Bill > SB1541

This bill addresses the Waiahole Water System, a critical 26.4-mile water infrastructure system on Oahu that transports water from the Koolau mountains to agricultural lands. The bill seeks to appropriate state funds for two primary purposes: first, to fully pay off the remaining $4,500,000 bond debt for the system's acquisition (which would ultimately cost farmers and consumers $14,000,000 in debt service fees), and second, to fund $2,000,000 in critical repairs to the adit 8 tunnel, which is essential for the entire water system's operation. The water system, previously owned by a sugar company and now managed by the Agribusiness Development Corporation, serves approximately 5,600 acres of agricultural land and has significant economic impact, contributing $135,000,000 and creating around 2,000 jobs in Hawaii's economy as of 2012. The bill highlights that farmers are currently paying substantially higher water rates compared to other agricultural water providers and have already paid more than the original bond amount. By appropriating funds to pay off the debt and repair the tunnel, the bill aims to support agricultural productivity and reduce financial burden on farmers. The bill is set to take effect on July 1, 3000, which appears to be a placeholder date.

Agriculture and Natural Resources, Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1541&year=2026