STAND. COM. REP. NO. 357

Honolulu, Hawaii

, 2025

RE: H.B. No. 781

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Water & Land, to which was referred H.B. No. 781, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE WAIAHOLE WATER SYSTEM,"

begs leave to report as follows:

The purpose of this measure is to appropriate funds for the Waiahole Water System for bond debt service and tunnel repair.

Your Committee received testimony in support of this measure from the Agribusiness Development Corporation; Ulupono Initiative; Hawaii Agriculture Research Center; Kunia Village Title Holding Corporation; Bayer; Larry Jefts Farms, LLC; Land Use Research Foundation of Hawaii; Hawaiʻi Farm Bureau; Hawaii Crop Improvement Association; Hawaiʻi Farmers Union; and two individuals. Your Committee received testimony in opposition to this measure from one individual.

Your Committee finds that the Waiahole Water System (System) plays an essential role in supporting agriculture on Oahu through the delivery of a reliable source of irrigation water to local farming operations in the central and leeward regions of the island. Your Committee further finds that while the System's water users have grown more efficient with their use, users pay significantly more for water from the System than others pay for agricultural water from comparable systems, due in large part to existing debt owed on general obligation bonds issued in 1999 to enable the Agribusiness Development Corporation to purchase the System and replace the System's three deteriorated redwood siphons. Additionally, crucial repairs are needed to the System's infrastructure. Your Committee believes that appropriating funds to pay off the remaining debt service on bond obligations and perform necessary repairs will reduce water costs and ensure all users who depend on the System continue to have reliable access to water.

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $4,500,000 to pay the bond debt service on the Waiahole Water System and $2,000,000 for the repair of the adit 8 tunnel of the Waiahole Water System.

As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 781, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

MARK J. HASHEM, Chair