SR 73: Requesting the agribusiness development corporation to assume responsibility for the routine maintenance and repair of the kohala ditch.

SENATE RESOLUTION

Requesting the agribusiness development corporation to assume responsibility for the routine maintenance and repair of the kohala ditch.

     WHEREAS, the Kohala Ditch is a twenty-six mile long irrigation ditch originally built on the island of Hawaii in 1906 to supply water to sugarcane plantations in North Kohala; and

     WHEREAS, the Kohala Ditch has since become a vital source of water for farmers and ranchers in North Kohala, supplying over five million gallons of water a day; and

     WHEREAS, the agricultural production of these farmers is critical to the State's economy, food resiliency goals, and the cultures and sustenance of many local communities; and

     WHEREAS, however, a 2021 rockslide damaged a critical flume of the irrigation system and stopped the flow of water; and

     WHEREAS, without water from the Kohala Ditch, most farmers have been compelled to pay for county water, which costs approximately ten times more per month; and

     WHEREAS, the resulting increase in operating costs and limited access to water has forced many farmers to scale back production and driven others entirely out of business; and

     WHEREAS, the restoration of the Kohala Ditch will require time, money, and a well-qualified coordinating authority with knowledge of local infrastructure and the agricultural industry, as the repairs will require significant cooperation between the patchwork of private and public land owners that the irrigation system bisects; and

     WHEREAS, Act 164, Session Laws of Hawaii 2023 (Act 164), allocated $10 million to be expended by the Department of Agriculture for the design and construction for repairs to restore and reactivate the Kohala Ditch System to increase the availability of water for agricultural and aquacultural purposes, as a capital improvement project grant pursuant to chapter 42F, Hawaii Revised Statutes; and

     WHEREAS, the funds allocated in Act 164 have not been released to the Kohala Ditch Co-Op, Incorporated, the intended grantee, that was formed in 2019 to manage the Kohala Ditch, due to issues relating to compliance with statutory requirements for grants under chapter 42F, Hawaii Revised Statutes; and

     WHEREAS, given the critical role the Kohala Ditch plays in the State's agricultural production, its routine maintenance and repair must be provided for by the State to resolve the current damage and avoid future years-long disruptions to the water supply; and

     WHEREAS, the Agribusiness Development Corporation was established by the Legislature in 1994, with statutory mandates to coordinate and administer programs to assist agricultural enterprises to facilitate the transition of agricultural infrastructure from plantation operations into other agricultural enterprises, increase local production of agricultural products for local consumption, reduce the State's reliance on imported agricultural products, and increase access to farmland and related infrastructure for small local farmers and cooperatives; and

     WHEREAS, the repair and routine maintenance of the Kohala Ditch will further the Agribusiness Development Corporation in fulfilling its statutory mandates; now, therefore,

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, that the Agribusiness Development Corporation is requested to assume responsibility for the routine maintenance and repair of the Kohala Ditch; and

     BE IT FURTHER RESOLVED that the Agribusiness Development Corporation is urged to develop and implement a comprehensive plan for the routine maintenance of the Kohala Ditch, that:

     (1)  Includes a schedule for regular inspections, necessary repairs, and upgrades to follow best practices and standards for safety and efficiency; and

     (2)  Is developed in collaboration with the surrounding community and relevant agencies and stakeholders, including farmers, ranchers, businesses, and other users of the Kohala Ditch; and

     BE IT FURTHER RESOLVED that the Agribusiness Development Corporation is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of each Regular Session; provided that the report is asked to:

     (1)  Detail any maintenance and repairs to the Kohala Ditch, including any related expenditures;

     (2)  Include an assessment of the current condition of the Kohala Ditch;

     (3)  Include a summary of completed maintenance activities; and

     (4)  Make recommendations for any further improvements; and

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chairperson of the Board of Directors of the Agribusiness Development Corporation, Chairperson of the Board of Agriculture, and President of Kohala Ditch Co-Op, Incorporated.

Report Title: 

ADC; Kohala Ditch; Maintenance and Repairs; Report

STAND. COM. REP. NO. 1449

Honolulu, Hawaii

RE:    S.R. No. 73

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Economic Development and Tourism, to which was referred S.R. No. 73 entitled:

"SENATE RESOLUTION REQUESTING THE AGRIBUSINESS DEVELOPMENT CORPORATION TO ASSUME RESPONSIBILITY FOR THE ROUTINE MAINTENANCE AND REPAIR OF THE KOHALA DITCH,"

begs leave to report as follows:

     The purpose and intent of this measure is to request the Agribusiness Development Corporation to assume responsibility for the routine maintenance and repair of the Kohala Ditch.

     Your Committee received testimony in support of this measure from the Agribusiness Development Corporation.

     Your Committee finds that the Kohala Ditch, a twenty-six mile long irrigation ditch on Hawaii island, has become a vital source of water for farmers and ranchers in North Kohala, supplying over five million gallons of water a day.  Your Committee further finds that a rockslide in 2021 damaged the irrigation system, leading to increased operation costs for farmers and ranchers in the region.  While the Legislature allocated $10 million in 2023 to restore and reactivate the Kohala Ditch System, that funding has yet to be utilized for any repairs.  Given the critical role the Kohala Ditch plays in the State's agricultural production, its routine maintenance and repair must be provided for by the State to resolve the current damage and avoid future years-long disruptions to the water supply.  The restoration of the Kohala Ditch will require time, money, and a well-qualified coordinating authority with knowledge of local infrastructure and the agricultural industry, as the repairs will require significant cooperation between the patchwork of private and public land owners that the irrigation system bisects.  Your Committee concludes that the Agribusiness Development Corporation, whose mandate is to coordinate and administer programs to assist agricultural enterprises, is the best agency to undertake these repairs.

     Your Committee notes that Act 164, Session Laws of Hawaii 2023 (Act 164), allocated $10 million to be expended by the Department of Agriculture for the design and construction for repairs to restore and reactivate the Kohala Ditch System.  Your Committee further notes that currently the funds allocated in Act 164 have not been released to the Kohala Ditch Co-Op, Incorporated, the intended grantee, that was formed in 2019 to manage the Kohala Ditch.  Your Committee finds that this issue raises concerns that merit further consideration including transferring the $10 million appropriated by Act 164 from the Department of Agriculture to the Agribusiness Development Corporation.

     As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 73 and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,