REPORT TITLE:
Watershed Protection


DESCRIPTION:
Creates a watershed protection trust fund.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.438        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT
RELATING TO WATERSHED MANAGEMENT.



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

 1      SECTION 1.  The legislature finds that Hawaii's water is the
 
 2 most important resource of Hawaii's forested lands.  Mountain
 
 3 watersheds are the primary source of water for the islands' urban
 
 4 industrial, commercial, and agricultural areas.  Forested
 
 5 watersheds reduce rains' erosive effects, prevent soil erosion,
 
 6 increase infiltration into the soil, strip moisture from the
 
 7 clouds, and help maintain a consistent and dependable source of
 
 8 surface water and groundwater.
 
 9      There is no other part of the United States where the
 
10 relationship between water and forest cover are more closely
 
11 interwoven than Hawaii.  This was recognized almost a century ago
 
12 by the government and business interests.  In 1903, a forest
 
13 management program was created with a mandate to protect sources
 
14 of water supply and to have care and control of the forest
 
15 reserves.  It is a tribute to that foresight and management that
 
16 Hawaii has forests and water supplies today.  Management
 
17 activities such as protective zoning, fencing, control of feral
 
18 animals, reforestation, and fire protection have reduced
 
19 excessive erosion, soil compaction, and loss of vegetative cover.
 
20 However, the resources currently available for forest management
 

 
Page 2                                                     
                                     H.B. NO.438        
                                                        
                                                        

 
 1 are not in balance with the value of the water that is being
 
 2 harvested from our watersheds.  There is a need to establish a
 
 3 direct connection between the use of water and the funds needed
 
 4 to manage and sustain those resources.  The purpose of this Act
 
 5 is to create a watershed protection trust fund whose moneys could
 
 6 be utilized for watershed management activities by public and
 
 7 private entities that would positively impact on water quality,
 
 8 water quantity, and general watershed values within designated
 
 9 important watershed areas.
 
10      SECTION 2.  Chapter 174C, Hawaii Revised Statutes, is
 
11 amended by adding a new section to part V to be appropriately
 
12 designated and to read as follows:
 
13      "§174C-     Watershed management trust fund; source of
 
14 funds; disposition of receipts.  (a)  There is established within
 
15 the state treasury a special fund known as the watershed
 
16 management trust fund to be administered by the commission for
 
17 the maintenance and enhancement of important watershed management
 
18 areas.
 
19      (b)  The commission shall prepare an annual report for the
 
20 legislature concerning the annual expenditures and amount of
 
21 moneys accruing to the credit of the watershed management trust
 
22 fund from the following sources:
 
23      (1)  Revenues received from individual counties that are
 

 
Page 3                                                     
                                     H.B. NO.438        
                                                        
                                                        

 
 1           collected from a watershed surcharge levied on domestic
 
 2           water use;
 
 3      (2)  Federal government grants for the maintenance and
 
 4           enhancement of important watershed management areas;
 
 5      (3)  Private contributions for the maintenance and
 
 6           enhancement of important watershed management areas;
 
 7           and
 
 8      (4)  Legislative appropriations.
 
 9      (c)  The watershed management trust fund shall be held
 
10 separate and apart from all other moneys, funds, and accounts in
 
11 the state treasury; provided that moneys received as deposits or
 
12 contributions from the federal government or private sources
 
13 shall be deposited and accounted for in accordance with the
 
14 conditions established by the agencies or persons making the
 
15 contribution.  Earnings on the investment of the assets of the
 
16 fund shall become a part of the fund.  Any balance in the fund at
 
17 the end of a fiscal year shall be carried forward to the next
 
18 fiscal year.
 
19      (d)  The watershed management trust fund shall be used and
 
20 expended for the following purposes:
 
21      (1)  To implement watershed maintenance and enhancement
 
22           projects within important watershed management areas,
 
23           including erosion prevention and control,
 

 
Page 4                                                     
                                     H.B. NO.438        
                                                        
                                                        

 
 1           reforestation, exclusion of stock, and control of feral
 
 2           animals;
 
 3      (2)  To fund water and watershed resource monitoring
 
 4           efforts, including stream and rainfall gauging, well
 
 5           monitoring, and water quality studies;
 
 6      (3)  To compensate the counties for revenue reductions due
 
 7           to property tax incentive programs that could be
 
 8           attached to watershed management properties; and
 
 9      (4)  To purchase or lease watershed easements or other
 
10           agreements to enhance protection efforts in identified
 
11           important watershed management areas.
 
12      (e)  The counties may expend all moneys derived from county
 
13 water bills and deposited in the watershed management trust fund
 
14 for approved best management practices within designated
 
15 important watershed management areas as provided in sections
 
16 174C-14 and 174C-17."
 
17      SECTION 3.  Section 174C-3, Hawaii Revised Statutes, is
 
18 amended by adding a new definition to be appropriately inserted
 
19 and to read as follows:
 
20      ""Important watershed management area" means a non-
 
21 regulatory designation used to identify a watershed area, on
 
22 public or private land, pursuant to section 174C-5(14) which
 
23 contributes to domestic water supplies and where public or
 

 
Page 5                                                     
                                     H.B. NO.438        
                                                        
                                                        

 
 1 private management activities are needed to maintain and enhance
 
 2 the vegetative cover and soil, retard rapid runoff of storm
 
 3 flows, prevent soil erosion, and improve infiltration of water
 
 4 through the soil to optimize recharge of the surface and
 
 5 groundwater supplies."
 
 6      SECTION 4.  Section 174C-5, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§174C-5 General powers and duties.  The general
 
 9 administration of the state water code shall rest with the
 
10 commission on water resource management.  In addition to its
 
11 other powers and duties, the commission:
 
12      (1)  Shall carry out topographic surveys, research, and
 
13           investigations into all aspects of water use and water
 
14           quality.
 
15      (2)  Shall designate water management areas for regulation
 
16           under this chapter where the commission, after the
 
17           research and investigations mentioned in paragraph (1),
 
18           shall consult with the appropriate county council and
 
19           county water agency, and after public hearing and
 
20           published notice, finds that the water resources of the
 
21           areas are being threatened by existing or proposed
 
22           withdrawals of water.
 
23      (3)  Shall establish an instream use protection program
 

 
Page 6                                                     
                                     H.B. NO.438        
                                                        
                                                        

 
 1           designed to protect, enhance, and reestablish, where
 
 2           practicable, beneficial instream uses of water in the
 
 3           State.
 
 4      (4)  May contract and cooperate with the various agencies of
 
 5           the federal government and with state and local
 
 6           administrative and governmental agencies or private
 
 7           persons.
 
 8      (5)  May enter, after obtaining the consent of the property
 
 9           owner, at all reasonable times upon any property other
 
10           than dwelling places for the purposes of conducting
 
11           investigations and studies, or enforcing any of the
 
12           provisions of this code, being liable, however, for
 
13           actual damage done.  If consent cannot be obtained,
 
14           reasonable notice shall be given prior to entry.
 
15      (6)  Shall cooperate with federal agencies, other state
 
16           agencies, county or other local governmental
 
17           organizations, and all other public and private
 
18           agencies created for the purpose of utilizing and
 
19           conserving the waters of the State, and assist such
 
20           organizations and agencies in coordinating the use of
 
21           their facilities and participate in the exchange of
 
22           ideas, knowledge, and data with such organizations and
 
23           agencies.  For this purpose the commission shall
 

 
Page 7                                                     
                                     H.B. NO.438        
                                                        
                                                        

 
 1           maintain an advisory staff of experts.
 
 2      (7)  Shall prepare, publish, and issue such printed
 
 3           pamphlets and bulletins as the commission deems
 
 4           necessary for the dissemination of information to the
 
 5           public concerning its activities.
 
 6      (8)  May appoint and remove agents and employees including
 
 7           hearings officers, specialists, and consultants
 
 8           necessary to carry out the purposes of this chapter and
 
 9           may be engaged by the commission without regard to the
 
10           requirements of chapters 76 and 77 and section 78-1.
 
11      (9)  May acquire, lease, and dispose of such real and
 
12           personal property as may be necessary in the
 
13           performance of its functions, including the acquisition
 
14           of real property for the purpose of conserving and
 
15           protecting water and water related resources as
 
16           provided in section 174C-14.
 
17     (10)  Shall identify, by continuing study, those areas of the
 
18           State where salt water intrusion is a threat to fresh
 
19           water resources and report its findings to the
 
20           appropriate county mayor and council and the public.
 
21     (11)  Shall provide such coordination, cooperation, or
 
22           approval necessary to the effectuation of any plan or
 
23           project of the federal government in connection with or
 

 
Page 8                                                     
                                     H.B. NO.438        
                                                        
                                                        

 
 1           concerning the waters of the State.  The commission
 
 2           shall approve or disapprove such federal plans or
 
 3           projects on behalf of the State.  No other agency or
 
 4           department of the State shall assume the duties
 
 5           delegated to the commission under this paragraph,
 
 6           except that the department of health shall continue to
 
 7           exercise such powers vested in it with respect to water
 
 8           quality, and except that the department of business,
 
 9           economic development, and tourism shall continue to
 
10           carry out its duties and responsibilities under chapter
 
11           205A.
 
12     (12)  Plan and coordinate programs for the development,
 
13           conservation, protection, control, and regulation of
 
14           water resources based upon the best available
 
15           information, and in cooperation with federal agencies,
 
16           other state agencies, county or other local
 
17           governmental organizations, and other public and
 
18           private agencies created for the utilization and
 
19           conservation of water.
 
20     (13)  Shall catalog and maintain an inventory of all water
 
21           uses and water resources.    
 
22     (14)  Shall cooperate with federal agencies and county
 
23           organizations to identify important watersheds which
 

 
Page 9                                                     
                                     H.B. NO.438        
                                                        
                                                        

 
 1           contribute to domestic water supplies and would benefit
 
 2           from public and private watershed management
 
 3           activities.  These areas would be non-regulatory in
 
 4           nature and would be designated important watershed
 
 5           management areas which would be eligible for funding of
 
 6           approved watershed management activities as provided
 
 7           for in section 174C-   .
 
 8     (15)  Shall establish a watershed management trust fund to be
 
 9           expended in cooperation with the respective counties on
 
10           approved public and private watershed management
 
11           activities in designated important watershed management
 
12           areas as provided for in paragraphs (14) and (17), and
 
13           section 174C-   .
 
14     (16)  Shall collect from the counties the watershed surcharge
 
15           on water use and deposit them into a watershed
 
16           protection trust fund as provided for in section
 
17           174C-   .
 
18     (17)  Shall cooperate with the department of land and natural
 
19           resources to draft, in consultation with the counties
 
20           and other appropriate resource management entities, a
 
21           list of best management practices which will be
 
22           eligible for watershed management trust funds as
 
23           provided for in paragraph (15) and section 174C-   ."
 

 
Page 10                                                    
                                     H.B. NO.438        
                                                        
                                                        

 
 1      SECTION 5.  The commission on water resource management
 
 2 shall adopt rules necessary to implement this Act by July 1,
 
 3 2000.
 
 4      SECTION 6.  New statutory material is underscored.
 
 5      SECTION 7.  This Act shall take effect on July 1, 1999.
 
 6 
 
 7                           INTRODUCED BY:  _______________________