STAND. COM. REP. NO. 3271

Honolulu, Hawaii

RE:    H.B. No. 2810

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred H.B. No. 2810, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WATER RATES,"

begs leave to report as follows:

     The purpose of this measure is to promote long-term viability of agriculture in the State by providing preferential water rates for potable water for agricultural activities.

     Specifically, this measure:

     (1)  Authorizes the Public Utilities Commission to establish preferential rates for potable water used for agricultural activities in a public utility's service area;

     (2)  Requires public utilities, upon application and proof of qualification, to provide preferential rates for potable water used for agricultural activities; and

     (3)  Allows the preferential water rates to be subsidized by the water rates charged to other customers of the public utility.

     Testimony in support of this measure was submitted by the Maui County Farm Bureau.

     Although many agricultural producers in the State are able to access lower agricultural water rates provided by county water systems for agricultural purposes, there are a number of farmers who are forced to depend on expensive residential water rates provided by public utilities.  Your Committee finds that affordable water rates for agricultural activities will contribute in creating an agricultural industry in Hawaii that is more sustainable and competitive.  Authorizing the Public Utilities Commission to establish preferential rates for potable water used for agricultural activities in a public utility's service area will promote the long-term viability of agriculture in the State.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2810, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

RUSSELL S. KOKUBUN, Chair