HI SCR230

Urges the Board of Land and Natural Resources to dispose of long-term water leases for Hawaiian Electric's non-consumptive hydroelectric use along the Wailuku River through direct negotiation.

Requests the Board provide guidance on determining the annual water lease rent value based on Federal Energy Regulatory Commission (FERC) charges calculated by the amount of energy produced by the hydroelectric generating plants.

Recognizes Hawaiian Electric operates two hydroelectric plants (Puueo Hydro and Waiau Hydro) along the Wailuku River that have supplied renewable energy for over 100 years with water returned to the same river after use.

Notes the Waiau Hydro facility was heavily damaged during Hurricane Lane in August 2018 and requires a long-term lease to justify necessary repairs and capacity upgrades.

Emphasizes Hawaiian Electric's lease application is unique as it involves only water rights with no public lands, and no other entity could qualify to bid on this particular lease due to instream flow standard requirements.