STAND. COM. REP. NO. 988

Honolulu, Hawaii

RE: S.B. No. 507

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 507 entitled:

"A BILL FOR AN ACT RELATING TO WETLAND PRESERVATION,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Add definitions for "floodway", "natural stormwater infrastructure", and "wetlands" to section 343-2, Hawaii Revised Statutes;

(2) Require a proposed housing project of the Hawaii Housing Finance and Development Corporation that is exempt from all statutes, ordinances, charter provisions, and rules of any government agency relating to planning, zoning, and construction standards to ensure that the proposed project does not impact wetlands or natural stormwater infrastructure; and

(3) Require an environmental assessment for actions under the environmental impact statements law that propose any development that would impact wetlands or natural stormwater infrastructure.

Your Committees received testimony in support of this measure from The Nature Conservancy, Wild Kids, and three individuals. Your Committees received testimony in opposition to this measure from the Office of the Governor and Hawai‘i YIMBY. Your Committees received comments on this measure from the Department of Health, Hawaii Housing Finance and Development Corporation, Office of Planning and Sustainable Development, State Environmental Advisory Council, and Grassroot Institute of Hawaii.

Your Committees find that wetlands are some of the most productive and biodiverse habitats on the planet. Wetlands protect beaches against erosion, recharge aquifers, provide flood alleviation, support endangered species, and sequester carbon. Your Committees further find that the destruction of wetlands and waterways is a major concern because development in these areas leads to excessive flooding and inhibits the natural processes that filter sediments and nutrients from stormwater runoff before reaching coral reefs. This measure will establish an ahupuaa-based protection of wetlands and watersheds, and protect natural stormwater infrastructure.

Your Committees have amended this measure by:

(1) Specifying that the definition of "wetlands" does not apply for the purposes of chapter 342D, Hawaii Revised Statutes;

(2) Specifying that the development of exempt proposed housing projects shall not have a significant adverse impact on wetlands or natural stormwater infrastructure as defined in section 343-2, Hawaii Revised Statutes;

(3) Amending section 1 to reflect its amended purpose;

(4) Inserting an effective date of March 22, 2075, to encourage further discussion; and

(5) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 507, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 507, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair