Hawaii-2023-SB1573-Amended

SECTION 1. The legislature finds that the State is suffering from an acute shortage of affordable housing, with the rapidly rising cost of housing in the State consistently pricing out local renters and homeowners. The development of new housing is hindered by barriers such as geographic limitations, lack of major infrastructure, and government regulation. The legislature recognizes that the State's ongoing housing crisis warrants a thorough examination of every impediment to the development of affordable housing, including access to potable water.

The legislature also finds that under article XI, section 7, of the Hawaii State Constitution, "[t]he State has an obligation to protect, control and regulate the use of Hawaii's water resources for the benefit of its people." Thus, the Hawaii water plan, established under the state water code pursuant to chapter 174C, Hawaii Revised Statutes, implements a comprehensive water resources plan to address supply and conservation of the State's water resources.

The Hawaii water plan consists of four parts, with a different entity responsible for preparing each part, including:

(1) A water resource protection plan, prepared by the commission on water resource management;

(2) A water use and development plan, prepared by each county;

(3) A state water projects plan, prepared by the engineering division of the department of land and natural resources; and

(4) A water quality plan, prepared by the department of health.

Each component considers the other aspects of the Hawaii water plan, therefore requiring the cooperation amongst the various entities involved.

The legislature additionally finds that in recent years, determinations made by the commission on water resource management have conflicted with the recommended water resource distribution determined in various counties' water use and development plans, which align future demand with the county's land use plans, the community's priorities, climate change impacts, and other considerations. The legislature believes that the counties are well-equipped to determine water allocation to future land use, as prescribed by the Hawaii water plan, to maintain consistency with its respective county zoning and planning policies.

Accordingly, the purpose of this Act is to establish a working group that will ascertain the State's available water resources and water system source capacity and streamline well permit approval processes to ensure available water supply to further plan for the development of affordable housing.

SECTION 2. (a) There is established a working group to ascertain and address state watershed management to enable the development and construction of affordable housing projects across the State.

The working group shall be placed in the office of the governor for administrative purposes.

(b) The working group shall:

(1) Conduct an inventory of all available water resources statewide and identify appropriate aquifer replenishment as it pertains to each county water use and development plan, including the water source capacity for affordable housing development; and

(2) Streamline the well permit approval process to ensure available water supply.

(1) Mitigating impacts arising from affordable housing development;

(2) Projected water usage following the completion of affordable housing projects in each county;

(3) The adoption of rules for water allocation for each county;

(4) Defining the role of the commission on water resource management in relation to affordable housing development statewide; and

(5) The impact of federal government obligations on the development of new water sources for affordable housing.

(d) The working group shall consist of the following members:

(1) The chief housing officer, who shall serve as chairperson of the working group;

(2) The chairs of the senate and house of representative standing committees on housing;

(3) The executive director of the Hawaii housing finance and development corporation, or the executive director's designee;

(4) The chairperson of the commission on water resource management, or the chairperson's designee;

(5) The chief of the department of health clean water branch, or the chief's designee;

(6) The chief engineer of the department of land and natural resources engineering division, or the chief engineer's designee;

(7) The director of each county planning department, or the director's designees;

(8) The director of each county housing department, or the director's designees; and

(9) The chief engineer of each county board of water supply, or the chief engineer's designee.

(e) The working group shall submit an interim report of its status and progress, including any preliminary findings, to the legislature no later than September 15, 2023. The interim report shall include the working group's plan on how it intends to proceed in carrying out its duties pursuant to this Act.

(f) The working group shall submit a final report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2024.

(g) The task force shall dissolve on June 30, 2024.

SECTION 3. This Act shall take effect upon its approval.

THE SENATE	S.B. NO.	1573
THIRTY-SECOND LEGISLATURE, 2023		S.D. 2
STATE OF HAWAII