Hawaiian Homes Commission approves right of entry and conditional lease for Panaewa renewable energy project

The Hawaiian Homes Commission on Feb. 26 authorized a right of entry permit of up to three years and gave conditional approval for a 25‑year general lease with options to extend to Hawaii Land and Power LLC to pursue a community‑based renewable energy project on approximately 12.75 acres in Panaewa on Hawaii Island.

Commission Chair Carly Watson opened the special meeting and staff from the Department of Hawaiian Home Lands’ (DHHL) Land Management Division presented the item seeking authorization to issue a right of entry for due‑diligence activities and conditional approval of a general lease that would allow development, construction, operation, management and maintenance of a renewable energy facility. The submittal described a project that could generate a maximum of 30 megawatts, and stated a potential upper bound of 60 megawatts depending on final design and approvals.

The commission’s recommended actions, as presented by DHHL staff, were: (1) issue a right of entry permit to Hawaii Land and Power LLC for about 12.75 acres for due‑diligence related to development of a community‑based renewable energy project; (2) grant conditional approval of a general lease to HLP LLC for development and operation of the project; (3) make issuance of the right of entry and the general lease subject to the draft terms and conditions in Exhibit F; (4) delegate authority to the DHHL chairperson to negotiate final terms and ancillary documents; and (5) prescribe such other terms deemed prudent and necessary. Commissioners moved, seconded and approved the item by voice vote; the chair announced the motion carried.

Commissioners and public commenters focused discussion on environmental review, public‑safety safeguards, community benefits and local workforce opportunities. DHHL staff and the project team told the commission they intend to perform an environmental impact statement (EIS) rather than an environmental assessment (EA) and that the developer would fund the process. A representative noted that a greenhouse‑gas analysis has been discussed in proceedings before the Public Utilities Commission (PUC) and that, if required, such studies typically cost on the order of $100,000 to $200,000 per proposal.

Commissioner Delaney said safety must be the priority: “Safety is number 1, right?” He also expressed support for the project, noting the site has been vacant and overgrown for more than a decade and is zoned industrial. Commissioner Freitas urged the developer to work closely with beneficiaries and the community and recommended partnering with labor unions, internships and local community colleges to prepare residents for jobs the project could create; Freitas said, “I will support this project.” Commissioner Neves raised technical concerns about fuel and battery storage containment, fire suppression, alarm systems and community notification plans. Testifier Bob Douglas asked DHHL and the project team to add two additional air‑quality monitoring stations in the immediate area and to ensure emergency response planning and modernized firefighting resources are addressed in design and contracting.

Speakers discussed potential community benefits packages and options such as discounted electricity, subsidized rooftop solar for beneficiaries, job training, revenue sharing and local feedstock production for biofuel. Commissioners and staff referenced models on other islands (for example, community feedstock production for biofuel and community benefit programs administered alongside power projects) as possible templates for local participation. DHHL staff and commissioners emphasized ongoing beneficiary consultation during the three‑year right‑of‑entry period and through the lease negotiations.

The commission document and discussion list the draft terms and conditions at Exhibit F as the basis for the right of entry and conditional lease; the chair was delegated authority to negotiate final terms consistent with those exhibits. The item as presented noted a 25‑year general lease term if exercised, with options to extend, and that the right of entry would be limited to due‑diligence activities for up to three years. The presentation also referenced an estimated project investment and financing scale discussed during the meeting; a commissioner mentioned an approximate $250,000,000 project scale in remarks about potential asset value to DHHL.

The motion passed by voice vote with the chair stating the motion carried. The meeting concluded with staff noting the next regular meeting is scheduled for March at Hale Kuhio in Waimea on Hawaii Island (9:30 a.m.) and that next month’s community meeting will be at the Kilaapa Community Center on Kauai.

Ending note: The authorization granted by the commission is conditional and delegates negotiation of final lease terms to the DHHL chair; subsequent approvals, environmental review outcomes, PUC decisions and any required power‑purchase agreements will shape whether and how the project proceeds.