HB1979 HD2

SECTION 1. The legislature finds that the State faces urgent and interconnected challenges in achieving its clean energy goals and increasing the supply of affordable housing. The legislature further finds that environmental review under chapter 343, Hawaii Revised Statutes, plays an essential role in protecting the State's natural and cultural resources and ensuring informed public decision-making.

The legislature also finds that uncertainty and the threat of prolonged judicial challenges to environmental review determinations can delay projects and increase costs, particularly for affordable housing and clean energy projects that depend on time-sensitive financing and approvals. In some cases, projects become infeasible and are abandoned because challenges can extend for long periods, regardless of the project's merits.

Accordingly, this Act establishes clearer and more predictable timelines for certain judicial proceedings involving environmental assessments and environmental impact statements for actions that propose the use of land for, or construction of, affordable housing projects and clean energy projects, including by shortening the period within which specified challenges must be initiated and providing a more streamlined path for appellate review.

This Act does not eliminate or diminish environmental review requirements. Through these changes, this Act seeks to balance environmental stewardship with the urgent public need to accelerate renewable energy deployment and the development of affordable housing, while maintaining meaningful opportunities for public participation and accountability.

Accordingly, the purpose of this Act is to:

(1) Shorten the period during which certain judicial proceedings involving environmental assessments and environmental impact statements on actions that propose the use of land for, or construction of, affordable housing or clean energy projects must be initiated; and

(2) Specify that appeals from environmental courts that involve actions that propose the use of land for, or construction of, affordable housing or clean energy projects meet one of the grounds for transfer to the Supreme Court and prohibits any court from awarding attorneys' fees in these judicial proceedings.

SECTION 2. Section 343-7, Hawaii Revised Statutes, is amended to read as follows:

"§343-7 Limitation of actions[.]; attorneys' fees. (a) Any judicial proceeding, the subject of which is the lack of assessment required under section 343-5, shall be initiated within one hundred twenty days of the agency's decision to carry out or approve the action[~~, or, if~~]; provided that if the judicial proceeding involves the lack of an assessment required under section 343-5 for an action that proposes the use of land for, or construction of, an affordable housing project or clean energy project, the proceeding shall be initiated within thirty days of the agency's decision to carry out or approve the action. If a proposed action is undertaken without a formal determination by the agency that a statement is or is not required, a judicial proceeding shall be instituted within one hundred twenty days after the proposed action is started[.]; provided that if the proposed action is for the use of land for, or construction of, an affordable housing or clean energy project, the judicial proceeding shall be instituted within thirty days after the proposed action is started. The office, any agency responsible for approval of the action, or the applicant shall be adjudged an aggrieved party for the purposes of bringing judicial action under this subsection. Others, by environmental court action, may be adjudged aggrieved.

(b) Any judicial proceeding, the subject of which is the determination that a statement is required for a proposed action, shall be initiated within sixty days after the public has been informed of such determination pursuant to section 343-3. Any judicial proceeding, the subject of which is the determination that a statement is not required for a proposed action, shall be initiated within thirty days after the public has been informed of such determination pursuant to section 343-3. The applicant shall be adjudged an aggrieved party for the purposes of bringing judicial action under this subsection. Others, by environmental court action, may be adjudged aggrieved.

(c) Any judicial proceeding, the subject of which is the acceptance or nonacceptance of an environmental impact statement required under section 343-5, shall be initiated within sixty days after the public has been informed pursuant to section 343-3 of the acceptance or nonacceptance of such statement[.]; provided that if the subject of the judicial proceeding is the acceptance or nonacceptance of a statement for an action that proposes the use of land for, or construction of, an affordable housing project or clean energy project, the proceeding shall be initiated within thirty days after the public has been informed pursuant to section 343-3 of the acceptance or nonacceptance of the statement. Affected agencies and persons who provided written comment to an accepted statement during the designated review period shall be adjudged aggrieved parties for the purpose of bringing judicial action under this subsection; provided that for aggrieved parties, the contestable issues shall be limited to issues identified and discussed in the written comment, and for applicants bringing judicial action under this section on the nonacceptance of a statement, the contestable issues shall be limited to those issues identified by the accepting authority as the basis for nonacceptance of the statement.

(d) An appeal from a decision of the environmental court that involves an action that proposes the use of land for, or construction of, an affordable housing or clean energy project shall constitute a case involving a question of imperative or fundamental public importance under section 602-58(a)(1) for purposes of transferring the case to the supreme court pursuant to section 602-58.

(e) No court shall award attorneys' fees in a judicial proceeding initiated pursuant to this section that involves an action that proposes the use of land for, or construction of, an affordable housing project or clean energy project.

(f) For the purposes of this section:

"Affordable housing project" means a housing project:

(1) As defined by the controlling law or ordinance governing a state or county agency proposing or approving an affordable housing project;

(2) In which the owner has executed a declaration of restrictive covenants or other legally binding agreement that ensures compliance with county affordable housing ordinances;

(3) Under county jurisdiction pursuant to section 46-15.1 or that is subject to any county ordinance or funding that has an income restriction requirement; or

(4) In which the acquisition, financing, construction, development, redevelopment, repair, renovation, and occupancy have been directly facilitated by a state or county program.

"Affordable housing project" includes a housing project with ancillary on-site mixed uses and any necessary on-site or off-site infrastructure, and that satisfies at least one criterion under this definition.

"Clean energy project" means a project, facility, or installation that is primarily for the purpose of generating or producing energy using the following sources:

(1) Wind;

(2) Sun;

(3) Falling water;

(4) Geothermal; and

(5) Ocean water, currents, and waves, including ocean thermal energy conversion."

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

SECTION 4. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	1979
THIRTY-THIRD LEGISLATURE, 2026		H.D. 2
STATE OF HAWAII