Report Title:

Agricultural Water Rates; Public Utilities Commission

Description:

Authorizes the Public Utilities Commission to establish preferential potable water rates for agricultural activities in a public utility's service area.  Requires public utilities, upon application and proof of qualification, to provide preferential rates for potable water used only for agricultural activities.  (HB2810 HD1)

HOUSE OF REPRESENTATIVES	H.B. NO.	2810
TWENTY-FOURTH LEGISLATURE, 2008		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO WATER RATES.

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

     SECTION 1.  Agriculture in Hawaii depends on many factors, including access to water for irrigation purposes at affordable rates.  Although many farmers are able to access lower agricultural water rates provided by the county water systems, other farmers who are unable to access the county water systems must rely on the more expensive residential water rates provided by public utilities.  Without affordable water rates, agriculture cannot be sustainable and competitive in Hawaii.

The legislature finds that it is in the public interest to promote the long-term viability of agriculture by establishing mechanisms that provide for preferential rates for potable water used for agricultural activities.

The purpose of this Act is to establish a policy of providing preferential potable water rates for agricultural activities and to authorize the public utilities commission to establish preferential water rates for potable water used for agricultural activities.

SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to read as follows:

"§269-   Preferential water rates for agricultural activities. (a)  It is the policy of the State to promote the long-term viability of agriculture by establishing mechanisms that provide for preferential rates for potable water for agricultural activities.  The public utilities commission shall have the authority to establish preferential rates for potable water used for agricultural activities in a public utility’s service area.

(b)  Upon receipt of a bona fide request for preferential rates for potable water to be used for agricultural activities, and proof that the customer engages in agricultural activities, a public utility shall provide preferential rates for potable water to be used only for agricultural activities.  All such rates may be subsidized by the water rates charged to other customers of the public utility."

     SECTION 3.  Section 269-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Agricultural activities" means crop production, flower growing, fruit and other orchard growing, stock raising, dairy farming, and aquacultural farming, on a commercial basis.  The term does not include growing of ornamental plants and flowers or canneries, mills, markets, or establishments engaged in the conversion, treatment, or packaging of agricultural products."

     SECTION 4.  New statutory material is underscored.

SECTION 5.  This Act shall take effect upon its approval.