STAND. COM. REP. NO.  2078

Honolulu, Hawaii

                , 2007

RE:   S.C.R. No. 3

      S.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred S.C.R. No. 3, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE PUBLIC UTILITIES COMMISSION TO STUDY THE RATE STRUCTURES OF PRIVATE ENTITIES THAT FURNISH WATER USED FOR AGRICULTURAL PURPOSES,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to promote fair and appropriate water rates for certain agricultural water users by requesting the Public Utilities Commission (PUC) to study the rate structures of private entities that furnish water used for agricultural purposes.

     The Department of Agriculture and the Hawaii Farm Bureau Federation supported this measure.  The Consumer Advocate and PUC submitted comments.

     Your Committee notes that concerns were raised during the public hearing regarding the need for further clarification of the term "agricultural purposes".  In addition, testimony from the PUC indicated that the PUC has jurisdiction over private water companies that are classified as "public utilities" in Chapter 269, Hawaii Revised Statutes.  The PUC would not have jurisdiction over privately-owned water companies that are not public utilities.

     As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 3, S.D. 1, and recommends that it be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Agriculture,

____________________________

CLIFT TSUJI, Chair