Commission approves MLP offset package, directs fine money to USGS stream gauge after community protests

The Commission on Water Resource Management voted unanimously Feb. 24 to accept a settlement-style proposal from Maui Land & Pineapple Co. (MLP) that directs the value of a $140,000 administrative penalty toward monitoring and transparency projects, rather than taking the cash. Under the motion the company will fund installation and several years of operation for a USGS stream gauge below diversion 770, plus related monitoring and public‑access tools; staff said the arrangement should fund roughly three to four years of gauge operation and initial startup costs and required MLP to report back on implementation progress.

Staff framed the package as a way to improve independent data for enforcement. “A USGS gauge in the stream below diversion 770 would help with enforcement of the stream‑flow standard because USGS data are publicly available and accessible,” staff told the commission, while noting the agency’s limits for working inside tunnels and the need for a clear implementation timeline.

Why it matters: the commission found in December 2025 that MLP had violated instream flow standards 28 times and initially imposed the maximum civil penalty under current rules: $140,000. Community residents, farmers and conservation lawyers said the sum is small relative to MLP’s resources and urged the commission to require direct restoration work, binding deadlines, public access to monitoring data and long-term maintenance funding.

Affected community members delivered lengthy testimony in Honolulu and by Zoom. Karen Kaneka of Fui Namo Aloha Honokoh told the commission the penalty felt like “a slap in the face” after generations of diversion and damage, and urged the commission to change the violation threshold from three days to 24 hours to better protect native species and taro farmers. Willie Wood, a kalo farmer from Honokoh Valley, supported independent gauging but said, “these gauges must be funded in perpetuity after the current fine funding runs out.”

MLP representatives said the company had met with valley residents and that the gauge and cameras were intended to increase transparency and provide third‑party verification of diversions; they also described additional voluntary outreach and debris‑removal help with the county. USGS and staff cautioned that USGS installation schedules and permitting can take months and often require a multi-year timeline, but staff and the company agreed to use the penalty amount to fund the gauge and to report on progress to the commission.

The commission’s motion adopted staff’s recommendation with two clear conditions: (1) the funding be directed to independent gauging and related transparency measures (USGS gauge and dashboard/cameras), and (2) MLP must return with an implementation update to the commission in the months ahead and by the Aug. 18, 2026 meeting at the latest. Commissioners said the order can be amended if the parties fail to meet the timeline.

What remains unresolved: community speakers and several commissioners pressed for firmer guarantees — long-term maintenance commitments, a public list of alternative projects the commission considered, and a stronger standard of penalty calculation that reflects the economic benefit derived from the diverted water. Staff noted statutory limits on the maximum penalty under current law and said the commission is pursuing broader penalty‑increase legislation in the Legislature.

The commission’s vote concludes the formal action on B1 but leaves open follow‑up enforcement and oversight: staff will monitor implementation, USGS timelines remain subject to federal scheduling, and community members said they will continue to press for stronger remedies.