HOUSE OF REPRESENTATIVES	H.B. NO.	915
THIRTY-THIRD LEGISLATURE, 2025		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO WATER USE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 167-5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§167-5[]] Powers. In addition to any other powers granted to the board of agriculture for the purpose of carrying out all of its functions and duties, the board shall have the following powers for the purposes of this chapter:

(1) To acquire by eminent domain, water and water sources either above or underground, watershed, reservoir sites, rights-of-way over lands and property for paths, trails, roads, and landing sites, ditches, tunnels, flumes, reservoirs, and pipelines necessary or proper for the construction and maintenance of water facilities for conveying, distributing, and transmitting water for irrigation and domestic use and for [such] other purposes as may properly fall within the scope of its activities in creating, managing, controlling, operating, and maintaining irrigation water facilities, any of which purposes shall be held to be for a public use and purpose;

(2) To make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the board, including, without prejudice to the generality of the foregoing, contracts and other instruments for the purchase or sale of water and for the purchase or lease of water facilities for irrigation of the area, including but not limited to the production of agricultural products and the land on which the facilities are situated, and for securing to the owners and occupiers of land already using water in a project a priority right to so much water from those of their sources and facilities [which] that are taken over for the project as is required for the purposes or needs of the land, whether agricultural or nonagricultural in nature, as [such] those purposes or needs exist at the inception of the project or are then contemplated in the immediate future;

(3) To [make and from time to time] adopt, amend, and repeal bylaws and rules, not inconsistent with this chapter, which upon compliance with chapter 91 shall have the force and effect of law, to carry into effect the powers and purposes of the board;

(4) To make surveys for the purposes of determining the engineering and economic feasibility of each project;

(5) To conduct or have prepared comprehensive studies of the crops, livestock, and poultry [which] that may be profitably grown or produced within each project and the probable market for [such] those crops, livestock, and poultry;

(6) To conduct feasibility studies of the economic potential of the area;

(7) To determine the probable costs and value of providing water for irrigation in any proposed project;

(8) To investigate and make surveys of water resources, including the availability of nonpotable water and the possibility and feasibility of inducing rain by artificial or other means; and

(9) To define and redefine the boundaries of projects and to consolidate or separate projects, existing or proposed pursuant to this chapter[,]; provided that in the event the redefinition of the boundaries or the consolidation or separation previously effected increased the total amount required to be derived from acreage assessments upon lands within the existing project or projects by more than five per cent or will require an increase in the tolls charged for water supplied to the lands or will reduce the amount of water normally available for distribution to the lands, then the redefinition, consolidation, or separation may be accomplished only after notice has been published and a public hearing held as required for the formation of a project upon the initiative of the board. At the hearing, right to protest and the procedure relative to protest shall be the same as specified in section 167-17 concerning the formation of projects, and the proposed redefinition of boundaries, consolidation, or separation of projects shall not be accomplished if protests, such as would be sufficient to prevent the action if it were the formation of a project, are filed by owners and lessees of land within the existing projects or projects affected thereby.

The board is empowered, upon petition of land occupiers as provided by section 167-13, or upon petition of the Hawaiian homes commission or upon its own initiative, to prepare detailed plans for the acquisition or construction of facilities for irrigation or for economic development [which] that in its opinion are economically feasible, to prepare estimates of the probable cost of each, and to prepare estimates of the water tolls and acreage assessments required for the cost of operation and the amortization of the investment of each project, so that the project shall be self-supporting."

SECTION 2. Section 167-12, Hawaii Revised Statutes, is amended to read as follows:

"[[]§167-12[]] Lands included within irrigation projects. (a) Except as otherwise expressly permitted in the chapter, lands to be included within an irrigation project shall be only those used or to be used in farming. The number of acres of agricultural and pasture land of each land occupier within the project shall be determined by the board of agriculture and shall not be increased or decreased, nor shall any [such] land included within a project thereafter be withdrawn, after final determination to construct the project, except in the manner and with the limitations specified in this chapter by redefining the boundaries of a project. The project shall include only such lands as can be adequately irrigated by the quantity of water and facilities to be provided under normal conditions of supply. No land [which] that at the time of formation of the project is irrigated, or is devoted to the cultivation for commercial purposes of sugar, pineapples, coffee, bananas, citrus, papayas, or macadamia nuts, or other horticultural crops, whether or not the land so devoted is irrigated, or is being devoted to an industrial or townsite or other use of greater economic value than agriculture shall be included in the project if the owner of the land (or the land occupier thereof if other than the owner, in the event that the land occupier is legally chargeable with the acreage assessments) shall object in writing to the inclusion. The foregoing provisions of this [paragraph] subsection shall be applicable to all irrigation projects.

(b) Notwithstanding the limitation expressed in [the foregoing paragraph, lands] subsection (a):

(1) Lands of the State used by the University of Hawaii for experimental farms may be included in irrigation projects[,]; provided the board of regents undertakes the payment of water tolls and acreage assessments and for the purposes of the inclusion the University of Hawaii shall be deemed a land occupier within the meaning of this chapter[. Lands]; provided further that lands within the farms shall be assessed accordingly as the same are of the character of agricultural or pasture lands, as defined in this chapter, although they are used for experimental purposes[. The]; provided further that the assessments shall not[, however,] become a lien upon the lands[.]; and

(2) Residential and mixed-use developments described in section 174C-51.5 may also be included in irrigation projects; provided that the water shall be sourced from county-supplied R-1 water."

SECTION 3. Section 174C-51.5, Hawaii Revised Statutes, is amended as follows:

1. By amending its title and subsection (a) to read:

"[[]§174C-51.5[]] Dual line water supply systems; installation in [new industrial and commercial] certain developments located in designated water management areas. (a) The commission, as a condition for issuing permits pursuant to this part, may require the use of dual line water supply systems in new industrial and commercial developments and new residential and mixed-use developments located in designated water management areas. The commission shall not require the use of dual line water supply systems if:

(1) There is a threat to existing water quality or to public health and safety, as determined by the department of health;

(2) A source of nonpotable water will not be reasonably available in the near future as determined by the commission; or

(3) There is a serious threat to permitted ground or surface water uses within a designated water management area as determined by the commission."

2. By amending subsection (c) to read:

"(c) For the purposes of this section[, the term]:

["Developments" means one or more commercial or industrial subdivisions approved after May 30, 2000. It shall not apply to any modification, addition to, or replacement of, any commercial or industrial subdivision in existence prior to May 30, 2000.]

"Dual line water supply system" means a supply system that distributes potable and nonpotable water through parallel but separate distribution lines.

"Industrial and commercial development" means one or more commercial or industrial subdivisions approved after May 30, 2000. "Industrial and commercial development" shall not apply to any modification, addition to, or replacement of, any commercial or industrial subdivision in existence prior to May 30, 2000.

"Residential and mixed-use development" means one or more residential or mixed-use subdivisions approved after June 30, 2025. "Mixed use-development" includes mixed-use developments as defined under section 201H-12(a); provided that the term "commercial uses" as used in that definition shall include commercial agricultural uses."

SECTION 4. (a) This Act shall preempt any state or county rule, ordinance, policy, procedure, guideline, or other material that precludes or restricts the installation or use of a dual line water supply system in a residential or mixed-use development, as authorized by this Act.

(b) The department of health, board of agriculture, and each county shall:

(1) Review their respective rules, ordinances, policies, procedures, guidelines, and other materials, including the department of health reuse guidelines and each county's zoning and building code; and

(2) Amend any provisions that conflict with this Act or otherwise preclude or restrict the installation of a dual line water supply system in a residential or mixed-use development, as authorized by this Act.

(c) Notwithstanding any department of health rule, policy, procedure, guideline, or material to the contrary, including the department of health reuse guidelines, volume II, the irrigation of a single-family residential home shall be permitted with the designation of a recycled water manager.

SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 3000.

Report Title:

Water; CWRM; Residential and Mixed-use Developments; Board of Agriculture; DOH; Counties; Irrigation Projects

Description:

Authorizes the Board of Agriculture to investigate and survey the availability of nonpotable water. Authorizes the Commission on Water Resource Management, as a condition for issuing permits, to require the use of dual line water supply systems in new residential and mixed-use developments located in designated water management areas. Authorizes those residential and mixed-use developments to be included in irrigation projects, as defined in chapter 167, HRS. Requires the Department of Health, Board of Agriculture, and counties to update their rules, ordinances, to allow dual line water supply systems in residential and mixed-use developments. Effective 7/1/3000. (HD1)

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