STAND. COM. REP. NO. 2225

Honolulu, Hawaii

RE: S.B. No. 2398

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Energy and Intergovernmental Affairs and Housing, to which was referred S.B. No. 2398 entitled:

"A BILL FOR AN ACT RELATING TO RESIDENTIAL HOUSING UTILITIES,"

beg leave to report as follows:

The purpose and intent of this measure is to require county boards of water supply to publicly disclose through its website service connection availability for residential permitting and construction.

Your Committees received testimony in support of this measure from the Hawaiʻi Association of REALTORS and Hawaiʻi YIMBY.

Your Committees received testimony in opposition to this measure from the Honolulu Board of Water Supply, Department of Water Supply of the County of Hawaiʻi, and Office of the Mayor of the County of Maui.

Your Committees find that water systems are considered critical infrastructure by the federal government and provide essential water service for both agriculture and residential purposes throughout the State. Reliable access to water is one of the most basic requirements for housing, yet uncertainty about water service availability continues to delay or halt residential construction and permitting across the State. Your Committees further find that in the midst of a severe housing shortage and affordability crisis, uncertainty around infrastructure can add unnecessary delays, costs, and risk to housing projects. By requiring the county boards of water supply to provide service connection availability information, this measure will help align housing development with real-world infrastructure conditions.

Your Committees acknowledge the testimony from the Honolulu Board of Water Supply and Department of Water Supply of the County of Hawaii expressing concerns regarding critical infrastructure safety, generalized maps ambiguity, the burdens of contested cases, and increased liability risk. Therefore, amendments to this measure are necessary to address these concerns.

Accordingly, your Committees have amended this measure by:

(1) Clarifying that the boards of water supply shall publish generalized reference maps and information rather than detailed or specific data;

(2) Inserting language that authorizes the boards of water supply to publish a disclaimer that the reference maps and accompanying data is preliminary;

(3) Deleting language that would have allowed a parcel owner to appeal any map or analysis published by the boards of water supply;

(4) Deleting language that would have authorized residential building permit applicants and related agencies to rely on the published maps;

(5) Inserting an effective date of July 1, 2050, to encourage further discussion; 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 Energy and Intergovernmental Affairs and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2398, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2398, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committees on Energy and Intergovernmental Affairs and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ GLENN WAKAI, Chair