STAND. COM. REP. NO. 1048

Honolulu, Hawaii

RE:    H.B. No. 636

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Water and Land and Public Safety, Intergovernmental, and Military Affairs, to which was referred H.B. No. 636, H.D. 1, entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to appropriate funds to establish a two-year water conservation financial assistance pilot program to provide financial assistance to county-owned public water systems to help implement water conservation incentive programs.

     Your Committees received testimony in support of this measure from the Office of the Mayor of the County of Hawai‘i; Department of Water Supply of the County of Hawai‘i; Department of Water of the County of Kaua‘i; Board of Water Supply of the City and County of Honolulu; Ulupono Initiative; Pacific Resource Partnership; Nature Conservancy Hawai‘i; One World One Water, LLC; Hawai‘i Fresh Water Initiative; Hawai‘i Green Growth; Sierra Club Of Hawai‘i; Plumbers and Pipefitters Local 675; and five individuals.  Your Committees received testimony in opposition to this measure from the Department of Land and Natural Resources.

     Your Committees find that as an island state, Hawaii has limited access to natural fresh water.  Your Committees find that a water conservation program that provides financial assistance to county-owned public water systems and their customers to help implement water conservation measures and practices will reduce water use or waste.  Your Committees further find that water conservation is one of the most cost-effective long-term water supply options for the State.

     Your Committees note that, based on testimony provided to your Committees, water conservation programs can be effectively launched at the county level with an appropriation of $335,000 for fiscal year 2017-2018 and $540,000 for fiscal year 2018-2019.  It is estimated that the counties could absorb a 1:1 match at the following levels:

     (1)  Honolulu:  $210,000 for fiscal year 2017-2018 and $350,000 for fiscal year 2018-2019;

     (2)  Maui:  $60,000 for fiscal year 2017-2018 and $75,000 for fiscal year 2018-2019;

     (3)  Hawaii:  $50,000 for fiscal year 2017-2018 and $100,000 for fiscal year 2018-2019; and

     (4)  Kauai:  $15,000 for fiscal year 2017-2018 and $15,000 for fiscal year 2018-2019.

     Your Committees have amended this measure by:

     (1)  Establishing the two-year water conservation financial assistance pilot program within each of the four county water supply departments, rather than within the Commission on Water Resource Management, and making conforming amendments;

     (2)  Clarifying that each county water supply department shall provide matching funds on a 1:1 basis to state funds;

     (3)  Clarifying that the state funds are to be appropriated out of the general revenues rather than an unspecified special fund; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Water and Land and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 636, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 636, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Water and Land and Public Safety, Intergovernmental, and Military Affairs,

________________________________ CLARENCE K. NISHIHARA, Chair

________________________________ KARL RHOADS, Chair