The Department of Business, Economic Development & Tourism has finally awarded a contract to manage the state's $8.7 million hydrogen fund but will still have to answer to a state Senate Special Investigative Committee about why it took so long.

DBEDT has notified Kolohala Holdings LLP it had won the contract to oversee the fund that lawmakers set up in 2006 to finance companies working to develop clean-burning hydrogen fuel from renewable sources in Hawai'i.

A letter sent to the home of one of Kolohala's principals last week notified the firm it had won the contract and would receive up to $385,000 for its services managing the program.

The award came after the State Procurement Office told DBEDT and its director, Ted Liu, to award the contact to Kolohala Holdings. Last year, DBEDT had attempted to give the contract to H2 Energy LLC, which came in third in a ranking of three firms responding to DBEDT's call for proposals. Kolohala finished first.

The investigative committee will meet today to determine what steps it should be taking as it investigates why DBEDT awarded the contract to the lowest-ranked bidder and fought the Procurement Office's efforts to have the contract assigned to Kolohala.

The committee so far has issued subpoenas for testimony from seven DBEDT staffers including its contracts officer and Liu's secretary. It will meet today to decide how it should proceed.

It also has scheduled meetings on March 6 and 7 to hear testimony.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.