Bill Text: HI HB2690 | 2024 | Regular Session | Amended

Hawaii House Bill 2690

Bill Title: Relating To Water.

Spectrum: Moderate Partisan Bill (Democrat 30-4)

Status: (Engrossed - Dead) 2024-04-26 - Conference Committee Meeting will reconvene on Friday, 04-26-24 at 1:00PM in Conference Room 229. [HB2690 Detail]

Download: Hawaii-2024-HB2690-Amended.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2690
THIRTY-SECOND LEGISLATURE, 2024		H.D. 2
STATE OF HAWAII		S.D. 1

A BILL FOR AN ACT

RELATING TO WATER.

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

PART I

SECTION 1. The legislature finds that the United States Navy's Red Hill Bulk Fuel Storage Facility consists of twenty steel-lined underground storage tanks that were built from 1940 to 1943. Each tank can store 12.5 million gallons of fuel; in total, the Red Hill Bulk Fuel Storage Facility can store up to two hundred fifty million gallons. The tanks are located only about one hundred feet above the United States Environmental Protection Agency's designated sole-source groundwater aquifer that provides drinking water to approximately four hundred thousand residents of the island of Oahu. Over the past eighty years, numerous spills have occurred at Red Hill. Specifically, on November 20, 2021, about ninety-three thousand individuals served by the Navy's potable water system for Joint Base Pearl Harbor-Hickam were directly affected when the Navy's Red Hill shaft was contaminated by the release of up to nineteen thousand gallons of fuel, including JP-5 jet fuel, older fuels stored at the Red Hill Bulk Fuel Storage Facility, and any additives used. Over six thousand individuals sought medical attention, and one thousand were forced to leave their homes due to the contamination. Much of the fuel released from the Red Hill Bulk Fuel Storage Facility remains in the environment, trapped within the complex geological formations beneath and near the tanks.

The legislature further finds that on May 9, 2023, officials from the State and city and county of Honolulu signed a unified statement on Red Hill, recognizing the stewardship responsibility to ensure that there is clean water on Oahu for future generations. The Red Hill Water Alliance Initiative (WAI), a working group, met regularly in 2023 since the signing of the unified statement. The Red Hill WAI posed questions, conducted research, listened to subject-matter experts, and formulated recommended policies.

The legislature also finds that the Red Hill WAI's approach of total stewardship responsibility required a stance of extending beyond statutory roles, specific responsibilities, tenure in those roles, and even personal lifetimes. Its inquiry included the pursuit of critical questions for which there may currently be no answers. Thus, the pursuit of those answers is part of the ongoing work.

The legislature notes that besides its regulatory functions under federal and state environmental laws, the State also has unique public trust responsibilities set forth in the Hawaii State Constitution, which establishes an affirmative duty of the State to preserve and protect public trust resources, including water resources.

The legislature additionally finds that the focus of the Red Hill WAI's inquiry is the remediation needs after the defueling of the tanks and removal of residual fuel and contaminants from the Red Hill Bulk Fuel Storage Facility. In particular, the Red Hill WAI is concerned with the unknowns posed by fuel contaminants already in the ground, as well as the residuals of the fuel plume in the aquifer as a result of the spill that occurred on November 20, 2021. In fact, there may be as many as 1,940,000 gallons of fuel constituents in the ground that have leaked or spilled over eight decades. Pursuant to a proactive approach, the Red Hill WAI seeks to describe the remediation it believes necessary for the future well-being of the aquifer in which there is a negligible risk to current and future water sources, including the Halawa Shaft, Halawa wells, and Aiea wells; the water distribution system; and the ecosystem, including springs, streams, and nearshore waters.

After much diligent work, the Red Hill WAI issued a public report in November 2023 that set forth its findings and recommendations. Some of the recommendations can only be addressed by the federal government, while other recommendations can be undertaken by the State and city and county of Honolulu. Moreover, the legislature finds that there must be no delay in adopting the recommendations of the Red Hill WAI, especially those that can be implemented at the state and county levels.

Therefore, the purpose of this Act is to:

(1) Establish within the office of the executive director of the commission on water resource management a policy lead and coordinator for Red Hill WAI initiatives;

(2) Create the Red Hill remediation special fund; and

(3) Appropriate funds for these purposes.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

RED HILL WATER ALLIANCE INITIATIVE

§ -1 Definitions. As used in this chapter, unless a different meaning is plainly required by the context:

"Board" means the board of land and natural resources.

"Chairperson" means the chairperson of the board of land and natural resources.

"Department" means the department of land and natural resources.

"Red Hill Water Alliance Initiative" means the group of individuals composed of the governor, speaker of the house of representatives, president of the senate, chairperson of the board of land and natural resources and commission on water resource management, president of the University of Hawaii, mayor of the city and county of Honolulu, chairperson of the Honolulu city council, and manager and chief engineer of the Honolulu board of water supply that issued a public report in November 2023 concerning the remediation of Red Hill following the defueling of the Red Hill Bulk Fuel Storage Facility.

"Special fund" means the Red Hill remediation special fund.

"WAI" means the Red Hill Water Alliance Initiative.

§ -2 Policy lead and coordination. (a) The department shall serve as the State's policy lead on WAI initiatives through the position of the WAI policy coordinator, to be placed in the office of the executive director of the commission on water resource management once the position of executive director of the commission on water resource management is established and filled pursuant to section 174C-6. The WAI policy coordinator shall work with respective state and county agencies and other groups.

(b) The WAI policy coordinator shall:

(1) Facilitate implementation and monitoring and interface with federal entities on WAI initiatives outlined in the WAI's November 2023 report;

(2) Periodically and regularly review:

(A) The health status of the ecosystem; and

(B) The state of science and opportunities for remediation and rehabilitation;

(3) Develop and maintain a public-facing test results dashboard describing the significance of results from the State and city and county of Honolulu, as part of a broader public education program; and

(4) Coordinate the implementation of a thirty-six-month public information and education program to describe, inform, and educate the general public and institutions on the post-defueling remediation phases for Red Hill to restore public trust, secure public support, and address health and environmental concerns.

(c) No later than December 1, 2024, the WAI policy coordinator shall submit a report to the legislature regarding the potential organizational structure, responsibilities, duties, and powers of a proposed Red Hill remediation authority, based on the provisions of House Bill No. 2691, introduced during the regular session of 2024, as the starting point.

§ -3 Red Hill remediation special fund. (a) There is established in the state treasury the Red Hill remediation special fund into which shall be deposited the following moneys:

(1) Appropriations by the legislature to the special fund;

(2) Gifts, donations, and grants from public agencies, including the United States government, and private persons; and

(3) All interest earned on or accrued to moneys deposited in the special fund.

(b) The special fund shall be administered by the WAI policy coordinator.

(c) The moneys in the special fund shall be used to address contamination resulting from the Red Hill Bulk Fuel Storage Facility, including monitoring, applied research, public outreach and education, and evaluation; provided that the cost of remediation of the aquifer shall be borne by the federal government.

§ -4 Cooperation by state and county agencies. All state and county agencies shall provide all information and data requested by the WAI policy coordinator within thirty calendar days; provided that the WAI policy coordinator may, in the coordinator's discretion, set a longer deadline.

§ -5 Report. The WAI policy coordinator shall submit a report of the coordinator's activities and expenditures to the legislature, governor, and mayor and city council of the city and county of Honolulu no later than December 1 of each year, beginning in 2024."

SECTION 3. The following positions, which shall be exempt from chapter 76, Hawaii Revised Statutes, are established in the office of the chairperson of the board of land and natural resources for the purposes of Red Hill WAI policy coordination:

(1) full-time equivalent ( FTE) policy coordinator;

(2) full-time equivalent ( FTE) outreach coordinator; and

(3) full-time equivalent ( FTE) administrative assistant.

SECTION 4. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriations contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriations made in this Act are necessary to serve the public interest; and

(2) The appropriations made in this Act meet the needs addressed by this Act.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for the positions identified in section 3 of this Act for Red Hill WAI policy coordination.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for ecosystem monitoring of the area surrounding the Red Hill Bulk Fuel Storage Facility by the department of land and natural resources.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

PART II

SECTION 7. The legislature finds that effective and efficient water resource management requires continuous and experienced leadership, especially given the climate crisis and urgent need to properly steward water resources to meet the affordable housing needs of local residents. On December 28, 1994, the review commission on the state water code submitted its final report to the legislature pursuant to Act 45, Session Laws of Hawaii 1987. The review commission determined that amendments to the state water code were necessary to enable the commission on water resource management to more effectively carry out its mandate pursuant to article XI, section 7, of the Hawaii State Constitution to "set overall water conservation, quality and use policies; define beneficial and reasonable uses; protect ground and surface water resources, watersheds and natural stream environments; establish criteria for water use priorities while assuring appurtenant rights and existing correlative and riparian uses and establish procedures for regulating all uses of Hawaii's water resources." Therefore, further clarification of the commission on water resource management's purpose, including its leadership structure and composition of the board, will provide greater accountability and protection of the State's waters.

The purpose of this Act is to:

(1) Allow the commission to retain independent legal counsel;

(2) Amend the scope of the commission on water resource management to include declaration of emergencies;

(3) Repeal the deputy to the chairperson of the commission on water resource management and establish the executive director of the commission on water resource management;

(4) Amend the composition of the commission on water resource management;

(5) Authorize entities to challenge an emergency order of the commission on water resource management under certain conditions; and

(6) Establish fines for certain water use offenses.

SECTION 8. Section 28-8.3, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

(1) By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

(2) By any court or judicial or legislative office of the State; provided that if the attorney general is requested to provide representation to a court or judicial office by the chief justice or the chief justice's designee, or to a legislative office by the speaker of the house of representatives and the president of the senate jointly, and the attorney general declines to provide [~~such~~] representation on the grounds of conflict of interest, the attorney general shall retain an attorney for the court, judicial, or legislative office, subject to approval by the court, judicial, or legislative office;

(3) By the legislative reference bureau;

(4) By any compilation commission that may be constituted from time to time;

(5) By the real estate commission for any action involving the real estate recovery fund;

(6) By the contractors license board for any action involving the contractors recovery fund;

(7) By the office of Hawaiian affairs;

(8) By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A;

(9) As grand jury counsel;

(10) By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;

(11) By the auditor;

(12) By the office of ombudsman;

(13) By the insurance division;

(14) By the University of Hawaii;

(15) By the Kahoolawe island reserve commission;

(16) By the division of consumer advocacy;

(17) By the office of elections;

(18) By the campaign spending commission;

(19) By the Hawaii tourism authority, as provided in section 201B-2.5;

(20) By the division of financial institutions;

(21) By the office of information practices;

(22) By the school facilities authority;

(23) By the Mauna Kea stewardship and oversight authority; [or]

(24) By the commission on water resource management; or

[~~(24)~~] (25) By a department, if the attorney general, for reasons deemed by the attorney general to be good and sufficient, declines to employ or retain an attorney for a department; provided that the governor waives the provision of this section."

2. By amending subsection (c) to read:

"(c) Every attorney employed by any department on a full-time basis, except an attorney employed by the public utilities commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation or its regional system boards, the department of commerce and consumer affairs in prosecution of consumer complaints, insurance division, the division of consumer advocacy, the University of Hawaii, the Hawaii tourism authority as provided in section 201B-2.5, the Mauna Kea stewardship and oversight authority, the commission on water resource management, the office of information practices, or as grand jury counsel, shall be a deputy attorney general."

SECTION 9. Section 84-18, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) Subject to the restrictions imposed in subsections (a) through (d), the following individuals shall not represent any person or business for a fee or other consideration regarding any legislative action or administrative action, as defined in section 97-1, for twelve months after termination from their respective positions:

(1) The governor;

(2) The lieutenant governor;

(3) The administrative director of the State;

(4) The attorney general;

(5) The comptroller;

(6) The chairperson of the board of agriculture;

(7) The director of corrections and rehabilitation;

(8) The director of finance;

(9) The director of business, economic development, and tourism;

(10) The director of commerce and consumer affairs;

(11) The adjutant general;

(12) The superintendent of education;

(13) The chairperson of the Hawaiian homes commission;

(14) The director of health;

(15) The director of human resources development;

(16) The director of human services;

(17) The director of labor and industrial relations;

(18) The chairperson of the board of land and natural resources;

(19) The director of law enforcement;

(20) The director of taxation;

(21) The director of transportation;

(22) The president of the University of Hawaii;

(23) The executive administrator of the board of regents of the University of Hawaii;

(24) The administrator of the office of Hawaiian affairs;

(25) The chief information officer;

(26) The executive director of the agribusiness development corporation;

(27) The executive director of the campaign spending commission;

(28) The executive director of the Hawaii community development authority;

(29) The executive director of the Hawaii housing finance and development corporation;

(30) The president and chief executive officer of the Hawaii tourism authority;

(31) The executive officer of the public utilities commission;

(32) The state auditor;

(33) The director of the legislative reference bureau;

(34) The ombudsman;

(35) The permanent employees of the legislature, other than persons employed in clerical, secretarial, or similar positions;

(36) The administrative director of the courts;

(37) The executive director of the state ethics commission;

(38) The executive officer of the state land use commission;

(39) The executive director of the natural energy laboratory of Hawaii authority;

(40) The executive director of the Hawaii public housing authority; and

(41) The [~~first deputy to the chairperson~~] executive director of the commission on water resource management;

provided that this subsection shall not apply to any person who has held one of the positions listed above only on an interim or acting basis and for a period of less than one hundred eighty-one days."

SECTION 10. Section 174C-5, Hawaii Revised Statutes, is amended to read as follows:

"§174C-5 General powers and duties. The general administration of the state water code shall rest with the commission on water resource management. In addition to its other powers and duties, the commission:

(1) Shall carry out topographic surveys, research, and investigations into all aspects of water use and water quality;

(2) Shall designate water management areas for regulation under this chapter where the commission, after the research and investigations mentioned in paragraph (1), shall consult with the appropriate county council and county water agency, and after public hearing and published notice, finds that the water resources of the areas are being threatened by existing or proposed withdrawals of water;

(3) Shall establish an instream use protection program designed to protect, enhance, and reestablish, where practicable, beneficial instream uses of water in the State;

(4) May contract and cooperate with the various agencies of the federal government and with state and local administrative and governmental agencies or private persons;

(5) May enter, after obtaining the consent of the property owner, at all reasonable times upon any property other than dwelling places for the purposes of conducting investigations and studies or enforcing any of the provisions of this code, being liable, however, for actual damage done. If consent cannot be obtained, reasonable notice shall be given prior to entry;

(6) Shall cooperate with federal agencies, other state agencies, county or other local governmental organizations, and all other public and private agencies created for the purpose of utilizing and conserving the waters of the State, and assist these organizations and agencies in coordinating the use of their facilities and participate in the exchange of ideas, knowledge, and data with these organizations and agencies. For this purpose the commission shall maintain an advisory staff of experts;

(7) Shall prepare, publish, and issue printed pamphlets and bulletins as the commission deems necessary for the dissemination of information to the public concerning its activities;

(8) May appoint and remove agents, including hearings officers and consultants, necessary to carry out the purposes of this chapter, who may be engaged by the commission without regard to the requirements of chapter 76 and section 78-1;

(9) May hire employees in accordance with chapter 76;

(10) May appoint and dismiss attorneys as may be necessary, who shall be exempt from chapter 76;

[~~(10)~~] (11) May acquire, lease, and dispose of real and personal property as may be necessary in the performance of its functions, including the acquisition of real property for the purpose of conserving and protecting water and water related resources as provided in section 174C-14;

[~~(11)~~] (12) Shall identify, by continuing study, those areas of the State where salt water intrusion is a threat to fresh water resources and report its findings to the appropriate county mayor and council and the public;

[~~(12)~~] (13) Shall provide coordination, cooperation, or approval necessary to the effectuation of any plan or project of the federal government in connection with or concerning the waters of the State. The commission shall approve or disapprove any federal plans or projects on behalf of the State. No other agency or department of the State shall assume the duties delegated to the commission under this paragraph; except that the department of health shall continue to exercise the powers vested in it with respect to water quality, and except that the department of business, economic development, and tourism shall continue to carry out its duties and responsibilities under chapter 205A;

[~~(13)~~] (14) Shall plan and coordinate programs for the development, conservation, protection, control, and regulation of water resources, based upon the best available information, and in cooperation with federal agencies, other state agencies, county or other local governmental organizations, and other public and private agencies created for the utilization and conservation of water;

[~~(14)~~] (15) Shall catalog and maintain an inventory of all water uses and water resources; [~~and~~]

[~~(15)~~] (16) Shall determine appurtenant water rights, including but not limited to the quantification of the amount of water and the specification of the water course or the means of access and delivery entitled to by that right, which determination shall be valid for purposes of this chapter[.]; and

(17) May declare an emergency if the commission determines, in consultation with the governor, the appropriate county, and the department of health, that there is an absence of sufficient quantity and quality of water in any area, whether within or outside of a water management area, that immediately threatens the public health, safety, and welfare. The commission may issue orders reciting the existence of the emergency and requiring those actions as the commission deems necessary to address the emergency be taken, including but not limited to apportioning, rotating, limiting, or prohibiting the use of water resources of the area; provided that an emergency order shall expire no later than one year after issuance by the commission; provided further that the order may be extended by a separate or supplementary order."

SECTION 11. Section 174C-6, Hawaii Revised Statutes, is amended to read as follows:

"§174C-6 [~~Deputy to the chairperson~~] Executive director of the commission on water resource management. (a) There shall be [~~a first deputy to the chairperson~~] an executive director of the commission on water resource management [~~("deputy for water resource management") who shall be in addition to any other first deputy to the chairperson as the chairperson of the board of land and natural resources. The deputy~~], who shall have experience in the area of water resources and shall be appointed by [~~the chairperson with the approval of a majority of~~] the commission[.] and serve at the pleasure of the commission.

(b) The duties of the [~~deputy~~] executive director for water resource management shall be to administer and implement, under the direction of the commission, the state water code [~~and all~~], the rules, and other directives [~~promulgated in accordance therewith~~] adopted by the commission. Nothing in this [~~provision~~] section shall be construed as limiting the authority of the commission as to matters regarding water resources.

(c) The position of [~~deputy~~] executive director for water resource management [~~is not~~] shall not be subject to chapter 76.

(d) The salary of the [~~deputy~~] executive director for water resource management shall be [~~as provided in section 26-53 for first deputies or first assistants to the head of any department.~~] set by the board and the executive director shall be included in any benefit program generally applicable to the officers and employees of the State.

(e) The commission shall develop and document annual goals and performance measures for the executive director that authorize the commission to annually evaluate the executive director's work to ensure compliance by the commission with statutory and constitutional requirements and achievement of its statutory and constitutional purposes.

(f) The commission shall evaluate and document the evaluation of the executive director's performance annually, or more frequently upon the request of at least four members of the commission, based on annual goals, performance measures, and other relevant criteria.

(g) The position of Red Hill Water Alliance Initiative policy coordinator, established pursuant to section -2, Hawaii Revised Statutes, shall be placed within the office of the executive director."

SECTION 12. Section 174C-7, Hawaii Revised Statutes, is amended to read as follows:

"§174C-7 Commission on water resource management. (a) There is established within the department a commission on water resource management consisting of seven members which shall have exclusive jurisdiction and final authority in all matters relating to implementation and administration of the state water code, except as otherwise specifically provided in this chapter. The commission shall be attached to the department of land and natural resources for administrative purposes only.

(b) Five members shall be appointed by the governor subject to confirmation by the senate in the manner prescribed in subsection [~~(d).~~] (e). Each member shall have substantial experience in the area of water resource management; provided that at least one member shall have substantial experience or expertise in traditional Hawaiian water resource management techniques and in traditional Hawaiian riparian usage such as those preserved by section 174C-101. Each of the members shall be eligible to serve as the chairperson of the commission upon election by a majority of the commission members.

(c) The chairperson of the board of land and natural resources [~~shall be the chairperson of the commission. The~~] and the director of health or the director's designee shall serve as [an] ex officio[[],[]] voting [~~member.~~] members, but shall be ineligible to serve as chairperson of the commission.

[~~(c)~~] (d) The members of the commission shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

[~~(d)~~] (e) In appointing a member to the commission, the governor shall select from a list submitted by a nominating committee. The nominating committee shall be composed of [~~four~~] five individuals chosen as follows: two persons appointed by the governor; one person appointed by the president of the senate; one person appointed by the speaker of the house[.]; and one person appointed by the chief executive officer of the office of Hawaiian affairs. The committee shall solicit applications and send to the governor the names of at least three individuals for each open position.

[~~(e)~~] (f) Except as otherwise provided in this chapter, the commission shall be subject to sections 26-34, 26-35, and 26-36."

SECTION 13. Section 174C-9, Hawaii Revised Statutes, is amended to read as follows:

"[[]§174C-9[]] Proceedings before the commission concerning water resources. (a) All proceedings before the commission concerning the enforcement or application of any provision of this chapter or any rule adopted pursuant thereto, or the issuance, modification, or revocation of any permit or license under this code by the commission, shall be conducted in accordance with chapter 91. Hearings regarding particular water resources shall be conducted on the island where those water resources are located.

(b) Any party to whom an emergency order is directed may challenge that order but shall immediately comply with the order pending disposition of the party's challenge. The commission shall give precedence to a hearing on the challenge over all other pending matters."

SECTION 14. Section 174C-15, Hawaii Revised Statutes, is amended to read as follows:

"§174C-15 Penalties and common law remedies. (a) The commission may enforce its rules and orders adopted pursuant to this chapter by suit for injunction or for damages or both.

(b) Any person who [~~violates any~~]:

(1) Violates any provision of this chapter[~~, or any~~];

(2) Violates any rule adopted pursuant to this chapter[~~, may~~];

(3) Violates any order of the commission;

(4) Fails to obtain a permit when a permit is required pursuant to this chapter;

(5) Fails to comply with permit conditions; or

(6) Fails to comply with standardized water audit requirements pursuant to Act 169, Session Laws of Hawaii 2016,

shall be subject to a fine imposed by the commission. [~~Such~~] The fine shall be not less than $50 and shall not exceed [~~$5,000. For a continuing offense, each day during which the offense is committed is a separate violation.~~] $25,000 per violation. Each day that a violation exists or continues to exist shall constitute a separate offense. Penalties for continuing violations shall be assessed from the earliest known date of the violation. The earliest known date of a violation shall be determined by the commission by a preponderance of the evidence; provided that if the earliest known date cannot be determined by a preponderance of evidence, penalties for continuing violations shall be assessed from the earliest date the commission is made aware of the violation.

(c) When imposing a penalty, the commission shall consider the following factors, which shall include but not be limited to:

(1) The nature, circumstances, extent, gravity, and history of the violation and of any prior violations;

(2) The economic benefit to the violator, or anticipated by the violator, resulting from the violation;

(3) The opportunity, difficulty, and history of corrective action;

(4) Good faith efforts to comply;

(5) Degree of culpability; and

(6) Other matters as justice may require.

[~~(c)~~] (d) No provision of this chapter shall bar the right of any injured person to seek other legal or equitable relief against a violator of this chapter.

[~~(d)~~] (e) Except as otherwise provided by law, the commission or its authorized representative by proper delegation [~~may~~] shall set, charge, and collect administrative fines [or]; may bring legal action to recover administrative fees and costs as documented by receipts or affidavit, including [~~attorneys'~~] attorney's fees and costs; [or] and may bring legal action to recover administrative fines, fees, and costs, including [~~attorneys'~~] attorney's fees and costs, or payment for damages resulting from a violation of this chapter or any rule adopted pursuant to this chapter."

SECTION 15. Section 174C-62, Hawaii Revised Statutes, is amended to read as follows:

"[[]§174C-62[]] Declaration of water shortage. (a) The commission shall formulate a statewide plan for implementation during periods of water shortage. As a part of the plan, the commission shall adopt a reasonable system of permit classification according to source of water supply, method of extraction or diversion, use of water, or a combination thereof.

(b) The commission, by rule, may declare that a water shortage exists within all or part of an area, whether within or outside of a water management area, when insufficient water is available to meet the requirements of the permit system or when conditions [~~are such as to~~] require a temporary reduction in total water use within the area to protect water resources from serious harm. The commission shall publish a set of criteria for determining when a water shortage exists[.], including but not limited to impacts and effects of the climate crisis.

(c) In accordance with the plan adopted under subsection (a), the commission may impose [~~such~~] restrictions on one or more classes of permits and outside of management areas on well and stream diversion owners and operators as may be necessary to protect the water resources of the area from serious harm and to restore them to their previous water quantity or chloride level condition.

(d) A declaration of water shortage and any measures adopted pursuant thereto may be rescinded by rule by the commission.

(e) When a water shortage is declared, the commission shall cause a notice [~~thereof~~] of the water shortage to be published in a prominent place in a newspaper of general circulation throughout the area[.] and on the commission's website. The notice shall be published each day for the first week of the shortage and once a week [~~thereafter~~] for four months, followed by monthly publications until the declaration is rescinded. Publication of [~~such~~] the notice shall serve as notice to all water users in the area of the condition of water shortage.

(f) The commission shall cause each permittee in the area to be notified by regular and electronic mail of any change in the conditions of the permittee's permit, any suspension [~~thereof,~~] of the permittee's permit, or of any other restriction on the use of water for the duration of the water shortage.

(g) If an emergency condition arises due to a water shortage within any area, whether within or outside of a water management area, and if the commission finds that the restrictions imposed under subsection (c) are not sufficient to protect the public health, safety, or welfare, or the health of animals, fish, or aquatic life, or a public water supply, or recreational, municipal, agricultural, or other reasonable uses, the commission may issue orders reciting the existence of such an emergency and requiring that such actions as the commission deems necessary to meet the emergency be taken, including but not limited to apportioning, rotating, limiting, or prohibiting the use of the water resources of the area. Any party to whom an emergency order is directed may challenge such an order but shall immediately comply with the order, pending disposition of the party's challenge. The commission shall give precedence to a hearing on such challenge over all other pending matters."

PART III

SECTION 16. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 17. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 18. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 19. This Act shall take effect on July 1, 2050; provided that sections 3, 5, and 6 of this Act shall take effect on July 1, 2024.

Report Title:

DLNR; CWRM; Red Hill WAI; Policy Lead and Coordination; Red Hill Remediation Special Fund; Public Trust Purpose; Responsibilities; Commission Membership; Executive Director; Independent Legal Counsel; Emergency Order; Water Emergencies; Water Shortage Declarations; Fines; Expenditure Ceiling; Appropriation

Description:

Part I: Establishes a WAI Policy Coordinator and other positions within the Commission on Water Resource Management for coordination of Red Hill WAI initiatives. Creates the Red Hill Remediation Special Fund. Declares that the general fund expenditure ceiling is exceeded. Appropriates funds. Part II: Allows the Commission of Water Resource Management to retain independent legal counsel. Repeals the position of deputy to the chairperson of the Commission and establishes the position of Executive Director of the Commission. Amends the composition of the Commission and administratively attaches it to DLNR. Authorizes entities to challenge an emergency order of the Commission under certain conditions. Establishes fines for certain water use offenses. Amends the Commission's authority to declare water emergencies and issue orders to address them and declare water shortages and related notice requirements. Specifying that the nominating committee of the Commission shall include one person appointed by the Chief Executive Officer of the Office of Hawaiian Affairs. Declares that the general fund expenditure ceiling is exceeded. Takes effect 7/1/2050. (SDl)

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