STAND. COM. REP. NO. 2512

Honolulu, Hawaii

RE: S.B. No. 2547

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Water, Land, Culture and the Arts, to which was referred S.B. No. 2547 entitled:

"A BILL FOR AN ACT RELATING TO THE COASTAL ZONE MANAGEMENT ACT,"

begs leave to report as follows:

The purpose and intent of this measure is to amend the definition of "development" as it pertains to coastal zone management areas in the State to exempt from special management area use permit requirements state- or county-sponsored infrastructure improvement projects that are consistent with applicable county community plans.

Your Committee received testimony in support of this measure from the Office of the Mayor of the County of Maui and the Grassroot Institute of Hawaii.

Your Committee received testimony in opposition to this measure from Earthjustice and one individual.

Your Committee received comments on this measure from the Department of Land and Natural Resources and the Office of Planning and Sustainable Development.

Your Committee finds that the federal Coastal Zone Management Act established a national framework for states and territories to consider when managing coastal resources and authorized the federal government to provide financial assistance to support coastal management efforts. However, certain projects require a special management area use permit, which often takes six months to a year to review and requires a public hearing and vote by a planning commission or county council, further subjecting the project to uncertainty. This measure will expedite delivery of critical infrastructure projects and lower taxpayer costs associated with this public service.

Your Committee acknowledges the recommendations provided in testimony by the Office of Planning and Sustainable Development that the language stricken in the measure from section 205A-22, Hawaii Revised Statutes, should be reinstituted to provide clarification to county authorities and to align with appropriate definitions; and that the language added to section 205A-22, Hawaii Revised Statutes, should be amended to exclude from the definition of "development" certain projects that are exempted from an environmental assessment or determined as a finding of no significant impact under chapter 343, Hawaii Revised Statutes. Amendments to this measure are therefore necessary to adopt these recommendations.

Accordingly, your Committee has amended this measure by:

(1) Restoring existing statutory language that defines "development" as the various uses, activities, or operations on land or in or under water within a special management area;

(2) Deleting language that would have defined "development" as any use, activity, or structure, whether temporary or permanent, on land or in the water within the shoreline area that is placed, erected, or modified;

(3) Clarifying that "development" does not include state- or county-funded infrastructure improvement projects that are exempted from an environmental assessment or determined as a finding of no significant impact under chapter 343, Hawaii Revised Statutes;

(4) Inserting language that limits the purpose of the bill to apply only to zones established in Lahaina in the aftermath of the 2023 Maui wildfires that have been designated for reentry by the State or county of Maui as of January 1, 2026;

(5) Specifying that "infrastructure" includes waterlines and water facilities; waste waterlines and wastewater facilities; drainage facilities; and electrical, communications, pedestrian, and bicycle multi-modal facilities and improvements;

(6) Inserting an effective date of July 1, 2050, to encourage further discussion;

(7) Inserting a sunset date of June 30, 2029; and

(8) Amending section 1 to reflect its amended purpose.

As affirmed by the record of votes of the members of your Committee on Water, Land, Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2547, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2547, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Culture and the Arts,

________________________________

CHRIS LEE, Chair