RELATING TO DAM AND RESERVOIR SAFETY.

SB503

THE SENATE

S.B. NO.

503

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to dam and RESERVOIR safety
.

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

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SECTION

1
.
�
The legislature
finds that while the current dam and reservoir safety rules, regulations, guidelines,
and laws move in the direction of fulfilling several public safety initiatives,
the aggregation of these regulations are producing a significantly negative
impact on the owners and operators of existing dams.
�
These negative impacts are often significant
and latently observed and experienced solely by the dam owners.
�

The
legislature further finds that several underlying issues impede dam owners'
ability to implement the necessary repairs to dams located on their property.
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The weight of the current regulations place a
significant burden on dam owners, who do not possess the reserve capital or funding
capability to satisfy the requirements issued by the department of land and
natural resources.
�
These regulations are
inherently onerous and represent an unfunded mandate on independent dam owners.

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The legislature additionally finds that the
current dams, reservoirs, and spillways in the State function as key agricultural
components to the overall environmental health of the State, providing
conventional and practical benefits of water storage; the potentiality of tying
into water delivery systems; erosion control; reductions in sediment loading;
wildfire management capabilities; and structures that can serve as a reserve
supply of potable water sources.
�
However,
as the legislature has argued and demonstrated in previous legislative
sessions, these benefits are often offset by the increases in compounding costs
that are experienced by owners over time, in the form of higher costs for
materials, shipping, manufacturing, and labor, which are considered in excess
of the existing operating costs that owners experience.
�
Furthermore, access to the necessary capital
to implement such improvements are consistently out of reach for private dam
owners, and cost estimates often fluctuate according to economic shifts in the
cost of goods and services.

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The legislature notes that Act 232, Session
Laws of Hawaii 2024, established a special fund to receive funds for the dam
and appurtenance improvement or removal grant program and to reappropriate
funds for the program to financially assist owners of private dams to upkeep
these structures.
�
However, private dam
owners may not possess the specialized knowledge, financial capacity, or
ability to locate assessment firms to conduct rigorous unbiased risk
assessments, which may lead to potential delays or inaccurate reporting.
�
In contrast, the legislature finds that the department
of land and natural resources is uniquely positioned to assess the risks posed
by dams, spillways, and reservoirs in the State due to its access to technical
resources, comprehensive oversight capabilities, and public safety mandates.
�
By shifting the burden of proof onto the
department of land and natural resources, the State can ensure that assessments
are performed uniformly, free of conflicts of interest, and truly aligned with
public safety standards.
�

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Therefore, the legislature asserts that in
the interest of public safety and efficient resource management, the department
of land and natural resources should assume the burden of proof regarding the
determinations of risk assessment associated with dam ownership, thereby establishing
a multi-level partnership with the State, the department, and private dam
owners to ensure an equitable and efficient process where the safety of Hawaii's
infrastructure and communities are prioritized by the entity best equipped to
manage it.

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The legislature concludes that the
department of land and natural resources is the most appropriate entity to
assess risks posed by dams, spillways, and reservoirs, because it has the
necessary expertise in hydrology, civil engineering, and environmental science
to accurately and consistently evaluate the safety of these critical structures.
�

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Accordingly, the purpose of this Act is to:

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(1)
�
Require
the department of land and natural resources to incorporate into their
assessment process the possession of dam insurance or the active seeking of dam
insurance by private dam owners, as part of their valid mitigation strategies,
in conjunction with approved modifications or repairs;

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(2)
�
Authorize the department of land and natural resources to
relax any restrictions and stringent standards on a dam or appurtenance upon
verification of certain insurance coverage;

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(3)
�
Authorize the department of land and natural
resources to consider a dam, reservoir, or appurtenance is safe absent certain
documents;

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(4)
�
Shift the burden of proof onto the department
of land and natural resources to find that a dam is categorized as high-risk
;
and

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(5)
�
Establish
additional requirements for the department of land and natural resources and
board of land and natural resources regarding the dam and appurtenance improval
or removal grant program.

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SECTION 2.
�

Chapter 179D, Hawaii Revised Statutes, is amended by adding two new
sections to part II to be appropriately designated and to read as follows:

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"
�179D-
�
Inspections; risk assessment; risk
mitigation; insurance coverage; burden of proof; high hazard.
�
(a)
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In conducting investigations pursuant to this part, the department shall:

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(1)
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Consider
whether an owner has or is in the process of obtaining insurance coverage that:

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(A)
�
Subjects the dam, reservoir, or appurtenance to
reclassification; and

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(B)
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Mitigates the risks associated with the dam, reservoir, or
spillway.

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(b)
�

The department shall have the burden of proof to establish that a dam,
reservoir, or appurtenance is a high hazard dam, reservoir, or appurtenance.

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(c)
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Any finding that a dam, reservoir, or appurtenance qualifies as high
hazard shall be supported by:

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(1)
�
An
engineering report from a licensed engineer of the department that finds that the
failure of the dam, reservoir, or appurtenance will result in probable loss of
human life; and

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(2)
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An
engineering study or report from a certified hydraulic engineer that considers:

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(A)
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Distances, including the distance to potentially threatened
residences and properties;

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(B)
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Natural water courses;

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(C)
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Percolation rates of the soil; and

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(D)
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A realistic assessment that the failure of the dam, reservoir,
or appurtenance will result in probable loss of human life.

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(d)
�

The department may consider, as part of their assessment process, that
any dam, reservoir, or appurtenance is safe absent the documents required under
subsection (c).

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(e)
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The department may relax any restrictions and stringent standards on a
dam, reservoir, or appurtenance; provided that the owner verifies valid
insurance coverage that meets the conditions of subsection (a).
"

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SECTION
3
.
�
Section 179D-31, Hawaii Revised Statutes, is
amended to read as follows:

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"�179D-31
�
Dam and appurtenance improvement or removal
grant program; special fund; established.
�

(a)
�
There is established a dam
and appurtenance improvement or removal grant program, to be developed and
administered by the department for the improvement or removal of deficient dams
in the State.

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(b)
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The dam and appurtenance improvement or removal grant program shall
provide funding to owners of private dams for plans, design, construction, and
equipment to improve or remove deficient dams and appurtenances, as determined
by the department.

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(c)
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Each award shall be approved by the board before disbursement and shall
be subject to conditions imposed by the board.
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The board shall consider any existing insurance policy in its
assessment of risks associated with a dam.

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(d)
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The department [
may
]
shall
award grants based on criteria
that shall be developed by the department.
�

The criteria developed by the department under this section shall be
made publicly available.

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(e)
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Each applicant shall meet the following requirements:

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(1)
�
The
applicant shall be an owner of a high hazard or significant hazard dam or
appurtenance that is regulated under this chapter;

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(2)
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The
applicant shall be the owner of a regulated dam or appurtenance that has been
determined to have one or more deficiencies; provided that priority shall be
given to dams or appurtenances rated to be in poor or unsatisfactory condition;

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(3)
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The
applicant shall indicate on the application that the proposed plans, design,
construction, and equipment shall be intended for remediation or removal of the
dam or appurtenance;

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(4)
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If
the applicant is an entity other than an individual, the applicant shall:

���������
(A)
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Be
licensed to conduct business in the State; and

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(B)
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Have
bylaws or policies that describe the manner in which business is conducted,
prohibit nepotism, and provide for the management of potential conflicts of
interest;

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(5)
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The
applicant shall agree to comply with all applicable federal and state laws
prohibiting discrimination against any person on the basis of race, color,
national origin, religion, creed, sex, age, sexual orientation, disability, or
any other characteristic protected under applicable federal or state law;

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(6)
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The
applicant shall agree that grant moneys are not to be used for purposes of
entertainment or perquisites;

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(7)
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The
applicant shall agree that all activities and improvements undertaken with
funds received shall comply with applicable federal, state, and county laws,
including statutes, ordinances, applicable building codes, and rules;

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(8)
�
The
applicant shall agree to make available to the department all records that the
applicant may have relating to the grant and allow state agencies to monitor
the applicant's compliance with the purpose of this chapter;

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(9)
�
The
applicant shall establish, to the satisfaction of the department, that
sufficient funds are available for the completion of plans, design, and
construction, or equipment needed for the purpose for which the grant is
awarded; provided that the grant amount shall be included among the calculation
of sufficient funds; and

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(10)
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The
applicant shall comply with other requirements or conditions as the department
or board may prescribe[
.
]
; provided that:

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(A)
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The board shall prescribe other requirements or conditions in a
manner that is consistent with the principles of fairness and equal treatment;

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(B)
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The other requirements or conditions shall be:

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���������
(i)
�
Based on reasonable and justifiable grounds
and relevant to the purpose for which the grant is awarded;

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(ii)
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Communicated to the applicant in a clear, transparent, and
reasonable manner; and

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(iii)
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Readily available to the applicant in writing, with one copy
submitted to the applicant and another made publicly available; and

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(C)
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The applicant may seek clarification of the other requirements
or conditions prescribed.

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(f)
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The applicant may appeal the board's determination of its application in
accordance with section 179D-7.

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[
(e)
]
�
(g)
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Notwithstanding any provision to the contrary, there is established in
the department a special fund to be designated as the dam and appurtenance
improvement or removal grant program special fund.
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The fund shall be administered by the
department.
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The following shall be
deposited into the dam and appurtenance improvement or removal grant program
special fund:

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(1)
�
Appropriations
by the legislature;

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(2)
�
Moneys
derived from public or private sources to benefit dam and appurtenance
improvement or removal;

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(3)
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Any
other moneys collected pursuant to this section or any rules adopted pursuant
to this section; and

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(4)
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Moneys
derived from interest, dividends, or other income from other sources.

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[
(f)
]
�
(h)
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The department may expend moneys from the dam and appurtenance
improvement or removal grant program special fund in accordance with this
section and other purposes for the administration of the dam and appurtenance
improvement or removal grant program under this section or any rule adopted
pursuant to this section, including but not limited to funding for permanent or
temporary positions."

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SECTION 4.
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Statutory material to be repealed is bracketed and stricken.
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New statutory material is underscored.

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SECTION 5.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

DLNR; BLNR;
Dam and Reservoir Safety; Inspections; Risk Assessment;
Risk Mitigation;
Dam Insurance; High Hazard; Burden of Proof; Dam and Appurtenance Improvement
or Removal Grant Program

Description:

Requires the Department of Land and Natural Resources to incorporate
into their assessment process the possession of dam insurance or the active
seeking of dam insurance by private dam owners, as part of their valid
mitigation strategies, in conjunction with approved modifications or repairs.
�
Authorizes the DLNR to relax any restrictions
and stringent standards on a dam or appurtenance upon verification of certain
insurance coverage.
�
Authorizes the DLNR to
consider a dam, reservoir, or appurtenance is safe absent certain
documents.
�
Shifts the burden of proof to
the DLNR to find that a dam is categorized as high-risk.
�
Establishes additional requirements for the DLNR
and Board of Land and Natural Resources regarding the Dam and Appurtenance
Improvement or Removal Grant Program.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.