Committee narrows SB1074 to allow certain boating permits to continue during environmental review, adds two-year sunset

The Joint Committees on Energy & Environmental Protection and Water and Land on March 18 passed Senate Bill 1074 with amendments that limit its scope to commercial boating activities and add a two-year sunset while agencies complete environmental review.

The committees adopted changes to limit the measure to activities governed by Hawaii Revised Statutes (HRS) chapter 200, to allow only permit renewals for previously authorized or permitted commercial boating operations to continue during review, and to add a two-year sunset on the measure while agencies complete any required environmental review.

The bill originally sought to allow previously authorized or permitted commercial activities to continue operations for 1 year while an agency determines whether the activity is subject to or exempt from environmental review. Opponents warned the language was broader than intended and could be used to avoid Hawaii’s Environmental Policy Act (HEPA). Supporters said businesses—particularly small boat operators in West Maui—face immediate economic harm if operations were halted.

Tom Eisen, environmental review program manager at the Office of Planning and Sustainable Development, testified that the office offered suggested corrections for “garbled language” left over from earlier amendments and stood available for questions. Department of Land and Natural Resources (DLNR) staff said DLNR proposed language aligned with a similar House bill and sought clarifying edits.

Boat operators and tourism-sector witnesses urged relief, saying immediate continuity of operations is critical to families recovering after the August 2023 Lahaina fires. Tara Lonnie, owner of Sailing Adventures, said, “This bill, if you would allow it to pass, actually supports the families of West Maui.” Operators described lost income and jobs if permits could not be renewed while agencies complete environmental reviews.

Environmental groups and other opponents called the bill a risky rollback of HEPA. Mahesh Cleveland of Earthjustice’s Honolulu office said the bill “is a prime example of DLNR and their attorneys being super obstructive,” and warned the language could be used to undercut environmental review. Wayne Tanaka of Sierra Club Hawaii said it “would allow open-ended permitting of commercial activities without any recognition of environmental impacts.”

Other testifiers — including representatives of the Ocean Tourism Coalition, the Maui Hotel & Lodging Association, and many individual operators — urged narrowing the measure to avoid unintended consequences. The Ocean Tourism Coalition had recommended limiting the bill to recent renewals and inserting a sunset; the committee adopted those suggestions.

During committee decision making the chair said members would encourage DLNR to explore existing categorical exemptions and report back on settlement status in pending litigation affecting Kaanapali. The committees’ amended language narrows the bill to HRS chapter 200 activities, limits relief to permit renewals, and sets a two-year sunset. The committees also added technical edits for clarity and refiled the measure for further session work.

The committee record notes there are active settlement discussions and litigation tied to permits in Kaanapali; DLNR told members it was not able to discuss settlement details because those are privileged and outside staff purview.

The committee vote on SB 1074 SD 2 was recorded as passed with amendments. The chair and vice chair signaled reservations about the broader bill language but voted to advance the narrowed measure so staff and parties could continue negotiations and DLNR could consider administrative fixes or categorical exemptions.

What happens next: The bill as amended moves to further floor action and committee reports where additional technical refinements may be added. The committees instructed DLNR to report on whether categorical exemptions could resolve the permitting issues before further legislative change.

Ending: The debate reflected a split between those seeking short-term regulatory certainty for boating operators and those urging preservation of HEPA’s environmental-review safeguards. The committees’ amendments attempt to strike a compromise by narrowing the measure and adding a time limit while calling for agency follow-up.