STAND. COM. REP. NO.  2098

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 Consumer Protection & Commerce, 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 measure is to request the Public Utilities Commission to study the rate and fee structures of private entities statewide that furnish water used for agricultural purposes in areas zoned for agricultural use, and further requests the Public Utilities Commission to do the following:

     (1)  Perform an inventory of all privately-owned water              systems statewide that are used for agricultural                   purposes;

     (2)  Examine the water rate structures established by the               local county board of water supply;

     (3)  Examine and distinguish between the rate and fee                   structures for privately-owned water systems used for              agricultural purposes and for residential purposes;

     (4)  Determine the factors that distinguish the water rate              for agricultural purposes and for residential purposes;

     (5)  Seek input, collaboration, and guidance from the                   Department of Agriculture, the College of Tropical             Agriculture and Human Resources at the University of               Hawaii, the Hawaii Farm Bureau Federation, and each           county board of water supply; and

submit a written report to the Legislature of its findings and recommendations before the convening of the 2008 Regular Session.

     Your Committee received testimony in support of this measure from the Department of Agriculture and Palila Growers.  Your Committee received comments on this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs and the Public Utilities Commission of the Department of Budget and Finance.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce 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 its adoption.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L. K. MCKELVEY,

Vice-Chair