Water commission imposes $140,000 penalty on Maui Land & Pineapple, allows offsets for community‑focused physical projects

The Commission on Water Resource Management on Dec. 16 found that Maui Land & Pineapple Company (MLP) violated the interim in‑stream flow standard (IFS) for Honokohau Stream on 28 days between Jan. 1 and Aug. 14, 2025, and voted to impose the statutory maximum administrative penalty of $140,000 while permitting offset of that amount through specified physical improvement projects developed with affected community members.

Deputy Director Kira Kahane told the commission staff had applied the commission's enforcement framework to verified monitoring data and the commission's order. "We recommend issuance of a ... violation with an administrative penalty of $126,500, which is substantial but below the statutory maximum of $140,000," Kahane said, describing how staff translated the monitoring record and the commission's penalty guidelines into a recommended dollar amount.

Representatives for MLP said they were not contesting the notice of alleged violation but urged the commission to consider the company's recent investments and a package of mitigation and transparency measures. "We aren't contesting the notice of alleged violation," one MLP representative told the commission, and then outlined proposals including remote‑operated diversion gates, additional gauging and third‑party sensors, publicly available flow data, quarterly site visits, debris and bridge removal and potential large‑scale storage upstream of the county treatment plant.

Those proposals prompted extensive public testimony. Honokohau residents, kalo farmers and nonprofit advocates described ecological and cultural harms they attribute to low flows and stated expectations for enforcement proceeds. "If Maui Land and Pineapple is not held accountable, nothing will change," a business owner who grew up in the valley told commissioners. Several residents said proposed offsets such as helicopter tours or paid flights felt inappropriate and urged funds or projects that directly repair ditch infrastructure and benefit taro farmers.

TUI Management (a major local water user) requested a contested case hearing orally during public comment but offered to withdraw that request conditionally after a closed‑door consultation with the deputy attorney general. The commission voted to deny the oral petition for a contested case hearing tied solely to the IFS penalty matter and continued with deliberations on the enforcement recommendation.

After discussion, a commissioner moved to amend the staff recommendation: find that MLP violated the IFS on 28 days in 2025 and set the penalty at the statutory maximum of $140,000, but permit that amount to be offset by physical improvement projects (not outreach or non‑capital items) that directly improve system efficiency or otherwise benefit in‑stream users. The motion requires MLP to consult with affected community members and staff and return to the commission with a proposed list of offset projects for consideration at the commission's February meeting. The amended motion passed with six votes.

The commission also directed staff to coordinate the development of specific projects with community representatives and MLP and to schedule an agenda item so the full commission can review and approve any offsets before money is diverted from the penalty amount. The order preserves the enforcement finding and creates a process for replacing all or part of the monetary penalty with tangible, commission‑approved projects that staff and community agree are appropriate.

What happens next: MLP and staff will work with Honokohau Valley residents and other stakeholders to identify and document physical projects that would meaningfully improve ditch efficiency, public trust uses or safety (for example, debris/bridge removal, additional gauging, reservoir or tank work, and repairs that reduce loss). The commission expects a return to the full board in February with a proposed list so that offsets — if accepted — are anchored to enforceable work and schedules. The penalty finding and the requirement for return to the commission remain in force.