REPORT TITLE:
Watershed Protection


DESCRIPTION:
Establishes a watershed protection trust fund to fund public and
private watershed management projects benefiting water quality;
water quantity, and general watershed values within designated
watershed areas.  Establishes a review board to identify
watershed management areas.  Imposes a watershed protection tax.
Effective 07/01/01.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO WATERSHED PROTECTION.



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

 1      SECTION 1.  Chapter 174C, Hawaii Revised Statutes, is
 
 2 amended by adding a new part to be appropriately designated and
 
 3 to read as follows:
 
 4            "PART    .  WATERSHED PROTECTION TRUST FUND
 
 5      §174C-A  Findings and purpose.  The legislature finds that
 
 6 Hawaii's forests function as critical watersheds and are the
 
 7 primary source of fresh water for the islands.  Hawaii's native
 
 8 forests in particular have evolved into efficient ecosystems that
 
 9 capture and store appreciably more water than any other natural
 
10 milieu.  The forested watersheds, both native and non-native, are
 
11 vital recharge areas for Hawaii's underground aquifers and a
 
12 dependable source of clean water for its streams.
 
13      The legislature finds that the relationship of Hawaii's
 
14 forested uplands to a dependable supply of clean fresh water was
 
15 recognized over a century ago.  During that period, public and
 
16 private interests recognized that years of extensive cattle
 
17 grazing and other land use practices contributed significantly to
 
18 the degradation of the forests.  Public and private concerns
 
19 about water supply and quality were the impetus for placing the
 

 
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 1 forests into reserves and undertaking massive reforestation at
 
 2 the turn of the century.  The legislature finds that since then,
 
 3 public and private investment in watershed protection and
 
 4 management has increasingly diminished and, once again, our
 
 5 forested watersheds are steadily degrading.  Moreover, over the
 
 6 last one hundred years, Hawaii has lost half of its native
 
 7 forests.
 
 8      The legislature recognizes that fresh water is not an
 
 9 infinite resource and that its high quality, quantity, and
 
10 sustainability are essentially linked to the existence of high
 
11 quality water recharge areas.  The legislature finds that there
 
12 are presently approximately two million acres of major watershed
 
13 areas statewide.  The purpose of this chapter is to establish a
 
14 dedicated source of funds to protect, preserve, and enhance
 
15 important watershed areas as essential and sustainable sources of
 
16 fresh water.  The legislature finds that the protection,
 
17 preservation, and enhancement of important watershed areas and
 
18 any appropriations, expenditures, and levying of taxes for the
 
19 purpose of this chapter are in the public interest and of
 
20 statewide concern and vital to the future welfare of the State
 
21 and its people.
 
22      §174C-B  Definitions.  The following terms, wherever used or
 
23 referred to in this part, shall have the following meanings
 

 
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 1 unless a different meaning clearly appears from the context:
 
 2      "Board" means the watershed protection trust fund review
 
 3 board.
 
 4      "Trust fund" means the watershed protection trust fund.
 
 5      "Water recharge and protection area" means a non-regulatory
 
 6 designation used by the commission to identify a watershed area,
 
 7 on public or private land, which contributes to domestic water
 
 8 supplies and where public or private management activities are
 
 9 needed to enhance, protect, and manage the vegetative cover and
 
10 soil, retard rapid runoff of storm flows, prevent soil erosion,
 
11 and improve infiltration of water though the soil to optimize
 
12 recharge of surface and groundwater supplies.
 
13      §174C-C  Watershed protection trust fund established.(a)
 
14 There is established within the state treasury a watershed
 
15 protection trust fund to be administered by the commission on
 
16 water resource management to implement the purposes of this part.
 
17      (b)  The purpose of the trust fund is to fund public and
 
18 private watershed management projects and activities benefiting
 
19 water quality, water quantity, and general watershed values
 
20 within designated watershed management areas.  The trust fund
 
21 shall be used to fund projects or activities that manage and
 
22 protect water recharge and protection areas including watershed
 
23 maintenance and enhancement projects within those areas,
 

 
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 1 including but not limited to erosion prevention and control,
 
 2 reforestation, alien species control and eradication, exclusion
 
 3 of stock, and control of feral animals.
 
 4      (c)  Appropriations, contributions, grants, and donations
 
 5 from public and private sources and any other moneys designated
 
 6 by law may be deposited into the trust fund. Interest accrued and
 
 7 earnings on the investment of the assets of the trust fund shall
 
 8 be credited to and become a part of the trust fund.  Any balance
 
 9 in the trust fund at the end of a fiscal year shall be carried
 
10 forward to the next fiscal year.
 
11      (d)  In consultation with and after consideration of the
 
12 recommendations of the watershed protection trust fund review
 
13 board, the commission shall designate water recharge and
 
14 protection areas.  The commission shall approve watershed
 
15 management projects and activities to be funded by the trust fund
 
16 based on recommendations submitted to the commission by the
 
17 board.
 
18      (e)  Pursuant to chapter 91, the commission shall adopt
 
19 rules to carry out the purposes of this part.
 
20      §174C-D  Watershed protection trust fund review board;
 
21 established.(a)  There is established under the commission on
 
22 water resource management a watershed protection trust fund
 
23 review board.  The board shall consist of nine members who shall
 

 
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 1 be appointed in the manner and serve for the term set forth in
 
 2 section 26-34.  Two members shall be persons possessing
 
 3 professional qualifications as evidenced by an academic degree in
 
 4 fields such as hydrology or geology.  Two members shall be
 
 5 persons possessing professional qualifications as evidenced by an
 
 6 academic degree in fields such as biology or ecology.  Each
 
 7 county water agency shall appoint a member to the board.  The
 
 8 chairperson of the board of land and natural resources or a
 
 9 designated representative shall serve as an ex officio voting
 
10 member of the board.
 
11      (b)  The members of the board shall serve without
 
12 compensation but shall be reimbursed for expenses, including
 
13 travel expenses, necessary for performance of their duties.
 
14      §174C-E  Watershed protection trust fund review board;
 
15 powers and duties.  In addition to any other powers and duties
 
16 granted by this part, the board shall:
 
17      (1)  Identify and recommend to the commission water recharge
 
18           and protection areas;
 
19      (2)  Develop and recommend to the commission criteria for
 
20           eligible watershed management projects;
 
21      (3)  Develop and recommend to the commission procedures and
 
22           criteria for selecting eligible watershed management
 
23           projects;
 

 
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 1      (4)  Review watershed management project proposals for
 
 2           funding from the trust fund; and
 
 3      (5)  Recommend to the commission for approval watershed
 
 4           management projects within watershed management areas
 
 5           and the amount of funds from the trust fund to allocate
 
 6           for such projects."
 
 7      SECTION 2.  The Hawaii Revised Statutes is amended by adding
 
 8 a new chapter to be appropriately designated and to read as
 
 9 follows:
 
10                             "CHAPTER
 
11                     WATERSHED PROTECTION TAX
 
12      §   -1  Imposition of tax.  There shall be levied, assessed,
 
13 and collected a watershed protection tax on the domestic use of
 
14 water from municipal water systems at the rate of 5 cents per one
 
15 thousand gallons of water used.  The tax shall be collected by
 
16 the county water agency as part of its regular billing to its
 
17 customers.
 
18      §   -2  Disposition of taxes.  All taxes collected under
 
19 this chapter shall be paid into the watershed protection trust
 
20 fund established in section 174C-C."
 
21      SECTION 3.  Pursuant to article VIII, section 5, of the
 
22 Hawaii state constitution, the State shall share in the cost
 
23 incurred by the county water agencies in the collection of the
 

 
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 1 watershed protection tax established under chapter   , Hawaii
 
 2 Revised Statutes.
 
 3      SECTION 4.  In codifying the new part added to chapter 174C,
 
 4 Hawaii Revised Statutes, by section 1 of this Act, the revisor of
 
 5 statutes shall substitute appropriate section numbers for the
 
 6 letters used in the designations of those new sections.
 
 7      SECTION 5.  This Act shall take effect on July 1, 2001.