Committee backs tiered penalty increases for State Water Code violations

The Senate Committee on Water and Land advanced House Bill 306 on March 14 with amendments aimed at creating tiers of penalties for violations of the State Water Code and preserving discretion for the Commission on Water Resource Management.

DLNR and commission representatives told the committee they supported strengthening enforcement tools while balancing impacts on small farmers and traditional taro growers. "We do strongly support this bill and the ability to increase the penalties that we charge for violations of the water code," a commission representative said, and outlined proposed amendments to establish a two‑tier system distinguishing first‑time or non‑harmful violations from repeat or harm‑causing violations.

Under the amendments discussed, tier 1 would apply to first‑time violators or those not causing demonstrable harm, carrying lower minimums and maximums. Tier 2 would apply to repeat violators within five years or violations that cause actual or potential harm; those cases would carry higher maximum fines. The department proposed allowing the commission discretion on treating each day of an ongoing violation as a separate offense and adding factors for assessing penalties, including volume of water affected and level of harm.

During testimony, DLNR noted most past fines were under $5,000 but cited high‑profile incidents such as Red Hill as examples of where substantially larger penalties would be appropriate. The commission suggested raising the maximum for serious cases to $25,000 and increasing maximums every five years for tier 2 offenses; amendments discussed would cap increases to be rounded to full figures and tied to an inflationary factor.

Witnesses included representatives of the Board of Water Supply, Earthjustice, Sierra Club, Ulupono Initiative, and Hawaii Farm Bureau. Earthjustice and Sierra Club urged caution, noting structural concerns about the water commission's governance and the risk of penalizing small, non‑harmful farmers. The Board of Water Supply and Ulupono Initiative voiced support for stronger, clearer penalty authority to protect freshwater resources.

Committee members asked whether the agency had used higher fines historically; DLNR said its most recent assessed fine was in 2022 and that fines above $5,000 have been rare. After discussion, the committee voted to pass HB 306 with the amendments suggested by commission staff.