RELATING TO WATER.

SB2579

THE SENATE

S.B. NO.

2579

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to water
.

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

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SECTION 1.
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The
legislature finds that rural areas of Maui county, such as Molokai and Lanai,
have some of the highest electricity rates in the State, with water pumping
constituting twenty to forty per cent of water utility operating budgets.
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Power outages can impede access to water for
agricultural, household, and emergency use, threatening food security and
community safety.
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While rural and
agricultural communities may host many renewable energy developments, these
communities often receive little economic benefit or infrastructure investment
in return.

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The legislature further finds that billions
of gallons of water flow through the Molokai irrigation system each year, which
is managed by the department of agriculture and biosecurity agricultural
resource management division.
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This
system requires year-round pumping, regardless of operational status to fill up
and maintain a serviceable reservoir, creating unnecessary budget
pressure.
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Because the irrigation system
is a critical agricultural resource, it is imperative that it is accessible and
affordable for farmers.

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The legislature also finds that because
water pumps have flexible operating schedules, they are ideal candidates for
solar battery systems.
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On-site renewable
energy can eliminate or dramatically reduce electricity costs for water
pumping.
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Additionally, microgrids can
maintain water access during grid outages, improving disaster resilience.

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Accordingly, the purpose of this Act is to
establish a temporary water-energy resilience competitive grant program in the
county of Maui to convert water pumping and irrigation facilities to renewable
microgrids to reduce electricity costs and improve disaster resilience.

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Section 2.
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(a)
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The
Hawaii state energy office shall develop and implement a three-year
water-energy resilience competitive grant program in the county of Maui to
convert water pumping and irrigation facilities to renewable microgrids to
reduce electricity costs and improve disaster resilience.

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(b)
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The grant program shall provide grants to qualified applicants to
convert two to three high impact water pumping or irrigation facilities in Maui
county to renewable microgrids; provided that these facilities shall serve
agricultural irrigation or community water needs.
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The renewable microgrids shall include solar
panels, battery storage, and smart pump controls.

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(c)
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The Hawaii state energy office shall collaborate with the department of
agriculture and biosecurity, department of land and natural resources, and the
county of Maui to carry out the grant program, which shall include the
following success metrics:

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(1)
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A
target of forty to sixty per cent reduction in electricity costs for
participating facilities;

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(2)
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Ability
to maintain water pumping during grid outages;

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(3)
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The
training of six to ten local technicians; and

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(4)
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A
demonstrated ability to scale the model for other counties in the State;

provided
that the Hawaii state energy office shall provide technical assistance for
design and installation of any approved grant project and shall provide
training for local technicians to operate and maintain the systems.

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(d)
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The water-energy resilience competitive grant program shall emphasize:

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(1)
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Community
benefit over corporate profit;

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(2)
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Local
hiring and training requirements;

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(3)
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Farmer
and rancher input on site selection; and

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(4)
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Transparent
reporting on cost savings and benefits.

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(e)
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Requests for grants shall be submitted to the Hawaii state energy office
in accordance with administrative rules adopted to administer the grant
program.

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(f)
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The Hawaii state energy office shall submit an annual report of its
findings and recommendations to the legislature no later than twenty days prior
to the convening of the regular sessions of
2027 and 2028,
which shall include:

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(1)
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Cost
savings for the county of Maui;

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(2)
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Outage
resilience, including hours of water pump operation during microgrid failures;

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(3)
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The
number of jobs created, and individuals trained in the water-energy resilience
pilot program; and

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(4)
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Technical
performance data.

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(g)
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The Hawaii state energy office shall submit a final report of its
findings and recommendations, including any proposed legislation for expansion
of the three-year water-energy competitive grant program, to the legislature no
later than twenty days prior to the convening of the regular session of
2029.

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SECTION 3.
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There is appropriated out of the general revenues of the State of Hawaii
the sum of $ or so
much thereof as may be necessary for fiscal year 2026-2027 for the three-year
water-energy resilience competitive grant program.

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The sum appropriated shall be expended by
the Hawaii state energy office for the purposes of this Act.

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SECTION 4.
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This Act shall take effect on July 1, 2026, and shall be repealed on
June 30, 2027.

INTRODUCED BY:

_____________________________

Report Title:

HSEO;
Department of Land and Natural Resources; Department of Agriculture and
Biosecurity; Maui County; Temporary Water-Energy Resilience Competitive Grant
Program; Reports; Appropriation

Description:

Requires
the Hawaii State Energy Office to implement and administer a temporary Water-Energy
Resilience Competitive Grant Program in the County of Maui.
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Requires reports to the Legislature.
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Appropriates funds.

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