RELATING TO PUBLIC LANDS.

HB2048

HOUSE OF REPRESENTATIVES

H.B. NO.

2048

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to public lands
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
�
The legislature finds that following the
illegal overthrow and annexation of Hawaii's constitutional government, the
United States seized control of approximately 1,200,000 acres of crown and government
lands, commonly referred to as the "ceded lands".
�
Of this acreage, the United States retained
466,000 acres after statehood, without compensation or restitution to the State
of Hawaii or to Native Hawaiians.

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The legislature further finds that
the Admission Act of 1959, Public Law 86-3, provided a process for federally controlled
lands to be returned to Hawaii and identified the State as trustee of these
lands, charged with administering them for certain purposes under section 5(f)
of the Admission Act, including public education, farm and home ownership,
public improvements, and the betterment of the conditions of Native Hawaiians.

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The legislature also finds that Public
Law 103-150, the Apology Resolution of 1993, acknowledges that Native Hawaiians
have unrelinquished claims to sovereignty and lands, particularly the crown and
government lands.
�
Congress acknowledged
that the overthrow of the Kingdom of Hawaii occurred with the active
participation of agents and citizens of the United States and that the Native
Hawaiian people never directly relinquished their claims to their inherent
sovereignty or to the crown and government lands.

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The legislature additionally finds
that the State of Hawaii and the Native Hawaiian people have shared, but also competing,
interests with respect to the crown and government lands.
�
Their shared interests include:
�
the restoration of local management and
control of federally held lands to benefit Hawaii's people; the remediation of
environmental contamination caused by federal activities; the pursuit of fair
compensation for decades of federal use; and the long-term stewardship of these
lands for future generations.
�
Their
competing interests include:
�
questions
of ultimate title and beneficial ownership; the distribution of any monetary
compensation or rents received; control over land use decisions and dispositional
authority; and the relationship of land claims to broader questions of Native
Hawaiian sovereignty.

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Furthermore, the legislature finds
that a partnership between the State and Native Hawaiian people is essential to
the future of the crown and government lands.
�
Such a partnership must recognize both the
shared and competing interests of the parties, provide mechanisms for
transparent negotiation and resolution of differences, and ensure that neither
party acts unilaterally in matters affecting the lands to which both have
claims.

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Moreover, the legislature finds that
according to the Hawaii State Constitution and chapter 10, Hawaii Revised
Statutes, the office of Hawaiian affairs, as the body of elected trustees
representing the Native Hawaiian people, is the appropriate entity to represent
Native Hawaiian interests in this partnership.

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In addition, the legislature finds
that Hawaii has sought to recover these crown and government lands since the admission
of the State to the Union.
�
In a 1963
statement before the United States Senate Subcommittee on Public Lands, United
States Senator Daniel K. Inouye stated:
�
"These
lands were held in trust by the federal government for the people of Hawaii,
with the eventual hope that they would be returned" at the end of federal
use.
�
United States Senator Hiram L. Fong
similarly stated: "Justice is on our side.
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We are asking for the return of lands not
needed by the federal government -- lands that represent a tiny fraction
compared with the 1,275,000 acres the Territory of Hawaii gave to the federal
government without cost at annexation."

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The legislature further finds that Hawaii
has borne significant burdens from military activities on its lands, including
but not limited to:
�
fuel leaks from the
Red Hill Bulk Fuel Storage Facility, which have contaminated groundwater in the
southern Oahu basal aquifer; Superfund sites at Pearl Harbor Naval Shipyard;
depleted uranium contamination at Pohakuloa Training Area and Schofield
Barracks; elevated housing costs attributable to military competition for
scarce housing resources; and restrictions on civilian access to crown and government
lands held for military purposes.

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The legislature also finds that military
leases of crown and government lands will begin to expire in 2029, presenting
an opportunity to renegotiate the terms under which federal agencies use
Hawaii's lands.
�
The existing lease
terms, which were negotiated decades ago, do not reflect fair market value, do
not adequately address environmental remediation obligations, and do not
account for the interests of the State of Hawaii or Native Hawaiians.

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The legislature additionally finds
that it is in the State's interests for the military lands to be returned,
remediated, and made available for peaceful use.
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Military land use poses moral and ethical
questions for the State, in instances in which these lands are used to support
and enable presidential actions that violate the War Powers Act, international
law, and posse comitatus.
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The legislature
memorializes the words of Pilahi Paki:
�
"The
world will turn to Hawai
ʻ
i
as they search for world peace because Hawai
ʻ
i
has the key, and that key is aloha."

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SECTION 2.
�
Chapter 171, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

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"
�171-
�
Disposition
to public utilities and renewable energy producers.
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(a)
�
Notwithstanding any limitations to the
contrary, the board may, without public auction:

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(1)
�
Sell public
lands at such price and on such other terms and conditions as the board may
deem proper to public utilities;

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(2)
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Lease to 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; and

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(3)
�
Grant licenses
and easements to 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.

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

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(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;

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(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;

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

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(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.

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(c)
�

As used in this section:

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"Public utility" has the same
meaning as in section 269-1.

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"Renewable energy producer"
means:

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

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(2)
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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

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(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.
"

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SECTION
3
.
�
Section 171-95,
Hawaii Revised Statutes, is amended to read as follows:

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"
�171-95
�
Disposition to governments[
,
]
and

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[
:
]
and with the prior two-thirds approval
of each house of the legislature via concurrent resolution and with a
supporting resolution from the office of Hawaiian affairs:

����
(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;

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(2)
�
Lease
to [
the
] governments[
,
]
and
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[
;
]
, subject to the limitations
of subsection (b);

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(3)
�
Grant
licenses and easements to [
the
] governments[
,
]
and

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;

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

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(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

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(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.

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[
(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

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

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(c)
�

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
.
]

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(b)
�
Notwithstanding any law to the contrary:

����
(1)
�
No land
disposition to the United States military shall exceed twenty-five years in
duration;

����
(2)
�
Any new land
disposition to the United States military shall require a clean-up and
remediation bond from the United States military to be deposited into the
treasury of the State; and

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(3)
�
The board shall
not issue any new land disposition to the United States military until the
military, State, and office of Hawaiian affairs reach an agreement in principle
on:

���������
(A)
�
The
return to the State and office of Hawaiian affairs of all unused, surplus, and
recreational-use lands; and

���������
(B)
�
A
payment schedule for unpaid just compensation for the use of the crown and government
lands by the United States military since July 7, 1898.
"

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SECTION
4
.
�
Section
171-95.3, Hawaii Revised Statutes, is amended by amending subsection (a) to
read as follows:

����
"(a)
�
The board may lease or renew a lease of
public lands to renewable energy producers, as defined in section [
171-95,
]

171- ,
without public auction only pursuant to a public
process that includes public notice under section 1-28.5 providing other
interested renewable energy producers opportunity to participate in the
process; provided that nothing in this section shall be construed to prevent
the board from conducting direct negotiations; provided further that the
renewable energy producer shall be required to submit as part of the proposal
for the board's evaluation, as assisted by the department of business, economic
development, and tourism, the following:

����
(1)
�
A timeline for
completion of the project;

����
(2)
�
A description of a
financial plan for project financing
;

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(3)
�
A description of
the conceptual design of the project;

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(4)
�
A description of
the business concept for the project; and

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(5)
�
A description of
landscape and acreage requirements including public and private lands
.

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Upon completion of the board's
evaluation and determination to award or not award a lease to a renewable
energy producer, the board shall prepare a report outlining the reasons for the
decision."

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SECTION 5.
�
The board of land and natural resources shall
require that all future land dispositions with the United States military comply
with the holding of
Ching v. Case,
145 Hawaii 148, 449 P.3d 1146 (2019).

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SECTION 6.
�
If any provision of this Act, or the
application thereof to any person or circumstance, is held invalid, the
invalidity does not affect other provisions or applications of the Act that can
be given effect without the invalid provision or application, and to this end
the provisions of this Act are severable.

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SECTION 7.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

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SECTION 8.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION 9.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Crown and
Government Lands; Public Lands; Disposition; State and Office of Hawaiian
Affairs; United States Military; Public Utilities; Renewable Energy Producers

Description:

Establishes
new requirements for the disposition of public lands, including requiring two-thirds
approval of each house of the Legislature via concurrent resolution and with a
supporting resolution from the Office of Hawaiian Affairs, and applies this
requirement to the disposition of public lands to public utilities and
renewable energy producers as well.
�

Limits the duration of public land disposition to the United States
military to twenty-five years.
�
Requires
any new land disposition to the United States military to be accompanied by a clean-up
and remediation bond from the United States military to be deposited into the
state treasury.
�
Prohibits the Board of
Land and Natural Resources from issuing any new land disposition to the United
States military until the military, State, and Office of Hawaiian Affairs reach
an agreement in principle on certain matters.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.