THE SENATE S.B. NO. 1656 THIRTY-THIRD LEGISLATURE, 2025 S.D. 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO PUMPED STORAGE HYDROPOWER. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: THE SENATE S.B. NO. 1656 THIRTY-THIRD LEGISLATURE, 2025 S.D. 1 STATE OF HAWAII THE SENATE S.B. NO. 1656 THIRTY-THIRD LEGISLATURE, 2025 S.D. 1 STATE OF HAWAII 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. 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. 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.