use is consistent with the above criteria. “Based upon the evidence and testimony presented in this case,” BLNR concluded that the ATST satisfied each of the eight criteria, UH “met its overall burden of proof[,]” and a CDUP for ATST was approved, subject to twenty conditions.