STAND. COM. REP. NO. 397

Honolulu, Hawaii

RE: S.B. No. 1541

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Economic Development and Tourism, to which was referred S.B. No. 1541 entitled:

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

begs leave to report as follows:

The purpose and intent 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; Kunia Village Title Holding Corporation; Hawaii Agriculture Research Center; Ulupono Initiative; Bayer in Hawaii; Hawaiʻi Farm Bureau; Hawaiʻi Farmers Union United; Larry Jefts Farms, LLC; Land Use Research Foundation of Hawaii; Hawaii Crop Improvement Association; and two individuals.

Your Committee finds that the Waiahole Water System plays an essential role in supporting agriculture on Oahu. The System provides water through irrigation to multiple businesses on the Central and Leeward regions of the island, where water can be scarce and costly. However, the Agribusiness Development Corporation currently owes funds towards a bond debt service on the System and the System needs maintenance repairs. This measure resolves both issues by appropriating funds for these purposes, providing for the continued operation and maintenance of this vital infrastructure.

Your Committee has amended this measure by:

(1) Changing the appropriations to unspecified amounts;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

Your Committee notes that this measure, as amended, contains unspecified appropriation amounts. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an appropriation amount of:

(1) $4,500,000 for fiscal year 2025-2026 to pay the bond debt service on the Waiahole water system; and

(2) $2,000,000 for fiscal year 2025-2026 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 Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1541, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1541, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,

________________________________

LYNN DECOITE, Chair