Committee reviews bill to create discounted water rate for native-species preservation; members defer for more detail

Maui County Council’s Water and Infrastructure Committee considered Bill 56 (2025) on June 4, a proposed amendment to Maui County Code section 14.10.010 that would create a discounted water rate for Department of Water Supply customers who use county water solely to preserve or restore native Hawaiian species habitat.

The committee paused the item and asked staff to return with written answers and clarifying changes. Vice Chair Yukile Sugimura and several council members sought specifics on enforcement, definitions of “native species habitat,” applicant eligibility, and whether the rate could apply to parcels with mixed uses. Committee members also asked whether county experts such as the Department of ʻŌiwi (natural resources) should be consulted on habitat criteria.

Orteen Asidera of the Department of Water Supply said the proposed preservation rate was developed after two nonprofit applicants sought agricultural rates but did not meet the monetary threshold for ag rates. Asidera said the bill’s intent is to give nonprofit land‑preservation efforts some relief from the general consumer rate.

Department staff identified the two applicants that prompted the proposal as the Hawaiian Island Land Trust (listed in the presentation as “Waihi Coastal”) and the Waiʻohuli Mana Foundation. Committee members were told the Department of Water Supply would review preservation‑rate applications using a process similar to agricultural‑rate applications: annual applications, review of tax returns and an initial on‑site inspection for first‑time applicants. Robert Robles of the department’s planning division said the fiscal division would handle approvals.

Staff provided the committee with rate comparisons for context. For fiscal year 2025 the department said the “other general consumer” rate is $7.58 per 1,000 gallons and the proposed preservation rate would be $4.63 per 1,000 gallons (a $2.95 difference). The department proposed a preservation rate of $4.98 per 1,000 gallons for fiscal 2026 compared with a projected general consumer rate of $8.34 (a $2.60 difference).

Members pressed for specifics the bill text left unclear. Council member Tasha Kamau asked, “Can we define native species habitat?” and requested the department return with a written definition and evaluation criteria. Member Paulton asked whether land designations (open space, conservation, agriculture) would be prerequisites, and whether private water purveyors could be covered; staff said the proposed ordinance would apply only to customers of the County Department of Water Supply. Members also asked whether leased parcels could qualify; staff said they would consider owner consent.

Council members flagged a drafting error in the bill’s effective‑date language. The department initially proposed a retroactive effective date of July 1, 2024 to cover the two applicants, but later recommended the ordinance take effect July 1, 2025; staff agreed to remove the retroactive language.

Committee chair Tom Cook said staff would collect the committee’s questions and return written responses. After two rounds of member questions the chair stated he would recommend deferral so the department could address the committee’s requests; the committee agreed and deferred the item.

No public oral testimony was offered at the meeting on this item; written testimony remained open for the record.