HB2406

SECTION 1. Section 171-95, Hawaii Revised Statutes, is amended to read as follows:

"§171-95 Disposition to governments, governmental agencies, public utilities, and renewable energy producers. (a) Notwithstanding any limitations to the contrary, the board of land and natural resources may, without public auction:

(1) Sell public lands at such price and on such other terms and conditions as the board may deem proper to governments, including the United States, city and county, counties, other governmental agencies authorized to hold lands in fee simple and public utilities;

(2) Lease to the governments, agencies, public utilities, and renewable energy producers public lands for terms up to, but not in excess of, sixty-five years at such rental and on such other terms and conditions as the board may determine;

(3) Grant licenses and easements to the governments, agencies, public utilities, and renewable energy producers on such terms and conditions as the board may determine for road, pipeline, utility, communication cable, and other rights-of-way;

(4) Exchange public lands with the governments and agencies;

(5) Execute quitclaim deeds to the governments and agencies, with or without consideration, releasing any claim to the property involved made upon disputed legal or equitable grounds, whenever the board in its discretion deems it beneficial to the State; and

(6) Waive or modify building and other requirements and conditions contained in deeds, patents, sales agreements, or leases held by the governments and agencies whenever such waiver or modification is beneficial to the State.

(b) In any disposition to public utilities under this section:

(1) The sale price or lease rental shall be no less than the value determined in accordance with section 171‑17(b); provided that such sale price or lease rental may be on a nominal basis, if the board finds that such easement is required in connection with a government project;

(2) The board shall provide that in case the land ceases to be used at any future time for the use for which the disposition was made, the board shall have the right to repurchase the land at the original sale price or fair market value, whichever is lower, and to purchase improvements thereon at the depreciated value or fair market value, whichever is lower;

(3) Disposition shall not be made to any public utility if the utility has suitable lands of its own;

(4) The disposition to public utilities shall be subject to disapproval by the legislature by two-thirds vote of either the senate or the house of representatives or by majority vote of both, in any regular or special session next following the date of the disposition; and

(5) For the purposes of this section, the definition of "public utility" as defined in section 269-1 is hereby incorporated herein by reference.

(c) Any disposition of more than one thousand acres of public lands to governments under subsection (a) shall be subject to approval by a majority vote of both houses of the legislature in any regular or special session following the date of the board of land and natural resources' approval of the disposition. The government party to the disposition shall submit for introduction to the legislature a resolution for review of action on any disposition to be consummated by the board with the following information:

(1) The specific location and size in square feet or in other precise measure of the parcels of land subject to the disposition;

(2) The value of the lands to be subject to the disposition;

(3) The name or names of the appraiser or appraisers;

(4) The date of the appraisal valuation;

(5) The purpose for which the lands are subject to the disposition;

(6) A detailed summary of any development plans for the land subject to the disposition; and

(7) A statement of whether the land is, or is not, land that was classed as government or crown lands before August 15, 1895, or was acquired by the State in exchange for lands before August 15, 1895, and a detailed explanation of how the government made the determination.

A copy of the draft resolution shall also be submitted to the office of Hawaiian affairs at least three months before the convening of a regular or special session of the legislature to allow the office to determine whether the land was classed as government or crown lands before August 15, 1895, or was acquired by the State in exchange for government or crown lands before August 15, 1895.

[~~(c)~~] (d) For the purposes of this section, "renewable energy producer" means:

(1) Any producer or developer of renewable energy, as defined in section 269-91;

(2) Any grower or producer of plant or animal materials used primarily for the production of biofuels or other fuels; provided that nothing herein is intended to prevent the waste product or byproduct of the plant or animal material grown or produced for the production of biofuel, biogas, hydrogen, or other fuels from being used for other useful purposes; or

(3) Any producer of renewable energy, as defined in section 269-91, that uses the renewable energy to provide district heating or cooling services;

provided that nothing in this definition shall be construed to allow wheeling of electricity over electric public utility lines or infrastructure that is not otherwise authorized by law or rule or order of the public utilities commission."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2406
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII