Water security for future generations.
A Ballot Measure to restore community
control over our public water resources
For over a century, Maui’s water systems have been controlled by large corporations, despite the fact that our water is legally defined as a Public Trust. This era of corporate water control has been defined by a lack of accountability, maintenance, and investment – leading to mismanagement and waste of our public water. With an uncertain climate future and more frequent droughts, Maui residents must take control of our public water supply, not leave our water future in corporate hands.
In the November election, there is a once in a generation ballot measure to establish Maui County Community Water Authorities, which will create and implement a new vision for how our water systems are managed and how our watersheds are protected for our children, our grandchildren, and their grandchildren.
“Shall the Charter be amended to establish Maui County Community Water Authorities with regional community boards to manage water collection and delivery systems acquired by the Water Authorities, including State license areas in East Maui, and to pursue long-term water lease agreements with the State to provide a long-term reliable supply of water for domestic and agricultural needs?”
Vote Yes on Maui County Community Water Authorities!
Why Vote Yes?
What are the benefits of Community Water Authorities?
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Community Water Authorities bring decisions about how our water is managed back to the people of Maui County, where it hasn’t been in many generations. Throughout Maui County, water systems are controlled by private corporations (Mahi Pono/EMI, Maui Land and Pine, Wailuku Water Company, Guoco Leisure etc.) and the State.
This charter amendment creates the framework for communities across Maui County to set up regional community boards and regional directors to manage and/or acquire the water systems in their area, tend to wasteful, aging infrastructure, and invest in restoring our watersheds.
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East Maui streams (Huelo to Nahiku) are Maui’s largest public water source. Without passing this ballot measure, Mahi Pono is poised to control East Maui water for at least the next 30 years. The sole investor in Mahi Pono is the Public Sector Pension Investment Board (PSP) – a Canadian pension fund.
PSP manages the pension funds of the Canadian federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Learn more about PSP/Mahi Pono.
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According to A&B’s quarterly water usage reports, nearly 50% of the water diverted from East Maui streams is regularly wasted – up to 10,000,000 gallons per day. All while Upcountry residents – who also rely on East Maui water – are on water restrictions.
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Small farmers currently pay $1 per thousand gallons of potable water delivered. After factoring in their current cost of operations, Mahi Pono/EMI pays about 30 cents per thousand gallons. With community control of our water, equitable rates for all farmers could be negotiated.
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When private corporations receive large amounts of water with minimal oversight, they have no incentive to invest significantly in the future of our watersheds. Because Community Water Authority decisions are made by members of the community, their interests are aligned with responsible management of the watersheds, including investing in reducing invasive species and other actions that increase the health of the watershed. Further, as a government entity, Community Water Authorities would be eligible to obtain federal grants & loans for infrastructure repair and ongoing maintenance. Investing in our water infrastructure will create less waste and lead to more water for everyone.
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Private corporations, which have not been penalized for the water they waste, have no incentive to invest in and repair water infrastructure. Because Community Water Authority decisions are made by members of the community, their interests are aligned with ensuring that the delivery of water is as efficient as possible. Further, as a government entity, Community Water Authorities would be eligible to obtain federal grants & loans for infrastructure repair and ongoing maintenance. Investing in our water infrastructure will create less waste and lead to more water for everyone.
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A common complaint in Maui County is there aren’t enough good jobs for our youth. Community Water Authorities and their objectives will create more jobs in natural resource management and sustainability. They will create economic diversity for our younger generations, who have an interest in these fields but see few jobs available in Maui County.
Who Supports Community Water Authorities?
• The County Council in a vote of 7-2 •
• A large coalition of community organizations •
An East Maui Case Study
The privately-owned East Maui Irrigation System – which delivers water from our largest public water source – is seeking a 30-year lease from the State to divert up to 85 million gallons per day.
Because of the risks to the watershed – and our community – of a foreign pension fund controlling Maui’s largest public water source for 30 years, the first Community Water Authority to be established by this Ballot Measure will be in East Maui.
The Problem in East Maui
The Public Sector Pension Investment Board (PSP) – a Canadian pension fund with an untrustworthy global track record and the only member and investor in Mahi Pono Holdings, LLC – is currently allowed to take 45 million gallons per day from East Maui. Public records show they waste up to 50% of it. And they want even more – 85 million gallons per day – guaranteed for 30 years (a generation and a half).
Voting Yes on this ballot measure will allow the residents of Maui (through the Community Water Authority) to obtain and manage the leases.
10 of the last
15 years
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the wet season
FAQs
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Many of Maui’s water systems have been at risk for some time, and they are not serving the public well. Residents rely on the good will of corporate owners, many of which are located in other countries, to provide our public water resources. These corporations are driven primarily by near and long-term profits that come from controlling cheap water. As long as they control our water, Maui citizens will always be second in line.
Case in point: East Maui – Mahi Pono, owned by a foreign pension fund, is currently allowed to take 45 million gallons per day and wants to be able to take 85 million gallons per day. Maui County residents, including farmers, are already on water restrictions.
Yet, if we do not pass this ballot measure, Mahi Pono/PSP may be allowed to take 85 million gallons per day for 30 years. If we do not pass this ballot measure, we will be beholden to corporations for our legally-defined public water resources for at least the next three decades.
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On July 18, 2019, the Maui County Board of Water Supply approved the formation of a Temporary Investigative Group (TIG) to explore options for ensuring community access to water.
The TIG was tasked with: exploring the feasibility of purchasing and maintaining the EMI water delivery system and examining other alternatives for ensuring that the people of Maui County have authority over the delivery of water, which is a Public Trust.
The TIG concluded that: "ownership of the EMI Water Delivery system by the people of Maui or a partnership – in the form that is most cost-effective, accountable, environmentally responsible, transparent, and meets the needs of the island’s diverse stakeholders, in particular native Hawaiians – will ultimately be the only way to guarantee that the Public Trust is maintained and remains safely in community hands. The TIG therefore recommends that the County of Maui take immediate steps to secure community ownership and control of the EMI water delivery system, or a partnership.”
The TIG further recommended completing the following studies:
Engineering studies of the current condition of the EMI Delivery System
Reliable data regarding elevations and the amounts of water moving through the 388 intakes, ditches, dams, pipes, and flumes
Estimates for repair and maintenance as well as alternate modifications, such as installing pipes in open ditches and flumes and modern diversions that support connectivity for stream life.
These studies are integral to developing a long-term financial plan. Vote Yes on this Ballot Measure!
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There are many options for how a system would be run after a Community Water Authority is established. In the case of East Maui, given that EMI will still own the system after the Authority obtains state leases, EMI/Mahi Pono would likely continue to operate the system as part of a negotiated agreement.
However, the Water Authority would also be able to negotiate an improved operational structure that is more sustainable than what was developed decades ago for a different purpose (sugar).
In the 1950’s, some 25 to 30 EMI employees managed the EMI water system, and in more complicated areas, a “ditch man” who lived nearby was responsible for the upkeep of a mile or so of ditch. The ditch men would likely rotate out, and another ditch man take up residence. In the early 1990’s EMI had 19 employees, and most recent quoted employee numbers have ranged from 9 to 15. Some current EMI employees have vital generational knowledge and skills, and as Mahi Pono has done, a Community Water Authority would want to benefit from that knowledge.
It is important to note, however, that community members in the area also have generational knowledge of the watershed and system, and many residents are graduating from the University of Hawaii and mainland engineering and sustainability educational programs with a strong interest In water management. Further, a Water Authority would take this opportunity to explore global innovations and technical advances that may be appropriate for improving the system — and bring in the necessary expertise to do so.
Whether the Community Water Authority has sole responsibility for operations or negotiates a new operational plan in partnership with Mahi Pono, there would be an opportunity to not only hire a workforce with diverse expertise but to ensure that current knowledge is maintained in a sustainable manner as the system is improved.
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In the case of the East Maui system, a Community Water Authority starts out financially ahead of a private entity seeking to manage the system. There are no acquisition costs and the State Dept of Land and Natural Resources will not be charging the Water Authority for the leases. These are costs that a private entity has to bear.
Mahi Pono’s reported operational costs, including maintenance, labor, fringe benefits, taxes, lease payments, materials and other expenses total $2.2 million. These costs would need to be taken into account in any negotiations. The system’s revenues depend on how much water is allowed to be diverted (currently 25 MGD) and what the Community Water Authority negotiates in terms of the fee for allowing Mahi Pono and other agricultural users to use the water. At $1 per 1,000 gallons — what upcountry farmers currently pay — the Water Authority’s gross revenues could be over $13 million; at .50 per 1,000 gallons, revenues might be less than $7 million. Thus net revenues could range from $1 million to $13 million, depending on how agreements with agricultural users are negotiated.
In addition to operations, the Water Authority will want to invest in system modifications and improvements, as well as restoration. These costs could be in excess of net revenues, and would be taken on as federal grants and loans are obtained, and would be expended over several years.
The current owners have not indicated that they intend to invest in major infrastructure improvements or watershed restoration. Given the current condition of the system, these investments will be necessary in order to ensure a safe and reliable water supply and to reduce the current waste. That is why federal grant and loan funds targeting infrastructure, water systems, and racial and social equity are now available to public water systems.
If private entities remain in control of aging and inefficient water delivery systems in Maui County, and continue their practice of deferring maintenance, our communities will pay the price. Alternatively, if our communities can makes smart financial investments now in the system, our keiki and their keiki will reap the benefits.
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Yes.
The Hawaiʻi Supreme Court described the public trust doctrine as “the right of the people to have the waters protected for their use [which] demands adequate provision for traditional and customary Hawaiian rights, wildlife, maintenance of ecological balance and scenic beauty, and the preservation and enhancement of the waters.”
The State Constitution mandates that “The State has an obligation to protect, control and regulate the use of Hawaii’s water resources for the benefit of its people.”
The situation in East Maui – a prospective 30-year-lease – reverses the water hierarchy defined by the Public Trust Doctrine, which favors conservation, Native Hawaiian and traditional practices, and municipal water supply before any commercial uses.
Further, any commercial application to use public water has the burden to justify the proposed water use in light of the Public Trust Doctrine. Permit applicants must demonstrate their actual needs and the moral correctness of draining water from public streams to satisfy those needs. PSP/Mahi Pono has not satisfied this requirement. In fact, according to public records, they have wasted the majority of the public water they’ve been allocated over the last three years.
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