Wind farm company sues Obama
Published 10:40 am Tuesday, July 30, 2013
A lawsuit rooted in Morrow County has two big name defendants: President Barack Obama and the Committee on Foreign Investment in the United States.
Ralls Corp., the company behind a Butter Creek wind farm abruptly blocked by President Obama last September, claimed this month in court that the presidents decision was unconstitutional.
Following the advice of the CFIUS, Obama prohibited the four wind projects southwest of Hermiston, though construction on one had already begun.?He cited national security risks because of its proximity the U.S. naval bombing range in Boardman.
A U.S. president has not blocked a business transaction on national security grounds for 22 years.
Although the administration has not specified its security concerns regarding the wind project, it was the Chinese citizenship of two owners of the Delaware-based Ralls Corp. Jialiang Wu and Dawei Duan that brought fears of a threat to national security. Wu and Duan are also executives at the Chinese-based Sanys Group, which was to manufacture the turbines.
On July 11, lawyers for Ralls Corp. argued that the company never received due process regarding the government shutdown of the companys Butter Creek wind farm project because it was never told how it was a national security concern, nor given an opportunity to defend itself.
Its a situation where you certainly understand (Ralls Corp.s) frustration, said Josh Zive, a Washington, D.C., lawyer who has worked on CFUIS cases regarding energy. CFIUS operates with a broad statutory mandate and no judicial review. Part of the frustration with them is that its always a guessing game.
The federal government is a goliath for Ralls Corp. to take on in court. Its lawyers have said the judge should dismiss the case. They havent yet, but Zive has doubts about a victory for the company.
Its always a heavy lift to go after the government, particularly concerning national security issues, he said.
In order to avoid the drudgery of backtracking on construction, the company could have volunteered to file a notice with the CFIUS once the key facts of the turbine projects were outlined, but opted against it. A company can skip that step with good faith if it believes there is no legitimate security issues.
Three of Ralls wind farm sites were nearby, and one was within restricted air space of the Naval Weapons Systems Training Facility. The military flies unmanned aerial devices and practices bombing and air combat maneuvers at the base.
Zive, like the rest of the public, does not know the true reason behind the Butter Creek wind farm shutdown, but he has noticed an increased scrutiny of Chinese business in recent years.
Theres definitely been a growing amount of political and CFUIS attention focused on Chinese investment, he said.
Contact Natalie Wheeler at nwheeler@eastoregonian.com or 541-564-4536.