STAND. COM. REP. NO. 1244

Honolulu, Hawaii

RE: H.B. No. 1365

H.D. 2

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 H.B. No. 1365, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF AGRICULTURE,"

beg leave to report as follows:

The purpose and intent of this measure is to enhance irrigation water access by appropriating funds to the Department of Agriculture for a Non-Potable Water Wells Pilot Program to prepare an environmental impact statement or environmental assessment for the drilling of non-potable water wells on individual parcels at Panaewa Agricultural Park and Panaewa farm lots.

Your Committees received testimony in support of this measure from the Department of Agriculture, Department of Hawaiian Home Lands, Hawaiʻi Farm Bureau, Maui County Farm Bureau, Chamber of Commerce Hawaii, Hawaiʻi Food+ Policy, Hawaii Floriculture and Nursery Association, and five individuals.

Your Committees find that a key factor contributing to the decline of agricultural production in the State is the lack of dedicated access to water. Your Committees recognize that developing non-potable water wells could free up potable water for residential use and provide a more cost-effective and sustainable water source for agricultural operations. This measure therefore seeks to support and encourage local agricultural production and the State's self-sustainability goals.

According to testimony received by your Committees, the Panaewa farm lots referenced in this measure consists of parcels or property under the jurisdiction of the Department of Hawaiian Home Lands and that lessee beneficiaries with existing cesspools within proximity of the Panaewa farm lots referenced could potentially contaminate nearby wells and the aquifer. Amendments to this measure are therefore necessary to address this issue.

Accordingly, your Committees have amended this measure by:

(1) Requiring the Department of Agriculture to consult and coordinate with the Department of Hawaiian Home Lands on the location and distribution of water from non-potable water wells before and after the completion of an environmental impact statement or environmental assessment to drill non-potable water wells on individual parcels at Panaewa Agricultural Park and Panaewa farm lots; and

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

Your Committees note that this measure contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committees respectfully request that it consider inserting an appropriation amount of $1,500,000 for each fiscal year of the biennium for a Non-Potable Water Wells Pilot Program to prepare an environmental impact statement or environmental assessment for the drilling of non-potable water wells on individual parcels at Panaewa Agricultural Park and Panaewa farm lots.

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 H.B. No. 1365, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1365, H.D. 2, 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