STAND. COM. REP. NO. 3316

Honolulu, Hawaii

RE:    H.B. No. 2150

       H.D. 2

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Energy and Environment and Water, Land, and Housing, to which was referred H.B. No. 2150, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURAL LANDS,"

beg leave to report as follows:

     The purpose and intent of this measure is to include photovoltaic, biogas, and other small-scale renewable energy systems that produce energy solely for use in the agricultural activities of the fee or leasehold owner of property as bona fide agricultural services and uses that are allowed in agricultural districts, including land with soils classified as overall (master) productivity rating class A or B.

     Your Committees received testimony in support of this measure from Kamehameha Schools and Sovereign Councils of the Hawaiian Homelands Assembly.  Your Committees received comments on this measure from the Department of Agriculture.

     Your Committees acknowledge that the costs of electricity and land in Hawaii place a financial burden on the agricultural industry.  Compared to other states, the costs of electricity and land in Hawaii are significantly high.  With advances in renewable energy technology, however, farmers in Hawaii have a tool to reduce the cost of electricity that is used for agricultural operations. 

     Your Committees recognize that existing state land use laws do not allow farmers to build solar photovoltaic, biogas, and other small-scale renewable energy systems on prime agricultural lands.  With farmers already confronting high costs of electricity and land, however, preventing them from building renewable energy systems solely for agricultural activities is unwarranted.  Renewable energy systems that are solely for agricultural activities will benefit farmers who build them. 

     Your Committees find that removing an unnecessary barrier to the development of sustainable agriculture comports with Article XI, section 3, of the Constitution of the State of Hawaii.  That section provides that "[t]he State shall conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self-sufficiency and assure the availability of agriculturally suitable lands." 

     Your Committees have amended this measure by changing its effective date to upon approval. 

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Water, Land, and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2150, H.D. 2, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 2150, H.D. 2, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Water, Land, and Housing,

____________________________ DONOVAN M. DELA CRUZ, Chair

____________________________ MIKE GABBARD, Chair