The Natural Energy Laboratory of Hawaii has made progress since a 2012 state audit criticized it for poor management and lack of transparency, but it still has transparency problems, according to a follow-up report from the Auditor’s Office issue Tuesday.

Located at Keahole Point in the Kailua-Kona region of the Big Island, the ocean-research and commercial facility serves as a tech park for more dozens of businesses, including some of the state’s most cutting-edge renewable energy and aquaculture projects.

There was some good news in the update. The report states that “the authority’s contribution to Hawaii’s economy surged by 40 percent, from $87.7 million in 2010 to $122.8 million in 2013. NELHA has also adopted a master plan, revised its strategic plan, and updated its distributed energy resources strategy. These plans have guided the authority towards developing the Hawaii Ocean Science Technology Park’s infrastructure for incubation of research projects as part of an integrated test-bed for clean energy technology business and investment. The authority has also updated its Project Initiation Packet for prospective tenants, leasing policy, and seawater rate analysis and methodology, all of which are posted on the NELHA website.”

But the report also found unresolved issues.

“NELHA has yet to work on its administrative rules, which are necessary for the authority to lawfully carry out and enforce its policies and programs,” the report states. “In addition, the two tenant representatives on the board have continued to vote on items affecting lease rents and water rates, which may be in violation of NELHA’s statute and the State Ethics Code.”

The original audit was sparked by tenants’ concerns that NELHA wasn’t being transparent when it came to rates for seawater, which is used to cool buildings, supply aquaculture operations and support ocean technology projects.

The lab also has a desalination plant.

Seawater pipes at the Natural Energy Laboratory of Hawaii.

NELHA