The State Board of Land and Natural Resources approved Monday a staff recommendation for the holdover of a revocable permit for water use at the Blue Hole diversion, allowing Kauai Island Utility Cooperative to continue to operate two hydroelectric facilities which contribute 1.5 megawatts of energy to the island’s renewable portfolio.

The approval reduces the amount of water that can be diverted from North Fork Wailua and Waikoko streams, which will result in more water left in the streams. It also included a requirement that collaboration with community stakeholders be established.

These hydros are KIUC’s lowest-cost source of generation, saving members $1.75 million a year versus the cost of diesel. They also displace the use of 675,000 gallons of fossil fuels annually.