SB 1656: RELATING TO PUMPED STORAGE HYDROPOWER.

A BILL FOR AN ACT

RELATING TO PUMPED STORAGE HYDROPOWER.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the Kohala mountains on Hawaii island represent an ideal location for a water pump storage hydroelectric facility due to the unique geography of the region.  The elevation of the mountains facilitates the downhill flow of water through a series of reservoirs to generate electricity.  Wind turbines are a complementary source of renewable energy that would increase the generation of electricity.  In the evenings when the demand for electricity is lower, the energy generated by the wind turbines would be used to pump the water stored in reservoirs at lower elevations to reservoirs at higher elevations, preparing it for the next day's energy needs.

     The legislature further finds that the State needs a comprehensive water plan for both potable and irrigation water, a comprehensive agricultural plan that includes local production and processing, and a comprehensive renewable energy plan that complements agriculture.  The water pump storage hydroelectric facility is a critical component of these comprehensive plans as it provides a source of potable water, water for irrigation, and reduces energy costs.  The legislature also finds that the premium tract of land located in the Kohala mountains for the construction of this facility is owned by the department of Hawaiian home lands.  Construction of the water pump storage hydroelectric facility would increase the availability of potable water, attracting more native Hawaiians to the area.

     Therefore, the purpose of this Act is to authorize the issuance of general obligation bonds to the department of Hawaiian home lands to finance the planning, designing, and construction of a water pump storage hydroelectric facility in the Kohala mountains on Hawaii island.

     SECTION 2.  Prior to the issuance of general obligation bonds, the department of Hawaiian home lands shall conduct a feasibility study evaluating projected costs, revenue potential, and environmental impacts.  The department of Hawaiian home lands may contract with a third party to conduct the technical study.  The department of Hawaiian home lands shall submit a report of its findings, including any proposed legislation, to the legislature no later than 20 days prior to the convening of the regular session of 2028.

     SECTION 3.  The department of Hawaiian home lands shall conduct an environmental impact statement in accordance with chapter 343, Hawaii Revised Statutes, including consultation with the commission on water resource management to ensure suitable water usage.  The department of Hawaiian home lands shall submit an annual progress report to the legislature detailing expenditures, milestones, and anticipated project timelines. 

     SECTION 4.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2025-2026 for the purpose of financing the planning, designing, and construction of a water pump storage hydroelectric facility in the Kohala mountains on Hawaii island.

     SECTION 5.  The sum appropriated in section 4 of this Act shall be expended by the department of Hawaiian home lands for the purposes of this Act.

     SECTION 6.  The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2028, shall lapse as of that date.

     SECTION 7.  This Act shall take effect on July 1, 2050.

Report Title:

DHHL; Kohala; Water Pump Storage Hydroelectric; Renewable Energy; GO Bonds; Feasibility Study; Environmental Impact Statement; Reports; Appropriation

Description:

Authorizes the issuance of general obligation bonds to the Department of Hawaiian Home Lands to finance the planning, designing, and construction of a water pump storage hydroelectric facility in the Kohala Mountains on Hawaii Island.  Requires the Department of Hawaiian Home Lands to conduct a feasibility study and report the results to the Legislature.  Requires the Department of Hawaiian Home Lands to conduct an Environmental Impact Statement and submit an annual progress report to the Legislature.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to pumped storage hydropower.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the Kohala mountains on Hawaii island represent an ideal location for a water pump storage hydroelectric facility due to the unique geography of the region.  The elevation of the mountains facilitates the downhill flow of water through a series of reservoirs to generate electricity.  Wind turbines are a complementary source of renewable energy that would increase the generation of electricity.  In the evenings when the demand for electricity is lower, the energy generated by the wind turbines would be used to pump the water stored in reservoirs at lower elevations to reservoirs at higher elevations, preparing it for the next day's energy needs.

     The legislature further finds that the State needs a comprehensive water plan for both potable and irrigation water, a comprehensive agricultural plan that includes local production and processing, and a comprehensive renewable energy plan that complements agriculture.  The water pump storage hydroelectric facility is a critical component of these comprehensive plans as it provides a source of potable water, water for irrigation, and reduces energy costs.  The legislature also finds that the premium tract of land located in the Kohala mountains for the construction of this facility is owned by the department of Hawaiian home lands.  Construction of the water pump storage hydroelectric facility would increase the availability of potable water, attracting more native Hawaiians to the area.

     Therefore, the purpose of this Act is to authorize the issuance of general obligation bonds to the department of Hawaiian home lands to finance the planning, designing, and construction of a water pump storage hydroelectric facility in the Kohala mountains on Hawaii island.

     SECTION 2.  The director of finance is authorized to issue general obligation bonds in the sum of $           or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2025-2026 for the purpose of financing the planning, designing, and construction of a water pump storage hydroelectric facility in the Kohala mountains on Hawaii island.

     SECTION 3.  The sum appropriated in section 2 of this Act shall be expended by the department of Hawaiian home lands for the purposes of this Act.

     SECTION 4.  The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2028, shall lapse as of that date.

     SECTION 5.  This Act shall take effect on July 1, 2025.

Report Title:

DHHL; Kohala; Water Pump Storage Hydroelectric; Renewable Energy; GO Bonds; Appropriation

Description:

Authorizes the issuance of general obligation bonds to the Department of Hawaiian Home Lands to finance the planning, designing, and construction of a water pump storage hydroelectric facility in the Kohala Mountains on Hawaii Island.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 430

Honolulu, Hawaii

RE:    S.B. No. 1656

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Hawaiian Affairs, to which was referred S.B. No. 1656 entitled:

"A BILL FOR AN ACT RELATING TO PUMPED STORAGE HYDROPOWER,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the issuance of general obligation bonds to the Department of Hawaiian Home Lands to finance the planning, designing, and construction of a water pump storage hydroelectric facility in the Kohala Mountains on Hawaii Island.

     Your Committee received testimony in support of this measure from the Department of Hawaiian Home Lands and three individuals.

     Your Committee finds that equitable access to water and electricity for residents throughout the State is critical.  Your Committee acknowledges that the service bills for water usage vary in amount based on the island and region where a household resides, with some communities paying significantly more for water than others based on the area's infrastructure relating to water supply and whether water management also incorporates the generation and storage of renewable energy to offset costs.  Lessees residing on Hawaiian home lands in West Hawaii Island pay some of the highest water rates, which are often subsidized by the Department of Hawaiian Home Lands.

     Your Committee finds that the use of pumped-storage hydroelectricity in the Kohala mountains is a way for the Department of Hawaiian Home Lands to both provide more potable and irrigation water to the West Hawaii Island homestead communities and reduce energy costs for the people who live there.  However, your Committee notes that efforts to increase equitable access to water and electricity must be balanced with protection of the environment.

     Accordingly, your Committee finds that it is appropriate and necessary to require the Department of Hawaiian Home Lands to conduct further studies on the feasibility and environmental impact of the proposed water pump storage hydroelectric facility within the unique ecosystem of the Kohala mountains.  This process will ensure that the Department of Hawaiian Home Lands is able to provide Native Hawaiians with safe, affordable living conditions and utilities while also practicing respectful stewardship of the land.

     Your Committee has amended this measure by:

     (1)  Clarifying that prior to the issuance of general obligation bonds, the Department of Hawaiian Home Lands shall:

          (A)  Conduct a feasibility study evaluating projected costs, revenue potential, and environmental impacts;

          (B)  Be able to contract with a third party to conduct the technical study; and

          (C)  Report to the Legislature prior to the Regular Session of 2028;

     (2)  Clarifying that the Department of Hawaiian Home Lands shall:

          (A)  Conduct an Environmental Impact Statement in accordance with chapter 343, Hawaii Revised Statutes, including consultation with the Commission on Water Research Management to ensure suitable water usage; and

          (B)  Submit an annual progress report to the Legislature detailing expenditures, milestones, and anticipated project timelines; and

     (3)  Inserting an effective date of July 1, 2050, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1656, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1656, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Hawaiian Affairs,