STAND. COM. REP. NO. 607

Honolulu, Hawaii

RE: S.B. No. 1086

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Agriculture and Environment and Water and Land, to which was referred S.B. No. 1086 entitled:

"A BILL FOR AN ACT RELATING TO IRRIGATION,"

beg leave to report as follows:

The purpose and intent of this measure is to authorize the Director of Finance to issue general obligation bonds to finance capital improvement projects for irrigation systems.

Your Committees received testimony in support of this measure from the Department of Agriculture; Agribusiness Development Corporation; Molokai Irrigation System User Advisory Board; Hawaiʻi Farm Bureau; Maui County Farm Bureau; Molokai Farm Bureau; Local Food Coalition; Land Use Research Foundation of Hawaii; Hawaii Cattlemen's Council, Inc.; Larry Jefts Farms, LLC; Hawaii Crop Improvement Association; and three individuals.

Your Committees received testimony in opposition to this measure from the Hawaiʻi Food+ Policy.

Your Committees find that reliable irrigation systems are the lifelines of Hawaii's agricultural community. To ensure that the State's agricultural crops receive a steady and dependable supply of water, irrigation systems need to be repaired, properly maintained, and improved to meet agricultural water requirements and to address extended water droughts. According to testimony received by your Committees, this measure provides the necessary resources to strengthen Hawaii's irrigation infrastructure, support agricultural viability, and ensure that water remains available for farming and ranching operations throughout the State.

Your Committees have amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

Your Committees find that this measure contains an unspecified appropriation amount. According to testimony from the Department of Agriculture, the estimated funding for two additional state irrigation system improvements are $2,400,000 for the first year of the biennium and $4,100,000 in the second year of the biennium for the planning, design, and construction of improvements to the Waimea Irrigation System on Hawaii island and $800,000 for the first year of the biennium and $1,000,000 for the second year of the biennium for the planning, land acquisition, design, and construction of improvements to agricultural infrastructure improvements statewide.

Further, according to testimony from the Agribusiness Development Corporation, estimates for key irrigation system projects are as follows: $10,000,000 to $15,000,000 for the Waiahole Irrigation System on Oahu; $8,000,000 to $12,000,000 for the Molokai Irrigation System; $20,000,000 for the East Maui Irrigation System; $5,000,000 to $8,000,000 for the Kohala Ditch System on Hawaii island; $12,000,000 to $18,000,000 for the Upcountry Maui Irrigation System; $10,000,000 to $12,000,000 for the East Kauai Irrigation System; $6,000,000 to $9,000,000 for the Kokee Irrigation System on Kauai; $10,000,000 to $14,000,000 for the Kekaha Irrigation System on Kauai; and $12,000,000 to $15,000,000 for the Wahiawa Irrigation System on Oahu.

Should your Committee on Ways and Means choose to deliberate on this measure, your Committees respectfully request that it consider these amounts in general obligation bonds to finance capital improvement projects for irrigation systems across the State.

As affirmed by the records of votes of the members of your Committees on Agriculture and Environment and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1086, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1086, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________ LORRAINE R. INOUYE, Chair

________________________________ MIKE GABBARD, Chair