UPDATE:聽Ten Hawaii companies with water permits聽would be allowed to continue accessing public water in legislation that cleared a critical committee Monday at the Capitol.

But was amended considerably in the Senate Ways and Means Committee, and the panel’s chair, Sen.聽Jill Tokuda, said the measure would likely end up in House-Senate conference committee deliberations later this month.

HB 2501 would now allow existing applications for the leasing of water rights on state lands聽by the to continue until the summer of 2019.

The precise language of the bill, which was not available in written form at the time of the vote, seemed to have confused some senators who were under the聽impression that would retain its water rights, too.

Would聽A&B聽still be allowed to continue diverting water from East Maui streams?聽Tokuda did not return calls to Civil Beat, but the Honolulu Star-Advertiser reported last week that A&B was “stripped” from the bill and attributed it to the senator.

An aerial view of the Hawaiian Commercial and Sugar Company mill on Maui owned by Alexander & Baldwin.
An aerial view of the Hawaiian Commercial and Sugar Company mill on Maui owned by Alexander & Baldwin. Alexander & Baldwin

At the center of the legislation is a standoff between聽A&B,聽one of the former Big Five companies that essentially聽ran Hawaii during the territorial years, and taro farmers in East Maui. The fight is over access to water rights that A&B has long controlled.

The dispute has聽origins聽that go back聽more than a century, from the beginnings of the sugar cane industry in the 1900s to an announcement earlier this year of plans to close the state鈥檚 last remaining sugar plantation.

Critics of House Bill聽2501 say聽Alexander & Baldwin was trying to work around a recent聽court ruling.

A&B testified that it needs to make sure that its 36,000 acres of agricultural land in Central Maui has a sustained source of water as the company shifts from a plantation model to diversified agriculture. The company also says it must provide water to 36,000 farmers and residents in Upcountry Maui.

鈥淲ithout this water, the central valley of Maui would be arid and never would have supported the development of an agricultural industry or the associated economic activity that has fueled Maui for nearly a century and a half,鈥 said Meredith Ching, an executive with the company.

But taro farmers and their advocates complain that A&B will still be diverting millions of gallons of water from East Maui streams needed for other crops. The stream diversion has also harmed Native Hawaiian gathering rights, some testified, something protected under state law.

HB 2501鈥檚 introduction was prompted by an Oahu judge’s January ruling that struck down a state Land Board聽pattern of renewing A&B permits to continue diverting the Maui water. Judge Rhonda Nishimura determined that the DLNR, which has been issuing one-year revocable permits to A&B, violated state law.

“This is a unique beast created out of thin air just for A&B.” 鈥擬arti Townsend, Sierra Club Hawaii

The permits have been renewed every year from 2001 to 2014, even though they are supposed to be temporary and issued on a month-to-month basis.

Marti Townsend of the Sierra Club said Alexander & Baldwin has benefitted from “special treatment” that HB2501 would continue.

“A&B has been on a ‘holdover’ permit since 2002,” she explained. “This is a unique beast created out of thin air just for A&B. It is not a revocable permit that is renewed annually at a Land Board meeting, like everyone else’s permits for access to public resources. That is, they got a permit in 2002 and that same old permit was allowed by DLNR staff (without authority) to continue with no oversight by the Land Board, no annual renewal, no public meeting, nothing, until Judge Nishimura’s decision in January invalidating the stale permit.”

Townsend continued: “It’s an important distinction between the special treatment A&B has long received, and every other Ag operation in Hawaii that uses revocable permits to access state resources.”

Critics of HB 2501 say A&B was trying to聽work around the court ruling.

It has now been amended so that 10 other companies across the state that hold revocable permits would be allowed to use public water. They include other farmers and cattle ranchers, as well as electricity companies.

And the bill now appropriates $150,000 and two full-time positions to DLNR so that it can assist in the holdover application permitting process. Annual reports to the Legislature on DLNR鈥檚 progress would also be required.

Separately, Tokuda said the Legislature would include $1.5 million in general funds in the state budget to conduct an interim in-stream flow standards study, as requested by DLNR.

‘A Great Wrong’

The author of HB 2501 is Rep. Ryan Yamane, chair of House Water and Land Committee. Bill sponsors are Agriculture Committee Chair Clift Tsuji and three Maui lawmakers, House Speaker Joe Souki and Reps. Justin Woodson and Kyle Yamashita.

A Senate companion measure, , was authored by Sen. Donovan Dela Cruz and co-sponsored by Sens. Maile Shimabukuro and Glenn Wakai, as well as three Maui senators, Rosalyn Baker, Gil Keith-Agaran and Kalani English. However, SB 3001 has been deferred.

Dela Cruz, vice chair of Ways and Means, voted for HB 2501 on Monday, but Wakai voted yes with reservations. So did another Democrat, Suzanne Chun Oakland, and Sam Slom, the only Republican in the Senate.

Sen. Kalani English voted against House Bill 2501 in recognition of his Hawaiian ancestry and longstanding injustice over Maui water rights.
Sen. Kalani English said he voted against House Bill 2501 in recognition of his Hawaiian ancestry and longstanding injustice over Maui water rights. Cory Lum/Civil Beat

English, who represents the areas on Maui directly involved in the water dispute, said he appreciated efforts to amend the bill and thought that the measure was on a 鈥渕iddle path鈥 toward resolution.

But he decided to vote against HB 2501, explaining that it was a difficult decision but one that reflected his Hawaiian ancestry.

English noted that Hawaiian-language newspapers of the 19th century wrote that, before the plantation era, great clouds of red dust would blow across Central Maui because it was so arid. But his own family lived on the east side of the island, and he said that it “ingrained” in them聽that 鈥渁n injustice, a聽great wrong鈥 had been inflicted on his people for many years because of the stream diversion.

“So, my hope is at end of day we can find something that聽satisfies聽the Native Hawaiians, my people, and the people聽who need water聽Upcountry, and even satisfy keeping Central Maui green,” he said.

Another no vote came from Sen. Gil Riviere. While applauding some of the amendments, such as the annual reports, he reminded his colleagues that HB 2501 just buys A&B some time and sustains the status quo.

鈥淎nd it is the status quo that is exactly the problem,鈥 Riviere said, adding that he doubted that the bill would resolve the underlying issue, which is the addressing聽the repeated renewal of the water rights permits.

Native Hawaiians in East Maui, he said, “just want a share, a stream flow … water is life.”

‘We Expect Action’

Sen. Brickwood Galuteria voted in favor of the bill, saying it will 鈥渉old A&B鈥檚 feet to the fire.鈥

鈥淲e expect answers, we expect action,鈥 he said.

At the outset of decision-making on the measure Monday, Tokuda noted that legislators鈥 email inboxes had been flooded with testimony on HB 2501.

鈥淪ince time immemorial, water in Hawaii has been considered a public trust resource.” 鈥 Office of Hawaiian Affairs

The bill is supported by the , the , the , International Longshore Workers , seed companies , and and dozens of other groups and individuals 鈥 generally speaking, proponents of larger-scale agricultural and ranching operations.

Opponents of HB 2501聽include the , the , the , the , , , the and many others 鈥 mostly聽groups representing Native Hawaiians, environmental interests and smaller farmers.

The 36,000-acre sugar plantation that is being closed in Puunene is owned by A&B subsidiary .

Scott Enright, chair of the Board of Agriculture, emphasized financial implications in his testimony.

鈥淲ithout a continued water source, there may be significant聽economic and social impacts on Hawaii鈥檚 agricultural community,鈥 he said.

A&B's Hawaiian Commercial & Sugar Co. in Puunene was shuttered this year.
A&B’s Hawaiian Commercial & Sugar Co. in Central Maui is being shut down this year. Chad Blair/Civil Beat

But opponents complained that A&B has also not conducted an environmental review of the stream diversion and has long benefitted from a cheap supply of an invaluable resource.

鈥淪ince time immemorial, water in Hawaii has been considered a public trust resource, to be managed and administered for the benefit of present and future generations,鈥 OHA stated in its testimony.

Marjorie Ziegler of the said that prolonging the 鈥渆xtreme鈥 stream diversion is not in the public interest or consistent with resource conservation or self-sufficiency.

鈥淚t is a throwback to a cruel and destructive time for the land and the people,鈥 Ziegler said. 鈥淚t remains one of the most serious and harmful injustices of our time.鈥

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