STAND. COM. REP. NO. 598

Honolulu, Hawaii

RE: S.B. No. 649

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Public Safety, Intergovernmental, and Military Affairs and Water and Land, to which was referred S.B. No. 649 entitled:

"A BILL FOR AN ACT RELATING TO WATER CONSERVATION,"

beg leave to report as follows:

The purpose and intent of this measure is to establish and appropriate funds for a financial assistance pilot program to provide county-owned public water systems with resources to implement conservation measures.

Your Committees received testimony in support of this measure from the Department of Health, County of Hawai‘i Department of Water Supply, County of Kaua‘i Department of Water, City and County of Honolulu Board of Water Supply, one member of the Maui County Council, One World One Water, Hawai‘i Community Foundation, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and two individuals. Your Committees received comments on this measure from the Department of Land and Natural Resources and County of Maui Department of Water Supply.

Your Committees find that as an island state, Hawaii has limited access to natural fresh water. County-owned public water systems supply approximately two hundred million gallons per day or eighty percent of drinking water in Hawaii.

Your Committees further find that the competition for fresh water, increasing population and development pressures, rising awareness of environmental and cultural water needs, and impacts of climate change require that Hawaii become as efficient as possible in its uses of limited fresh water supplies. Your Committees therefore find that financial assistance to county-owned public water systems and their customers to help implement water conservation measures and practices will reduce water use or waste.

Your Committees have amended this measure by:

(1) Designating each of the four county water supply departments as the respective administrative authority of the water conservation financial assistance pilot program, in lieu of the Commission on Water Resource Management;

(2) Removing the requirements that the county water supply departments solicit proposals from county-owned public water systems, prioritize proposals with non-state matching funds, and provide financial assistance to county-owned public water systems on a reimbursement basis;

(3) Removing the reimbursement cap of fifty percent of the total cost of each county water conservation incentive program;

(4) Adding that each of the four county water supply departments shall provide matching funds on a one-to-one cost share basis to match or leverage with non-state funds appropriated for the purposes of this water conservation financial assistance pilot program;

(5) Allocating the appropriated funds equally to each of the four county water supply departments and designates the respective department as the expending agency, in lieu of the Commission of Water Resource Management; and

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

As affirmed by the records of votes of the members of your Committees on Public Safety, Intergovernmental, and Military Affairs and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 649, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 649, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Public Safety, Intergovernmental, and Military Affairs and Water and Land,

________________________________ KAIALI'I KAHELE, Chair

________________________________ CLARENCE K. NISHIHARA, Chair