RELATING TO AGRIVOLTAICS.

SB2371

THE SENATE

S.B. NO.

2371

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to agrivoltaics
.

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

����
SECTION
1
.
�
The legislature finds that the
State's agricultural lands are a finite and critical resource for local food
production, rural livelihoods, and climate resilience.
�
Recent trends indicate that agricultural
lands are under increasing pressure from utility-scale renewable energy
development, particularly solar energy facilities.
�
More than one thousand two hundred acres of
agricultural lands with a productivity rating of B and C have already been
converted for operational solar projects with another one thousand two hundred
acres proposed for conversion.
�
While
existing law requires that a portion of any land used for solar energy
facilities be made available for compatible agricultural activities, this
requirement has not yielded substantial or sustained agricultural production.

����
The
legislature further finds that many farmers, especially beginning farmers, face
significant barriers to accessing land, infrastructure, and affordable
long-term leasing opportunities.
�
Solar
energy facilities constructed on agricultural lands often feature internal
roads, fencing, utilities, and security features that make them suitable for
concurrent agricultural use when properly designed.
�
Agrivoltaics, the integration of agricultural
production within solar project areas, can expand agricultural opportunities
while enabling the State to achieve its renewable energy goals.

����
The
legislature also finds that a clear statewide standard is needed to ensure that
solar development on agricultural lands with a productivity rating of B, C, or
D supports commercial agricultural production.
�

Establishing a strong regulatory framework for agrivoltaics while
requiring that beginning farmers receive the first opportunity to lease land
primed for agricultural activity within solar project areas will expand
agricultural use without diminishing the planning authority of a county or
duplicating the State's existing agricultural park programs.
�
The legislature additionally finds that the
department of agriculture and biosecurity is best positioned to establish rules
and best practices, verify farmer eligibility, and enforce compliance with
agrivoltaics regulations while allowing landowners the flexibility to select
farmers and manage operations.

����
Accordingly,
the purpose of this Act is to:

����
(1)
�
Require
a landowner leasing agricultural sub-parcels on property used for agrivoltaics
to prioritize lease offers for beginning farmers;

����
(2)
�
Require
a landowner leasing agricultural sub-parcels on property used for agrivoltaics
to submit an annual agrivoltaics compliance report to the department of
agriculture and biosecurity;

����
(3)
�
Authorize
the department of agriculture and biosecurity to penalize any landowner that
fails to meet agrivoltaics requirements;

����
(4)
�
Authorize
the development of solar energy facilities on agricultural lands with
productivity ratings of B, C, or D under certain conditions; and

����
(5)
�
Authorize
a county planning commission or department to issue special permits for
agrivoltaics requirements before the approval of the land use commission under
certain conditions.

����
SECTION
2.
�
Chapter 141, Hawaii Revised Statutes,
is amended by adding a new section to part I to be appropriately designated and
to read as follows:

����
"
�141-
�
Agrivoltaics; requirements; reports;
rules; penalties; definitions.
�
(a)
�
A landowner who offers a lease for an
agricultural sub-parcel on a property used for agrivoltaics shall prioritize
lease offers for beginning farmers for a period of
days; provided that if no beginning farmer
accepts the lease offer during this period, the landowner may offer the lease
to a farmer engaged in commercial agricultural production.

����
(b)
�
A landowner who offers a lease for an
agricultural sub-parcel on a property used for agrivoltaics shall submit an
annual agrivoltaics compliance report to the department.
�
The agrivoltaics compliance report shall
include:

����
(1)
�
Acreage of the property in active
commercial production;

����
(2)
�
Identification of any beginning
farmers and commercial farmers leasing a sub-parcel;

����
(3)
�
Documentation of agricultural
output; and

����
(4)
�
Any periods of noncompliance with
this section and any corrective or enforcement actions taken.

����
(c)
�
If the department determines that a landowner
is not in compliance with this section or section 205-4.5(a)(21), the
department shall issue a written notice to the landowner and allow the
landowner a period of four months from the receipt of the written notice to
cure the deficiency; provided that if the department determines that the landowner
has failed to cure the deficiency within this period, the department may fine
the landowner not more than $5,000 per acre per year; provided further that for
repeated or substantial violations, the department may:

����
(1)
�
Require the landowner to increase
the acreage used for commercial agricultural production;

����
(2)
�
Temporarily suspend compliance
certification; or

����
(3)
�
Refer
the matter to the county or public utilities commission for consideration of
permit modifications.

����
(d)
�
The department, in consultation with the
public utilities commission and appropriate county, shall adopt rules pursuant
to chapter 91 to carry out the purposes for this section.

����
(e)
�
As used in this section:

����
"Agrivoltaics"
means the intentional integration of agricultural activities and solar energy
generation on the same site to support agricultural operations pursuant to
section 205‑4.5(a)(21).

����
"Beginning
farmer" means a new farm enterprise or person who has not farmed
commercially or has been farming for less than
years.

����
"Commercial
agricultural production" means a commercial agricultural facility or
pursuit conducted, in whole or in part, including:

����
(1)
�
The care and production of
livestock, livestock products, poultry, and poultry products;

����
(2)
�
The care and production of apiary,
horticultural, and floricultural products;

����
(3)
�
The planting, cultivating, and
harvesting of crops or trees; and

����
(4)
�
Any other activity that is directly
associated with agriculture.

����
"Department"
means the department of agriculture and biosecurity.
"

����
SECTION

3
.
�
Section 205-4.5,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

����
"(a)
�
Within the agricultural district, all lands
with soil classified by the land study bureau's detailed land classification as
overall (master) productivity rating class A or B and for solar energy
facilities, class B or C, shall be restricted to the following permitted uses:

����
(1)
�
Cultivation
of crops, including crops for bioenergy, flowers, vegetables, foliage, fruits,
forage, and timber;

����
(2)
�
Game
and fish propagation;

����
(3)
�
Raising
of livestock, including poultry, bees, fish, or other animal or aquatic life
that are propagated for economic or personal use;

����
(4)
�
Farm
dwellings, employee housing, farm buildings, or activities or uses related to
farming and animal husbandry.
�
For the
purposes of this paragraph, "farm dwelling" means a single-family
dwelling located on and accessory to a farm, including clusters of
single-family farm dwellings permitted within agricultural parks developed by
the State, or where agricultural activity pro
vides income to the family occupying the dwelling;

����
(5)
�
Public
institutions and buildings that are necessary for agricultural practices;

����
(6)
�
Public
and private open area types of recreational uses, including day camps, picnic
grounds, parks, and riding stables, but not including dragstrips, airports,
drive-in theaters, golf courses, golf driving ranges, country clubs, and
overnight camps; provided that overnight camps in operation before January 1,
1961, may be approved by special permit;

����
(7)
�
Public,
private, and quasi-public utility lines and r
oadways, transformer stations, communications equipment buildings, solid
waste transfer stations, major water storage tanks, and appurtenant small
buildings such as booster pumping stations, but not including offices or yards
for equipment, material, vehicle storage, repair or maintenance, treatment
plants, corporation yards, or other similar structures;

����
(8)
�
Retention,
restoration, rehabilitation, or improvement of buildings or sites of historic
or scenic interest;

����
(9)
�
Agricultural-based
commercial operations as described in section 205-2(d)(15);

���
(10)
�
Buildings
and uses, including mills, s
torage,
and processing facilities, maintenance facilities,
photovoltaic,
biogas, and other small-scale renewable energy
systems producing energy solely for use in the agricultural activities
of the fee or leasehold owner of the property, and vehicle and equipment
storage areas that are normally considered directly accessory to the
above-mentioned uses and are permitted under section 205-2(d);

���
(11)
�
Agricultural parks;

���
(12)
�
Plantation
community subdivisions, which as used in this chapter means an established
subdivision or cluster of employee housing, community buildings, and
agricultural support buildings on land currently or formerly owned, leased, or
operated by a sugar or pineapple plantation; provided that the existing
structures may be used or rehabilitated for use, and new employee housing and
agricultural support buildings may be allowed on land within the subdivision as
follows:

���������
(A)
�
The
employee housing is occupied by employees or former employees of the plantation
who have a property interest in the land;

���������
(B)
�
The
employee housing units not owned by their occupants shall be rented or leased
at affordable rates for agricultural workers; or

���������
(C)
�
The
agricultural support buildings shall be rented or leased to agricultural
business operators or agricultural support services;

���
(13)
�
Agricultural
tourism conducted on a working farm, or a
farming

operation as defined in section 165-2, for the enjoyment, education, or
involvement of visitors; provided that the agricultural tourism activity is
accessory and secondary to the principal agricultural use and does not
interfere with surrounding farm operations; provided further that this
paragraph shall apply only to a county that has adopted ordinances regulating
agricultural tourism under section 205-5;

���
(14)
�
Agricultural tourism activities, including
overnight accommodations
of twenty-one days or less, for any one stay
within a county; provided that
this paragraph shall apply only to a
county that includes at least three islands and has adopted ordinances
regulating agricultural tourism activities pursuant to section 205-5; provided
further that the agricultural tourism activities coexist with a bona fide
agricultural activity.
�
For the purposes
of this paragraph, "bona fide agricultural activity" means a farming
operation as defined in section 165-2;

���
(15)
�
Wind
energy facilities, including the appurtenances associated with the production
and transmission of wind generated energy; provided that the wind energy
facilities and appurtenances are compatible with agriculture uses and cause
minimal adverse impact on agricultural land;

���
(16)
�
Biofuel processing facilities, including the
appurtenances associated with the production and refining of biofuels that is
normally considered directly accessory and secondary to the growing of the
energy feedstock; provided that b
iofuel processing facilities and
appurtenances do not adversely impact agricultural land and other agricultural
uses in the vicinity.

��������������
For
the purposes of this paragraph:

��������������
"Appurtenances"
means operational infrastructure of the appropriate type and scale for economic
commercial storage and distribution, and other similar handling of feedstock,
fuels, and other products of biofuel processing facilities.

��������������
"Biofuel
processing facility" means a facility that produces liquid or gaseous
fuels from organic sources such as biomass crops, agricultural residues, and
oil crops, including palm, canola, soybean, and waste cooking oils; grease;
food wastes; and animal residues and wastes that can be used to generate
energy;

���
(17)
�
Agricultural-energy
facilities, including appurtenances necessary for an agricultural-energy
enterprise; provided that the primary activity of the agricultural-energy
enterprise is agricultural activity.
�
To
be considered the primary activity of an agricultural-energy enterprise, the
total acreage devoted to agricultural activity shall be no less than ninety per
cent of the total acreage of the agricultural-energy enterprise.
�
The agricultural-energy facility shall be
limited to lands owned, leased, licensed, or operated by the entity conducting
the agricultural activity.

��������������
As used in this paragraph:

��������������
"Agricultural activity"
means any activity described in paragraphs (1) to (3) of this subsection.

��������������
"Agricultural-energy
enterprise" means an enterprise that integrally incorporates an
agricultural activity with an agricultural-energy facility.

��������������
"Agricultural-energy
facility" means a facility that generates, stores, or distributes
renewable energy as defined in section 269-91 or renewable fuel including
electrical or thermal energy or liquid or gaseous fuels from products of
agricultural activities from agricultural lands located in the State.

��������������
"Appurtenances" means
operational infrastructure of the appropriate type and scale for the economic
commercial generation, storage, distribution, and other similar handling of
energy, including equipment, feedstock, fuels, and other products of
agricultural-energy facilities;

���
(18)
�
Construction and operation of wireless
communication antennas, including small wireless facilities; provided that, for
the purposes of this paragraph, "wireless communication antenna"
means communications equipment that is either freestanding or placed upon or
attached to an already existing structure and that transmits and receives
electromagnetic radio signals used in the provision of all types of wireless
communications services;
provided further that "small wireless
facilities" shall have the same meaning as in section 206N-2;
provided further that nothing in this paragraph
shall be construed to permit the construction of any new structure that is not
deemed a permitted use under this subsection
;

���
(19)
�
Agricultural education programs conducted on a
farming operation as defined in section 165-2, for the education and
participation of the general public; provided that the agricultural education
programs are accessory and secondary to the principal agricultural use of the
parcels or lots on which the agricultural education programs are to occur and
do not interfere with surrounding farm operations.
�
For the purposes of this paragraph,
"agricultural education programs" means activities or events designed
to promote knowledge and understanding of agricultural activities and practices
conducted on a farming operation as defined in section 165-2;

���
(20)
�
S
olar energy facilities that do not
occupy more than ten per cent of the acreage of the parcel, or twenty acres of
land, whichever is lesser or for which a special use permit is granted pursuant
to section 205-6;
provided that this use shall not be
permitted on
lands with soil classified by the land study bureau's
detailed land classification as overall (master) productivity rating class A;

���
(21)
�
Solar energy facilities on lands with
soil classified by the land study bureau's detailed land classification as
overall (master) productivity rating [
B or C
]
B, C, or D
for
which a special use permit is granted pursuant to section 205-6; provided that:

���������
(A)
�
The [
area occupied by
] the solar
energy facilities [
is also made available for compatible agricultural
activities at a lease rate that is at least fifty per cent below the fair
market rent for comparable properties;
]
occupy an area of at least ten
acres and have a nameplate capacity of at least five megawatts; provided further
that:

��������������
(i)
�
Not less than thirty per cent of the
area occupied by solar energy facilities shall at all times be used for compatible
agricultural activities;

�������������
(ii)
�
The area made available for
compatible agricultural activities shall be offered at a lease rate that shall
not exceed the prevailing regional agricultural lease rate;

������������
(iii)
�
The landowner shall construct and
maintain agricultural infrastructure, including access roads, gates, fencing,
and utilities necessary for agricultural activities; and

�������������
(iv)
�
All non-panel areas not used for
agricultural activities shall maintain permanent vegetative cover consistent
with best management practices to promote soil health pursuant to rules adopted
by the department of agriculture and biosecurity under section
141- ;

���������
(B)
�
Proof of financial security to
decommission the facility is provided to the satisfaction of the appropriate
county planning commission before the date of commencement of commercial
generation; [
and
]

���������
(C)
�
Solar energy facilities shall be
decommissioned at the owner's expense according to the following requirements:

��������������
(i)
�
Removal of all equipment related to the
solar energy facility within twelve months of the conclusion of operation or
useful life; and

�������������
(ii)
�
Restoration of the disturbed earth to
substantially the same physical condition as existed before the development of
the solar energy facility[
.
]
; and

���������
(D)
�
For the purposes of this paragraph[
,
"agricultural activities"
]
:

��������������
(i)
�
"Agricultural activities"

means the activities described in paragraphs (1) to (3);
and

�������������
(ii)
�
"Prevailing regional
agricultural lease rate" means the lease rate for comparable properties
within the region as documented by the landowner;

���
(22)
�
Geothermal resources exploration and
geothermal resources development, as defined under section 182-1;

���
(23)
�
Hydroelectric facilities, including the
appurtenances associated with the production and transmission of hydroelectric
energy, subject to section 205-2; provided that the hydroelectric facilities
and their appurtenances:

���������
(A)
�
Shall consist of a small hydropower
facility as defined by the United States Department of Energy, including:

��������������
(i)
�
Impoundment facilities using a dam to
store water in a reservoir;

�������������
(ii)
�
A diversion or run-of-river facility
that channels a portion of a river through a canal or channel; and

������������
(iii)
�
Pumped storage facilities that store
energy by pumping water uphill to a reservoir at higher elevation from a
reservoir at a lower elevation to be released to turn a turbine to generate
electricity;

���������
(B)
�
Comply with the state water code,
chapter 174C;

���������
(C)
�
Shall, if over five hundred kilowatts
in hydroelectric generating capacity, have the approval of the commission on
water resource management, including a new instream flow standard established
for any new hydroelectric facility; and

���������
(D)
�
Do not impact or impede the use of
agricultural land or the availability of surface or ground water for all uses
on all parcels that are served by the ground water sources or streams for which
hydroelectric facilities are considered; or

���
(24)
�
Notwithstanding any other law to the
contrary, composting and co-composting operations; provided that operations
that process their own green waste and do not require permits from the
department of health shall use the finished composting product only on the
operation's own premises to minimize the potential spread of invasive species."

����
SECTION

4
.
�
Section 205-6,
Hawaii Revised Statutes, is amended to read as follows:

����
"
�205-6
�

Special permit.
�
(a)
�
Subject to this section, the county planning
commission may permit certain unusual and reasonable uses within agricultural
and rural districts other than those for which the district is classified.
�
Any person who desires to use the person's
land within an agricultural or rural district other than for an agricultural or
rural use, as the case may be, may petition the planning commission of the
county within which the person's land is located for permission to use the
person's land in the manner desired.
�

Each county may establish the appropriate fee for processing the special
permit petition.
�
Copies of the special
permit petition shall be forwarded to the land use commission, the office of
planning and sustainable development, and the department of agriculture and
biosecurity for their review and comment.

����
(b)
�
The planning commission, upon consultation
with the central coordinating agency, except in counties where the planning
commission is advisory only in which case the central coordinating agency,
shall establish by rule or regulation, the time within which the hearing and
action on petition for special permit shall occur.
�
The county planning commission shall notify
the land use commission and [
such
] persons and agencies that may have an
interest in the subject matter of the time and place of the hearing.

����
(c)
�
The county planning commission may, under [
such
]
protective restrictions as may be deemed necessary, permit the desired use, but
only when the use would promote the effectiveness and objectives of this
chapter; provided that a use proposed for designated important agricultural
lands shall not conflict with any part of this chapter.
�
A decision in favor of the applicant shall
require a majority vote of the total membership of the county planning
commission.

����
(d)
�
Special permits for land the area of which is
greater than fifteen acres or for lands designated as important agricultural
lands shall be subject to approval by the land use commission.
�
The land use commission may impose additional
restrictions as may be necessary or appropriate in granting the approval,
including the adherence to representations made by the applicant.

����
(e)
�
A copy of the decision, together with the
complete record of the proceeding before the county planning commission on all
special permit requests involving a land area greater than fifteen acres or for
lands designated as important agricultural lands, shall be transmitted to the
land use commission within sixty days after the decision is rendered.

����
Within
forty-five days after receipt of the complete record from the county planning
commission, the land use commission shall act to approve, approve with
modification, or deny the petition.
�
A
denial either by the county planning commission or by the land use commission,
or a modification by the land use commission, as the case may be, of the
desired use shall be appealable to the circuit court of the circuit in which
the land is situated and shall be made pursuant to the Hawaii rules of civil
procedure.

����
(f)
�
Land uses substantially involving or
supporting educational ecotourism, related to the preservation of native
Hawaiian endangered, threatened, proposed, and candidate species, that are
allowed in an approved habitat conservation plan under section 195D-21 or safe
harbor agreement under section 195D-22, which are not identified as permissible
uses within the agricultural district under sections 205-2 and 205‑4.5,
may be permitted in the agricultural district by special permit under this
section, on lands with soils classified by the land study bureau's detailed
land classification as overall (master) productivity rating class C, D, E, or
U.

����
(g)
�
Except in a county with a county agriculture
designation ordinance, special permits for agrivoltaics may be issued by the
respective county planning commission or department before approval by the land
use commission.
�
Special permits may be
subject to conditions imposed by the respective county planning commission or
department for the purposes of this chapter.
�

A county may adopt ordinances that impose agrivoltaics requirements in
addition to the requirements established pursuant to sections 141-
and 205-4.5(a)(21).

����
As
used in this subsection, "agrivoltaics" has the same meaning as
defined in section 141- .
"

����
SECTION

5
.
�
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.

����
SECTION

6
.
�
Statutory
material to be repealed is bracketed and stricken.
�
New statutory material is underscored.

����
SECTION

7
.
�
This Act shall
take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

DAB;
Public Utilities Commission; LUC; Counties; Agriculture; Agrivoltaics;
Landowners; Beginning Farmers; Reports; Solar Energy Facilities; Renewable
Energy; Special Permits

Description:

Requires
a
landowner leasing agricultural sub-parcels on property used for agrivoltaics to
prioritize lease offers for beginning farmers.
�

Requires a landowner leasing agricultural sub-parcels on property used
for agrivoltaics to submit an annual agrivoltaics compliance report to the
Department of Agriculture and Biosecurity.
�

Authorizes DAB to penalize any landowner that fails to meet agrivoltaics
requirements.
�
Authorizes the development
of solar energy facilities on agricultural lands with productivity ratings of
B, C, or D under certain conditions.
�

Authorize a county planning commission to issue special permits for
agrivoltaics requirements before the approval of the Land Use Commission under
certain conditions.

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