Department of Hawaiian Home Lands

Kahikinui Wind Energy Project

Developer:  AEP Wind Holdings, LLC

In December 2018, DHHL issued a solicitation for renewable energy projects for Kahikinui, Maui.  In January 2019, DHHL received competitive proposals for renewable energy projects which were evaluated and scored.  The project that received the highest score was submitted by Sempra Renewables, LLC.  Sempra Renewables, LLC, was acquired by American Electric Power in April 2019 and changed its name to AEP Wind Holdings, LLC (AEP Wind).

Details on the proposed project were presented at a Beneficiary Consultation meeting held on March 19, 2019, at the Kula Community Center.  Details were also presented at two (2) Public Hearings which were held on May 29, 2019, and May 30, 2019 (see below for more information). 

BENEFICIARY CONSULTATION ACTIVITIES 

Proposed Action or Issue for Discussion	Long-term land disposition, initially as a Right-of-Entry (“ROE”) permit for due diligence purposes for two (2) years with the option for a General Lease.  The ROE also includes an option to extend the due diligence period for up to three (3) one-year terms.  The option for a General Lease is contingent on AEP Wind securing a Power Purchase Agreement (PPA) from MECO for the project and contingent upon AEP Wind’s completion of an Environmental Assessment (EA) and related Chapter 343, HRS requirements.  If a PPA is secured and the EA completed, the long-term General Lease would begin when construction activities begin.  Compensation to the Department is the lease rent and a benefit package for the Kahikinui homestead community.
Background Information	DHHL selected AEP Wind’s project among other competitive proposals received in response to DHHL’s Solicitation for Renewable Energy proposals.  The project will construct wind turbines makai of Pi‘ilani Highway to generate 30MW of electricity that would be delivered to MECO’s energy distribution grid. Solicitation for Renewable Energy Proposals may be accessed at:  https://dhhl.hawaii.gov/disposition-of-hawaiian-home-lands-by-general-leases-for-renewable-energy-projects-on-oahu-and-maui/
Notification	The Beneficiary Consultation invitation letter was mailed on March 4, 2019, to 381 Lessees and Applicants who reside in the Kula (96790) zip code area.  Invitation Letter
Beneficiary Meeting	BENEFICIARY CONSULTATION MEETING March 19, 2019 – 6 p.m. to 8 p.m. Kula Community Center, Kula, Maui Presentation Materials Beneficiary Consultation Report
Public Hearings	PUBLIC HEARINGS: The Public Hearing Notice was published in newspapers across the State on May 8, 2019. PUBLIC HEARING NOTICE – Kahikinui Wind Project May 29, 2019 – 6 p.m. to 8 p.m. Paukūkalo Community Center, Wailuku, Maui Presentation Materials HHC Minutes of May 29, 2019 Public Hearing May 30, 2019 – 9 a.m. to 10 a.m. Paukūkalo Community Center, Wailuku, Maui Presentation Materials HHC Minutes of May 30, 2019 Public Hearing
Hawaiian Homes Commission Decision	The Commission approved the AEP Kahikinui Wind Energy project on May 30, 2019, however, soon thereafter, AEP notified the Department that they would not pursue the project. Agenda and Meeting Packet Draft Minutes documenting HHC approval of Right-of-Entry permit and conditional conversion to a long-term General Lease