Report Title:

Agriculture; Appropriations; S. Kona Honomalino Ditch System, State Water Code, E. Kauai Irrigation System

Description:

Appropriates funds for the S. Kona Honomalino ditch system, state water code, E. Kauai irrigation system. (SD2)

HOUSE OF REPRESENTATIVES

H.B. NO.

954

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

STATE OF HAWAII

S.D. 2


 

A BILL FOR AN ACT

 

MAKING APPROPRIATIONS FOR AGRICULTURAL INFRASTRUCTURE.

 

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

PART I

SECTION 1. The legislature finds that macadamia nut farms and other small, diversified farms of the South Kona region are susceptible to long droughts that cause major crop damage, wreaking havoc on the South Kona economy, which is heavily dependent on macadamia nut production. Without a reliable agricultural water system, crops will continue to suffer, aggravating the adverse economic impact of drought conditions for the region.

In response to this threat, the legislature appropriated approximately $18,800,000 in capital improvement projects during the regular session of 2002 for irrigation systems statewide, including plans for the South Kona Honomalino ditch system. Initial planning stages of this project have indicated a viable benefit-to-cost ratio.

The purpose of this part is to appropriate funds for planning and construction of the Honomalino irrigation system to prevent crop losses in the South Kona region of the island of Hawaii.

SECTION 2. 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 2005-2006 for planning and construction of the Honomalino irrigation system in Kona, Hawaii.

The sum appropriated under this part shall be expended by the department of agriculture for the purposes of this part.

PART II

SECTION 3. The legislature finds that the state water code requires the department of agriculture to prepare a comprehensive agricultural water use and development plan.

The purpose of this part is to appropriate funds for a comprehensive state agricultural water use and development plan.

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 2005-2006 to prepare the agricultural water use and development plan.

The sum appropriated under this part shall be expended by the department of agriculture for the purposes of this part. This project is deemed necessary to qualify for federal aid financing or reimbursement.

PART III

SECTION 5. A reliable irrigation system is the lifeblood of Hawaii's agricultural industry. To ensure that Hawaii's crops receive a steady and dependable supply of water, sufficient funding is needed to maintain and improve Hawaii's irrigation systems.

The legislature finds that a potential crisis is developing at the East Kauai Irrigation System. In 2001, Amfac Sugar Company announced that it was ceasing operation of its ditch system, composed of twenty-two miles of ditches and three reservoirs, which had irrigated four thousand acres of land in the Kapaa area (East Kauai Irrigation System). Subsequently, the East Kauai Water Users' Cooperative (Cooperative) received a revocable permit from the State to operate the East Kauai Irrigation System and took over operations in March of 2002.

The legislature finds that the Cooperative faces a serious funding shortfall. Income from users is insufficient to pay for the day-to-day operation and maintenance expenses of the East Kauai Irrigation System.

SECTION 6. 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 2005-2006 and the same sum or so much thereof as may be necessary for fiscal year 2006-2007 to be paid into the Hawaii agricultural development revolving fund created in section 163D-17, Hawaii Revised Statutes, and expended for the operation and maintenance of the East Kauai Irrigation System.

The sums appropriated under this part shall be expended by the agribusiness development corporation for the purposes of this part.

PART IV

SECTION 7. This Act shall take effect on July 1, 2050.