NOTICE OF SALE
PUBLIC AUCTION SALE OF ONE (1) STATE OF HAWAII WATER LICENSE
ON THE ISLAND OF HAWAII
The Department of Land and Natural Resources ("DLNR"), Land Division, will be conducting a public auction sale of one (1) license for State water at the following date and location:
DATE & TIME: April 23, 2026 at 10:00 AM (HST)
PLACE: DLNR Hawaii District Land Office
180 Kalanikoa Street
Hilo, Hawaii 96720
The above date, time, and/or place of auction are subject to change by DLNR.
The license to be auctioned on the above date covers the Wailuku River located in Hilo, Hawaii.
Location: Portions of Government Water situated at Wailuku River, District of South Hilo, County and Island of Hawaii, Hawaii as shown and described on the tax key maps attached hereto, if any, and made a part hereof.
Tax Map Key: (3) 2-6-009; 2-6-029
Permitted Use: Non-consumptive use for hydro-electric generation purposes.
License Term: Thirty (30) years
Upset Minimum
Annual Base Rent: The upset minimum annual base rent amount is based on the annual kilowatt hours generated by the holder of the License at the end of each calendar year, or fraction thereof, during the term of the License, multiplied by prevailing Federal Energy Regulatory Commission (FERC) rate of $0.001 per kilowatt hour, or the higher rate as established by the winning bid at public auction, payable annually on the 31st day of January each and every year following the first year of the License beginning on January 31, 2027 and ending on January 31, 2057.
Rental Re-openings: Every ten years, the rent shall be redetermined to be equal to the prevailing FERC rate at the time of reopening applied to the amount of kilowatt hours generated on an annual basis. In the event the winning bid at auction is higher than the prevailing FERC rate at the commencement of the License, the rent at redetermination shall reflect the same percentage increase as the prevailing FERC rate at the time of reopening to the FERC rate at the commencement of the License.
Performance Bond: $30,000.00.
Commencement Date: No more than thirty (30) calendar days from the date DLNR transmits the license to the successful bidder for execution; provided that if such date is not on the first day of any month, the commencement date shall be the first day of the month following such date; and further provided that the Chairperson may amend the commencement date for good cause.
Special Conditions: Hawaiian Electric Light Company, Inc. (“HELCO”) initiated the request for the use of the subject water for hydro-electric generation purposes, paid for the environmental assessment pursuant to Chapter 343, Hawaii Revised Statutes, and obtained the Finding of No Significant Impact required for the water use. If HELCO is not the successful bidder at auction, the successful bidder shall reimburse HELCO $288,000.00 for its environmental assessment costs.
APPLICATION AND BIDDING INFORMATION
Any person wishing to bid and purchase the license described above must first qualify to bid under the general qualifying criteria and the pre-qualifying criteria as described in the Public Auction Bid Packet. Eligibility to bid shall be determined by the information supplied by prospective bidders in the Application and Qualification Questionnaire (“Application”) provided as Appendix A of the Public Auction Bid Packet.
Applications by prospective bidders for the above listed license must be received by DLNR no later than February 26, 2026 at 4:00 P.M. at any of the District Land Offices listed below. Applicants shall submit one (1) original and four (4) copies of the Application (including copies of all required attachments). Any person who has failed to submit the completed Application and all required attachments (and required copies) by this date and time will not be allowed to bid. Each Applicant shall be informed in writing in advance of the auction date as to the Applicant’s eligibility to bid at the public auction. See Public Auction Bid Packet for further instructions.
The Public Auction Bid Packet describes the auction sale procedures, bidder qualifications and other requirements, and contains the Application form, draft license document and other relevant information. The Bid Packet may be examined at any of the District Land Offices listed below or downloaded from the DLNR website at www.hawaii.gov/dlnr/land/publicnotices. Any person requiring special accommodation or information in an alternate format should call or write to these offices:
Oahu District Land Office Maui District Land Office
1151 Punchbowl Street, 130 Mahalani Street
Room 220 Wailuku, Hawaii 96793
Honolulu, Hawaii 96813 Phone (808) 984-8103
Phone (808) 587-0433
Hawaii District Land Office Kauai District Land Office
180 Kalanikoa Street 3060 Eiwa Street, Room 208
Hilo, Hawaii 96720 Lihue, Hawaii 96766
Phone (808) 961-9590 Phone (808) 274-3491
Prospective bidders are responsible to thoroughly read and understand the covenants, terms, reservations, and conditions contained in the Bid Packet and draft license document. The water resource is to be licensed in an “as is” condition, and prospective bidders are solely responsible to complete their own due diligence.
All bidders or authorized representatives must be present in person at the auction. DLNR reserves the right to cancel the public auction, to postpone or change the date of the public auction or any other deadlines, to reject any and all Applications or request the submittal of additional information, and to waive any defects when, Chairperson of the Board of Land and Natural Resources, such action will be in the best interest of the State.
DONE at the office of the Department of Land and Natural Resources, State of Hawaii this 9th of February 26, 2026.
BOARD OF LAND AND NATURAL RESOURCES
By Ryan K.P. Kanakaole, Acting Chairperson
(SA/HTH/WHT1519092 2/09/26)
