STAND. COM. REP. NO.  197-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2965

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committees on Agriculture and Water, Land, Ocean Resources & Hawaiian Affairs, to which was referred H.B. No. 2965 entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURAL WATER SECURITY,"

beg leave to report as follows:

     The purpose of this bill is to enhance protections for Hawaii's agricultural water systems by:

     (1)  Allowing electrical power to be diverted to public and private agricultural water systems for irrigation of agricultural lands when certain conditions and requirements are met;

     (2)  Specifying that, in the event of an emergency declared by the Governor, electric power, to the fullest extent possible, shall be diverted directly to agricultural pumping facilities for the purpose of maintaining agricultural water security; and

     (3)  Establishing the Agricultural Water Security Revolving Fund (Revolving Fund) to fund projects that enhance and ensure the security of the water supply and irrigation systems for agriculture.

     The Office of Hawaiian Affairs, Kamehameha Schools, The Kohala Ditch Project, Kahua Ranch Ltd., Island Resources Ltd.,   and several concerned individuals supported this bill.  The Department of Land and Natural Resources (DLNR) opposed a specific section of this bill.  The Department of Budget and Finance submitted comments.

     Your Committees recognize the importance of ensuring steady and reliable access to water for agricultural operations.  However, your Committees note that concerns were raised regarding the provisions contained in this measure.  Your Committees respectfully request that the provisions relating to the diversion of electric power for agricultural water systems, contained in section 2 of this measure, be assessed by the Committee on Commerce and Consumer Protection to determine if those provisions should be placed under the purview of the Public Utilities Commission.  In addition, your Committees note the concerns raised regarding the establishment of the Revolving Fund under the State Water Code.

     To encourage further discussions, your Committees have amended this measure by removing the Revolving Fund from the purview of the State Water Code and deleting references to DLNR as the administrative entity for the Revolving Fund.  Other technical, nonsubstantive amendments were made for style, clarity, and consistency.

     As affirmed by the records of votes of the members of your Committees on Agriculture and Water, Land, Ocean Resources & Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2965, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2965, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Water, Land, Ocean Resources & Hawaiian Affairs,

____________________________ KEN ITO, Chair

____________________________ CLIFT TSUJI, Chair