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Commission approves Kalaʻi Loa Homeland Solar amendments, requires AG review and community benefits follow‑up
Summary
The Hawaiian Homes Commission approved a second amendment to general lease GL‑294 for the Kalaʻi Loa Homeland Solar project, including establishment of a condominium property regime and community benefits agreements. The lessee agreed to keep the lease term at 20 years while allowing the chair to grant extensions tied to Hawaiian Electric PPAs.
The Hawaiian Homes Commission on Aug. 18 approved amendments to general lease GL‑294 for the Kalaʻi Loa Homeland Solar project, including authorizing a condominium property regime (CPR) to subdivide the leasehold into spatial units for multiple project phases and approving community benefits agreements negotiated with nearby homestead associations.
Pivot Energy — which owns Kalei Loa Homeland Solar LLC — presented the changes and offered an oral amendment during the meeting: keep the principal lease term at 20 years but allow the commission chair to grant extensions that are commensurate with any power‑purchase agreement (PPA) extensions negotiated with Hawaiian Electric. The commission adopted that amendment, and commissioners approved the broader package as amended, with the second amendment to GL‑294 to be finalized subject to attorney‑general review.
Pivot representatives said the CPR would divide the TMK into three spatial condominium units: Unit 1 for the existing 5‑megawatt phase‑1 solar array, Unit 2 for an anticipated phase‑2 solar and/or storage facility, and Unit 3 reserved for a possible future phase‑3 project. Pivot said phase 1 is mechanically complete and is targeting commercial operations in April 2026 once Hawaiian Electric interconnection work is done. The CPR mechanism lets each phase operate as a discrete project company while keeping the single DHHL leasehold intact.
Pivot and the homestead associations presented fully executed community benefits agreements (CBAs) with monetary and nonmonetary terms, including priority for local labor and services, pro bono legal assistance, an advisory board for co‑creation and biannual reporting on production and revenue. Pivot told the commission it will re‑negotiate CBAs with the homestead associations before any PPA extension.
Several beneficiary leaders and homestead‑association presidents from the Kapolei/Waianae area testified in support of the CBA package and said their associations had seats at the table during negotiations. Other speakers — including one beneficiary who said they still opposed the structure in earlier hearings — said they appreciated Pivot’s outreach but remained concerned about process and details.
The amendment also updates the timing and process for a non‑benefit license/easement on an adjacent TMK that Pivot needs for grid interconnection; Pivot agreed to pay a current fee and finalize the license within three months. The commission approved the package with the caveat that the final second amendment to GL‑294 be submitted to and approved by the attorney general before coming into force.
Why it matters: The action clears the way for Pivot to continue phased renewable projects on DHHL lands that the company said will produce rent revenues for the trust and provide local employment and community benefits if the larger phases are awarded PPAs by Hawaiian Electric. The chair and commissioners emphasized continuing consultation and asked staff to provide lease forms as exhibits before final execution.
What’s next: DHHL staff will forward the revised second amendment to GL‑294 and associated agreements to the attorney general for review; Pivot will continue permitting and interconnection work with Hawaiian Electric and prepare phase‑2 RFP bids.
