RELATING TO WATER.

SB543

THE SENATE

S.B. NO.

543

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to water
.

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

PART I

����
SECTION
1.
�
The legislature finds that the United
States Navy's Red Hill Bulk Fuel Storage Facility consists of twenty
steel-lined underground storage tanks that were built from 1940 to 1943.
�
Each tank can store 12.5 million gallons of
fuel; in total, the Red Hill Bulk Fuel Storage Facility can store up to two
hundred fifty million gallons.
�
The tanks
are located only about one hundred feet above the United States Environmental
Protection Agency's designated sole-source groundwater aquifer that provides drinking
water to approximately four hundred thousand residents of the island of
Oahu.
�
Over the past eighty years,
numerous spills have occurred at Red Hill.
�

Specifically, on November 20, 2021, about ninety-three thousand
individuals served by the Navy's potable water system for Joint Base Pearl
Harbor-Hickam were directly affected when the Navy's Red Hill shaft was
contaminated by the release of up to nineteen thousand gallons of fuel,
including JP-5 jet fuel, older fuels stored at the Red Hill Bulk Fuel Storage
Facility, and any additives used.
�
Over
six thousand individuals sought medical attention, and one thousand were forced
to leave their homes due to the contamination.
�

Much of the fuel released from the Red Hill Bulk Fuel Storage Facility
remains in the environment, trapped within the complex geological formations
beneath and near the tanks.

����
The
legislature further finds that on May 9, 2023, officials from the State and
city and county of Honolulu signed a unified statement on Red Hill, recognizing
the stewardship responsibility to ensure that there is clean water on Oahu for
future generations.
�
The Red Hill Water
Alliance Initiative (WAI), a working group, met regularly in 2023 since the
signing of the unified statement.
�
The
Red Hill WAI posed questions, conducted research, listened to subject-matter
experts, and formulated recommended policies.

The legislature also finds that the Red Hill WAI's approach of
total stewardship responsibility required a stance of extending beyond
statutory roles, specific responsibilities, tenure in those roles, and even
personal lifetimes.
�
Its inquiry included
the pursuit of critical questions for which there may currently be no
answers.
�
Thus, the pursuit of those
answers is part of the ongoing work.

����
The
legislature notes that besides its regulatory functions under federal and state
environmental laws, the State also has unique public trust responsibilities set
forth in the Hawaii State Constitution, which establishes an affirmative duty
of the State to preserve and protect public trust resources, including water
resources.

����
The
legislature additionally finds that the focus of the Red Hill WAI's inquiry is
the remediation needs after the defueling of the tanks and removal of residual
fuel and contaminants from the Red Hill Bulk Fuel Storage Facility.
�
In particular, the Red Hill WAI is concerned
with the unknowns posed by fuel contaminants already in the ground, as well as
the residuals of the fuel plume in the aquifer as a result of the spill that
occurred on November 20, 2021.
�
In fact,
there may be as many as 1,940,000 gallons of fuel constituents in the ground
that have leaked or spilled over eight decades.
�

Pursuant to a proactive approach, the Red Hill WAI seeks to describe the
remediation it believes necessary for the future well-being of the aquifer in
which there is a negligible risk to current and future water sources, including
the Halawa Shaft, Halawa wells, and Aiea wells; the water distribution system;
and the ecosystem, including springs, streams, and nearshore waters.

After much diligent work, the Red Hill WAI issued a public
report in November 2023 that set forth its findings and recommendations.
�
Some of the recommendations can only be
addressed by the federal government, while other recommendations can be
undertaken by the State and city and county of Honolulu.
�
Moreover, the legislature finds that there
must be no delay in adopting the recommendations of the Red Hill WAI,
especially those that can be implemented at the state and county levels.

����
Therefore,
the purpose of this Act is to:

����
(1)
�
Establish within the office of the executive
director of the commission on water resource management a policy lead and
coordinator for Red Hill WAI initiatives;

����
(2)
�
Create the Red Hill remediation special
fund; and

����
(3)
�
Appropriate funds for these purposes.

����
SECTION
2.
�
The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as
follows:

"
Chapter

red
hill water alliance initiative

����
�
-1
�
Definitions.
�
As used in this chapter, unless a different
meaning is plainly required by the context:

����
"Board"
means the board of land and natural resources.

����
"Chairperson"
means the chairperson of the board of land and natural resources.

����
"Department"
means the department of land and natural resources.

����
"Red
Hill Water Alliance Initiative" means the group of individuals composed of
the governor, speaker of the house of representatives, president of the senate,
chairperson of the board of land and natural resources and commission on water
resource management, president of the university of Hawaii, mayor of the city
and county of Honolulu, chairperson of the Honolulu city council, and manager
and chief engineer of the Honolulu board of water supply that issued a public
report in November 2023 concerning the remediation of Red Hill following the
defueling of the Red Hill Bulk Fuel Storage Facility.

����
"Special
fund" means the Red Hill remediation special fund.

����
"WAI"
means the Red Hill Water Alliance Initiative.

����
�
-2
�
Policy lead and coordination.
�
(a)
�

The department shall serve as the State's policy lead on WAI initiatives
through the position of the WAI policy coordinator, to be placed in the office
of the executive director of the commission on water resource management once
the position of executive director of the commission on water resource
management is established and filled pursuant to section 174C-6.
�
The WAI policy coordinator shall work with
respective state and county agencies and other groups.

����
(b)
�
The WAI policy coordinator shall:

����
(1)
�
Facilitate implementation and
monitoring and interface with federal entities on WAI initiatives outlined in
the WAI's November 2023 report;

����
(2)
�
Periodically and regularly review:

���������
(A)
�
The health status of the ecosystem; and

���������
(B)
�
The state of science and opportunities
for remediation and rehabilitation;

����
(3)
�
Develop and maintain a public-facing
test results dashboard describing the significance of results from the State
and city and county of Honolulu, as part of a broader public education program;
and

����
(4)
�
Coordinate the implementation of a
thirty-six-month public information and education program to describe, inform,
and educate the general public and institutions on the post-defueling
remediation phases for Red Hill to restore public trust, secure public support,
and address health and environmental concerns.

����
(c)
�
No later than December 1, 2025, the WAI
policy coordinator shall submit a report to the legislature regarding the
potential organizational structure, responsibilities, duties, and powers of a
proposed Red Hill remediation authority based on the provisions of House Bill
No. 2691, introduced during the regular session of 2024, as a starting point.

����
�
-3
�
Red Hill remediation special fund.
�
(a)
�

There is established in the state treasury the Red Hill remediation
special fund into which shall be deposited the following moneys:

����
(1)
�
Appropriations by the legislature to
the special fund;

����
(2)
�
Gifts, donations, and grants from
public agencies, including the United States government, and private persons;
and

����
(3)
�
All interest earned on or accrued to
moneys deposited in the special fund.

����
(b)
�
The special fund shall be administered by the
WAI policy coordinator.

����
(c)
�
The moneys in the special fund shall be used
to address contamination resulting from the Red Hill Bulk Fuel Storage
Facility, including monitoring, applied research, public outreach and
education, and evaluation; provided that the cost of remediation of the aquifer
shall be borne by the federal government.

����
�
-4
�
Cooperation by state and county agencies.
�
All state and county agencies shall provide
all information and data requested by the WAI policy coordinator within thirty
calendar days; provided that the WAI policy coordinator may, in the
coordinator's discretion, set a longer deadline.

����
�
-5
�
Report.
�

The WAI policy coordinator shall submit a report of the coordinator's
activities and expenditures to the legislature, governor, and mayor and city
council of the city and county of Honolulu no later than December 1 of each
year, beginning in 2025."

����
SECTION
3.
�
The following positions, which shall
be exempt from chapter 76, Hawaii Revised Statutes, are established in the
office of the chairperson of the board of land and natural resources for the
purposes of Red Hill WAI policy coordination:

����
(1)
�

full-time equivalent ( FTE) policy coordinator;

����
(2)
�

full-time equivalent ( FTE) outreach coordinator;
and

����
(3)
�

full-time equivalent ( FTE) administrative
assistant.

����
SECTION

4.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of
$ or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 for the positions
identified in section 3 of this Act for Red Hill WAI policy coordination.

����
The
sums

appropriated shall be expended
by the department of land and natural resources for the purposes of this Act.

����
SECTION
5.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of
$ or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 for ecosystem
monitoring of the area surrounding the Red Hill Bulk Fuel Storage Facility by
the department of land and natural resources.

����
The
sums

appropriated shall be expended
by the department of land and natural resources for the purposes of this Act.

PART II

����
SECTION
6.
�
The legislature finds that effective
and efficient water resource management requires continuous and experienced
leadership, especially given the climate crisis and urgent need to properly
steward water resources to meet the affordable housing needs of local
residents.
�
On December 28, 1994,
the review commission on the state water code submitted its final report to the
legislature pursuant to Act 45, Session Laws of Hawaii 1987.
�
The review commission determined that
amendments to the state water code were necessary to enable the commission on
water resource management to more effectively carry out its mandate pursuant to
article XI, section 7, of the Hawaii State Constitution to "set overall
water conservation, quality and use policies; define beneficial and reasonable
uses; protect ground and surface water resources, watersheds and natural stream
environments; establish criteria for water use priorities while assuring
appurtenant rights and existing correlative and riparian uses and establish procedures
for regulating all uses of Hawaii's water resources".
�
Therefore, further clarification of the
commission on water resource management's purpose, including its leadership
structure and composition of the board, will provide greater accountability and
protection of the State's waters.

����
The
purpose of this Act is to:

����
(1)
�
Allow the commission to retain independent
legal counsel;

����
(2)
�
Amend the scope of the commission on
water resource management to include declaration of emergencies;

����
(3)
�
Repeal the deputy to the chairperson of
the commission on water resource management and establish the executive
director of the commission on water resource management;

����
(4)
�
Amend the composition of the commission
on water resource management;

����
(5)
�
Authorize entities to challenge an
emergency order of the commission on water resource management under certain
conditions; and

����
(6)
�
Establish fines for certain water use
offenses.

����
SECTION

7
.
�
Section 28-8.3,
Hawaii Revised Statutes, is amended as follows:

����
1.
�
By amending subsection (a) to read:

����
"
(a)
�
No department of the State other than the
attorney general may employ or retain any attorney, by contract or otherwise,
for the purpose of representing the State or the department in any litigation,
rendering legal counsel to the department, or drafting legal documents for the
department; provided that the foregoing provision shall not apply to the
employment or retention of attorneys:

����
(1)
�
By
the public utilities commission, the labor and industrial relations appeals
board, and the Hawaii labor relations board;

����
(2)
�
By
any court or judicial or legislative office of the State; provided that if the
attorney general is requested to provide representation to a court or judicial
office by the chief justice or the chief justice's designee, or to a
legislative office by the speaker of the house of representatives and the
president of the senate jointly, and the attorney general declines to provide [
such
]
representation on the grounds of conflict of interest, the attorney general
shall retain an attorney for the court, judicial, or legislative office,
subject to approval by the court, judicial, or legislative office;

����
(3)
�
By
the legislative reference bureau;

����
(4)
�
By
any compilation commission that may be constituted from time to time;

����
(5)
�
By
the real estate commission for any action involving the real estate recovery
fund;

����
(6)
�
By
the contractors license board for any action involving the contractors recovery
fund;

����
(7)
�
By
the office of Hawaiian affairs;

����
(8)
�
By
the department of commerce and consumer affairs for the enforcement of
violations of chapters 480 and 485A;

����
(9)
�
As
grand jury counsel;

���
(10)
�
By
the Hawaii health systems corporation, or its regional system boards, or any of
their facilities;

���
(11)
�
By
the auditor;

���
(12)
�
By
the office of ombudsman;

���
(13)
�
By
the insurance division;

���
(14)
�
By
the [
University
]
university
of Hawaii;

���
(15)
�
By
the Kahoolawe island reserve commission;

���
(16)
�
By
the division of consumer advocacy;

���
(17)
�
By
the office of elections;

���
(18)
�
By
the campaign spending commission;

���
(19)
�
By
the Hawaii tourism authority, as provided in section 201B-2.5;

���
(20)
�
By
the division of financial institutions;

���
(21)
�
By
the office of information practices;

���
(22)
�
By
the school facilities authority;

���
(23)
�
By

the Mauna Kea stewardship and oversight authority
; [
or
]

���
(24)
�
By
the commission on water resource management; or

��
[
(24)
]

(25)
�

By a department, if the attorney general, for reasons deemed by
the attorney general to be good and sufficient, declines to employ or retain an
attorney for a department; provided that the governor waives the provision of
this section."

����
2.
�
By amending subsection (c) to read:

����
"
(c)
�
Every
attorney employed by any department on a full-time basis, except an attorney
employed by the public utilities commission, the labor and industrial relations
appeals board, the Hawaii labor relations board, the office of Hawaiian
affairs, the Hawaii health systems corporation or its regional system boards,
the department of commerce and consumer affairs in prosecution of consumer
complaints, insurance division, the division of consumer advocacy, the [
University
]

university
of Hawaii, the Hawaii tourism authority as provided in
section 201B-2.5, the Mauna Kea stewardship and oversight authority,
the
commission on water resource management,
the office of information
practices, or as grand jury counsel, shall be a deputy attorney general.
"

����
SECTION

8
.
�
Section 84-18,
Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

����
"(e)
�
Subject to the restrictions imposed in
subsections (a) through (d), the following individuals shall not represent any
person or business for a fee or other consideration regarding any legislative
action or administrative action, as defined in section 97-1, for twelve months
after termination from their respective positions:

����
(1)
�
The governor;

����
(2)
�
The lieutenant governor;

����
(3)
�
The administrative director of the
State;

����
(4)
�
The attorney general;

����
(5)
�
The comptroller;

����
(6)
�
The chairperson of the board of
agriculture;

����
(7)
�
The director of corrections and
rehabilitation;

����
(8)
�
The director of finance;

����
(9)
�
The director of business, economic
development, and tourism;

���
(10)
�
The director of commerce and consumer
affairs;

���
(11)
�
The adjutant general;

���
(12)
�
The superintendent of education;

���
(13)
�
The chairperson of the Hawaiian homes
commission;

���
(14)
�
The director of health;

���
(15)
�
The director of human resources
development;

���
(16)
�
The director of human services;

���
(17)
�
The director of labor and industrial
relations;

���
(18)
�
The chairperson of the board of land
and natural resources;

���
(19)
�
The director of law enforcement;

���
(20)
�
The director of taxation;

���
(21)
�
The director of transportation;

���
(22)
�
The president of the University of Hawaii;

���
(23)
�
The executive administrator of the
board of regents of the [
University
]
university
of Hawaii;

���
(24)
�
The administrator of the office of
Hawaiian affairs;

���
(25)
�
The chief information officer;

���
(26)
�
The executive director of the
agribusiness development corporation;

���
(27)
�
The executive director of the campaign
spending commission;

���
(28)
�
The executive director of the Hawaii
community development authority;

���
(29)
�
The executive director of the Hawaii
housing finance and development corporation;

���
(30)
�
The president and chief executive
officer of the Hawaii tourism authority;

���
(31)
�
The executive officer of the public
utilities commission;

���
(32)
�
The state auditor;

���
(33)
�
The director of the legislative
reference bureau;

���
(34)
�
The ombudsman;

���
(35)
�
The permanent employees of the
legislature, other than persons employed in clerical, secretarial, or similar
positions;

���
(36)
�
The administrative director of the
courts;

���
(37)
�
The executive director of the state
ethics commission;

���
(38)
�
The executive officer of the state land
use commission;

���
(39)
�
The executive director of the natural
energy laboratory of Hawaii authority;

���
(40)
�
The executive director of the Hawaii
public housing authority; and

���
(41)
�
The [
first deputy to the chairperson
]

executive director
of the commission on water resource management;

provided
that this subsection shall not apply to any person who has held one of the
positions listed above only on an interim or acting basis and for a period of
less than one hundred eighty-one days."

����
SECTION

9
.
�
Section 174C-5,
Hawaii Revised Statutes, is amended to read as follows:

����
"
�174C-5
�

General powers and duties.
�

The general administration of the state water code shall rest with the
commission on water resource management.
�

In addition to its other powers and duties, the commission:

����
(1)
�
Shall carry out topographic surveys,
research, and investigations into all aspects of water use and water quality;

����
(2)
�
Shall designate water management areas
for regulation under this chapter where the commission, after the research and
investigations mentioned in paragraph (1), shall consult with the appropriate
county council and county water agency, and after public hearing and published
notice, finds that the water resources of the areas are being threatened by
existing or proposed withdrawals of water;

����
(3)
�
Shall establish an instream use
protection program designed to protect, enhance, and reestablish, where
practicable, beneficial instream uses of water in the State;

����
(4)
�
May contract and cooperate with the
various agencies of the federal government and with state and local
administrative and governmental agencies or private persons;

����
(5)
�
May enter, after obtaining the consent
of the property owner, at all reasonable times upon any property other than
dwelling places for the purposes of conducting investigations and studies or
enforcing any of the provisions of this code, being liable, however, for actual
damage done.
�
If consent cannot be
obtained, reasonable notice shall be given prior to entry;

����
(6)
�
Shall cooperate with federal agencies,
other state agencies, county or other local governmental organizations, and all
other public and private agencies created for the purpose of utilizing and
conserving the waters of the State, and assist these organizations and agencies
in coordinating the use of their facilities and participate in the exchange of
ideas, knowledge, and data with these organizations and agencies.
�
For this purpose the commission shall
maintain an advisory staff of experts;

����
(7)
�
Shall prepare, publish, and issue
printed pamphlets and bulletins as the commission deems necessary for the
dissemination of information to the public concerning its activities;

����
(8)
�
May appoint and remove agents,
including hearings officers and consultants, necessary to carry out the
purposes of this chapter, who may be engaged by the commission without regard
to the requirements of chapter 76 and section 78-1;

����
(9)
�
May hire employees in accordance with
chapter 76;

���
(10)
�
May appoint and dismiss attorneys as
may be necessary, who shall be exempt from chapter 76;

��
[
(10)
]

(11)
�
May acquire, lease, and dispose of
real and personal property as may be necessary in the performance of its
functions, including the acquisition of real property for the purpose of
conserving and protecting water and water related resources as provided in
section 174C-14;

��
[
(11)
]

(12)
�
Shall identify, by continuing study,
those areas of the State where salt water intrusion is a threat to fresh water
resources and report its findings to the appropriate county mayor and council
and the public;

��
[
(12)
]

(13)
�
Shall provide coordination,
cooperation, or approval necessary to the effectuation of any plan or project
of the federal government in connection with or concerning the waters of the
State.
�
The commission shall approve or
disapprove any federal plans or projects on behalf of the State.
�
No other agency or department of the State
shall assume the duties delegated to the commission under this paragraph;
except that the department of health shall continue to exercise the powers
vested in it with respect to water quality, and except that the department of
business, economic development, and tourism shall continue to carry out its
duties and responsibilities under chapter 205A;

��
[
(13)
]

(14)
�
Shall plan and coordinate programs for
the development, conservation, protection, control, and regulation of water
resources, based upon the best available information, and in cooperation with
federal agencies, other state agencies, county or other local governmental
organizations, and other public and private agencies created for the
utilization and conservation of water;

��
[
(14)
]

(15)
�
Shall catalog and maintain an
inventory of all water uses and water resources; [
and
]

��
[
(15)
]

(16)
�
Shall
determine
appurtenant water rights, including but not limited to the quantification of
the amount of water and the specification of the water course or the means of
access and delivery entitled to by that right,
which determination shall be
valid for purposes of this chapter[
.
]
and

���
(17)
�
May declare an emergency if the
commission determines, in consultation with the governor, the appropriate
county, and the department of health, that there is an absence of sufficient
quantity and quality of water in any area, whether within or outside of a water
management area, that immediately threatens the public health, safety, and
welfare.
�
The commission may issue orders
reciting the existence of the emergency and requiring those actions as the
commission deems necessary to address the emergency be taken, including but not
limited to apportioning, rotating, limiting, or prohibiting the use of water
resources of the area; provided that an emergency order shall expire no later
than one year after issuance by the commission; provided further that the order
may be extended by a separate or supplementary order.
"

����
SECTION
10
.
�
Section 174C-6, Hawaii Revised Statutes, is
amended to read as follows:

����
"�174C-6
�
[
Deputy to the chairperson
]
Executive
director
of the commission on water resource management.
�
(a)
�

There shall be [
a first deputy to the chairperson
]
an
executive director
of the commission on water resource management [
("deputy
for water resource management") who shall be in addition to any other
first deputy to the chairperson as the chairperson of the board of land and
natural resources.
�
The deputy
]
,
who
shall have experience in the area of water resources and shall be
appointed by [
the chairperson with the approval of a majority of
] the
commission[
.
]
and serve at the pleasure of the commission.

����
(b)
�

The duties of the [
deputy
]
executive director
for water
resource management shall be to administer and implement, under the direction
of the commission, the state water code [
and all
]
, the
rules, and
other directives [
promulgated in accordance therewith
]
adopted
by
the commission.
�
Nothing in this [
provision
]

section
shall be construed as limiting the authority of the commission
as to matters regarding water resources.

����
(c)
�

The position of [
deputy
]
executive director
for water
resource management [
is not
]
shall not be
subject to chapter 76.

����
(d)
�

The salary of the [
deputy
]
executive director
for water
resource management shall be [
as provided in section 26-53 for first
deputies or first assistants to the head of any department.
]
set by the
board and the executive director shall be included in any benefit program
generally applicable to the officers and employees of the State.

����
(e)
�
The commission shall develop and document
annual goals and performance measures for the executive director that authorize
the commission to annually evaluate the executive director's work to ensure
compliance by the commission with statutory and constitutional requirements and
achievement of its statutory and constitutional purposes.

����
(f)
�
The commission shall evaluate and document
the evaluation of the executive director's performance annually, or more
frequently upon the request of at least four members of the commission, based
on annual goals, performance measures, and other relevant criteria.

����
(g)
�
The position of Red Hill Water Alliance
Initiative policy coordinator, established pursuant to
section -2, Hawaii Revised Statutes, shall be placed within
the office of the executive director.
"

����
SECTION
11
.
�
Section 174C-7, Hawaii Revised Statutes, is
amended to read as follows:

����
"
�174C-7
�
Commission on water
resource management.
�
(a)
�
There is established within the department a
commission on water resource management consisting of seven members which shall
have exclusive jurisdiction and final authority in all matters relating to
implementation and administration of the state water code, except as otherwise
specifically provided in this chapter.
�
The
commission shall be attached to the department of land and natural resources
for administrative purposes only.

����
(b)
�

Five members shall be appointed by the governor subject to confirmation
by the senate in the manner prescribed in subsection [
(d).
]
(e).
�
Each member shall have substantial experience
in the area of water resource management; provided that at least one member
shall have substantial experience or expertise in traditional Hawaiian water
resource management techniques and in traditional Hawaiian riparian usage [
such
as
]
including
those preserved by section 174C-101.
�
Each of the members shall be eligible to
serve as the chairperson of the commission upon election by a majority of the
commission members.

����
(c)
�

The chairperson of the board of land and natural resources [
shall be
the chairperson of the commission.
�
The
]

and the
director of health or the director's designee shall serve as [
an
]
ex officio[
[
],[
]
] voting [
member.
]
members, but shall
be ineligible to serve as chairperson of the commission.

����
[
(c)
]
(d)
�
The members of the commission shall serve
without compensation but shall be reimbursed for expenses, including travel
expenses, necessary for the performance of their duties.

����
[
(d)
]
(e)
�
In appointing a member to the commission, the
governor shall select from a list submitted by a nominating committee.
�
The nominating committee shall be composed of
[
four
]
five
individuals chosen as follows:
�
two persons appointed by the governor; one
person appointed by the president of the senate; and one person appointed by
the speaker of the house[
.
]
; and one person appointed by the chief
executive officer of the office of Hawaiian affairs.
�
The committee shall solicit applications and
send to the governor the names of at least three individuals for each open
position.

����
[
(e)
]
(f)
�
Except as otherwise provided in this chapter,
the commission shall be subject to sections 26-34, 26-35, and 26-36."

����
SECTION
12
.
�
Section 174C-9, Hawaii Revised Statutes, is
amended to read as follows:

����
"
[
[
]�174C-9[
]
]
�

Proceedings before the commission concerning water resources.
�
(a)
�

All proceedings before the commission concerning the enforcement or
application of any provision of this chapter or any rule adopted pursuant
thereto, or the issuance, modification, or revocation of any permit or license
under this code by the commission, shall be conducted in accordance with
chapter 91.
�
Hearings regarding
particular water resources shall be conducted on the island where those water
resources are located.

����
(b)
�
Any party to whom an emergency order is
directed may challenge that order but shall immediately comply with the order
pending disposition of the party's challenge.
�

The commission shall give precedence to a hearing on the challenge over
all other pending matters.
"

����
SECTION
13
.
�
Section 174C-15, Hawaii Revised Statutes, is amended
to read as follows:

����
"
�174C-15
�
Penalties and common
law remedies.
�

(a)
�
The commission may enforce
its rules and orders adopted pursuant to this chapter by suit for injunction or
for damages or both.

����
(b)
�
Any person who [
violates any
]
:

����
(1)
�
Violates any
provision of this
chapter[
, or any
]
;

����
(2)
�
Violates any
rule adopted
pursuant to this chapter[
, may
]
;

����
(3)
�
Violates any order of the
commission;

����
(4)
�
Fails to obtain a permit when a
permit is required pursuant to this chapter;

����
(5)
�
Fails to comply with permit
conditions; or

����
(6)
�
Fails to comply with standardized
water audit requirements pursuant to Act 169, Session Laws of Hawaii 2016,

shall

be subject to a fine imposed by the commission.
�

[
Such
]
The
fine
shall be not less than $50 and
shall
not exceed [
$5,000.
�
For a continuing
offense, each day during which the offense is committed is a separate
violation.
]
$25,000 per violation.
�

Each day that a violation exists or continues to exist shall constitute
a separate offense.
�
Penalties for
continuing violations shall be assessed from the earliest known date of the
violation.
�
The earliest known date of a
violation shall be determined by the commission by a preponderance of the
evidence; provided that if the earliest known date cannot be determined by a
preponderance of evidence, penalties for continuing violations shall be
assessed from the earliest date the commission is made aware of the violation.

����
(c)
�
When imposing a penalty, the commission shall
consider the following factors, which shall include but not be limited to:

����
(1)
�
The nature, circumstances, extent,
gravity, and history of the violation and of any prior violations;

����
(2)
�
The economic benefit to the
violator, or anticipated by the violator, resulting from the violation;

����
(3)
�
The opportunity, difficulty, and
history of corrective action;

����
(4)
�
Good faith efforts to comply;

����
(5)
�
Degree of culpability; and

����
(6)
�
Other matters as justice may
require.

����
[
(c)
]
(d)
�
No provision of this chapter shall bar the
right of any injured person to seek other legal or equitable relief against a
violator of this chapter.

����
[
(d)
]
(e)
�
Except as otherwise provided by law, the
commission or its authorized representative by proper delegation [
may
]
shall

set, charge, and collect administrative fines [
or
]
; may
bring
legal action to recover administrative fees and costs as documented by receipts
or affidavit, including attorneys' fees and costs; [
or
]
and may

bring legal action to recover administrative fines, fees, and costs, including attorneys'
fees and costs, or payment for damages resulting from a violation of this
chapter or any rule adopted pursuant to this chapter."

����
SECTION
14
.
�
Section 174C-62, Hawaii Revised Statutes, is
amended to read as follows:

����
"
[
[
]�174C-62[
]
]
�

Declaration of water shortage.
�

(a)
�
The commission shall
formulate a
statewide
plan for implementation during periods of water
shortage.
�
As a part of the plan, the
commission shall adopt a reasonable system of permit classification according
to source of water supply, method of extraction or diversion, use of water, or
a combination thereof.

����
(b)
�

The commission, by rule, may declare that a water shortage exists within
all or part of an area
, whether within or outside of a water management
area,
when insufficient water is available to meet the requirements of the
permit system or when conditions [
are such as to
] require a temporary
reduction in total water use within the area to protect water resources from
serious harm.
�
The commission shall
publish a set of criteria for determining when a water shortage exists[
.
]
,
including but not limited to impacts and effects of the climate crisis.

����
(c)
�

In accordance with the plan adopted under subsection (a), the commission
may impose [
such
] restrictions on one or more classes of permits
and
outside of management areas on well and stream diversion owners and operators

as may be necessary to protect the water resources of the area from serious
harm and to restore them to their previous
water quantity or chloride level

condition.

����
(d)
�

A declaration of water shortage and any measures adopted pursuant
thereto may be rescinded by rule by the commission.

����
(e)
�

When a water shortage is declared, the commission shall cause a notice [
thereof
]

of the water shortage
to be published in a prominent place in a
newspaper of general circulation throughout the area[
.
]
and on the
commission's website.
�
The notice
shall be published each day for the first week of the shortage and once a week [
thereafter
]

for four months, followed by monthly publications
until the declaration
is rescinded.
�
Publication of [
such
]

the
notice shall serve as notice to all water users in the area of the
condition of water shortage.

����
(f)
�

The commission shall cause each permittee in the area to be notified by
regular
and electronic
mail of any change in the conditions of the
permittee's permit, any suspension [
thereof,
]
of the permittee's
permit,
or of any other restriction on the use of water for the duration of
the water shortage.

����
(g)
�

If an emergency condition arises due to a water shortage within any
area, whether within or outside of a water management area, and if the
commission finds that the restrictions imposed under subsection (c) are not
sufficient to protect the public health, safety, or welfare, or the health of
animals, fish, or aquatic life, or a public water supply, or recreational,
municipal, agricultural, or other reasonable uses, the commission may issue
orders reciting the existence of such an emergency and requiring that such
actions as the commission deems necessary to meet the emergency be taken,
including but not limited to apportioning, rotating, limiting, or prohibiting
the use of the water resources of the area.
�

Any party to whom an emergency order is directed may challenge such an
order but shall immediately comply with the order, pending disposition of the
party's challenge.
�
The commission shall
give precedence to a hearing on such challenge over all other pending
matters."

PART III

����
SECTION 15.
�

If any provision of this Act, or the application thereof to any person
or circumstance, is held invalid, the invalidity does not affect other
provisions or applications of the Act that can be given effect without the
invalid provision or application, and to this end the provisions of this Act
are severable.

����
SECTION 16.
�

This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.

����
SECTION 17.
�

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

����
SECTION 18.
�

This Act shall take effect upon its approval; provided that sections 3,
4, and 5 of this Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

DLNR; CWRM; Red Hill WAI; Policy Lead and Coordination;
Red Hill Remediation Special Fund; Public Trust Purpose; Responsibilities;
Commission Membership; Executive Director; Independent Legal Counsel; Emergency
Order; Water Emergencies; Water Shortage Declarations; Fines; Reports; Appropriations

Description:

Part I:
�
Establishes
a WAI Policy Coordinator and other positions within the Commission on Water
Resource Management for coordination of Red Hill WAI initiatives.
�
Creates the Red Hill Remediation Special Fund.

�
Requires reports to the Legislature,
Governor, and Mayor and City Council of the City and County of Honolulu.
�
Appropriates funds.
�
Part II:
�
Allows the Commission
of Water Resource Management to retain independent legal counsel.
�
Repeals the position of Deputy to the
Chairperson of the Commission and establishes the position of Executive Director
of the Commission.
�
Amends the
composition of the Commission and administratively attaches it to DLNR.
�
Authorizes
entities to challenge an emergency order of the Commission under certain
conditions.
�
Establishes fines for
certain water use offenses.
�
Amends the Commission's
authority to declare water emergencies and issue orders to address them and
declare water shortages and related notice requirements.
�
Specifies that the nominating committee of
the Commission shall include one person appointed by the Chief Executive
Officer of the Office of Hawaiian Affairs.

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