Establishes Hydrogen Energy Parks for the research, development, sale, and production of hydrogen energy facilities that make hydrogen from alternative energy sources.

A BILL FOR AN ACT

SECTION 1. Chapter 171, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part. hydrogen energy parks

§171-A Definitions. For the purposes of this part:

"Eligible lessee" means a person who is:

1. Engaged or proposing to engage in hydrogen energy development; and
2. Qualified to lease public lands under this chapter.

"Hydrogen energy park" means an area of public lands which is designated a hydrogen energy park in accordance with this part.

"Hydrogen energy development" means the research, development, manufacturing, refining, sorting, processing, storing, production, sale, or maintaining of storable hydrogen energy produced from qualifying alternative energy sources.

"Qualifying alternative energy sources" means energy derived from wind, wind farms, solar technology, photovoltaic processes, or geothermal conversion, or any other alternative energy source as determined by the board pursuant to chapter 91.

§171-B Designation of hydrogen energy park. A contiguous area of not less than two acres of public lands which is classified or otherwise determined by the board as suitable and economically feasible for hydrogen energy development may be designated as a hydrogen energy park:

1. By resolution adopted by the board of land and natural resources; or
2. By law.

§171-C Authority to plan, improve, develop, operate, and maintain hydrogen energy parks. The board shall plan, improve, develop, operate, and maintain each hydrogen energy park designated pursuant to section 171-B. The planning, improving, developing, operation, and maintenance of a hydrogen energy park shall be in accordance with this chapter.

§171-D Hydrogen energy park development. (a) The department may develop an area of public lands as a hydrogen energy park. Any development shall commence after designation of the area of public lands as a hydrogen energy park in accordance with section 171-B. Planning activities for the proposed or potential designation of a hydrogen energy park may precede a designation.

(b) The development of a hydrogen energy park shall be exempt from all statutes, ordinances, charter provisions, and rules of any governmental agency relating to planning, zoning, construction standards for subdivision development and improvement of land, and the construction of buildings thereon; provided that:

1. The board finds that the hydrogen energy park meets the minimum requirements of health and safety;
2. The development of the hydrogen energy park does not contravene any safety standards;
3. The legislative body of the county in which the hydrogen energy park is proposed to be situated approves the hydrogen energy park.

1. The legislative body shall approve or disapprove the hydrogen energy park within thirty days after the department has submitted preliminary plans and specifications for the hydrogen energy park to the legislative body. If after the thirtieth day, a hydrogen energy park is not disapproved, it shall be deemed approved by the legislative body.
2. No action shall be prosecuted or maintained against any county, its officials, or employees, on account of actions taken by them in reviewing, approving, or disapproving the plans and specifications.
3. The final plans and specifications for the hydrogen energy park shall be deemed approved by the legislative body if the final plans and specifications for the hydrogen energy park do not substantially deviate from the preliminary plans and specifications. The determination that the final plans and specifications do not substantially deviate from the preliminary plans and specifications of the hydrogen energy park shall rest with the board. The final plans and specifications for the park shall constitute the planning, zoning, building, improvement, construction, and subdivision standards for that industrial park. For the purposes of sections 501-85 and 502-17, the chairperson of the board or the responsible county official may certify maps and plans of land connected with the hydrogen energy park as having complied with applicable laws and ordinances relating to consolidation and subdivision of lands, and such maps and plans shall be accepted for registration or recordation by the land court and registrar; and

1. The board shall assume the responsibility of all infrastructure within the hydrogen energy park, if the infrastructure developed is exempt from applicable county ordinances, charter provisions, and rules.

§171-E Joint venture or development agreement. (a) A hydrogen energy park may be developed under section 171-D by the department in partnership or under a development agreement with a federal agency, county, or private party subject to a partnership or development agreement executed by the chairperson of the board; provided that if the hydrogen energy park is to be developed in partnership or under a development agreement with a private party, the private party shall be selected in accordance with section 103D-302 or 103D-303. At a minimum, the agreement shall provide for:

1. A determination by the board that the partnership agreement or the development agreement is for a public purpose;
2. Long-term assurance that the public land within the hydrogen energy park will be utilized for hydrogen development uses;
3. Final approval by the board of the plans and specifications for the hydrogen energy park;
4. Exclusive authority by the board to issue leases or master leases within the hydrogen energy park; and
5. Conditions to ensure a public benefit from any state funds expended for the hydrogen energy park.

(b) Notwithstanding any other provision of law to the contrary, a partnership or development agreement entered into pursuant to subsection (a) may provide for:

1. The board to issue master leases within an hydrogen energy park by negotiation, without regard to the limitations provided in sections 171-16(c) and 171-59(a), to the entity that developed the hydrogen energy park or the nominee or nominees of the entity that developed the hydrogen energy park; and
2. A master lease with terms and conditions upon which the master lessee may issue tenant subleases within the hydrogen energy park without the consent of the board.

§171-F Disposition of public lands within hydrogen energy park. The board shall dispose of economic units within a hydrogen energy park only by lease to eligible lessees or lessees engaged in commercial uses as provided under paragraph (1)(B). The leases shall be issued by the board in accordance with this chapter, subject to the following:

1. Only hydrogen development uses shall be allowed on the public lands leased; provided that:

1. The eligible lessee may be allowed to engage in non hydrogen development uses and activities ancillary and necessary to the eligible lessee's hydrogen development use; and
2. The board may lease public lands within the hydrogen energy park for other commercial uses if the uses are necessary or desirable to serve other lessees in the hydrogen energy park or their employees;

1. Each eligible lessee shall be subject to a development plan formulated pursuant to section 171-41 and make the improvements to the leased public lands required under the development plan; and
2. Each eligible lessee shall pay all assessments for improvements of infrastructure or other public or common facilities within the hydrogen energy park, if the board requires the improvements or assessments as conditions of the lease.

§171-G Preference. Preference for a lease of public lands within an hydrogen energy park shall be given to an eligible lessee whose hydrogen energy development qualifying alternative energy source is derived from wind, wind farms, or photovoltaic processes.

§171-H Acquisition. The board may acquire by exchange, direct purchase, or eminent domain, lands to which private persons or other public agencies hold title for designation as or inclusion in a hydrogen energy park. The acquisition of lands shall be in accordance with this chapter.

§171-I Lease for eligible permittee in hydrogen energy park. (a) Notwithstanding any other provision of law to the contrary:

1. A parcel of the public lands within an hydrogen energy park which had been occupied and used under a permit on the day before the date of designation of that hydrogen energy park shall be an economic unit in that hydrogen energy park. For the purpose of this section:

1. "Date of designation" means the effective date of the resolution or law which designates a hydrogen energy park; and
2. "Eligible economic unit" means an economic unit referred to under this paragraph;

1. A person with a permit to use an eligible economic unit on the day before the date of designation of that hydrogen energy park shall be given first preference to lease that unit after the date of designation if the person is an eligible lessee. For the purpose of this section, an "eligible permittee" means a person referred to under this paragraph;
2. The board shall issue a lease to an eligible permittee for an eligible economic unit under mutually agreeable terms, conditions, and lease rent. The lease shall be issued through negotiations, without regard to the limitations set forth in section 171-16(c) and section 171-59(a);
3. The board shall negotiate in good faith with each eligible permittee. If the board and eligible permittee cannot agree to a lease within one hundred eighty days from the date of designation, the board shall have no further obligation to negotiate with or issue a lease to the eligible permittee and may issue a lease for the eligible economic unit to another person after the one hundred eighty-day period; provided that any lease for the eligible economic unit issued subsequent to the termination of the one hundred eighty-day period shall not include terms and conditions which are less restrictive, and a lease rent which is less, than the terms, conditions, and lease rent last offered in writing by the eligible permittee and received by the board; and
4. The board, in lieu of issuing a lease under paragraph (3), may issue a master lease to a corporation whose members or shareholders shall be either eligible permittees or eligible sublessees of the hydrogen energy park, through negotiations and without regard to the limitations provided in section 171-16(c) and section 171-59(a). The master lease shall provide for the issuance of subleases to eligible permittees and other sublessees approved by the board, on terms and conditions approved by the board. The terms and conditions of a master lease concerning the authority to sublease shall supersede any contrary term or condition in a development agreement executed prior to the issuance of the master lease; provided that all other terms and conditions of the development agreement shall be incorporated and made a part of the master lease. The lessee under the master lease shall assume the responsibility of administering and monitoring permittee compliance with all sublease obligations.

(b) It is the intent of the legislature that persons occupying and using under a month-to-month or revocable permit public lands which have been designated as part of a hydrogen energy park be given the opportunity to lease the same public lands occupied and used prior to the designation. The application, construction, and interpretation of this section shall reflect this intent.

§171-J Lease for lessees dislocated by condemnation proceedings. (a) For purposes of this section:

1. "Dislocated lessee" means any lessee engaged in commercial or industrial uses who has been or will be displaced from private property which is acquired by the State or any county for public use by the power of eminent domain or threat thereof; and
2. "Eligible relocation site" means a site designated as an appropriate relocation site for dislocated lessees by law, or by resolution adopted by the board of land and natural resources.

(b) Notwithstanding any law to the contrary, any dislocated lessee shall have the right of first refusal to enter into a lease for an eligible relocation site.

(c) The board shall issue a lease to a dislocated lessee for an eligible relocation site under mutually agreeable terms, conditions, and lease rent. The lease shall be issued through negotiations, without regard to the limitations set forth in section 171-16(c) and section 171-59(a). The terms, conditions and rent under the lease shall be in conformance with chapter 171, and the board shall include lease covenants in each lease for the placement and construction of improvements in accordance with minimum standards established by applicable county building codes.

(d) The board shall negotiate in good faith with each dislocated lessee. If the board and dislocated lessee cannot agree to a lease within one hundred and eighty days from the date the dislocated lessee receives notice of the availability of an eligible relocation site, the board shall have no further obligation to negotiate with or issue a lease to the dislocated lessee for that economic unit, and may issue a lease for the economic unit to another person after the one hundred and eighty-day period according to the provisions of chapter 171.

§171-K Issuance of revenue bonds. (a) The board may issue revenue bonds in the name of the department in such amounts as may be authorized by the legislature. Except as provided in this chapter, all revenue bonds shall be issued pursuant to part III of chapter 39 to finance, in whole or in part, the costs of construction, acquisition, or maintenance of any hydrogen energy park and to pledge or assign for the punctual payment of the revenue bonds, and interest thereon, any and all revenues derived from any hydrogen energy park or parks undertaken by the board, in an amount sufficient to pay the principal and interest of the revenue bonds as they become due, and to create and maintain reasonable reserves or sinking funds therefor. Funds of the board, not otherwise required, may be advanced to pay necessary expenses incurred in preparation for the issuance of the revenue bonds. The board may take any other appropriate action in connection with the issuance of revenue bonds.

(b) All revenue bonds issued pursuant to this chapter shall be issued in the name of the department and not in the name of the State.

(c) The board, with the approval of the governor, may designate by resolution one or more hydrogen energy parks undertaken pursuant to this chapter as an "undertaking" as defined in section 39-51 and for purposes of part III of chapter 39.

§171-L Rules. The board may adopt rules in accordance with chapter 91 in order to effectuate the purposes of this part."

SECTION 2. Section 171-41, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Leases for commercial, industrial, and other business uses shall be made only pursuant to a development plan which provides for careful placement of complementary enterprises consistent with county zoning requirements; except:

Where a disposition for any such use is made without advance parcelization, the board shall make adequate provisions for the compatibility of the proposed enterprises with any existing surrounding private developments. The board, wherever possible, shall control the landscaping and architecture of the enterprises and protect the public against the creation of nuisances of smoke, soot, irritating odors and gases, and harmful wastes."

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

SECTION 4. This Act shall take effect upon its approval.