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DHHL advances water projects, secures MOA talks with Maui DWS and highlights Act 279 execution
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Summary
Commissioners approved a FONSI for North Kona well site and heard informational briefings on a Waihuli (Maui) MOA for three wells (advanced water credits) and the Act 279 annual report; staff said water projects are central to unlocking thousands of homestead lots and the department has encumbered $600M under Act 279.
Department planners asked the commission to issue a Finding of No Significant Impact (FONSI) for the final environmental assessment covering a proposed North Kona water‑source project and associated storage upgrades. Staff said the proposal includes acquisition of a well site on Kamehameha Schools land in Keahou and expansion of nearby Department of Water Supply storage tanks; they presented cultural‑resource framework analysis and mitigation measures to protect traditional and customary practices under Article XII §7 and HRS chapter 343. Commissioners discussed alternatives, conservation measures, and the need for continued beneficiary and lineal descendant engagement. The FONSI motion was approved.
On Maui, staff presented an informational draft memorandum of agreement with Maui Department of Water Supply to develop three Waihuli wells and a transmission system, which would dedicate DHHL‑served capacity to homestead projects and provide advanced water credits (staff cited an early‑phase allocation equaling roughly 39.5% of DHHL’s initial needs). The MOA would let DHHL tap existing transmission infrastructure, lower per‑project capital costs by sharing wells and lines, and speed delivery to hundreds or thousands of lots; the department’s working group recommended monthly production reporting and other accountability measures.
Commissioners and staff framed water development as a multi‑pronged strategy: capture and reallocation of water credits, conservation and fixtures upgrades, partnerships with counties and private landholders, and larger infrastructure investments (including discussions of geothermal and federal/state funding). Staff said a multi‑site approach and MOAs are critical because many DHHL lands are presently water‑constrained.
Finally, land development staff summarized the annual Act 279 implementation report to the Legislature: DHHL has encumbered $600 million and expended about $120 million for planning, infrastructure and acquisitions; acquisitions totaled approximately 556 acres and the Act 279 portfolio is positioned to catalyze roughly $2 billion in private vertical construction financing. Staff said infrastructure‑first sequencing remains the central approach to accelerate lease awards and reduce downstream costs.
