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In Re Water Use Permit Applications
9 P.3d 409
Haw.
2000
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*1 P.3d In the Matter the WATER USE APPLICATIONS,

PERMIT Petitions Interim Instream Flow Standard

Amendments, and Petitions for Water

Reservations the Waiãhole Ditch Hearing.

Combined Case Contested

No. 21309.

Supreme Court Hawai'i.

Aug. 2000. Sept.

Reconsideration 2000. Denied

As Amended Nov.

103

105

107

Gilbert D. Butson Reinwald O’Connor & briefs, Playdon, Appellee/Cross- for on the Appellant Puu Makakilo.

Stephen Cheryl A. Nakamu- K.C. Mau and Craven, Sutton, Rush, Moore, Morry ra of & Beh, briefs, Appellee/Cross-Appel- on the lant The Robinson Estate. Bronster, Attorney

Margery General of S. Hawaii, Rian, M. Haunani Bums and Heidi General, Lau, Marjorie Attorneys Deputy briefs, Appellees/Cross-Appellants Department Agriculture of Hawaii State Department Natural of Land and Re- sources. Kudo,

Benjamin Fujimoto Wesley A. M. Imanaka, Stacy Dwyer, E. Uehara Schraff, Kudo, Meyer Fujimoto, on the & briefs, Applicant/Petitioner-Appellant *12 109 Bishop Kamehameha Schools Bernice Pauahi lee/Cross-Appellant Company, Dole Food Cooke, Estate. & Inc. Inc./Castle Paul, James T. Pamela W. Bunn and Jessi- Arakawa, Corporation David Z. Counsel Paul, Johnson, ca Trenholme of Park & Niles Morita, Ishikawa, and Mark K. Randall K. Intervenor/Appellant for Hawaii's Thousand Pang Yamashiro, Duane W.H. and Reid M. Friends. Counsel, Deputies briefs, Corporation on the City Appellants County for and of Honolulu briefs, Padgett, D. Appel- Frank on the for Planning Department and Board of Water lant Commission on Water Resource Man- Supply. agement. Gibson, Douglas Michael W. Appleton S. Legal James K. Mee of Pacific Foundation and Keith M. Yonamine of Ashford & Wri- Matsumoto, Cary T. Tanaka LaFoun- ston, briefs, on Applicant-Appel- for Chow, briefs, & Appellee taine on for lee/Cross-Appellant The Estate James Hawaii Farm Bureau. Campbell. Jon T. Yamamura and Kevin E. Moore of Ball, briefs, Appli- Carlsmith on the for

Paul H. Aehitoff and David L. Henkin of cant/Appellee Co., Nihonkai Earthjustiee Legal Lease Ltd. Defense Fund for Peti- tioners/Appellants Com- Waiáhole-Waikáne Schiffer, J. Attorney Lois Assistant Gener- Association, munity Hakipu'u ‘Ohana and Ka al, Klarquist Robert Mergen, and Andrew C. Láhui Hawai'i Alan T. Murakami and Attorneys, Appellate Section Environment & Carl C. Christensen the Native Hawaiian Division, Natural Department Resources Legal briefs, Corporation, on the for Peti- Cheryl Justice and Connett and Paul M. tioners/Appellants Com- Waiáhole-Waikáne Sullivan, Division, Attorneys, Pacific Naval munity Association Hakipu'u ‘Ohana. Command, Engineering Facilities on the briefs, Appellee Depart- United States Gabrio, Gino L. Patrick W. Hanifin and Navy. ment of the Cades, Schutte, Kuribayashi Laurie A. Fleming Wright & and Orlando R. Davidson Fong Alan M. Oshima of Oshima Chun & Callies, briefs, and David Ap- L. on the Chung for Appellee/Cross-Appellant The Es- pellee/Cross-Appellant Land Use Research Campbell. tate of James Foundation. Dwyer Naomi U. Kuwaye of Imanaka Slovin,

Gary Margaret Meyer M. Leong Fujimoto Jenkins for Appli- Sehraff Kudo Goodsill, Anderson, Quinn and Lisa Bail of Petitioner-Appellant & Kamehameha cant/ Stifel, briefs, Applicant-Appel- Bishop Schools Estate. TABLE OF CONTENTS I. BACKGROUND. Ill A. INTRODUCTION. Ill B. PROCEDURAL Ill HISTORY. FINAL C. DECISION. 113 II. STANDARD OF REVIEW. 118 III. DISCUSSION. 119 A. PROCEDURAL DUE PROCESS. 119 1. Dual Chairperson. Status the Commission 120 Improper Attorney 2. Influence General Governor. 123 B. PUBLIC TRUST DOCTRINE. 127 History 1. Development. 127 Relationship to the State Water Code. 3. State Water Resources Trust. Scope of a. the Trust. b. Substance the Trust. Purposes i. of the Trust. ii. Powers and Duties of the State Under the Trust. c. Standard of Review under the Trust. 144 144 WATER CODE. THE STATE OF INTERPRETATION C. Statutory Construction. Principles of 1. Basic 145 146 147 *13 Policy. Declaration of 2. Code Water FLOW STANDARDS. INSTREAM D. Protection. for Instream Use Statutory Framework of the 1. Overview 150 152 157 158 160 160 Objections Amendment. to the WIIFS 2. Procedural 3. Substantive 4. Objections Allocations. to Instream . Standard for Waikáne Stream Interim AND OFFSTREAM USES. OF INSTREAM BALANCING INTERIM E. USE PERMITS. F. WATER Applicants’ of Proof... Burden 1. Permit 2,500 Allocation of Gallons Generally, and the Agriculture, 2. Diversified Day. per per Acre 164 164 164 164 165 165 167 Campbell Estate’s Permits. 3. Seeds) (ICI 146,166 . a. Field Nos. 115,116,145,161 (Gentry/Cozzens) . Nos. b. Field . Sources c. Alternative Ground Water 4. PMI’s Permit. “Existing “Agricultural a. Use”. b. Use”. “Nonagricultural 168 171 171 Uses”. c. Distinctive Treatment Application of the Standards. d. Commission’s Average . Moving 5. 12-Month COMPENSATE FOR WATER TO KAHANA OF SURFACE G. USE DITCH “SYSTEM LOSSES”. ERROR . POINTS OF H. KSBE’S 173 174 Zoning Requirement. 1. System. Ditch Regulation 2. Unified “Ali‘i 175 176 180 183 183 186 Rights”. 4. n Correlative Rights. Takings 5. KSBE’s 6. Ankersmit’s Claim. Testimony. REQUIREMENT TO FUND STUDIES. I. MISCELLANEOUS OBJECTIONS. J. DOA/DLNR’S THE CITY’SMISCELLANEOUS OBJECTIONS. K.

IV. CONCLUSION. O) (D NAKAYAMA, (collectively, & final MOON, C.J., LEVINSON, sion and order decision) 24, 1997. on December decision or IBARRA, in RAMIL, Judge Circuit JJ. and KLEIN, J. Recused. Place of appeal include: Commis- Parties on sion; Estate appellee/cross-appellant NAKAYAMA, J. by Opinion of the Court Estate); appel- Campbell (Campbell James Planning from an extend- present appeal City County arises Honolulu lants (col- Supply Department and Board of Water distributed dispute the water ed over City); appellees/cross-appel- lectively, major System, irrigation Ditch Waiáhole (DOA) Department Agriculture lants supply- island of on the 0‘ahu infrastructure Department of Land and Natural Resources di- side with water ing island’s leeward (DLNR), (collectively, of Hawaii State DOA/ 1995, this its windward side. verted from DLNR); Dole Food appellee/cross-appellant in a case hear- dispute culminated contested Cooke, (Castle); Inc. Company, & Inc./Castle size, dura- unprecedented ing of heretofore (HFB); appel- Bureau appellee Hawaii Farm tion, appellee Commis- complexity before (HTF); ap- Thousand Friends lant Hawaii’s (the Management Resource sion on Water Pauahi pellant Schools Bernice Kamehameha Commission). hearing, At the Commis- (KSBE); appellee/cross appel- Bishop Estate petitions to the inter- amend sion considered Foundation Land Use Research lant windward flow standards for im instream Co., (LURF); Inc. appellee Nihonkai Lease ditch, per- by the water use affected streams (Nihonkai); appellee/cross-appellant Pu‘u offs- for various leeward applications mit Makakilo, (PMI); appellee/cross-appel- Inc. peti- purposes, and water reservation (Robinson); tream appellants lant Robinson Estate Association, uses. and offstream tions for both instream Community Waiáhole-Waikáne (col- findings ‘Ohana, its final Láhui Hawaii Hakipu'u issued and Ka The Commission WWCA); (COLs), lectively, appellee United (FOFs), law deci- conclusions of fact

HI (USN). Department Navy aquifer. States of the We from the Pearl Harbor At the time appeal, carefully arguments parties have of this reviewed their various leeward still retained, light legal using, permits but were not well entire breadth of this state’s pump approximately mgd practical mandates of leeward demands. For the below, fully explained ground water. reasons affirm in part

part and vacate in the Commission’s system Diversions the ditch reduced proceedings decision and remand further streams, spe- flows several windward opinion. consistent with this Waiáhole, Waianu, Waikáne, cifically, *14 streams, affecting

Kahana the natural envi- I. BACKGROUND dependent ronment and human communities upon them. impaired Diminished flows na- A. INTRODUCTION may tive stream have to life contributed System The Waiáhole Ditch collects fresh greater Bay the decline in the Káne'ohe eco- dike-impounded ground surface water system, including the offshore fisheries. The range water1 the Ko'olau mountain on impacts diversion, however, of stream went the windward side of the island of 0‘ahu and until, largely unacknowledged early in the plain. delivers to the island’s central Be- 1990s, sugar industry on 0‘ahu to a came ginning Valley, por- Kahana the collection close. system tion proceeds along of the the wind- B. PROCEDURAL HISTORY Ko'olaus, passes

ward side of the then under the Ko'olau crest to the side at leeward 15, 1992, July desig- On the Commission system North Portal. The section of the aquifer systems nated the five Windward known the Waiáhole Main or Bore Tunnel areas, ground management 0‘ahu as water extends from the North Portal Tun- effectively requiring existing users (Adit exit, nel’s leeward South Portal 8Adit apply Waiáhole Ditch water for use water 8). delivery portion The system be- permits year within one of that date.2 In gins through plain at Adit 8 and winds 1993, Irrigation Company June the Waiáhole Central sys- 0‘ahu. Measured at Adit (WIC), operator system, of the ditch filed develops approximately gal- tem 27 million permit application a combined water use for day (mgd). lons a existing August ditch water. users announced that it would end its OSCo significant ditch system The was built sugar operations, signaling the imminent part irrigate sugar from 1913 to availability by of the ditch water used OSCo operated Sug- plantation by owned and Oahu raising question of its future alloca- (OSCo). Company, planta- ar Ltd. Until the tion. operations tion ceased used OSCo flow, 4, 1993, much of the ditch’s addition to a Conflict ensued. November On ground supply pumped petition substantial DOA filed a reserve3 the ditch generally Reppun Supply, 1. See Board Water and surface waters in the area to ensure rea- 531, 533, (“The 65 Haw. sonable-beneficial use of the water resources in geological structure of the Koolau mountains interest. parts 174C-48(a) (1993) Oahu enables thereof to act as natural provides §HRS that: "No water; storage withdrawal, diversion, reservoirs of fresh these natural person shall make sys compartments complexes are called dike or impoundment, consumptive use of water in tems.”). any designated management area without permit obtaining a first from the commission.” 174C, (HRS) 2. See Hawai'i ch. Revised Statutes however, uses,” "Existing may pending continue (1993 pt. ("Regulation Supp.1999) IV & Of Wa- application permit. use id. HRS for a water Use”). 174C-41(a) (1993) ter states: 174C-50(c) (1993) requires permit appli- determined, reasonably When it can be after “existing cations uses” be made within one conducting investigations scientific and re- year manage- from the effective date of water search, that the in an water resources area designation. ment area by may existing proposed be threatened water, or diversions withdrawals com- 174C-49(d) (1993) 3.HRS states: designate pur- mission shall the area for the commission, rule, establishing pose administrative control The reserve water ground quantities over withdrawals and diversions such locations and and for such investigation holdmg an several uses. The Office of After agricultural flow (OHA), KSBE, considering WWCA, meetings an order to show Hawanan Affairs continuing regarding waste of WIC’s Homelands cause Department Hawaiian water, requested parties water. petitions filed to reserve On also media- petitioned to enter into mediation. The involved December WWCA agreement Commission’s subse- upward flow tion and the the interim instream amend 19,1994 provid- quent order December 0‘ahu streams dated standards Windward mgd (WIIFS);4 supply OHA filed ed that WIC would continue the ditch affected ditch, Por- February as measured at the North petition similar tal, surplus into wind- separate and release the KSBE and Castle also filed specifically request- applications 'ward streams. permit system from ing by the ditch water drawn restoration windward The interim they petitions to amend lands owned. apparent pos- had an stream flows immediate permit applications col- and the the WIIFS high- ecology. on the stream itive effect lectively the entire flow exceeded species *15 exotic fish er flows flushed out ditch. species by carrying par- harming native were disease, competing for food and May Commission In received asites space, interfering spawning rituals. with complaints with the close of OSCo’s repo- potential for operations, discharging Experts un- saw excellent sugar was WIC ‘o‘opu such as gulches. pulation native stream life ditch into Central 0‘ahu used impor- year may potential judgment as in be or instream values of the its seasons necessary. subject potential shall be present Such reservations of the uses of water tance light periodic review and revision purposes, including to changed eco- for noninstream conditions; present- provided that all uses; restricting impact nomic such protect- ly existing legal of water shall be (E) grant reject a The commission shall ed. adopt petition to an interim instream flow under within one hun- standard this section VI, (1993) pt. § 174C-71 4. See HRS ch. days eighty petition dred the date ("Instream Water”). Of 174C-71 Uses days may eighty one hundred be filed. The part; reads relevant eighty extended a maximum one hundred The commis- Protection instream uses. days request petitioner of the and sub- shall and administer a statewide sion establish commission; ject approval to tire protection program.... In instream (F) may flow performance of duties shall: Interim instream standards its the commission (1) stream-by-stream on a adopted Establish instream flow standards a basis or on necessary stream-by-stream basis whenever to general a instream flow standard consist of public protect interest waters specified applicable area; all within to streams a State; (3) Protect stream channels alteration (2) flow stan- Establish interim instream fishery, practicable provide to whenever wildlife, dards; aesthetic, scenic, recreational, (A) standing Any person proper with the uses; other beneficial instream may petition adopt an the commission to inter- instream flow standard for streams order im program an instream flow Establish pending protect the interest the es- enhance, reestablish, prac- protect, where permanent flow tablishment standard; a instream ticable, instream uses of water. The beneficial investigations and commission shall conduct (B) Any interim instream flow standard including fishing, collect instream flow data adopted section shall terminate under this recreational, wildlife, aesthetic, quality, permanent upon the in- establishment of ecological information and basic stream- flow standard for the stream on which stream necessary determining flow characteristics adopted; interim standards were requirements. flow (C) instream adopt petition A interim instream an implement shall its in- The commission set forth flow standard under section shall disposing concerning of water need stream flow standards when and information data protect watersheds, including instream uses removed and conserve beneficial from state they fnay and reasonable of water and other relevant tunnels affect wells or where commission; required by flow, information regulating and when use of lands stream (D) petition considering adopt an and waters within the state conservation dis- standard, flow the commis- interim instream trict, including development. present weigh importance of the sion shall

H3 (snail).5 (goby), ‘ópae (shrimp), and hihlwai exceptions. submitted and oral written While considering the Commission was its 25, 1995, January On the Commission or- decision, governor final the state and attor- dered a hearing combined contested case ney general publicly proposed criticized the permit applications, petitions, reservation inadequately decision as providing for lee- petitions to amend the At a WIIFS. time, ward interests. At about the same 18, 1995, hearing on April the Com- deputy attorney general representing the public testimony mission received and re- summarily Commission was dismissed. The quests participate in the consolidated its issued final decision on De- hearing. The Commission admitted final cember 1997. The final decision differed twenty-five total parties. proposed from the decision in various re- 14, 1995, July On the Commission’s staff spects, notably in increasing most proposed submitted a order bifurcate the amount of permit- water allocated to leeward hearing. proposed contested case order mgd. tees 3.79 recommended that the Commission decide in separate proceeding the allocation of THE FINAL C. DECISION ground water drawn from KSBE’s Waiawa lands in aquifer the Pearl Harbor sector on The Commission’s final decision consisted August leeward side of the Ko'olaus. On 1,109 FOFs, legal extensive discussion 7, 1995, the Commission issued an order COLs, styled as explain- section and a D & O denying proposed bifurcation order on ing length disposition. the Commission’s grounds that the interrelated nature following summary promi- highlights *16 applications the for Waiáhole Ditch water analysis nent elements the Commission’s process. favored the consolidated decision; specifically contested FOFs appear and COLs in the relevant discussion hearings The Commission to also held de- opinion. sections of this July 15, termine “existing the uses” as of 1992, designation the date Wind- COLs, surveyed In its Commission ground management ward as a 0‘ahu Hawaii, law of water as established area, pend- that would be allowed to continue (the Constitution, Hawaii State Water Code ing permit applications, a decision see Code), law, focusing particularly common supra August note 2. On the Com- “public'trust preface on the doctrine.” As a 8,” mission identify- issued “Order Number WIIFS, to determination of its the Com- ing existing respective uses and their mission concluded that: 10,” interim allocations. “Order Number Under the State Constitution and the 16, 1995, dated October amended and clari- doctrine, public duty trust the State’s first 8, allowing fied mgd, Order Number 9.3698 protect to is fresh water resources Portal, as at measured the North to flow into (surface ground) part which are the ditch until further order of the Commis- XI, public trust res. Haw. Const. Art. sion. 7; [641,] Ariyoshi, Robinson v. 65 Haw. hearing The contested case commenced on 674[, duty ]. The Opening 1995. November statements and protect public to is a resources cate- presentation of continued until Au- evidence precondition gorical imperative and the to gust spanning fifty-two hearing considerations, subsequent all for without days evening and four The sessions. Com-- underlying protection such the natural en- testimony mission from received written could, point, vironment at be some irrevo- witnesses, orally, 140 whom also testified cably “duty harmed and the to maintain into admitted exhibits evidence. purity and flow our waters fu- parties presented closing arguments generations ture and to assure 20,1996. September 18 to put waters of our to land are reasonable 15, 1997, July endangered.

On the Commission released and beneficial uses” could be However, decision, proposed parties duty its to protect which the Id. does not Elbert, (rev. ed.1986) Mary Dictionary 5. See Kawena & H. Pukui Samuel Hawaiian 290-91 upon perma- which necessarily that all streams to reach some every or in case mean cease, § 174C-71. must that no new nent solution. Haw.Rev.Stat. offstream uses made, knowledge Unfortunately, all such firm will or that offstream uses require considerably work and is returned to a state more waters must be years away. knowl- ñrst Hawaiians ar- Until scientific nature before even available, edge management de- stream stream rived in these islands and diverted require particular methodology cisions will grow taro. The level incomplete vary preliminary and protection may recognizes with circumstances time; existing primary but the nature evidence. from time duty itself remains. long Given the term work needed ecologically necessary define an flow a identified at 11. The Commission COLs stream, particular the Commission will ground water and streams Windward 0‘ahu instream need to amend “interim” flow “part Bay trust and Kane'ohe permanent periodically standards until subject ... to review under State’s res adopted.... standards can be responsibility expressed in the trust long vantage point Id. at 31. State Water Code.” From the term science, biological and environmental duty its acknowledged The Commission preliminary. regarding streams is evidence instream flow under the Code establish just beginning. The data collection is in- instituting program standards areas, conclusions are tentative. some supra protection, note 4. The stream use see experts opinions. are offer even hesitant to found that the interim restora- future, For the it will be neces- foreseeable “positive flows had a tion windward stream sary manage protect streams effect,” 17-18, “generally, and that POPs through system working presumptions higher volume of flow and instream than on the basis of firm scientific rather its approaches stream flow natural closer the knowledge. levels, greater support pre-diversion processes biological in the stream and at 16. The COLs Commission nonetheless Thus, ecosystem,” according COLs maintained: *17 Commission, general, expected “in is preliminary scientific is Where evidence that additional flows to the streams would yet regarding and not the man- conclusive biota habitat.” increase the native POFs agement which of fresh water resources trust, public prudent part are of the it is to “precautionary principles” pro- in adopt A conclusive determination of the more is, tecting the resource. That where there however, flows,

necessary instream remained potential present are threats of serious explained: elusive. The Commission certainty damage, lack of full scientific found it difficult to Commission has postponing not a for effec- should be basis corresponds quantify an flow that instream prevent tive measures to environmental a biological given to a condition for flora or addition, degradation.... un- where result, a fauna. As the methods used exists, duty certainty protect a trustee’s the continental to determine United States mitigates choosing in the resource favor proven have appropriate instream flow re- presumptions protect also unsuitable Hawaii. source. provides Code estab- Water added). (emphasis Id. and modification of both interim lishment legal permanent and flow standards on The Commission also reviewed the instream per- requirements use assumption that scientific data will for issuance water knowledge Although eventually provide firm about mits the various under the Code.6 (1) 174C-49(a) (1993) Can accommodated with available 6. HRS mandates: source; part, permit pursuant To a to this obtain (2) a use defined applicant proposed Is reasonable-beneficial use shall establish that the 174C-3; section water: 6) sures; requests collectively for water availability exceeded the alternative ditch, flow the (ground Commission concluded sources water and reusable waste- 7) term, least for year “[a]t the near provi 9] the four non-use water[ quantities (Haw.Rev.Stat. excess the amended of the interim sions Code 174C- subject 8) (Haw.Rev. 58);[10] instream flow compliance standard and review [sic]);[11] 9) affecting conditions supplemental flows[7] Stat. 174C-58 and low near present satisfy Thus, are available at time management term demand. careful permit applicants use higher those exist defer need to consider ing and scrutiny analyzing future offstream uses “public identified level of [D Id. O ]”& at 23. Based on this interest” test until the is time when there conclusion, the inadequate Commission further ruled competing water for demands. statutory requirement of “reason Where, finally, inadequate sup- is there fulfilled, partic able-beneficial use” could be needs, ply competing “public both the ularly uses, respect with agricultural test and interest” the examination of “rea- “prima showing” facie of reasonableness and require pri- sonableness” will more than a consistency public with the interest. Id. at showing. ma competition facie As for wa- 24-25. The Commission reasoned: increases, analysis ter resources case, variety management

[I]n this both interest and reasonable- legal postpone fully and factors rigorous need ness must become both more analyze “public required affirmative interest” affirmative. The counties will be deciding tests in the priorities context “reasonable to articulate their land use with Among greater beneficial use.” specificity. example, these factors are: For even at 1) waste; 2) time, obligation not present the re there is more land zoned into permitted, lease windward streams of for various than available water 3) used, water; ground Thus, but not supply proposed the release those uses. it is into merely windward streams of unallocated not sufficient conclude that 4) water; ground operation particular parcel the ditch properly land is zoned 5) management plan; conservation mea and that the use “beneficial.” That min- (3) any existing legal Will not interfere with 793-94. The FOFs Commission also noted water; irrigation, limited use of reclaimed water for but (4) interest; present Is with consistent water was concluded reclaimed (5) county available, gen- ly Is regarding consistent with state view of concerns use of plans designations; eral potable aquifers land use reclaimed water over and health (6) county plans regulations limiting Is consistent land use such use to certain kinds of 677-786; policies; crops. sion, nevertheless, & FOFs D O at 8. The Commis rights Will not interfere with the stated that it would "revisit *18 and, department provid- existing ground-water appropriate, of Hawaiian home lands as if reduce permits ed in section of Hawaiian Homes Com- if reclaimed water becomes available allowable, subject mission Act. and is economic and health considerations.” D & O at 8. below, explained 7. As the Commission created a "buffer” unallocated initial water for release (1993) provides 10. HRS in 174C-58 relevant in the streams and future allocation for offstream part: use. permits. hearing, a Revocation After (1993 may Supp.1999) suspend permit 8. HRS 174C-3 & defines or a commission for; revoke "reasonable-beneficial use” as "the use of water quantity necessary a in such for as economic utilization, nonuse, (4) purpose and a efficient for and in a Partial or total for reasons other conservation, manner which is both and reasonable consistent than allowed water county plans years permit period with the state and land use and the for four continuous public interest.” more. acknowledged part: 9. The Commission 11. HRS 174C-56 in relevant various states parties ground every twenty years, leeward had to leeward "At access least once the commis- Estate, Campbell example, study comprehensive all water. still held sion shall conduct permits mgd permits, chapter in well FOF and Del Monte issued under to determine profitably using ground permits was its own water wells whether the conditions on such are be- water, irrigate sought ing complied lands for which it ditch with.” ‘Ewa Plain inadequate igin,” of ditch water over the to re use be imal conclusion competitive nonagricultural in was caprock which de for new uses solve situations analysis of supply. Further Id. Com “presumptively mand disfavored.” The exceeds to water public interest criteria relevant stated: mission also conservation, uses, com (e.g., alternative non-agricultural uses in leeward Other benefits) will be public costs and parative landscaping golf uses Oahu for course needed.[12] ground could utilize available which Id. at 25. carry heavy bur- also or treated effluent uses, why conclud- be Agricultural the Commission to show stream water should den ed, pub- origin, “generally” with the consistent out of its watershed of were diverted adequate though [wa]s “where is closer to lic interest even central Oahu scarcity IcL In times of at 26. Ewa Plain. available.” windward Oahu than the however, competition, term, “the standard uncertainty regarding the short higher.” Id. at 26-27. aqui- potable [would] review over a treated effluent nonagricultur- Existing golf fer, course other existing Waia- infrastructure move “already subject higher water, to this al uses were system Ditch and the need to hole standard, higher in uses for wind- light study mitigate all in instream flow needs water, including retaining the ward surface continuing favor the use Waiahole 27. Com- Id. at water in the streams.” uses. subjected permits all to “conditions mission Likewise, use of the continued Waiahole if the Com- for stream restoration providing through existing sys- ditch Ditch water that additional water determines mission preserve agriculture in central tem D & 0 returned to the streams.” should be in sugar production on lands Oahu lands) (“footprint” on other well recognized statutory its The Commission agricul- Oahu suitable for lands central considering competing water use duty, when If and until important ture has value. applica applications, approve permit ground water is avail- treated effluent that “best serves the interest.”13 tion able, strong State interest has view, an con In the Commission’s inherent retaining agriculture on these lands. permit applications, flict existed between pro- may be instream flow values Where petitions petitions, and to amend reservation agricultural tected offstream WIIFS, was “[a]fter but evidence maintained, accommodated both “uses” are uses eval weighed reasonable beneficial promoted Haw.Rev.Stat. the manner uated, competition scope of narrowed § 174C-54. significantly.” COLs at 28. Commis at 28-29. Id. sion, however, general did indicate certain legal Having grounds discussed the types of uses. For exam priorities between decision, apportioned or treated ple, because use brackish water Com- Ditch water as follows. The Waiahole Plain would not harm over the ‘Ewa effluent part part granted mission and denied caprock aquifer, underlying and trans petitions to amend the WWCA’s OHA’s across the island “further re porting water *19 WIIFS, a deeming “practicable” it restore protection afforded the stream duces the streams, id. mgd at ecosystem by in its of or total 6.0 windward keeping water area decision, quantity pending are for a tion 174C-49 in its Commission 12. Elsewhere all, inadequate of current wa- or maintained that its determination water for both or that is conflict, availability necessarily that the did not "mean any ter reason are in which for other [City’s] growth projected be [could] demands sat- first, commission shall seek to allocate rather, water; Ditch isfied from Waiahole both in such a manner as to accommodate greater [City’s] require projected will needs even second, applications possible; if if mutual ” analysis. at 23. Id. sharing possible, then the commission is not approve application which best selves shall 13. HRS 174C-54 states: interest. Competing applications. ap- If two or more added.) (Emphasis comply plications which otherwise sec- total, than average mgd “more 25% the total 12.22 Commission allocated Waiahole Ditch flow mgd measured at the North permits, 10.64 water use calculated (23.3 mgd),” Portal at Specifically, by 4,915 id. 33. multiplying “existing acres in mgd the Commission added 4.0 to the 3.9 use” under Number 8 and 10 Orders mgd “Q90 base flow”14 of Waiahole Stream 2,500 gad requested. lesser or the amount mgd Q90 mgd and 2.0 0.5 base flow of remaining desig- Id. at 7. The mgd 1.58 was Stream, tributary a Waianu of Waiahole reserve,” “proposed agricultural nated a D Stream. O at& 3. The Commission thus which would agricultur- become available for increased combined flow base permits through req- al use if confirmed mgd. Waiahole Waianu Streams to 10.4 rulemaking procedures, uisite supra see note mentioned, Id. The Commission neither nor D expressly 3. & O 7. The Commission any provision for, made the instream flow of prohibited counting” unauthorized “double Waikane Stream. allocations, or the use of Pearl Harbor ground water on same to which The Commission set a lands aside total of 13.51 permits mgd applied, for to use mgd leeward Waiahole Ditch water offstream uses: 12.22 “agricultural” for suspend uses and 1.29 for and noted that it could “other” or revoke 6-7, ground permits uses. Id. at for Waipahu- Leeward water uses water from the would according average be measured aquifer system years Waiawa after four a period, nonuse, over twelve-month or partial supra “twelve total D see note 10. (12-MAV). moving average” month Id. at & O at 8. 12-MAV, 12. The the Commission elaborat- uses, Nonagricultural including or “other” ed, fluctuation, “allows for seasonal and is cemetery, a prison, state and two generally for all reporting used water use courses, Club, golf PMI and Mililani Golf requirements by the Commission.” Id. mgd in permit received 1.29 allocations. The calculating mgd “agricultural the 12.22 Commission, however, granted PMI’s use allowance,” preliminarily the Commission mgd “subject special requirements 0.75 “2,500 gallons per found that per day acre including duty to seek alternative sources (gad) duty is a reasonable for diver- they reasonably where are available agriculture.” Id. sified at 6. The Commission near future.” at 25. COLs figure gad open left the to future evaluation imposed likewise on Mililani Golf Course the adjustment, noting that to- tended duty they to use alternative sources when range wards “the lower end of esti- reasonably became available. Id. incipient mates” due to the state diversi- agriculture operations fied and “a lack of “non-per- The Commission also created data actual Id. uses.” “There was evi- ground mgd, mitted water buffer” of 5.39 higher quantities,” dence for both and lower for initial intended release the windward stated, flexibility the Commission “the but streams, but uses as a available offstream operational requirements duty and the not to secondary mgd pro- source after 1.58 provide appropriate waste should safe- posed Applicants for reserve. Id. at 33-34. guards in either direction.” COLs at 25. required buffer water would petition to D & at 11. mgd agricultural amend the WIIFS. O The 12.22 allowance con- Commission, however, mgd would take sugar- sisted 10.0 for former OSCo look’ at currently “‘hard the best available scientific cane lands used for diversified agriculture 4,000 (approximately and stream flow data and sup- acres decide whether 2,500 plied gad), mgd 2.22 [WIIFS] amendment needed” before Castle’s 1,552 agricultural (approximately approving application lands and would issue all acres 2,500 supplied gad permits subject at the providing lesser to “conditions *20 requested). amount D at& O 6-7. stream if the Of the restoration Commission deter- "Q90 represents The flow” "[r]unoff base the minimum observation that flow dominates stream 14. equaled responsible highly flow of a stream or exceeded at least 90 in Hawaii and is for variable Hawaii, percent of D O 2. the time. & at The Commis- stream flows.... In exceed streams Q90 average just sion’s use of the base flow stems at 16. from its flow of the time.” COLs 10% for may apply opment, stating “[KSBE] be should re- that additional water mines [upon receiving] the water ... to stream.” COLs at additional turned classification, development proper land use therefore, Preliminarily, the Commission zoning changes and plan approvals, and streams, in addition windward released into will [demonstrating] that actual use of water WIIFS, “sup- a mgd 6.0 added to for within a time frame commence reasonable more, mgd or consist- of 6.97 plemental flow” project.” COLs at 27. proposed buffer, mgd mgd the 1.58 ing of the 5.39 reserve, authorized water proposed to grant also declined Commission actually permits but for use water use mgd compensate to request for 2.0 WIC’s used, mandated would which the Commission system “operational of the ditch losses” “to avoid unlaw- in windward streams remain evaporation to such as and leak- due factors explained ful Id. The Commission waste.” none- D 0 at 11. The Commission age. & provide supplemental flows will that “[t]hese that, designated it observed until theless scientifically study monitor and a field test to man- as a surface water Kahana watershed supplemental flows As these the streams. area, mgd “non-regulat- agement the 2.1 uses and the permitted for offstream be by drawn the ditch ed” Kahana surface water present from lev- actual stream flow reduced Id. approximately cover such losses. would els, to be conducted scientific studies will proffered after 12. The Commission reducing stream impact of examine the designating as a water man- Kahana surface Id. flows.” receiving permit agement area and water, “may it applications for the consider plan to announced The Commission operational from committees, deducting losses advisory establish technical interests, non-permitted ground water.” Id. representing a cross-section of assessing the im- tasks such as undertake all, mgd of the 27 total flow of the decision, final plementation of the deter- ditch, Adit the Commission as measured at feasibility using treated mining the ag- mgd permitted assigned 14.03 leeward aquifers, potable and rec- oyer wastewater “sys- nonagrieultural ricultural and uses and measures, studies, ommending conservation term, For near Com- losses.” tem monitoring plans. D & 0 4-5. Par- mgd in mission released 12.97 windward receiving permits use Waiahole ties However, mgd 6.97 of this 12.97 streams. Ditch on their lands would re- lee- mgd available for offstream remained for, por- quired “prepare, or contract agricultural re- “proposed as a ward uses monitoring tion activities studies “non-permitted ground buff- serve” order,” contributing resulting from this present appeal followed. er.” according .the pro funds on a rata basis at 10. The of water used. Id. amount II. STANDARD OF REVIEW would establish committee (HRS) a reasonable amount “to recommend 174C- Hawaii Revised Statutes up funding and coordinate and set provides: of rules “Judicial review collection, accounting, for the mechanism commission under this and orders Id. of the funds.” governed by chapter and distribution chapter [HRS] shall be [the Hawaii Administrative Procedures denials wa- Several Commission’s Act, de novo is not allowed HAPA]. Trial present requests are ter use relevant of commission actions under this on review rejected DOA’s appeal. The Commission chapter.” Regarding appeals agency planned mgd application for a permit 0.75 generally, this court has stated: decisions prejudice [reap- agricultural park “without qualified ... This court’s review is plication] when DOA can demonstrate principle agency’s that the decision within a reasonable actual use will commence presumption validity carries a Commission denied time frame.” Id. The mak- appellant heavy has burden of golf-course requested allocation KSBE’s showing deci- ing convincing that the with its landscaping uses in connection unjust Gentry is invalid because devel- sion planned Waiawa residential

119 305, 310, consequences. 1339, unreasonable in its Kon Hawai'i 933 P.2d 1344 Hawai'i, (1997) (citations 61, omitted); County no v. 85 §§ Hawai'i HRS 91- of 77, (1997) 397, (citations (4). (2), 14(g)(1), 937 P.2d 413 and omitted). “A presents ques COL mixed (1993) of 91-14(g)

HRS tions fact and law is reviewed under enumerates clearly applicable of erroneous the standards review standard because an dependent agency appeal provides: Upon upon the conclusion is re- particular of facts and circumstances of may view the court record the affirm Zoning agency Appeals decision or case.” Price v. of the Bd. remand the of Honolulu, City County pro- case with 77 instructions further 168, 172, 629, ceedings; Hawai'i 883 or it P.2d 633 modify reverse or (1994). questions if the decision and When mixed of law order the substantial rights presented, appellate and fact are petitioners may have been give prejudiced agen court must because the deference administrative conclusions, findings, decisions, cy’s expertise experience in par or or- ticular ders are: field. Dole Hawaii Dimsion- Cooke, Ramil, v. Castle & Inc. 71 Haw. (1) In violation of constitutional or 419, 424, (1990). 1115, 794 P.2d 1118 statutory provisions; or “[T]he court should not substitute its (2) In statutory excess authori- judgment agency.” own for that of the ty jurisdiction or agency; or (citing Agsalud, Id. Camara v. 67 Haw. (3) upon procedure; Made unlawful or 212, 794, (1984)). 216, 685 P.2d 797 (4) law; by Affected other error of or Poe, 197, 87 953 Hawai'i P.2d 573. (5) Clearly erroneous view of the 384, Appeals, v. Curtis Board 90 Hawai'i reliable, probative, and substantial evi- 392-93, 822, (1999). 978 P.2d 830-31 record; on dence the whole or An or FOF a mixed determination (6) Arbitrary, capricious, or or charac- (1) clearly and fact is law erroneous when terized abuse of or discretion clear- sup the record lacks substantial evidence ly unwarranted exercise discretion. (2) port determination, finding or or de Blane, 108, 112, v. GATRI 88 Hawai'i 962 spite support substantial evidence 367, (1998) (citing P.2d 371 Poe v. Hawai'i determination, finding or appellate court Board, 191, Labor 87 Relations Hawai'i is left and firm conviction the definite 194-95, 569, (1998)). 953 572-73 P.2d that a has made. v. mistake been See Leslie [POFs] under are reviewable Tavares, 394, 399, 91 Hawai'i Estate 984 clearly erroneous standard determine (1999). P.2d 1225 “We have defined agency clearly if the decision was erro ‘substantial evidence’ as credible evidence reliable, probative, neous view quality probative which is of sufficient substantial evidence on the whole rec person value to enable reasonable cau Inc., House, Liberty ord. Alvarez v. 85 support (quoting tion to conclusion.” Id. Hawai'i 942 P.2d 541 319, 328, Kotis, State Hawai'i 984 P.2d v. (1997); 91-14(g)(5). §HRS (1999)). freely [COLs] are reviewable to deter- if agency’s in vio- mine decision was III. DISCUSSION15 statutory pro- lation of or constitutional A. PROCEDURAL DUE PROCESS

visions, statutory authority in excess of jurisdiction agency, point appeal, As first affected its WWCA Akiba, alleges right error of law. Hardin v. constitutional other violation matter, they jurisdiction note we to hear determine As a threshold have have jurisdiction appeal. general Housing Corp. (quoting entertain this each case" Castle, Fin. & Dev. Co., 64, 76, ly Light Peterson v. Elec. Hawai'i 898 P.2d Hawaii Hawai'i 322, 326, 174C-12, (1995))). (recogniz Pursuant to HRS ing "obligation appellate chapter governs our review of Commis- courts insure *22 120 to having a interest” due his process, specifically, “conflict of procedural

to due City v. & Sussel In right chairperson to a fair tribunal. of the state status concurrent County Honolulu Civil Service Commis- Department of and Natural Resources Land sion, 101, 107, 867, P.2d 870 71 Haw. 784 (DLNR), to party an adverse WWCA (1989), recognized: we hearing before the instant contested case just are certain fundamentals “There at outset We note Commission.16 every procedure which are the same for positions chairperson of the Commis- every type of type proceed- of tribunal and chairperson of the DLNR are not sion and Law 76 Pound, Administrative ing.” R. incompatible per common law doc- se. The (1942). “Concededly, a ‘fair trial in a fair prohibits an indi- incompatible offices trine pro- requirement a of due tribunal is basic serving capacity one “[i]f vidual from in dual 136, Murchison, 133, re U.S. 349 cess.’ or is to the other office subordinate (1955). 623, This 75 99 L.Ed. 942 S.Ct. inherently functions of the are incon- offices agencies which applies to administrative State repugnant to each sistent and other.” v. Gibson adjudicate as as to courts. well Villeza, 270, 258, 522, P.2d v. 85 Hawai'i 942 1689, 564, 579, Berryhill, 93 411 U.S. S.Ct. Treadway, v. (1997); see also Woods 31 534 (1973).” v. Lar Withrow 36 L.Ed.2d 488 (1931). 792, legislature Haw. 794 kin, 35, 1456, 46-47, 43 421 U.S. 95 S.Ct. as it nevertheless override this rule deems (1975). L.Ed.2d 712 See Schulman necessary. appropriate or grounds for its alle- raises WWCA several 626, O’Reilly-Lando, N.J.Super. 226 545 ad- gation process. denial of We a due Canyon Fire 241, (1988); American A.2d 243 dress each turn. 141 County Napa, Dist. v. Cal. Protection Chair- (1983). Dual Status 1. Cal.Rptr. 192 App.3d 190 person case, legislature expressly In this has chairperson of the board “[t]he decreed chairperson accuses

WWCA (Wilson), Commission, natural shall be the of land and resources Michael Wilson Geothermal, (1993) privileges" § stake. Puna also 174C-60 at sion’s decision. See HRS ("Contested cases”) ("Chapter apply Hawai'i at 1214. 91 shall ex- P.2d "Any part: § cept chapter.”). with HRS HRS 174C-60 states relevant where it conflicts this notwithstanding, (1993) contrary 91-14(a) in judicial § other law to the review of a allows cluding hearing chapter contested case case.” decision and order in a contested “final appealed upon 1) hearing under this section shall be agency "A contested case is directly supreme for final 2) record to the court rights, required duties, law and determines the 13-167-65(b), §§ decision.” See also HAR 13- privileges specific parties." Pele (1988). Although the 171-26 referent “this Venture, 77 Puna Fund v. Geothermal Defense unclear, Agric. section” is see Ko'olau Co. v. 64, 67, (1994); 881 P.2d see Hawai'i Management, Resource Commission Water 91-1(5) (1993). §HRS 484, 492, (1996) 927 P.2d Hawai'i case, parties appeal the Commis- In this drafting" (noting the "inartful of the Water permit applications regarding sion's decision provisions), we no sound Code’s review discern petitions "existing” to "new” uses and demarcating decisions on certain mat basis to interim instream standards. As amend flow appeal court under ters for initial to circuit 174C-50(b) § existing applications, 91-14(a), use HRS particularly § in cases such as HRS (HAR) one, and Hawai'i Rules Administrative consolidates where the Commission where, 13—171—14(b)(1988) require hearing § single hearing. According in a various matters here, quantity applied provide as 25,000 of water for exceeds ly, § HRS 174C-60 to for direct read objection gallons per supreme month and an appeal court instant from the having standing application person entirety. is filed in its combined contested case But cf. Furthermore, Peterson, object. while the statutes Hawai'i at 269-16(f) (1993), § require hearing respect (holding, pursuant HRS rules do appeal petitions dards, of Public Utilities to amend interim instream flow stan- that direct from order (definition only when 174C-3 of interim Commission lies this court order see HRS standard); 13-169-40(e) (1988), utility "regulation pertains or "rate- rates” HAR making procedures”). applications, HRS "new” use 174C-53 see -13, 13-171-12, (1993); §§ HAR to -19 -16 joint (1988), parties' joined in process due DLNR the leeward constitutional mandates many permit hearing application for a of the individ- in both instances because duties, during hearing. "rights, of their motions ual instream and offstream chairperson comparisons commission.” precedent draws invali closer *23 174C-7(b) (1993). legislature The thus dating procedures whereby judges has presided appropriate person it deemed for one nonsummary contempt over proceedings that in capacities. serve both they played an in bringing instrumental role See, e.g., Murchison, supra about.17 (finding decide, however, We must still wheth process a due a judge violation where who any impermissible pre er conflicts of interest grand jury” as presid served “one-man also presiding vented Wilson from in over the trial); Brown, oyer (ruling ed supra proceeding. stant Coyne See v. State ex rel. judge indirectly responsible a for the institu Thomas, (dis 970, (Wyo.1979) 595 P.2d 973 contempt tion of eharge a for conduct of tinguishing incompatibility of offices and con personal which had no knowledge he could interest). flict In arguing negative, preside trial); not over see also v. White the Commission cites its own of disquali rule Educ., 10, 16, 358, Board 54 Haw. 501 P.2d fication, (HAR) Hawai'i Administrative Rules (1972) (holding although 363 super (1988), § 13-167-61 which in states relevant secretary intendent of education was the part: “No commission member shall sit in board, decisionmaking he should have any proceeding in any which the member has hearing regarding recused himself from a pecuniary pro or business in interest Here, disciplinary imposed). action that he ceeding or who is related within first similarly presided proceeding Wilson a over by degree marriage any party blood or he, by association,18 in which direct assumed proceeding.” partisan judgment, active role. sat in He undisputed per It is that Wilson had no hand, legal on the one claims and factual sonal or familial in financial interest this representations advanced, on he the other. proceeding. WWCA analogizes nonetheless precedent relating this case to the line of any Aside from actual on institutional bias disqualification for case, or “institutional” “struc in part Wilson’s this Ohio, Turney tural” bias. See v. 273 U.S. argue seriously “no would one (re 510, 437, (1927) 47 71 L.Ed. 749 S.Ct. disqualification [decision-makers] on versing by mayor a conviction a rendered grounds prevents of actual bias ... unfair concurrently serving village as chief execu Brown, ness in all cases.” State v. 70 judge, tive in where fines collected 459, 467, 1182, (1989). Haw. 1187 mayor’s provided part court substantial system [justice] always So “our has finances); salary village’s of his and the Al prevent probability endeavored to even Epsilon pha Chapter Phi Tau Hous. v. Ass’n Murchison, supra. unfairness.” In re (9th 840, Berkeley, City 114 F.3d 844-47 Cir.1997) (discussing Supreme the standards estab Court teaches us too that by Turney justice its progeny). “perform high lished can Unlike function cases, procedural infirmity [only way ap- those lies if satisfies] here best ‘the potential pearance justice.’ less for incidental institution v. United Offutt States, 11, 11, al benefit to either the Commission or DLNR 348 U.S. 75 S.Ct. 99 interest, (1954) Murchison, than DLNR’s institutional [ L.Ed. 11 In re su- ].” “ directly case, party pra. popular government, ‘jus- in a in a involved For manifestly favorable but only decision Commission. tice must be done view, therefore, our us v. matter before be seen to be Rex Justices done....’ DOA/DLNR, rejecting join speculating 17. Other cited cases 18. We do not DOA/DLNR process objections due where the decisionmaker authority chairperson to how much the DLNR performed investigative adjudicative both actually wields over DLNR. See HRS 26-15 functions, 47-55, Withrow, see 421 95 U.S. (1993) (designating the board of land and natural previously expressed position S.Ct. 1456 allowing resources as head DLNR policy dispute, issue related to the see Hortonville delegate powers chairperson). board Ass’n, Joint v. Educ. School Dist. Hortonville 426 chairperson DLNR Whether the the leader or 482, 493, U.S. (1976), 96 49 1 S.Ct. L.Ed.2d board, something subordinate of the in be- employer or shared a common with a tween, the result is the same. Cline, party, see McDonald v. 193 W.Va. 455 (1995), similarly inapposite. S.E.2d are Bodmin, [1947] 1 K.B. 325.” Joint joint chairperson of the Commission McGrath, hearing. presiding over the Refugee v. DLNR Anti-Fascist Comm. 19, 71 172 n. 341 U.S. S.Ct. appropriate remedy for J., (Frankfurter, concurring) L.Ed. interest, bias, appearance conflict of disqualification impropriety is the recusal or 107-08, Sussel, P.2d at 71 Haw. at Ross, adjudicator. 89 Haw tainted See (brackets Ross, also original). State 376-77, 16-17; Charles ai'i at P.2d *24 379, 11, 371, P.2d 19 89 Hawai'i 974 Koch, Jr., H. Law Practice Administrative & (“[A]side (1997). Nonetheless, from the technical absence bias 6.10[4], at al 306 interest, may- or certain situations conflict objected early to Wilson’s though WWCA uncertainty concerning give status, rise such point during proceed dual at no [adjudicator] impartially ability of to rule ings disqualification. it It did seek Wilson’s necessary.”). disqualification becomes seeking filed a motion to dismiss instead proceeding. instant WWCA DLNR disqualifi test for have held “the We discovered, cited, has nor we not have impropriety’ ‘appearance of cation due to the precedent for a such measure.19 WWCA’s one, objective not on the beliefs based objects it suggests that less course of action [adjudicator], but on petitioner chairperson’s dual status than impartial onlook assessment of a reasonable participation in this case.20 nature of DLNR’s Ross, all the facts.” 89 Haw apprised er 380, 20. From ai'i at 974 P.2d at party asserting grounds for A objective viewpoint, fail to how Wil see timely present disqualification must the ob litigant adjudicator dual status as son’s jection, either before the commencement reasonably cast on his could not have doubt disqualify proceeding or as soon as the impartiality. ability to In rule with absolute See, ing e.g., Honolulu facts become known. deed, Felix, 615-16, 578, Roofing Co. v. 49 Haw. 298, Okumoto, (1967); 426 P.2d 322 Yorita v. advocacy] pro- [h]aving part a of [the been 148, 820, 152, Haw.App. 824 3 643 P.2d be, very adjudicator] cannot in the a[n cess (1982); Capitol Transp. Inc. v. United things, wholly nature disinterested (1st Cir.1979) States, 1312, 612 F.2d 1325 would not [or she] While he [the result]. (“Contentions of bias should be raised as likely [party], all the of a can have zeal practicable party a has reason soon as after certainly [or would she] not be said that he grounds for cause to believe that dis able have none of that zeal. exist.”). unjustified qualification failure Murchison, 137, at 75 623. 349 U.S. S.Ct. properly disqualification raise issue any subsequent agency his [person] judge can a before the forecloses [or “[N]o Brown, 466, qualifica challenges 70 at to the decisionmakers’ Haw. her] own case....” Murchison, appeal. at 349 on See Power Federal Labor (citing P.2d 1187 U.S. tions 776 623). Auth., 146 in that Relations F.3d at Wilson served S.Ct. (D.C.Cir.1998) (“[I]t will not do for claimant to capacity respect DLNR exact misgivings suppress regarding hold his bias while proceeding. thus instant We anxiously waiting whether the decision party DLNR was the contested see where (citation Commission, goes his favor.” and brackets before the the basic consti- case omitted)); impartial Duffy, Wash.App. that a tribunal be In re tutional mandate (1995) (“A “justice litigant’s as satisfy appearance must P.2d and that right disqualify judge, (citing P.2d sertion of justice,” at at 1188 id. 11), upon process Offutt, precluded statute due 75 S.Ct. whether based U.S. out, points §§ appeal, WWCA HAR 13-169-32 WWCA not seek the As 20. 19. Even on does remedy rehearing (1988) require or reconsideration usual DLNR to the Com- and -33 assist White, see, e.g., chairperson, 54 Haw. investigating developing without mission streams (remanding rehearing), at 363 flow instream standards. simply this court to set aside the Com- but asks decision, 24. final note mission’s see infra considerations, timely objec chairperson must be or the status as of the Commission and waived.”). tion is DLNR, therefore, did not constitute a process reversible due violation under the

Despite its awareness of Wilson’s dual sta- facts this ease. tus, WWCA, apparently as a matter of delib- choice, and strategic erate sought never Wil- disqualification. son’s Improper WWCA cannot now the Governor Influence grounds

raise matter as for overturning Attorney General the Commission’s decision. argues governor WWCA also that the state Additionally, if even had attorney general WWCA improper influ- exerted Wilson, to disqualify moved long-recog during period ence the Commission allows, necessity” nized only “rule of but deliberation proposed between the final requires a pro to “act in decisionmaker specifically decisions. WWCA refers to the ceeding, when he [or she] would otherwise be governor’s public proposed criticism of the *25 disqualified, jurisdiction if is exclusive and no decision, attorney general’s personal ap- the provision exists for substitution.” Yamada pearance before the order to Comm’n, v. Natural Disaster Claims 54 argue exceptions pro- to the DLNR/DOA’s 621, 628, (1973). 1001, Haw. 513 P.2d 1006 decision, posed depu- and the dismissal the 348, See also Ariyoshi, Schwab v. 57 Haw. ty attorney general assigned to the Commis- 350, 1329, (1976) 555 P.2d 1331 (“[Disqualifi sion. permitted cation will not destroy be the judi agency performs Where an only power premises.” tribunal with in the function, cial political pressure external can (quoting 351, Brinkley Hassig, v. 83 F.2d 357 parties’ right procedural violate (10th the due Cir.1936)). process, thereby invalidating agency’s the de (1988) § provides: HAR 13-167-6 “Four generally Sokaogon cision. See Chippewa shall, members the commission constitute a Babbitt, 1165, F.Supp. Comm. Ass’n v. 929 quorum to transact business and the concur- (D.Wis.1996) (consolidating 1173-80 the case simple of a majority rence of the members of law); Koch, supra, § improper 6.13. Such the necessary commission shall be to approve see, legislature, influence issue from the any action of the proce- commission.” No ATX, e.g., Inc. v. Dept. United States appointment dure exists for the of substitute 1522, Transp., (D.C.Cir.1994); 41 F.3d case, commissioners.21 In this two commis- Comm’n, Pillsbury v.Co. Federal Trade outset, sioners from withdrew ease at the (5th Cir.1966), F.2d 963-64 as well as reducing six-member Commission branch, from within sources the executive charged jurisdiction with “exclusive and final see, e.g., Soc’y Portland Audubon v. Endan authority in relating imple- all matters Comm., gered 1534, 1543-48 Species 984 F.2d mentation and administration of the state (9th Cir.1993); Scrivener, v. Jarrott code,” 174C-7(a), § HRS four- (D.D.C.1964). F.Supp. 827 theAs United quorum required member to conduct busi- Appeals States Court for the D.C. Circuit Consequently, disqual- ness. where Wilson’s explained in ATX: prevented ification would have the Commis- case, acting sion political] on this [External the “rule of interference necessity” preside process heightened demanded that Wilson administrative proceeding. over the quasi-judicial proceeding, instant Wilson’s dual in a concern 13-167-56(c) (1988) § provides: normally 21. HAR properly "The Aat ters arise in Ae chairperson pre- by hearing shall be commission course of a auAorized Aat are law However, siding chairperson may necessary orderly just officer. for Ae of a conduct member, designate ap- hearing.” § another commission HAR 13-167-56 does not allow Ae pointed representative, grant auAority presid- any decisionmaking a master ultimate ing by prohibited presiding officer unless law.” As ex- to an alternate officer. To Ae con- 13—167—56(b), plained "presiding trary, in HAR Ae Code Aat the six-member mandates functions, performs jurisdiction officer” mere administrative Commission "shall have exclusive 174C-7(a), giving hearing, auAority,” such as notice of the administer- and final and Aat oaths, ing issuing ruling subpoenas, objec- any on on made final decision matter shall be "[t]he motions, (1993). commission,” "dispos[ing] tions or of other mat- HRS 174C-10 First, lightly legitimate governor’s guided by principles. two do not take which is pressure may respect appearance supervisory of bias or interest and role with “the time, objectionable reality.” can less than the At be no the Commission. the same enough adju Fed’n Civic Ass’ns emphasize strongly Columbia [District not all [1231,] 1246-47 ]Volpe, 459 F.2d proceedings dicative conducted the Com denied, (D.C.Cir.), cert. U.S. [ exacting mission must conform to the same (empha ] 31 L.Ed.2d 489 fairness, S.Ct. impartiality, and inde standards added); Koniag, v. An sis see also Inc. pendence applicable court judgment (D.C.Cir.), drus, 580 F.2d cert. Sussel, 71 Haw. at of law. See denied, 99 S.Ct. 439 U.S. at 870. (1978) (Koniag) (congressional L.Ed.2d 712 case, however, gover- In instant appearance “compromised letter fall short of the level of nor’s remarks Second, judicial Secretary’s impartiality”). have viola- that courts deemed interference pressure must focus on evaluation of leading process. case on tive of due pressure and the the nexus between influence, Pillsbury, adjudica- improper previ we have actual decision maker. As subjected “searching personally tor was observed, ously proper “the focus is why how examination as to he reached the content of ... communications him abstract, pending his decision in a case still before upon but be rather relation “wrong’ adjudi- reaching ... criticism] the communications and the tween *26 decisionmaking 354 F.2d 964. eases process.” [Pe- decision.” at Other cator’s involved, minimum, sort of direct ter Sons’ Co. v. United States at some ]Kiewit[ [163,] Eng’rs], 714 Army Corps regarding F.2d contact with the decisionmaker the of (D.C.Cir.1983) Koniag, [ ]. 169-70 dispute. e.g., of the merits See 610; Jarrott, 831-33; F.Supp. F.2d (footnote omitted). 41 F.3d at 1527 See also Corp. also v. Federal Power see Oil Pillsbury, (holding 354 F.2d at 964 ex- Gulf (3d Cir.1977) Comm’n, 563 F.2d “focus[ing] directly and sub- pressure ternal (holding purpose of for the intervention stantially upon process- the mental decisional expediting disposition, the than affect- rather pending in a case es” of administrator merits, ing agency); its not the did influence appearance impartiality— of “sacrificefd] ATX, (recognizing legis- 41 F.3d at 1528 judicial jus- qua non of American the sine directly hearings focusing tice”). lative not on the of decisionmakers and the merits the case objects gover WWCA first decision). agency did not invalidate the concerning opinions nor’s remarks his case. After the issu on the merits Here, governor general made several decision, proposed governor ance of statements his own views of the case. about support his for leeward publicly announced Although they directly dispute related interests, criticizing pre the Commission’s Commission, the arose before the comments disposition.22 liminary pro- apart instant forums from the ceeding indi- the Commission reached governor appoints all of The only through whom, rectly, parties’ if the windward commissioners, chairperson two of objections. provides no evidence Depart WWCA of DLNR and the director of the type Health, and focused interference direct serve his cabinet. ment 174C-7(b); V., ab- cited seen cases above.23 Haw. Const. art. 6. posi of direct communication governor occupies thus an obvious sence evidence decisionmakers, fails to with the WWCA tion of influence over Commission. We any gover- governor’s appear parte ex between &e 22. comments do not communications however, parties, the other record. None of and the Commission nor or others on his behalf dispute general of their con- WWCA’srendition they "so that can be dealt with eliminate tent. impact Com- minimize their on this case.” The apparently respond did re- mission not to this Commission, objection to the In its written quest. HTF demanded that the Commission disclose requisite demonstrate the represent employee “nexus between a state in civil pressure actual investigating decision maker.” prose- matters while ATX, result, 41 F.3d at 1527. cuting matters, As we have long him in criminal so presume no choice but to that the [department Commis- as the staff of the upheld duty sion decide case with- attorney general] assigned can taking governor’s out remarks into con- independent such manner as to afford sideration. legal representation counsel and in the parte ly, Portland bers of by attorney general’s personal participation in search ing superior status or some control over the e.g., salary expressed proceedings on the ence from all the WWCA and unearthed hearing, eases ATX, communications, involved interference Congress); Pillsbury, supra Regarding Audubon, tenure supra cited her cases president we first note objections above, (communications record. More the decisionmaker. improper supra (alleged and his but complaint during attorney by through any staff); Jarrott, influence cited in contrast to an office hav our own re from mem against the significant the formal interfer general (same); See, ex words, provisions of the tation that would otherwise agency, HRPC sional Conduct eral, may [State v. ... the criminal matter to sentation civil sented. interest, so matter, long 1.10 “separate such as the office of the clients.” Comment Klattenhoff, undertake concurrent [548,] does as no including (HRPC) governing and so not result in Hawai'i units (emphasis prejudice [(1990)]. long HRPC 1.7 71 Haw. of a Rules of Profes as such added). person attorney gen governmental prejudice offend suffered 598,] 605, represen In other conflicts (1995) [4] repre- repre- [the ], supra (high department level state officials Employees’ Chun v. Board Trustees board); zoning contacted District of Columbia System Retirement State Hawai‘i Nick, Barkey Mich.App. *27 152, 173-74, 1215, Hawai'i 952 P.2d 1236-37 (1968) (city N.W.2d commissioner (1998) (some original); alterations in see also board); appeared zoning before Place v. 13-167-29(b) (1988) § (requiring HAR state Adjustment, Board 42 N.J. 200 A.2d agencies appearing before the Commission as (1964) (mayor appeared before zon applicant adjudicative setting an or in an board). ing governor, Unlike the the attor independent use counsel of the Commis ney general authority such wields no over the sion’s). general’s attorney Commission. The person Klattenhojf, In separate depu- we allowed although al healing, intervention the di attorney or divisions of general’s ties the rect, type degree does not amount to the represent conflicting office to interests. See political normally control that would vio case, id. at 801 P.2d at 552. In this process. late due however, attorney general the herself advo- that, argues

WWCA the of agencies, because cated on behalf of two DLNR state general DOA, attorney simultaneously fice the deputy general attorneys while Commission, represented resulting represented the Commission and another 28-8(a) compromised § “conflict of interest” agency, (Supp.1999) WWCA’s DHHL. HRS right hearing. attorney to a fair general attorney general “appoint, authorizes the others, statutory duty, among pro remove, pleasure deputy has [her] and at first legal agencies deputies vide counsel to state such as and such .... shall [who] other act (1993) perform § the Commission. 26-7 See HRS under [her] direction and shall such general (attorney may require.” “shall administer and ren [she] duties as Given the services”); legal general’s § der attorney plenary authority state HRS 28-4 over her general (attorney give department, “shall agree advice we that the with WWCA counsel”). Regarding potential attorney general’s personal representation conflicts duty, in this held that necessarily prevented we have the office of her de- DLNR/DOA attorney general partment affording independent legal attorney parties, after the Commission’s particularly counsel to other state counsel Momentarily setting other was dismissed.” the Commission. aside, therefore, we questions propriety of its however, remains, question effectively hold that dismissal cured deprived conflict interest whether general’s generated by attorney conflict right hearing. to a fair of its WWCA representation the Commission. attorney gen Chun, recognized agencies obligations to state as counsel eral’s protests dismissal also WWCA common duties with her law conflict har impropriety in itself. indeed as an We interest,” “public see representative of the the manner in which the bor doubts about attorney (providing that § 26-7 HRS general Commis attorney withdrew authority as ... have genera] “shall such 1.16(d) (1994), for ex sion’s counsel. HRPC law”). provided common heretofore upon requires attorneys, termination ample, Chun, at 1233. 87 Hawafi steps representation, to to the extent “take Indeed, implicitly legislature foresaw reasonably protect a client’s practicable to “eventuating” in of conflicts the likelihood affords little evidence The record interests.” Attorney with the General’s connection in Commission’s consideration duties, roles, functions when multiple attorney general. part of terests on the it HRS 28-8.3 confer- enacted prerog- attorney general the ring upon the suggests that the dismissal both WWCA ative, good and “for reasons ... deemed impaired competence of the Commission sufficient,” employ or “to retain decline change and induced the Commission to represent depart- attorney” “any contention, first As to the the Code decision. bureau, commission, ment, board, agency, authority decisionmaking and re- vests final event, and, in that or officer of State” commissioners, sponsibility in see HRS instrumentality—with authorizing state 174C-7(a), and mandates that “[e]aeh governor—to retain concurrence of experience shall substantial member have on its initiative for the legal counsel own management,” the area of water resource securing representation. such purpose of 174C-7(b). second, toAs 28-8.3(a)(16) (b). §§ See HRS could fails to show how the dismissal WWCA (internal cross- Id. 952 P.2d at 1237 intelligible as an and effective have served omitted). held We thus reference swaying on the means of the Commission “perceived attorney general her- where merits, assuming that was so intend- even with the be in a conflict of interest *28 self to told, that the ed. All we are not convinced ethically represented], [agency [she] was she ability impaired the dismissal Commission’s oth- obligated to the recommend retention impar- competently and this case decide represent [agency] the er counsel to tially to an that a violation such extent as, opinion, in her the other action take such process rights due occurred. WWCA’s required....” at Id circumstances P.2d 1239. argues that the substantial WWCA decision, Here, advocating in all to personally changes the final WWCA’s in DOA/ detriment, pressure in interests, attorney that external general evi- establish DLNR’s the agree “public fact influenced the Commission. We her vision of the dently decided that in or weak that a reversal direction diverged from the sudden Commission’s. interest” ly supported decision raise inference appearance time her At the same about ATX, 41 however, F.3d at attorney general improper influence. See hearing, nexus between representation of the Com- 1529. Given tenuous “terminated” her governor attorney general by summarily dismissing the Com- conduct mission however, deliberations, attorney. for the and the Commission’s reason mission’s While though changes, eon- we disputed, practical its conse- believe dismissal is timed, cededly oddly did not amount to an quence described was as the Commission warranting appearance impropriety rever “The of the final decision: cover letter sal. without the assistance decision was rendered

Finally, attempts public WWCA to combine the conduct of officials in this case did governor’s attorney gen- with the nothing comments improve public gov- confidence in components eral’s conduct larger of a justice ernment and the administration by concerted effort administration un- this state. dermine the Commission. WWCA offers no Notwithstanding feeling of our unease re- proof alleged concrete of this conspiracy. garding the circumstances under which the more, Without we have no alternative but to decision, its final rendered our conclude that the whole does not exceed the totality assessment of the of the circum- parts. sum of Bouslog, See In re prevents concluding us stances that the Haw. (maintaining that alle- aforementioned conduct constitutes a viola- gations impropriety upon “must be based rights. tion of process WWCA’s due Fur- reasons, facts buttressed suppo- not a thermore, reviewing the merits of this effect, sitious cumulative which is at best a ” ease, problems we have identified substantial (citation arguendo mere conclusion and in- require with the Commission’s decision that omitted)). quotation ternal marks Thus, further attention. for the reasons ar- sum, In foregoing based on the facts and below, ticulated we vacate and remand the precedent, say the relevant we cannot that a decision for In proceedings. further so do- violation of constitutional dimensions oc- ing, intervening we are confident n eurred in this holding case. This does not years, along changes with the in the Commis- adequately convey, however, our serious mis- personnel, sufficiently sion’s have removed givings regarding following the events impropriety taint of con- created proposed ques- Commission’s decision. The political pressures present flicts and in the timing key tion to our concerns. The prior proceeding. Pillsbury, 354 F.2d at controversy events occurred after months 965; Koniag, 580 F.2d at 611.24 painstaking hearings and deliberations— during final stage between the Commis- B. THE PUBLIC TRUST DOCTRINE proposed

sion’s and final decisions. end, did substantially the Commission in fact controversy Substantial arises from the decision, deleting language alter favorable “public Commission’s discussion trust parties increasing to the windward addressing doctrine” its decision. Before permit- amount Of water allocated to leeward parties’ arguments, survey the histor- developments, tees. These eleventh hour development juris- ical doctrine falling while short of a constitutional viola- diction. tion, strongly suggest improper consid- tipped difficult erations the scales in this History Development hotly disputed case. acknowledge prerogative Supreme

We The United States Court ad- according expression officials to advocate to their vanced the seminal modern of the “public views interest” and voice trust doctrine in Illinois Central Rail- *29 public Illinois, 387, on policy public their views in forums. road v. 146 13 Co. U.S. S.Ct. (1892).25 public 110, Yet officials must mindful also be of 36 L.Ed. 1018 arose ease public conveyance the broader in a disputed interest the fairness from of land sub- integrity adjudicatory process. merged navigable of the the waters of under Lake lines, Along say Michigan by legislature it is to private these safe that the the state raising objections, (remanding rehearing by specially process 24. In its various due 836 for con remedy specifically board). WWCA seeks the of reinstate stituted proposed ment of the Commission’s decision. In cases, however, a most remand for reconsidera English origins 25. The doctrine traces its the proceedings purge or tion further will suffice Lyn common law ancient Roman law. improper Koniag the taint of influence. But see Butler, Concept: da A L. The Commons Histori 1360, (D.D.C. Kleppe, F.Supp. v. 405 1372-73 Relevance, Concept cal with Modern 23 Wm. & 1975) (reinstating the last untainted authoritative 835, (1982). Mary L.Rev. 846-67 ruling pressure the because effect of the external Jarrott, yet dissipated); F.Supp. had not 225 at 128 revocable, grant “necessarily was the The Court characterized the

interests. by property of the trust which the in exercise interest such lands as state’s any by at was the can be resumed held State in from which character that title different 455,13 time,” at id. S.Ct. in lands for the State holds intended It is in trust the sale.... a title held public the trust doc This court endorsed they enjoy people the the State Co., Railway King of in v. Oahu & Land trine waters, carry navigation of on com- the (1899). extensively Quoting 11 Haw. 717 them, liberty of fish- and have merce over Central, agreed we “[t]he from Illinois obstruction or ing therein freed people rights of Hawaii hold absolute private parties. interference under navigable all its waters and the soils added). own use. lands them their common 452, (emphasis 110 Id. at 13 S.Ct. navigable in and around the under the waters purposes of control of state for “The territory of the Hawaiian Government are trust,” continued, the Court naviga public in uses of held trust lost, except parcels to such can be never (citation omitted). tion.” Id. 725 Later promoting the interests as are used pub confirmed of the decisions our embrace therein, public disposed be or can County lic Hawai'i v. trust doctrine. See impairment substantial without Sotomura, 176, 183-84, 57, Haw. 517 P.2d 55 public in the lands and waters interest (“Land (1973) high mark 63 below remaining. ... The State can no more ... ais natural resource owned the state property over in which abdicate its trust to, for, subject in trust but some sense interested, people navi- the whole are like (citation rights.” enjoyment public of certain them, gable and soils under so waters omitted)), quotation cert. and internal marks entirely under the use and leave them denied, 872, 132, 95 42 419 U.S. S.Ct. private parties, ... than can control of (1974); Sanborn, re Haw. L.Ed.2d 111 In 57 police powers in adminis- abdicate its (1977) 771, (observ 585, 593-94, 562 P.2d preservation government tration of ing any purported registra court land peace. In the administration high mark was tion of lands below the powers may government such doctrine); public trust ineffective under the period delegated to for a limited 121, 106, Zimring, Haw. 566 P.2d State municipality body, but other there al- (holding that lava extensions right ways remains with the State the Hawaii, people when created in the “vest powers them in revoke those and exercise government for held in trust manner, one con- a more direct more benefit, enjoyment of all use and to its wishes. trusts formable So with people”). public property, proper- connected with character, ty special like lands under Robinson, Sugar McBryde Co. v. waters, navigable they placed cannot be reh’g, Haw. aff'd entirely beyond the and control direction (1973), dis appeal 517 P.2d 26 Haw. the State. denied, missed cert. 417 U.S. (1974), 453-54, (emphases con add- S.Ct. 41 L.Ed.2d 1135 Id. S.Ct. 110 ed).26 re templated interest Because the wholesale surrender prior prac authority question Consulting laws and state over the lands was sources. jurisdiction, with the of that trust tices of we observed “not consistent exercise ownership requires granting land government which the State interests Máhele,27 Kingdom expressly preserve for the the Hawaiian such waters public,” disputed sovereign prerogatives en- “[t]o id. at 13 S.Ct. reserved its *30 subsequent up and Kuleana Act 26. Courts and commentators have identified 27. The Máhele the private concept property of in the instituted the Hawaiian separate interests in trust resources: the to three Kingdom. op- For an overview of its jus jus privatum, private property right, the 184-85, eration, 1337-38; see id. at 504 P.2d at police power, regium, otherwise known as the Chinen, (1958); J. The Mahele Lilikalá Jon Great See, jus public e.g., publicum, the the and trust. Kame'eleihiwa, Foreign and De- Native Lands 456-58; Butler, supra, at at 861-62. id. (1992). sires

129 rather, courage property pleases; and the usufruct of with even enforce do the as it good.” for at lands the common See id. 184- comprehend the of we nature the State’s 86, (quot- 94 S.Ct. 3164 504 P.2d at 1337-39 ownership authority as a of retention such ing Principles Adopted By The Board of to assure the continued existence and ben- Quiet Commissioners To Land Titles In application the resource the eficial of for Adjudication Their Of Claims Presented To good. common Them, 2 Majesty Statute Laws of His Kame- added). 674, (emphases Id. at 658 P.2d at 310 III(SLH) 81, (1847), reprinted hameha 85 in (RLH) 2124, 2 In accompanying passage, Revised of the footnote Laws Hawaii 2128 (1925) [hereinafter Land Commission Princi- we added: ). ples] water,” right explained, “The we unquestionably power The has State important-usufruct is one of the most of accomplish through police much of this lands, it appears by and that clear us powers. County v. Hudson Water Co. foregoing right limitation the to water McCarter, 349, 529, 209 28 U.S. 52 S.Ct. specifically definitely was and reserved for (1908). L.Ed. 828 We believe however people Hawaii their common king’s that the sovereign reservation his good grants. in all the land prerogatives respecting water constituted by Thus subsequent the Mahele and police much more than restatement of Land Commission Award and issuance of powers, rather we retained on find Royal right to Patent water was not in- people an in interest behalf of be, be, tended to could not was not kingdom waters which the State has awardee, transferred to the owner- obligation and which neces- enforce ship water in natural watercourses and sarily pri- limited the creation of certain people rivers remained Hawaii See, Sax, vate interests in waters. good. their common Public Trust Doctrine in Natural Re- 186-87, (footnote Id. at 504 P.2d 1338-39 source Law: Judicial Interven- Effective omitted) added). (emphases In Robinson v. tion, (1970); 68 Maloney, Mich. L.Rev. 471 641, Ariyoshi, (1982), 65 Haw. 658 P.2d 287 Morris, Code, Ausness A & Model Water decision, McBryde we elaborated on our (1972). [ ]at comparing sovereign “preroga- the retained 31, Id. at 674 n. 658 P.2d at 310 n. 31 tives, powers concerning and duties” water to added). (emphasis trust over “public trust”: state, observed, resources of this we was by sovereign [W]e [the believe reser- by naviga- “akin to all the title held states in vation], imposed upon trust was recognized waterways ble which was in [Illi- is, kingdom. all the waters That we Robinson, Central].” nois Haw. find the interest waters 658 P.2d at 310. Insofar as the two trusts kingdom was understood to necessitate a concern, however, in origin28 differ authority imposition retention and the recognized that “the extent state’s duty a concomitant to maintain the obligation trust of course would not be identi- purity our waters flow of for future navigable cal applies which water- generations and to assure that the waters ways.” Id. at 658 P.2d at 310. put our land are to reasonable and ownership provisions uses. This this state added several beneficial corporeal specifically relating sense where State to its constitution to wa- trust, Regarding navigable waters Supreme explained: United States Court has The new States admitted into the Union adoption law, since the the Constitution have the At common the title dominion in rights original States in the same tide tide lands flowed water were waters, them, King Upon lands under within the benefit the nation.... Revolution, respective jurisdictions. rights, charged their the American these trust, Phillips Mississippi, original Petroleum Co. v. U.S. like were vested borders, 469, 473-74, respective subject States within their S.Ct. L.Ed.2d Shively Bowlby, rights (quoting U.S. surrendered the Constitution of (1894)). the United States. 14 S.Ct. L.Ed. 331 *31 up- XI, statutory powers, properly expanded its the Article section resources. ter setting Code’s “balance of interests.” states: Hawaii Constitution AND DEVELOP- CONSERVATION in the re public The trust MENT RESOURCES state, OF wa navigable like of this sources trust, genesis has its in the common law. ters present 1. For the Section benefit of (1993); Housing generally 1-1 See HRS generations, its the State and and future Corp. Ferguson, 91 Hawai'i Fin. & Dev. v. shall conserve and political subdivisions (1999) 89-90, 1107, 81, 979 P.2d 1115-16 beauty all natural protect Hawaii’s ... in (recognizing that common law “[t]he water, land, resources, including natural tradition cludes the entire wealth received sources, air, energy and shall minerals may, subject legislature usage”). The promote development and utilization constitution, modify abrogate common a manner consistent these resources in Kam, by Fujioka v. law statute. See rules conservation and furtherance with their (1973). 10, 568, 7, 55 Haw. 514 P.2d self-sufficiency of the State. law, derogation common Statutes public are held in All natural resources however, strictly Burns must be construed. by trust the State the benefit Servs., Department Inc. Int’l Sec. v. people. 446, 607, 611, Transp., 671 P.2d 66 Haw. added.) XI, (1983). appear 7 fur- was (Emphases Article section “Where it does there superseding com legislative purpose in provides: ther law, mon common law will be followed.” WATER RESOURCES 252, Id.; Brown, 67 see also Watson v. Haw. obligation 7. has an Section The State 256, 12, (holding that P.2d protect, regulate control and the use of remedy “merely statutory cumulative and Hawaii’s water resources benefit existing abolish an common law does not people. remedy express terms unless so declared n legislature provide for a water shall necessary implication”). The Code which, provided by agency resources any legislative abol intent to does not evince conservation, law, shall set overall water public trust ish the common law doctrine. polices; use quality and define beneficial contrary, as discussed Part To uses; ground protect and reasonable III.C.2., legislature infra, appears to resources, surface water watersheds engrafted wholesale in the have the doctrine environments; natural stream establish Code. priorities as- criteria for water use while out, points As LURF statutes estab rights existing cor- suring appurtenant lishing comprehensive regulatory schemes riparian and establish relative and exception con form an to the rule of strict regulating uses of Ha- procedures for all Department Transp. struction. See waii’s resources. Comm’n, Transportation 111 Wis.2d added.) (Emphasis pursuant (1983); Sing Norman N.W.2d 164-65 J. XI, of article section constitutional mandate er, Statutory 3 Sutherland Construction legislature Water the State enacted (rev. ed.1999). 61.03, at 190 5th The Code Code, chapter 174C. certainly displaces common law of wa rules Agric. effective. Ko‘olau ter where Relationship the State Water Cods Co., Resource Ltd. v. Commission on Water LURF, notably con- parties, most Several Management, 83 Hawai'i by relying Commission (1996) (“In tend erred management [water legal as a upon public trust doctrine areas], permitting provisions of the Code authority in Water addition the State non-designated areas prevail; rights LURF, law.”). According “sub- Code governed Code. are the common law supplants whatever common suggestion sumes and a statute could further such trust, however, previously extinguish public have contra doctrine of trust By invoking premise, basic in Hawaii.” dicts the doctrine’s existed trust, powers im- and duties which argues, state has certain LURF *32 131 (citation omitted)). legislatively cannot abdicate. See Illinois “In regard, this Central, 463-54, 146 U.S. at 13 110. settled rule is in S.Ct. the construction This court provision has held that the would constitutional pre doctrine the words are measures, by invalidate such sanctioned stat- to be used in sumed their natural sense trust, public but ute violative of the as: ground unless the some context furnishes delegated control, powers qualify, by enlarge Pray use eminent domain to them.” private harbor, party public Comm’n, to condemn a v. see Judicial Selection 75 Haw. 333, 342, 723, (1993) Railway, supra; (citation, Oahu regis- land court’s 861 P.2d 727 marks, brackets, tration of high quotation tidelands below the internal and el mark, omitted). Sanborn, supra; lipses see and sale lava promote extensions pub- that did not a “valid Moreover, provision “a constitutional purpose,” lic Zimring, supra. Regarding see must be construed in connection with other particular, history water resources in and instrument, provisions of the and also in precedent public have established the trust light of the circumstances which under as an sovereign inherent attribute of authori- adopted history pre- was and the which ty not, government “ought ergo, and Gear, 242, it[.]” ceded Carter v. 16 Haw. ... cannot McBryde, surrender.” See 54 348, (1904), affirmed, 244 197 25 U.S. S.Ct. 186, (quoting Haw. at 504 P.2d at 1338 Land (1905). 491, 49 L.Ed. 787 Central, Principles); Illinois cf. Yoshina, v. Hawaii State 84 Haw AFL-CIO 455, 13 (“[S]uch proper 146 U.S. 110 S.Ct. (1997). ai'i 935 P.2d 91 ty State, by by is held virtue its XI, 1 of Article section the Hawaii sovereignty, public.”). in trust that, Constitution mandates “[f]or benefit Most importantly, people of this state present generations, the State future public have elevated the trust to doctrine political protect its subdivisions shall level a constitutional mandate. In inter- resources, including ... all conserve natural preting provisions: constitutional promote develop ... water ... and shall long recognized “[W]e have that the Ha ment and ... in utilization these resources waii Constitution must be construed a manner consistent with their conserva regard due the intent the framers and tion” and further declares that “[a]ll it, people adopting and the fundamen natural resources are held in trust principle interpreting tal a constitutional added.) people.” (Emphases of XI, benefit provision to give is to that effect intent.” Article section reiterates State’s 230, 232, Peabody, Hirono 81 Hawai'i “obligation protect, regulate control and (citation omitted). (1996) 915 P.2d of Hawaii’s water resources for “This intent is to be found the instru added.) people.” (Emphases benefit Kahlbaun, ment itself.” State v. 64 Haw. plain reading provisions of these mani 197, 201, (1981). 638 P.2d incorporate the framers’ fests intent recently As reiterated notion of into our State trust constitu Hawai'i, Yoshina, ex rel Bronster v. 84 tion. The intensive on the sub deliberations (1997), ject Hawai'i 932 P.2d 316 record “[t]he the convention substantiate general interpretation. is if the in a rule words used Debates in Commit provision Conservation, constitutional ... are clear and tee of the Whole on Control unambiguous, they Development are to construed [hereinafter Resources 186], Debates], they are 2 Proceedings written.” Id. 932 P.2d at Constitu [at of the (quoting Cayetano], [v. Blair tional at 855- Haw. Convention of Hawaii of [536,] 543, [1066,] (1980) Proceedings].29 ] We [ [hereinafter (statement delegates length proposal protect,” 29. The discussed at late Dele- id. at 857 XI, produced gate Fukunaga); at- ‘‘[W]hat final version article the amendment do, it, tempts section Some notable comments include: as I to define what read is [;] proposal go ‘‘public attempt "[T]he amendment and committee trust” means 1.. it's Constitution,” beyond power regulate—which clarify (statement put the mere id. it in the at 859 Waihee); ‘‘[T|his generally police power Delegate known as the amend- duty recognizes impose upon regu- State—and the State ment ... that water is a resource *33 See, e.g., National Audu XI, by legislature. 1 the hold that article section therefore Cty., 33 Soc’y Superior Alpine v. Ct. XI, bon public trust adopt 730 the section article Of 709, 346, 419, Cal.Rptr. 658 P.2d 189 principle of consti Cal.3d as a fundamental doctrine (“Aside (1983.) Payne v. Kas possibility from 728 n. 27 the See law in Hawaii. tutional (1976) sab, 263, 226, repealed, statutory protections 272 can be 361 A.2d that 468 Pa. (“There public no that the question [constitu can trust doctrine remains the noncodified public trust important and creates to confirm the state’s sover tion] declares both all the benefit of public eign require natural resources for to consideration supervision and yet (including generations as in directly future people public uses in cases filed trust Bleck, unborn).... denied, v. ”); 977, ”), 114 Wis.2d State cert. 464 the courts .... U.S. (1983) 492, 464, (grounding (1983); Koote 413, 497 338 N.W.2d 104 78 L.Ed.2d 351 S.Ct. public in the state constitu trust doctrine v. Yacht the Envtl. Alliance Panhandle nai Env’t v. Louisiana tion); Save Ourselves Inc., 622, Club, 1085, 1095 Idaho 671 P.2d 105 (La. Comm’n, 1152, 1154 Control 452 So.2d (1983) (“[M]ere compliance by [agencies] with 1984) (recognizing public trust on the based authority legislative is not to their sufficient State, v. constitution); Guide Owsichek state the comport if with determine their actions Bd., 488, Licensing and Control 763 P.2d requirements public trust doctrine. (Alaska 1988) (holding that the consti 493-96 at all times forms public The trust doctrine adopted clause com tutional “common use” govern permissible the boundaries outer fish, principles in relation to mon law trust public re respect to trust ment action resources). wildlife, and water sources.”). compel the This all more view here, ling light of our state’s constitutional courts, without the benefit Other state See San Carlos public trust mandate. provisions, have decided such constitutional rel. Apache Superior v. ex Mari Tribe Court indepen- public trust doctrine exists that the 179, 199 copa 195, County, 193 Ariz. 972 P.2d statutory supplied dently any protections term, and, place protected of that "substitut- for the use of resources” Hawaii that needs to be (statement conveyfed] they] fully by Delegate language believe[d] De ed people,” [that all Soto); id. at 860 ” theory Rep. 'public amendment] the intent trust.’ Comm. Whole "[The maintains 18, (emphasis public Proceedings, to trust doctrine 1 at 1026 the committee establish No. added). protect total water of Hawaii to the State people Ha- resources for benefit of Hoe); waii,” XI, (statement by urge Delegate "I 7 id. section also mandates 30. Because article establishing a passage regulate agency of this amendment an to water the creation of agency law,” of all the argue to act as trustee provided state that LURF and HFB "as of Hawaii for the benefit of water resources self-executing. Rodrigues, 63 it State v. is not See (statement by Delegate Chong); people,” (1981) id. (holding that 1111 Haw. proposal as amended would committee "[T]he independent grand jury creation of the coun of Hawaii the trustee of the I, make the State position 11 was not self- sel in article section people of Ha- benefit of Hawaii history executing). Whereas review of the waii,” (statement by Delegate Hor- id. 866 at I, Rodrigues evidenced article section 11 go nick); you concept that trust means "[T]his action, legislative require intent to further people, different benefit of and that’s inquiry in that the framers same here reveals (statement just regulation," id. at 876 mere XI, public to invoke trust article tended Hanaike). by Delegate also at See id. 862-68 XI, supra note section section See 29. Article merely stating (rejecting proposed amendment self-executing adopts 7 to that the extent is thus regulate control all "[t]he State shall that water”). Debates, in 2 Pro trust doctrine. See Waihee) (statement by Delegate ceedings 863 ("What is, attempts do first to [amendment] delegates express reference deleted all, fiduciary duty regulate and create a XI, "public section because trust” in article thing it does control the water. The second [thought generated by the confusion "[s]ome regulate coordinating agency all is establish a implies ownership.” ... Comm. that] ‘trust’ ("The water.”); provi art XVI 16 Haw. Const. Proceedings, Rep. at 1026. Whole No. self-executing of this constitution shall be sions rights do not constitute under the trust Public respective Central, natures fullest extent that their "ownership.” U.S. 674, state Illinois Kassab, Payne 110; Robinson, permit.”); 468 Pa. Haw. at 13 S.Ct. cf. (1976) ("No legisla event, implementing delegates A.2d P.2d at 310. purposes "public these broad they tion is needed enunciate explained had used trust” relationships; actively the amend duty establish these State "the describe affirmatively protect, dixit.’’). ipse regulate does own ment so control (1999) (“The public ti’ust doctrine is a consti- and the lands beneath them irrespective of legislative power.... Central, tutional limitation on tidality. supra; See Illinois Phil Legislature Petroleum, lips cannot order the courts to 484 U.S. 108 S.Ct. make inapplicable the doctrine to these or (confirming 98 L.Ed.2d 877 any proceedings.”). waters, To the applies extent that still other trust to tidal *34 otherwise, not). courts have navigable Hawai'i, held their decisions whether or In this nor, controlling are neither recognized, for the court founding reasons has prin based on above, applicable See, ciples stated in jurisdiction, this state. in of law this a distinct e.g., R.D. Merrill Co. v. public encompassing State Wash. Pollu- trust all the water re Bd., 118, tion Hearings Control Robinson, 137 Wash.2d sources of the state. See 65 Haw. (1999). 969 P.2d 458 658 at P.2d at 310. The Hawai'i Consti public tution declares that “all resources are implementing Code and its in held trust the state the benefit of its Commission, agency, the do not override the people,” XI, § Haw. Const. art. and estab public trust or superfluous. doctrine render it public obligation protect, lishes a trust “to Even with the enactment and future control, regulate and the use of Hawaii’s Code, development of the the doctrine contin water resources for the people,” benefit its ues inform the interpretation, Code’s de XI, § Haw. Const. art. 7. permissible limits,” fine its “outer justify and end, its To although existence. this we re We need not define the full extent gard public sharing trust and Code XI, public article section l’s to “all reference principles, similar core we hold that the Code juncture. resources” at pur this For the supplant protections does not pub case, however, poses of this we reaffirm lic trust doctrine. XI, under article sections 1 and 7 and the reservation, sovereign public trust doc 3. The State Water Resources Trust applies trine to all water resources without exception or distinction. and KSBE Castle Having public established the trust doc- ground advocate for the exclusion of waters independent validity, trine’s we must define public arguments, from the trust. Their parameters its basic respect with to the wa- first, import contradict the clear the con- ter doing, resources of this state. In so a) provisions, stitutional which do not differenti trust, address: “scope” or categories mandating ate b) between it encompasses; resources the “sub- protection regulation of water re trust, including purposes stance” of the good.31 sources the common The conven upholds it powers and the and duties tion’s records confirm the framers un confers the state. “includ[ing] derstood “water resources” as water, ground all surface water and other Scope a. the Trust Debates, in Proceedings, water.” at 861 public trust doctrine has varied (statement by Delegate Fukunaga). jurisdictions. scope over time across form, public ancient Roman trust in unpersuaded by We are also the contention air, water, sea, running “the cluded sovereign of KSBE and Castle that the res- consequently the shores of the sea.” J. Inst. ervation ground does not extend to waters. law, English 2.1.1. Under the position common Their entirely rests almost on one decision, Co., trust covered tidal waters and lands. City See v. Mill Ltd. Honolulu Shively Bowlby, 1, 11, (1929). Comm’n, U.S. S.Ct. Sewer & Water Haw. 912 (1894). 38 L.Ed. 331 Discussing Máhele, Courts in City effect commonly United States have understood Mill court observed that ‘“all mineral or extending trust as to all navigable metallic waters mines’ were reserved the Hawai- XI, respect context, 31. With to article section KSBE water resources that, we have maintained provision's “public apart any private rights contends that the reference to exist water, is, been, always natural resources” indicates intent to exclude "there as there has "privately superior public bounty.” owned” waters from the trust. interest in this natural Robinson, argument point; This misses the at least Haw. at eases, note see the dike- those but was no reservation government, ian there infra Id. question waters.” “percolating” whatever of the subterranean impounded waters however, opinion, in the at 934. Nowhere qualify water. More would not as “artesian” court the reservation address does the over, assuming that Hawaiians the ancient surrounding sovereign prerogatives and its “ground respect no wa had custom fatal over- legal context. This historical ter,” actually least terms subsequently cases sight, common other by artificial drawn from under the surface court, prece- discounts the invalidated tunnels,33 it not follow that the does wells City concerning Mill dential value of sovereign wa reservation must exclude such Robinson, trust. 65 Haw. at 667- Indeed, precise if of ancient extent ter. n. 25.32 n. P.2d at 306 & & always usage effect determined the repeat the observa- also KSBE Castle reservation, impairing “natural *35 diversions the Mill, decisions, including City in tion several surface streams and transfers flow” of usage in no ancient law “[t]here was boundaries would water outside watershed The first relating to artesian waters. Hawaii McBryde, See prohibited. largely 54 still be in islands was well drilled these artesian ever (inter 191-98, 504 P.2d at 1341-44 Haw. at 938; see Id. at also Territo- in bored 1879.” kingdom law as a codification of preting 376, (1930). Even if ry Gay, v. 31 Haw. 403 Reppun But see v. riparianism). natural flow true, light analy- point on our this sheds little 552-54, 531, Supply, 65 Haw. Board Water former, First, according to the now sis. (1982) 57, (modifying employed in P.2d 71-72 the ground categories 656 defunct ground court concluded: “If the land commission We the covered need not retread 32. exhaustively by McBryde thoughtfully patents and its thereof awards and the in confirmation Nonetheless, progeny. errors in patentees several basic awardees and became the owners City reasoning waters, Mill court’s deserve mention. subjacent courts would not simple court characterizes the Máhele supposed justified, simply because of necessi- King, property own from the as "sole transfer announcing ty, in in such a radical alteration islands,” to individu ... of all the land in the er views of the law....” 30 Haw. at 934-35. their first 30 Haw. at 934. The constitution of als. observing public Beyond again that trust however, expressly kingdom, proclaimed that disagree “ownership,”, does not constitute King's] private property. [the land "was not foregoing logic less with the than with its under- belonged people in Chiefs and the com It to the lying Having misconcep- premise. rectified the mon, King] head and had [the of whom was the concerning rights origins of water in tions management property.” of landed Haw. jurisdiction McBryde progeny, we in and its this 1840, reprinted in Fundamental Laws of Const. City opposite Mill reach the conclusion that the Kame'elehiwa, (1904); supra, 3 see also Hawaii not, dixit, by judicial ipse could fiat and court Hawai'i, ("In [land] 10 'Aina was at traditional extinguish rights in water resources trust.”); was held in note not owned but infra sovereign preserved by the reservation. Moreover, landscape law and custom compellingly demon at the time of the Mahele findings 33. We note that the Commission’s refer- that, despite private to a the transition strates testimony by expert cus- enced on Hawaiian regime, property water remained a resource re regarding dig- tom "evidence of the Hawaiians community. Reppun, See 65 Haw. served to wells, ging like the island of Kahoolawe.” on 542-45, granted 656 P.2d at 65-67. All lands Cox, H. FOF also Richard Groundwater 980. See Mahele, King’s private in the even the retained Hawaii, Technology Groundwater Hawaii estate, passed into individual hands burdened (Faith Fujimura Chang & 16 Williamson B.C. reservation of usufruct the com with the eds., 1981) (relating accounts of ancient Hawai- 27, id.; April good. see also Act of mon See minimum, wells). excavating At a ians shallow 7, 107, 1846, I, VII, IV, § pt. art 1 SLH 109 ch. the historical record establishes that the ancient (stat 2120, (1845-46), reprinted 2 2123 in RLH knew of the existence of water under Hawaiians commission) (mandating creating ute the land ground once it and made use such water "be commission's decisions in accor that the Malo, Hawaiian reached the surface. See David principles ... na dance with the established (2d 1971) ("In Antiquities nei 44 ed. Hawaii regard privileges”); usages in to ... water tive 81, 82, people ... or Principles, 2 drink either the from heaven 1 SLH Land Commission earth, 2124, ("But from beneath the the water that comes 2125-26 even when such lord RLH brackish.”); (often) King Craighill title from the which is E.S. have received allodial shall rights Handy, Handy tenants and sub-tenants G. Native Planters in ... & Elizabeth unaffected....”). (rev. ed.1991) (documenting must still remain Old Hawaii 61-67 springs argument Territory use of water from caves from response to the that the sea). water, City land Mill and under "owned” all the artesian use), Ass’n, natural flow Bay rule one reasonable Improvement Matthews Head denied, 1014, 105 (1984) cert. 471 U.S. S.Ct. 85 95 (extending N.J. 471 A.2d 355 (1985). argument L.Ed.2d 298 This beaches, would privately trust owned rec Castle, hardly assist which ognition uses water divert “increasing demand for our transported ed windward streams dynamic State’s beaches and the nature of to distant denied, leeward lands. doctrine”), trust cert. (1984); People U.S. ex S.Ct. rel. fundamentally, just Even more as ancient Mack, Cal.App.3d Baker v. 97 Cal. usage perspectives Hawaiian reflected Rptr. (expanding 451-53 the “nar era, the common law distinctions be- “navigabili row and outmoded” definition of ground tween developed surface water ty” recognition of modern recreational regard to without the manner which “both uses); Petroleum, Phillips 484 U.S. at cf. categories represent no more a single than 483, 108 (noting, respect S.Ct. 791 with integrated source of each element’ trust, tidelands is no “there universal dependent upon the other for its existence.” subject; and uniform law on the but ... each Id. at P.2d at 73. Modem science State has dealt with the lands under the tide technology have discredited the surface- waters within according its borders to its ground dichotomy. id. (describing justice policy” own (quoting views approach” “modern scientific of acknowl- 548) Shively, (ellipsis U.S. *36 S.Ct. edging unity hydrological cycle”); “the of the original)). in Tarlock, A. Rights Dan Law Water and of (2000). highlight Resources 4:5 Few cases sum, given importance In the vital of all plainly more meaning its and util- diminished welfare, to public waters the we decline to one, ity present involving than the surface ground exception carve out a the depleted by ground streams water diversions plain water resources trust. on Based the underground aquifers and recharged by sur- of language our and a constitution reasoned applications. determining face water In the reservation, sovereign modern view of the we scope reservation, of sovereign therefore, the confirm that public applies the trust doctrine adhering we in see little sense to artificial resources, by any all water unlimited sur- distinctions recognized by neither the ancient face-ground distinction. system present practical nor borne out in the realities of this state. b. Substance the Trust of

Water is no less an public concept essential The trust a dual below, “usufruct right of lands” found sovereign responsibility. when rather and See Rob above, (de ground. inson, 674, than the In view the 65 Haw. P.2d at at 658 310 ultimate scribing value water to the ancient Hawai the as “a authority trust retention of ians, inescapable sovereign imposition it is duty” that the res of a the concomitant added)); guarantee public ervation (emphases was intended to Reppun, see also 65 water, rights regardless all of its immedi Haw. at 547-48 n. P.2d at & 656 68-69 & practices ate (explaining “right” source. Whatever ancients n. 14 the the correlation of time, therefore, in “duty” underlying have observed them the ancient Hawaiian must system). conclude that the thoroughly reserved trust Previous decisions have encompasses ours, any usage in developed sovereign authority reviewed the of the state including “ground proposed McBryde, water” 54 uses under the trust. Haw. at 180- by parties 1335-1339; Robinson, pub in the instant case. The 504 P.2d at 65 trust, nature, 667-77, 305-312; very lic its Rep does not remain Haw. at 658 P.2d at time, chang 539-548, fixed for all but conform to pun, must 65 Haw. at 656 P.2d at 63-69. See, ing e.g., Rep arguments present appeal needs circumstances. The in the focus (acknowl decision, pun, 65 Haw. at P.2d at 72 on the state’s trust duties. its edging public “the satisfaction of continued Commission stated under the doctrine, requires [riparian] duty intent framers’ trust “the State’s first is to (surface permitted protect doctrine be in evolve accordance fresh water resources circumstances”); changing public needs and ground) part which are of the res,” public values The trust tradition- duty which it described and needs. trust further navigation, ally public rights of precon preserved categorical imperative and the as “a commerce, fishing. Illinois subsequent all dition to considerations.” Central 452, 13 110. trust, S.Ct. Courts have U.S. public Commis COLs at The range of recreation- further identified wide ruled, subjects sion also offstream water uses uses, swimming, including bathing, al boat- scrutiny.” “heightened Id. at 10. to a level ing, viewing, protected and scenic as trust Central, In Illinois the United States Su- See, e.g., Neptune City v. Avon- purposes. preme state’s interest in Court described the By-The-Sea, 61 N.J. A.2d 54-55 “title,” pro- navigable as waters (1972). sense, prietary but “title held trust for logical increasing As a extension they may enjoy people State public trust of waters their number uses waters, carry on commerce navigation state, recognized courts have dis- natural them, liberty fishing over and have therein public protection. tinct interest resource obstruction freed from interference of Supreme As explained the California private parties.” 146 U.S. at S.Ct. added). Court: trust, (emphases terms, public “requires govern- important most simplest [O]ne Court’s encompassed preserve tidelands—a within ment of the State such waters preservation the tidelands trust—is the public.” the use Id. S.Ct. added). state, so that those lands in their natural (emphasis ecological they may sci serve units formulation, Based other courts study, open space, as envi entific require sought further have define the provide food ronments which and habitat doctrine. ments trust life, for birds and marine and which favor developed protect public rules order ably scenery affect and climate submerged water bodies and lands for *37 area. use, see, however, e.g., v. access and State Audubon, 346, Cal.Rptr. 658 National 189 Comm’n, 112, Public Serv. 275 Wis. 81 Whitney, v. 6 (quoting P.2d at 719 Marks 71, (1957) (prohibiting N.W.2d 74 substantial 251, 790, 374, Cal.Rptr. P.2d Cal.3d 98 491 through navigable of waters land destruction added). (1971)) Thus, (emphasis 380 with reclamation); People ex rel. Webb v. Califor respect in ecosystem involved lake 79, Co., 166 P. nia Fish Cal. 138 88 case, public the court held that trust (1913) submerged grantee that a of (holding protected as described “recreational values title,” subject gains lands “naked ecological—the and scenic views of lake above), in “public the waters do easement” shore, air, purity of the and the its readily in of apply not the context feeding nesting use of the for lake consumptive purposes, resources valued Id. birds.” competing uses more are often mutu where ally recognized This court exclusive. This court acknowl has likewise Robinson, stating much in extent “[t]he edged protection, with its numerous resource obligation all of the state’s trust over waters uses, benefits, values, derivative of identical course would important underlying purpose as an of the navigable applies

which waters.” 65 Haw. resources trust. Robin reserved water See Keeping this at 658 P.2d at 310. dis son, 674-76, at 310-11 65 Haw. at mind, consider substance tinction “purity (upholding public interest in the state, of the water resources trust of this flow,” existence,” “pres “continued protected by specifically, purposes state). of waters of the ervation” powers trust and the and duties conferred on our people of state have validated resource the state thereunder. “protection” by express constitutional decree. Const, XI, §§ art. 1 thus See Haw. & 7. We Trust Purposes i. of hold that the maintenance of waters their states, “purposes”

In “uses” state constitutes a distinct “use” un other or of natural disposes changing have evolved with der the water resources trust. This public trust

137 any portrayal acknowledging general pub of In retention waters water, however, lic’s need for we do not lose natural Reppun, their state as “waste.” See sight “original As trust’s intent.” Haw. at n. 76 65 560 656 P.2d at n. 20 above, early noted review the law of the XI, (citing 1 acknowledg- section as an article kingdom specific objective pre reveals the free-flowing ment interest “a serving rights of during tenants native sake”). own stream system private the transition to a western Máhele, property. the law “Re Before riparian prior ap Whether under or specting Irrigation” Water for assured native statute, propriation systems, common law equal proportion” tenants “their of water. uniformly recognized states have domestic 1842, reprinted Laws of See in Fundamental uses, particularly drinking, among (1904). Subsequently, Laws Hawaii 29 See, highest e.g., water resources. provision Act aforementioned Kuleana (Second) § Restatement Torts 850A cmt. c rights ensured tenants’ to essential incidents (1979) (Second) [hereinafter ] Restatement kuleana, beyond including of land their own domestic, “natural,” (preference uses water, recognition that “a little bit of land law); riparian § under Cal. Water Code 1254 title, even with allodial if they be cut off (“domestic (West 1971) highest use privileges very all other would be little use”); 103G.261(a)(1) value,” (1850). Privy 3B Minn.Stat. Ann. Council Records 713 549-50, 1997) (West (domestic Reppun, at also Haw. given priori first riparian rights P.2d 69-70 (analogizing jurisdiction ty). presents exception. This no 7 of under section the Kuleana Act to water granting In simple individuals fee title to rights of Indian reservations Winters v. Act, kingdom land in Kuleana ex States, United U.S. S.Ct. pressly guaranteed: people “The shall ... (1908)); Bailey, L.Ed. v. Peck cf. water, right to drinking running have 658, 661 (recognizing “appurte Haw. water....” Enactment Further Princi rights” nant water based “immemorial (codi ples Laws 1850 at 202 usage”).34 history with line and our (1993)). fied 7-1 See also prior precedent, Kalipi see v. Hawaiian 191-98, McBryde, 54 Haw. at 504 P.2d at Co., (1982); Trust 66 Haw. 666 P.2d 745 (comparing 1341-44 7 of the section Kuleana Public Access Shoreline Hawaii Hawaii authority jurisdictions Act in other Comm’n, 425, 438-447, Planning 79 Hawai'i recognizing riparian rights to water for do *38 1246, (1995), denied, 1259-68 cert. uses); Territory, Carter 24 mestic v. Haw. 1559, 1163, 517 116 S.Ct. 134 L.Ed.2d U.S. (1917) (granting priority 66 to domestic (1996) ], 660 [hereinafter PASH constitu riparian principles based on and section use 7 mandate, XII, tional see Haw. Const. art. Act). although pro of the And Kuleana this 7,§ uphold of we continue the exercise others, including vision and reservation Native Hawaiian and traditional and custom sovereign evidently originat of prerogatives, ary rights public purpose.35 as a trust See rights out of of ed concern for the native generally Ho'oipo Elizabeth Ann particular, doubt tenants we have no that al., Pa Martin Kala'ena'auao et Cultures sense, they apply today, in a broader to the in Hawai'i: The Law and Politics Conflict general public. Rights, vital domestic uses of Native Hawaiian Water 18 U. of (1996) (surveying Haw. L.Rev. 147-79 Accordingly, recognize domestic water rights). various purpose as a of state use water resources Valley trust. v. Passaic Water public in Ha- Cf. Clifton LURF asserts that the trust Comm’n, N.J.Super. 224 539 A.2d encompasses private wai'i of use resources (Law Div.1987) (holding public 765 that the development,” citing, for inter “economic Liliuokalani, “applies equal impact upon alia, with trust Territory v. 14 Haw. 88 reserves”). (1902) drinking (grants private of tidal indi- control of lands protection holding respect public 34. The of traditional and 35. Our trust trust's cus- tomary appurtenant any rights supplant protections these also does not other extends rights rights already existing. recognized in Peck. 138 revenues, increasing tax or be-

viduals), Montgomery, 2 Haw. 62 such Haalelea might put property grantee cause the (1858) (konohiki Ad- rights), and the fishing use. to commercial 18, 1959, Act, Pub.L. Act of Mar. missions Thus, than an public trust is more 4, 5(f) 83-3, “develop- (designating 73 Stat. power public to use affirmation of state ownership” as one of of farm and home ment It public purposes. is an property for trust). of the state ceded lands purposes duty of the of the state affirmation examples generally demonstrate While these heritage people’s common protect grants allow public that trust tidelands,- streams, lakes, marshlands and under private trust resources interests only surrendering right protection that circumstances, they way in no estab- certain in rare when the abandonment cases among private use as lish commercial right purposes is consistent with by public protected, the trust. purposes of the trust. Audubon, Cal.Rptr. 189 National purpose has over Although evolved (citations omitted); at 723-24 also P.2d see time, under public trust has never been (Fla. Bowman, Hayes v. So.2d for safeguard rights of stood to exclusive 1957) (“As law, title is at common held interpre private gain. commercial Such naviga people purposes trust for the tation, indeed, the trust’s basic eviscerates tion, fishing, bathing and similar uses. Such for use purpose reserving the resource primarily purposes not of sale title is held public general without access money.”). or conversion into See, e.g., restriction. preference or state water We hold while the (codifying kingdom providing, § 7-1 law of acknowledges private resources trust water,, alia, run springs “[t]he inter development” may pro use for “economic all”); water, ning and roads shall free important public benefits and that such duce Central, 456, 13 Illinois S.Ct. U.S. figure any balancing of benefits must into pri limitation on (observing that trust’s water, stops competing short interests necessarily pub rights private vate “follows from the embracing commercial use as protected purpose.” thus “trust We eschew being the property, lic character of held trust, in which the LURF’s view “ people purposes in which the the whole by the ‘public advanced trust interest’ interested”); generally people whole are see private competing interests” and the sum Rose, Comedy Carol Commons: ‘public the “rhetorical distinction between Commerce, Custom, Inherently Public ‘private gain’ dichotomy.” trust’ and is a false (dis Property, 53 U. L.Rev. Chi. contrary, if the trust is to To cussing history underlying policies effect, any meaning recog it must retain “inherently public property”). concept public rights enduring in trust resources nize argument, considering similar the Cali from, to, superior separate prevail Supreme fornia Court stated: ing private interests the resources does Robinson, Since the trust doctrine given time. 65 Haw. at every (“[U]nderlying private P.2d at choosing prevent state from between *39 is, application diversion and there as there uses, Attorney trust of Califor- General been, always superior public has a interest nia, power seeking under to maximize state bounty.”). this natural trust, argues concept of for a broad view, trust In uses” en- uses. his “trust ii. and Duties Powers Stale of uses, compass public practical so that in all under the Trust impose no re- effect the doctrine would public has This court described ability allocate strictions on the state’s relating trust to water the au resources authority property. know of no trust We duty purity thority and “to maintain the public supports which view this generations our waters future flow trust, dissenting opin- except perhaps the put land to assure that the waters of our are ion The tideland in Illinois Central.... uses.” Id. at to reasonable and beneficial clear; point this ... no one cases make added). (emphases 658 P.2d at 310 Sim grant state could could contend that XI, ilarly, 1 of the Hawaii article section merely trust because tidelands free requires “pro both the state Constitution public promote their purpose, tect” natural resources and grant served some

139 development.” present “use and system The state water ancient Hawaiian resources trust thus necessity, embodies a dual man- subsequently court this reasserted 1) 2) protection date of and maximum reason- equitable the dormant interest able and beneficial use. and maximum beneficial allocation of id; Robinson, resources. See 65 Haw. at “protection” The mandate co 674-77, at 310-12. incides with pub the traditional notion of the developed lic respect navigable trust with adopted princi state has such This understood, and tidal commonly waters. As ples in its constitution. The second clause protects public trust waters and sub XI, provides 1 article section that the state merged against lands irrevocable transfer to promote development “shall and utiliza see, private parties, Central, e.g., Illinois su tion of a [water] resources in manner consis pra, impairment,” or “substantial whether for tent with their and in conservation further private see, purposes, e.g., State v. self-sufficiency ance of the State.” Comm’n, supra. juris Public Serv. In this added.) (Emphasis it framers deemed diction, our in McBryde decisions and its necessary to define “conservation” and progeny plain meaning and the history agreed following: on protection, “the im XI, “protection”36 term article section provement and use natural resources' ac XI, 1 and article 7 section establish that the cording principles will assure their duty state has a comparable to ensure the highest economic or social See benefits.” availability continued and existence of its wa Rep. Stand. Comm. No. in 1978 Proceed present genera ter resources for and future added). ings, (emphases at 685-86 The sec tions. XI, ond clause article section 1 thus re jurisdiction,

In mandating this sembles laws in other states the water re duty sources trust encompasses highest also to maximum beneficial or best promote See, e.g., reasonable and beneficial use of of water resources. Cal. Const. art. 2; X, 16, 3; § water resources in order to maximize their N.M. Const. art. N.D. Cent. social people and economic benefits to the (Supp.1999). of Code 61-04-01.1.1 Unlike this rights state. many systems Post-Máhele water deci rights the traditional water ignored duty, however, treating public governed by provisions, sions such article XI, commodity resources as reducible to abso section l’s mandate of “conservation”- private ownership, lute recognizes “protection” such that “no limita minded use as valid tion ... supposed purpose assuring “highest existed or was to exist to consonant with power [the ... owner’s] to use the waters as economic and social of the resource. benefits” fit,” al., Sugar saw Appro- he Hawaiian Commercial & L. Anderson Prior See Owen et Co., Sugar Co. v. Wailuku 2 priation, Rights Haw. in Waters and Water (1904). (Robert 539-48, 12.03(e)(2), ed., Reppun, 65 Haw. at E. Beck 1991) founding P.2d at principles Rights] (noting 63-69. Based Water [hereinafter ear- mote the with the tion of ... "protection,” the committee merely stating protection on the mony is opinion tion. Your Committee subdivisions this concern.... balance that is tion mandates the Much contradictory deleting prior previous " and amended Section present language conservation, development preservation that the current testimony, natural natural provide language that "[t]he implied and resources,” was received [T]he the draft of article beauty, places in the word "conserva- which protection State agreed language language the expressly legislature noted: insufficient as conservation [1] and its simply contrasted with with this testi- expressing to replacing and utiliza- end XI, mandating recognize shall Section this sec- political empow- section weight pro- and the XI, our sheds make clear form the plaining, Delegate Debates, Stand. Comm. destruction and resources groundwater fare of duty natural ered the State section State.”). (emphases and natural stream environments because our resources future protect 2in Hoe) ("[Article basis of beauty.” against *40 resources, that the Proceedings, respect generations Rep. added). our safeguard groundwater irreversible our water resources No. we must obligations “conserve and "agency to a watersheds and XI, See also id. at 688 the natural and therefore in the prior at 857 section protect depletion, resources, will also have the include the wel- Proceedings, draft (statement 7] develop our natural beauty system"); strives waste streams water- article (ex- to 140 that, in so do per- maintained as “the court nonetheless

ly proscriptions against “nonuse” all”). duty ing, waste of But see id. must bear mind biggest “the state ceived 13.05(a) taking to- (explaining the modern trend the the trustee to consider effect uses). providing preserve, for instream flows so far as public wards trust and to short, object interest, not con- maximum uses public with the consistent use, equitable, but the most sumptive Cal.Rptr. rather Id. protected the trust.” 189 reasonable, omitted). of state (citation and beneficial allocation 346, P.2d resources, recognition that with full water Many primarily those advo parties, of the protection also constitutes “use.” resource uses, cating attempt distinguish offstream suggests, foregoing discussion As one. present from the the Mono Lake case public of the trust fash- notion conventional important differ in The two cases indeed navigable and tidal in the context ioned First, respects. National Audubon involved partial picture only offers waters public purpose, the domestic diversions this trust of this state. With resources water Angeles. compa No City of the of Los leading deci- understanding, turn to the we public are advanced rable offstream needs public to water re applying sion trust Second, court the National Audubon here.37 sources, Society Superior National Audubon public against a sought trust to assert 419, County, Alpine 33 Cal.3d C ourt of nonconsump- system equating rights denied, 709, Cal.Rptr. 658 P.2d cert. See, e.g., re with “waste.” In Waters tive use 977, 104 78 L.Ed.2d 351 464 U.S. S.Ct. Cal.Rptr. Valley, 25 Long Cal.3d (1983), known as the “Mono Lake” otherwise (noting case. X, 2 of the California constitu article section Audubon, the In National California Su “prevents of the state tion waste waters legal systems two preme Court confronted interpretation of our law resulting from an public trust and “on a collision course”: unused, them to unre permits flow which Cal.Rptr. rights. id. 189 appropriative sea”). Our strained undiminished public P.2d 711-12. The riparian system not share common law does Angeles had utility City of Los ob of the view; moreover, “con mandate of such permits appropriate, for domestic tained in our use subsumed servation”-minded nearly of four of the purposes, the entire flow contemplates state’s water resources trust Lake, flowing into Mono five streams in their natural state “protection” of waters The diver largest second lake California. Finally, use. unlike beneficial Califor in a precipitous had decline sions resulted duty nia, under this bears an additional state lake, thereby imperilling the level XII, of its Article constitution section beauty ecological values. lake’s scenic customary Native Ha protect traditional Seeking between the an “accommodation” distinguish rights. If one must waiian appropriative rights, trust and cases, therefore, ap two National Audubon initially state’s “[continu court held that the more, less, pro pears provide rather than prevents any party ing supervisory control] justified arguably case. than in this tection right acquiring appropriate from a vested differences, recognize Despite these harmful to the interests a manner dichotomy public trust that the between the Id. 189 protected by trust.” Cal. system in California appropriative P.2d at 727. The court ac Rptr. approximates the nature of the roughly dual knowledged a matter of current “[a]s water resources of this public trust may per necessity,” the and historical state Consequently, National Audubon state. appropriator mit take water flow guidance on manner in streams, provides useful though taking does ing “even harm, may potentially unavoidably this state balance the the which promote, Drawing conflicting trust. Id. The mandates at the source stream.” trust uses permitted Facility aquifers is an incidental effect Waiawa Correctional 37. We note that permit partially uses, mgd “domes- a .15 re- received tic” peal. ultimate benefit of which surface *41 ap- challenges on purposes, which no one dispute. mains in See FOFs 915-23. recharge leeward D & O at 8-9. The of

141 others, this from and source to seek with due of consideration their effect on the parameters define the trust’s essential Audubon, public trust. See 189 National light legal practical of this state’s and 346, re- Cal.Rptr. P.2d 658 at 728. quirements present and its historical and cir- end, cumstances. To this we hold that the The state also bears an “affirma state water resources trust embodies the fol- duty tive public take the trust into account lowing principles: fundamental planning and of allocation water re sources, protect public and to trust uses trust, public Under the state feasible[ 39].” (emphasis whenever Id. add authority duty has preserve and both ed). Preliminarily, duty we note that this present rights of generations and future may. readily translate into substantive Robinson, in the waters of the state. See 65 public results.40 has definite interest 674, 310; Haw. at 658 P.2d at see also State development in the and use of water re 337, 1128, v. Ry., Central Vt. 153 Vt. 571 A.2d for various sources reasonable and beneficial (1989) (“[T]he 1132 power supervise state’s public private purposes, in offstream property perpetuity trust coupled cluding -agriculture, generally see Haw. duty power.”), the ineluctable exercise . XI, Therefore, Const. art. 3.41 apart from denied, 931, 110 2171, 109 cert. 495 U.S. S.Ct. question practice,42 of historical reason (1990). 501 continuing L.Ed.2d authori necessity public dictate that trust ty of pre the state over water resources may have to offstream diver accommodate any grant cludes rights or assertion of vested sions pro inconsistent with the of mandate to use water to public the detriment of trust tection, impairment Robinson, the unavoidable of 677, purposes. See 65 Haw. at 658 public instream 312; uses and Audubon, values. Na P.2d at See see also National 189 Audubon, 346, Cal.Rptr. 346, 727; Kootenai, tional 189 Cal.Rptr. 658 P.2d at 671 above, (“[T]he at by conditioning 727. As discussed P.2d at 1094 public trust doctrine development use “conserva precedent takes resource even over vested water tion,” XI, rights.”); preclude article section 1 does not Department Karam v. cf. use, Protection, 225, N.J.Super. merely requires Envtl. offstream but that all 308 705 uses, 1221, 1228 (“[T]he instream, public A.2d offstream or (App.Div.1998) pri sover vate, eign promote right regulate never waives its best economic social public property.”), aff'd, people use trust 157 interests this state. In the N.J. 943, denied, court, 723 A.2d words ... cert. another is a “[t]he U.S. result (1999).38 development S.Ct. L.Ed.2d 45 controlled This resources rather authority empowers Kassab, prior development.” Payne to revisit than state no allocations, (1973), diversions and even aff'd, those made Pa.Cmwlth. 312 A.2d agree 38. We pro- with the National Audubon court and with results that are consistent with the exceptions general perpetuation the few (empha- rule tection and the resource.” against added)). the abandonment of the trust sis likely apply would not in the context of usufruc- tuary rights. See 658 P.2d at n. 25. XI, part: 41. Article section 3 states in relevant protect agricultur- "The State shall conserve and lands, narrowly, 39. Read promote agriculture, term "feasible” al could in- diversified achievement,” "capable apart agricultural mean self-sufficiency crease and assure the balancing availability agriculturally of benefits and costs. See Industria suitable lands. The Dept., legislature l Inst., provide Union AFL-CIO v. American Petroleum shall standards criteria 718-19, accomplish foregoing.” 448 U.S. 100 S.Ct. (1980) (Marshall, J., dissenting). L.Ed.2d 1010 apparently The National Audubon court did not Although 42. this court has held that the "natural sense, use "feasible” in this strict and neither do theory riparianism approximated flow” best inwe this case. system, the ancient Hawaiian we note that diver- sions water out watershed boundaries were Debates, cases, Proceedings, in 2 But see 866-67 allowed certain insofar as available (statement Homick) ("The by Delegate technology permitted. 547, Reppun Haw. implies disposition trust doctrine that the 656 P.2d at 68. The Commission raised proce- examples findings. these resources must be done with several historical in its FOFs fairness, justifiable purposes dural that are 968-70. *42 142 “pro (1974), 491, aff'd, requirements constitutional 407

14 Pa.Cmwlth. 323 A.2d “conservation,” (1976). 226, historical and Pa. A.2d tection” 468 361 263 continuing understanding trust as and preference have indicated We public rights, guarantee of and common accommodating and offstream both instream reality game com the “zero-sum” between Reppun, 65 Haw. uses where feasible. See any balancing peting demand that water uses 552-54, 20, 71-72, n. at 656 P.2d at 556-63 & public purposes begin private between (allowing ground n. water diver 73-78 & 20 use, presumption public with a favor of uses); to sions short of “actual harm” surface See, access, enjoyment. e.g., Zimring, 674, Robinson, at 658 P.2d at 310 65 Haw. (“[T]he 121, at 735 State 58 Haw. 566 P.2d at “authority to (describing trust assure duty protect to has the and main as trustee appli and beneficial the continued existence regulate its use. [resource] tain the trust good” of the for the common cation resource Presumptively, duty implement to this is be added)). greater In scar (emphasis times public by devoting [resource] to actual ed however, city, the state will confront difficult recreation.”). Thus, uses, e.g., as the insofar for to choices that lend themselves definition, trust, by public nature and estab diverse and not mulaic solutions. Given the purposes as use consistent with trust lishes necessarily complementary range of water condition, affirm the norm or “default” we alone, uses, among public trust uses even it conclusion that effective the Commission’s prudent nor consider neither feasible “higher scrutiny” ly prescribes a level priorities designate between broad absolute private pro commercial such those uses categories of uses under the water resources terms, practical posed this case.43 Contrary conclu trust. to the Commission’s ultimately means that the burden lies with pro sion trust establishes resource that the jus seeking approving or such those imperative categorical tection as “a and the tify light protected purposes them subsequent consider precondition to .all Marcon, Inc. v. the trust. Common Cf. ations,” inevita we hold that the Commission Resources, Pa. Dep’t wealth Envtl. 76 bly competing public private weigh must (main (1983) 56, 969, 971 462 A.2d Cmwlth. basis, according case-by-case on a water uses that, given in taining “special concerns any appropriate provided standards law,” ie., public in this volved area 677, Robinson, 65 at 658 P.2d Haw. law. See trust, petitioner agency had the and the 312; Ourselves, So.2d at see also Save 452 at justify duty permit); Commonwealth (reading 1152 the constitution establish Dep’t Envtl Resources v. Commonwealth requiring the bal “rule of reasonableness” Comm’n, 558, Pub. Util Pa.Cmwlth. ancing of environmental costs and benefits (1975) 860, (holding A.2d once ad factors). economic, social, against and other impact public to the constitutional trust verse raised, Having recognized necessity applicant’s of a is “the burden is intensi fied,” reviewing balancing process, suggest agency and the court we do not nothing [relevant “must be satisfied that constitu public state’s trust duties amount met”); Superior Rights, prerogatives, of its tional is Public test] more than restatement Resources, Robinson, Dep’t n. Natural 65 Haw. at 674 Inc. v. State see Mich.App. nor the consti 263 N.W.2d 310 n. do we ascribe to (deciding, in framers the intent to enact laws the absence direction tutional rules, effect, ap party or devoid of real substance and see the relevant statutes Rather, public plying pri trust lands for supra 36 & 40. we observe use of

143 purposes of e. vate commercial bore burden Standard Review under the Trust of Robinson, proof); 65 Haw. also at 649 n. Finally, public cf. special inter 8, (noting P.2d at 295 n. 658 8 under the ests trust resources demand that this law, demonstrating “[t]he common burden of qualifications court of its observe certain review, II, injurious supra. standard of see Part As transfer of not water was cases, agency affecting in other decisions rights of wholly upon others rested public carry presumption trust resources transfer”). seeking those validity. presumption particularly challenges significant appellant where designates The constitution within agency’s substantive decision ex primary guardian pub Commission as the erroneous,” pertise “clearly 91- HRS Const, rights lic under the trust. Haw. art. 14(g)(5), “arbitrary,” “capricious,” or an XI, such, section 7. As the Commission must discretion,” § 91-14(g)(6). “abuse of relegate not itself to the of a role mere Ourselves, 452 See Save So.2d at 1159. “umpire passively calling for balls and strikes trust, however, public is a state it,” appearing adversaries before but instead constitutional doctrine. As with other state considering, pro must take the initiative in guarantees, constitutional the ultimate au tecting, advancing public rights and in the thority interpret public and defend the every stage planning resource trust in Hawaii with rests the courts of this Ourselves, decisionmaking process. 452 Save 128, Quitog, state. See State v. 85 Hawai'i (citing So.2d 1157 Calvert Coordi Cliffs’ 559, (1997) 3, (recog 130 n. 938 P.2d 561 3n. nating Comm. v. United States Atomic En nizing Supreme Court the Hawaii as the Comm’n, (D.C.Cir. 1109, ergy 449 F.2d 1119 final, judicial “ultimate tribunal with unre- 1971); Scenic Hudson Preservation authority interpret Confer viewable and enforce (2d FPC, 608, Cir.1965)); ence v. 354 Constitution”). F.2d the Hawaii Debates, Proceedings, also see at 857 public dispensa Judicial review trust (statement (“Thus, by Delegate Fukunaga) complements public concept tions of a XI, 7], Supreme trust. [The Court] Arizona said [article under must section State ..., imposed upon “The duties state take active affirmative role water simply are and not the duties a trustee management.”). Specifically, public trust manager.” good of a duties business compels duly to the state consider the cumu Dep’t, 155 Kadish v. Arizona State Land impact existing proposed lative diver 484, 487, 1183, (1987), Ariz. 747 P.2d purposes implement sions on trust and to 605, 2037, aff'd, 490 U.S. S.Ct. mitigate impact, reasonable measures to this (1989). private L.Ed.2d 696 Just as trust See, including the use of alternative sources. judicially ees are accountable to ben their Ourselves, 1157-58; e.g., Save 452 So.2d at res, dispositions eficiaries so the Kootenai, 94; Payne, 312 A.2d at 671 P.2d at judi legislative and branches are executive 1092-93; Diamond, 42 Hamilton v. A.D.2d cially dispositions accountable 465, (1973), appeal 349 N.Y.S.2d 148-49 trust. The beneficiaries denied, 34 N.Y.2d 357 N.Y.S.2d just present genera not trust are (1974). 314 N.E.2d 425 The trust also re tions but those to come. The check and quires planning decisionmaking from a judicial provides balance of review a level global, long-term perspective. See United protection against improvident dissipa Plainsmen Ass’n v. Wa North Dakota State irreplaceable tion of an res. Comm’n, (N.D.

ter N.W.2d 462-64 Arizona Law in Pub. Interest Cent. for 1976). sum, may compromise the state Hassell, 172 Ariz. 837 P.2d 168-69 public rights only pursuant in the resource dismissed, 172 (Ariz.Ct.App.1991), review (brackets openness, made with a decision level Ariz. omitted). citation diligence, foresight commensurate high priority rights un Nevertheless, these command Supreme as the Idaho Court the laws our der state. elaborated: legislative is the say will intent. One avenue

This is court legis- history judgment legislative interpretive that of as an tool. supplant However, it agency. does mean lature Gray Dir. Administrative [v. a “close look” at that this court will take *44 Court], 138,] 148, 84 Hawai'i 931 P.2d complies if it with the action determine (1997) [580,] (quoting Toyo v. 590 State [ ] act and will trust doctrine 18-19, 893, mura, 8, P.2d Hawai'i 904 80 or merely stamp agency as a rubber (brackets (1995)) points ellipsis 903-04 legislative action. (footnote omitted). original) This in court added). Kootenai, (emphasis 671 at 1092 P.2d spirit may “[t]he also consider reason Owsicheck, (holding 763 at 494 See also P.2d law, cause which of induced rights to grants of exclusive harvest legislature to it ... to discover enact subjected to natural resources should be 1-15(2) (1993). meaning.” true its HRS scrutiny”); Juan Coun “close Weden v. San materia, pari upon or the same “Laws in (1998) 678, 273, ty, 958 P.2d 135 283 Wash.2d matter, subject with shall be construed that, (observing a constitutional even absent What is clear in to each other. reference mandate, legislation under the “courts review may in upon called aid to one statute be heightened with de trust doctrine a explain what is doubtful another.” HRS judicial scrutiny, gree they if were 1-16(1993). measuring legislation against constitu (citation State, 20, 31, quo 91 979 P.2d protections" tional and internal Barnett v. Hawai'i omitted)). Davia, 1046, (1999) (quoting marks tation 1057 State v. 87 (1998)). 249, 254, 1347, P.2d 1352 Hawai'i 953 THE C. INTERPRETATION OF WA- determine, If we based TER CODE construction, foregoing statutoiy rules Principles Statutory 1. Basic Con- unambiguously legislature spo that the has struction question, matter ken on the then our See, U.S.A, inquiry e.g., ends. Chevron Inc. significant appeal A number issues on Council, Inc., Resources v. Natural Defense require interpretation of the State Water 2778, 837, 842-43, U.S. 104 81 467 S.Ct. statutes, construing recog- In we have Code. (1984)). legislative L.Ed.2d 694 When the nized that clear, however, this is than court intent less obligation to ascertain and our foremost is rule of will the “well established observe give legisla- effect to the intention statutory an admin construction where ture, primarily to be which is obtained respon agency charged is with the istrative language contained the statute sibility carrying of a out mandate statutory And must lan- itself. read which words of broad and statute contains guage in the context of the statute entire meaning, persuasive courts accord indefinite it in a and construe manner consistent weight to administrative construction and purpose. same, follow the unless construction is doubt, is there doubleness When Thompson, palpably Brown v. erroneous.” meaning, or indistinctiveness uncertain- (1999) 1, 18, 586, Hawai'i 603 979 P.2d statute, ty expression an of an used Wilson, Keliipuleole (quoting v. 85 Hawai'i ambiguity exists.... 226, (1997)). 217, 300, 941 P.2d See also Employees Hyman, Ins. Co. v. Government statute, construing ambiguous 1, 5, Hawai'i P.2d ambiguous meaning words “[t]he (“[J]udieial expertise agency is deference context, sought by examining may be interpretation guiding precept where words, ambiguous phrases, with which the application ambiguous statu broad may compared, and sentences be in order tory language an administrative tribunal meaning.” ascertain their true 1-15(1) [(1993)]. Moreover, subject (quoting Richard are review.” courts determining Metcalf, Hawai'i v. resort to extrinsic aids (1996))).44 sary, accepted develop- Such “reflects a is guide deference sensitivity proper political ing implementing policy. roles judicial branches,” insofar as “the reso- (c) The shall state code be liberal- statutory ambiguity lution of text ly interpreted to obtain maximum benefi- question policy often more than law." cial the waters State Mines, Pauley Inc., BethEnergy 501 U.S. uses, purposes aquacul- such as domestic 111 S.Ct. 115 L.Ed.2d 604 uses, irrigation agricultural ture and other (1991). uses, power development, and commercial However, adequate and industrial uses. deference, judicial The rule of how provision protection shall made far ever, apply agency’s does not when the *45 of customary traditional and Hawaiian reading of legis statute the the contravenes rights, protection procreation the and of purpose. lature’s manifest v. Camara wildlife, prop- fish and the maintenance of 212, 216, 794, Agsalud, 67 Haw. P.2d 685 ecological beauty, er balance and scenic (1984) (“To deference, granted 797 be ... preservation and the and enhancement of agency’s the decision must be consistent uses, municipal waters the State for of legislative purpose.”); with the v. State Dill recreation, public public supply, water 393, 409, ingham Corp., 60 591 Haw. P.2d agriculture, navigation. objec- and Such 1049, (1979) (“[Neither 1059 official con public are tives declared to be in the inter- usage, long struction no matter how in est. in, dulged successfully can be invoked to (d) The state water code shall liberal- be purpose defeat the and effect of a statute ly interpreted protect improve and the ambiguity....”).. which free from Conse quality of pro- waters.of the State and quently, reject have not hesitated to we that discharged no substance into vide be statutory incorrect unreasonable con receiving such waters without first agency struction advanced entrusted necessary treatment or other corrective See, implementation. e.g., with the statute’s people of action. The Hawaii sub- have Employees Dang, Government Ins. Co. v. 89 prevention, stantial interest abate- 1066, 8, 15, (1998); Hawai'i 967 P.2d 1073 In ment, existing and control of new both and Maldonado, 347, 351, 1, re 67 Haw. P.2d 687 pollution and in water the maintenance of (1984). 4 high of quality. standards water (e) The shall state code be liberal- Policy 2. Water Declaration Code of ly interpreted applied and in a manner analysis begins of with Our the Code plans which conforms with intentions policy,” “declaration of set forth HRS plan- of of the counties terms land use (1993 § Supp.1999) 174C-2 & as follows: ning. (a) added.) recognized It is that the waters (Emphases of held the State are benefit of policy generally This statement mirrors citizens It is the State. declared that of public principles trust above. outlined people are State of beneficiaries 662, Boyle, Caminiti v. 107 732 Wash.2d Cf. right pro- and have have waters 989, (1987) (noting P.2d 995 that state tected their use. Management complied Shoreline with Act (b) is a program public There need requirements the constitutional trust), denied, 1008, comprehensive planning 484 resources cert. U.S. 108 S.Ct. 703, Ourselves, problems supply (1988); to address the 98 L.Ed.2d 654 Save (concluding conservation water. The Hawaii water 452 at 1157 statute So.2d amendments, plan, with sup- “implement[s] perpetuate[s] such future the constitu rule”). 174C-2(a) § plements, and additions as tional HRS neces- reiterates 347, 351, (1990); Maldonado, contrarily prior sug- 44. Several of our decisions In 67 Haw. re gest agency interpretations (1984). of statutes are apparent We reconcile this See, Maha'ulepu e.g., reviewed de novo. Land disparity present in the discussion. Comm’n, P.2d Use Haw. Dougal, Hopes law and Public Values in constitution and case Private the decree our for the Hawaii’s state holds water resources the “Reasonable Use” Beneficial Possible?, emphasizes the 18 U. Haw. public Water: Is Balance benefit of trust, i.e., (1996);46 n. public feature of the L.Rev. 46-47 essential Califor cf. Trout, pro- nia Inc. v. Control right people to have the waters Water Resources 174C-2(b) Bd., Cal.Rptr. Cal.App.3d § rec- tected for their use. HRS comprehensive (construing statutory ognizes policy require 190-94 resource public concept. preserva trust planning intrinsic to the ment “sufficient water” for the priority). a categorical dual nature the state tion fish to establish line 174C-2(c) trust, believe, however, legisla HRS do not that the resources We interpretation adopt the unconditional rule liberal favor ture intended mandates use, proposed Viewing maximum beneficial but also demands WWCA. the Code in its see, 174C-71(1)(E), adequate e.g., provision entirety, for traditional and cus- HRS wildlife, (2)(D) (1993) tomary rights, (requiring balancing Hawaiian mainte- between ecological purposes), and scenic beau- nance balance instream offstream read 174C-2(c) ty, preservation statutory and the enhancement to describe essentially previ for various trust identical to waters *46 ously protection interest. outlined dual of mandate use, under which “conservation”-minded provi that asserts the DOA/DLNR “maintenance,” “protection,” resource promoting sion “maximum beneficial use” “preservation spe and enhancement” receive 174C-2(e) for expresses preference §HRS scrutiny, cial but not a consideration cate agriculture” such over “consumptive uses gorical priority. contrary, provi this instream uses. On the consumptive not maximum sion does dictate D. INSTREAM FLOW STANDARDS use, requires instead maximum but benefi described, decision, range purposes In its cial for the the Commission acknowl- use “adequate provision edged “positive partial that res- with the condition effect” the protective pur shall made” for toration be various of Waiáhole Waianu streams. 1.02(3) view, poses. § A at 17-18. See Model Water Code FOFs the Commission’s (Frank commentary Maloney “generally, higher at 85 E. et the volume of instream al.1972) approaches Code].45 Model Water flow closer the streamflow [hereinafter levels, greater argues opposite pre-diversion natural WWCA DOA/DLNR’s view, 174C-2(c)’s § namely, support biological processes “ade that HRS for the stream mandate, Thus, an quate provision” grants ecosystem.” absolute and its at 32. “in COLs expected priority protection. general, At first it is that additional flows to resource blush, appears protective would native provision this more the streams increase the biota Douglas than constitution. Mac- habitat.”47 FOFs at 17. W. 1.02(3) commentary proposed

45. uses would to section that have effect which, Code, polluting aquifer, apart Water from the addi- a stream or or that would Model 174C-2(c) through rights, damage pump- § tion tracks excessive of Hawaiian HRS resource diversion, verbatim, explains: ing permitted, should be no application matter how useful the of that water (3) Subsection sets out a list of water uses might given enterprise.... This be to a would which are declared to be beneficial. A second law, mean as matter no bal- further of water uses is declared be in class public ancing occurs that extreme level harm. special pro- interest. These uses receive added). (emphasis Id. an under Model Water Code.There is tection duty upon the state and local affirmative boards to see that these uses are not 47.Tire Commission also found: "Even small adversely flow increases should be as beneficial to viewed by operation par- the code. In affected ticular, the native im- biota because those incremental preferred these shall other only provements could not become substantial uses.,... beneficial improve with time but could also our knowl- added). (emphases Id. edge during period, appropriate the entire if base 46. were FOF The cited commentator notes the reasonable- simultaneous studies undertaken.” interpretation, effect 174. ness of this Commission, however, protection found provisions, calculat- then consider ing relationship the exact objections. between instream parties’ specific ecological flows and benefit “difficult” due to

a lack of knowledge. sufficient scientific Statutory 1. Overview the Framework Still, COLs at 16. being, for the time Instream Use Protection “practicable” Commission deemed it in- Instream crease flow standards48 the interim instream flow are standards (WIIFS) integral part regulatory for windward by mgd. streams scheme 6.0 estab Id. assigned (1993) It § also to the streams a lished the Code. HRS 174C-71 mgd “non-permitted ground provides 5.39 buff- at the outset that “[t]he commission proposed er” agricultural and 1.58 reserve. shall establish and administer statewide Id. at 33. protection program.” instream use In fur mandate, therance the Code states DOA/DLNR, City, and KSBE raise “shall,” inter alia: the Commission procedural challenges several to the Commis- “[establish instream flow standards sion’s They amendment of the WIIFS. also stream-by-stream necessary basis whenever allege that the Commission erred amend- protect interest the waters of ing the WIIFS absent sufficient evidence of state,” 174C-71(1);49 § HRS “[establish quantity required exact of water in- standards,” interim instream flow HRS argue stream uses. WWCA and HTF 174C-71(2); and “[establish an instream wrongfully the Commission allocated water enhance, program protect, flow determining offstream use rees before tablish, quantity streams; actually practicable, needed for the where beneficial in- particular, they water,” designation 174C-71(4); contest the stream uses HRS 174C-5(3) see also general (same); buffer flows. first We review the *47 174C-31(i)(1) design operation § of the instream (Supp.1999) Code’s (requiring HRS 48. The Code defines "instream flow standard” 367 n. 742 n. 5 (citation quantity "a depth omitted). as: or or quotation flow of water and internal marks required present water which specif- is to be at a interpret We also must statutes in accordance system specified ic location in a stream at certain requirements. with relevant constitutional wildlife, year protect fishery, times of the id. at 367-68 n. 973 P.2d at 742-43 n. 5. recreational, aesthetic, scenic, and other benefi- 174C-71(1) Construing light §HRS § cial instream uses.” HRS 174C-3. An "inter- general purpose mandate and of the Code’s in- temporary im instream flow standard" "a in- protection provisions public stream use and the applicability, stream flow standard of immediate trust, we believe that it affords the Commission adopted by necessity without commission determining per- limited discretion in whether public hearing, terminating upon of a If, required. example, manent standards are for establishment of an instream flow standard.” Id. potential a stream offers minimal actual or in- values, stream or faces little foreseeable off- opinion, parties’ practice In this we follow the demand, may stream referring Commission choose not to instream flow standards of more permanent to establish The standards. Commis- applicability "permanent” than "interim” as discretion, however, indicated, no sion has such in situa- standards. Unless otherwise we use broadly involving tions the term "instream substantial conflict between in- flow standards” encompass presently ''permanent” both "interim” and stream and offstream either or interests 174C-41(a) § standards. in the foreseeable future. HRS Cf. management (requiring designation area permanent provisions 49. The standard further reasonably "when it can be determined ... commission, motion, that "[t]he state may its own may the water resources in an area be threat- public determine that the interest in the by existing proposed ened or or withdrawals requires waters of the State the establishment of water”); diversions of Put Concerned Citizens of an instream flow standard for streams.” HRS County Responsive nam Gov't v. St. John's 174C-71(1)(A) added). § (emphasis sug- This Dist., Management River Water 622 So.2d gests permanent that the directive establish 3(Fla.Ct.App.1993) (reading 52 the minimum may nonmandatory. standards be mandatory). flow statute as case, post- determining In this the Commission decided to "[I]n whether a statute is manda pone permanent tory directory, may establishment standards determine the inten studies, legislature pending tion of the more conclusive scientific but from consideration of the act, nature, clearly object, proceeded premise entire its still from the its and the conse quences necessary. agree construing that would result from one such were standards We Medeiros, way underlying appraisal. or the other.” State v. 89 Hawai'i this establish, chapter in such part under IV hy- within each the Commission flows and unit, protec protect as instream use and manner drologic instream “[a]n 174C-31(j) § yields ...” HRS for the surface watercourses sustainable program tion area”). therefore, Code, in- what (Supp.1999). provisions These confirm Under the decision, primary recognized as the in its flow standards serve stream the Commission contemplates is to which the Commission the instream mechanism the Code duty protect promote discharge its standard as the “surface water corol- flow depen public purposes trust range ground ‘sustainable lary entire ”50 upon flows. yield.’ dent instream flow 32. Both instream COLs yields perform standards and sustainable decision, Commission planning guiding same function weighed instream and offstream uses under responsible by prescribing regulation “competing applica addressing provision development and use of limits to § permits, HRS 174C-54 water use tions”-for Regulated Ripari The water resources. Cf. (1993), supra note 13. The see § & com Code 3R-2-01 an Model Water instream flow values “[w]here concluded (Joseph Dellapenna mentary at 82 W. agricultural protected and offstream ed.1997) (mandating the establishment maintained, accommodat both ‘uses’ are and levels in consolidated minimum flows promoted by [HRS ed in the manner goal of sus achieving “central to section analysis This at 29. COLs 174C-54].” development protecting the tainable for water Code’s framework misconstrues State”). interest the waters management. Petitions for interim resource Commission, obviously, “imple- cannot amendments are not instream flow standard “protect” do not standards that ment” permit applications among the water use protec- In order the “instream exist. “competing” under HRS 174C-54. purpose, tion” framework fulfill its stated relating protection, to instream use statute therefore, designate 174C, VI, Commission must part chapter or HRS HRS early possible, flow standards instream 174C-71, operates independently during process comprehensive plan- regulation outlined procedures water use (1993 particularly ning, and before it authorizes 174C, Supp. chapter part & IV potentially detrimental 1999). offstream diversions *48 public uses and values. See to instream § 174C-71 paragraph last of HRS 119, in Rep. No. 1987 House Conf. Comm. imple- commission shall provides “[t]he 1069; Journal, Rep. Comm. Conf. No. standards dis- ment its instream flow when (“To Journal, full- in 1987 at 886 Senate watersheds, from in- posing water state possible, it is the of the extent intent est by cluding that removed wells or tunnels flow Legislature that instream stan- interim they may flow....” affect stream where prior to or be established either new dards provi- comprehensive planning The Code’s expanded diversions of water (1993 174C, sions, part chapter III & stream.”); MacDougal, supra, at 60-63. (“Hawaii Plan”), require Supp.1999) Water Early designation of flow stan- complete its “water instream to re- Commission objectives. plan” important furthers protection quality and before dards several source First, duty adoption develop- and fulfills the Commission’s of the “water use statute, county, constitution and en- plans” by protection each see HRS under ment 174C-31(d) suring uses not suffer inad- that instream do (Supp.1999), and mandate impairment.51 also permits It shall condition vertent needless commission “[t]he previous quo [through yield” adoption the status of the 50. defines "sustainable "the The Code any prevent be with- helped rate at which water future standards] maximum interim impairing a water without drawn from source for harm streams while the scientific basis utility quality of water source as deter- or determining appropriate flow standards instream commission." HRS 174C-3. mined protection developed is and an overall stream put place.” program 17. into COLs recognized purpose this The Commission minimum, retaining “[a]t it noted when preserves integrity Here, public Commission’s interest in instream flows. comprehensive planning sugar operations function. If the close in Central 0‘ahu Commission decides provided flow standards has unique instream permit time, applications at the opportunity same valuable previously restore di- private interests offstream use will have rethinking verted streams while future already particularized,” become “highly risk- 0‘ahu’s uses. The Commission should ing an ad planning process hoc driven thus planning take the initiative in for the MacDougal, immediate supra, demands. appropriate instream flows before demand (citing at 66 n.& 302 United States v. heightens temptation State new uses simply Bd., Water accept Resources Control 182 Cal. foregone renewed diversions aas (1986)). App.3d Cal.Rptr. conclusion. Finally, designation initial of instream flow Furthermore, agree with the Commission, standards relieves the as well existing Commission that uses are auto existing users, potential offstream of matically “grandfathered” under the consti complexity uncertainty presented by Code, especially tution and the in relation to question the unsettled of instream flow re- above, public trust As uses.52 stated 58-59, quirements. See id. 66. Once the public trust the Commission to authorizes public Commission translates the interest in previous allocations, reassess diversions and managea- instream flows into “a certain and regard even those made with due their quantityL ble consistency t]he reference to Consistently on purposes. effect trust with the interest the definition of principle, “an the Code calls for instream reasonable beneficial use likewise becomes a enhance, program protect, flow and rees quantity.” reference to that Id. at 62. The tablish, practicable, where beneficial in- grant permits tentative of water use without - 174C-5(3), §§ stream uses water.” HRS any determination of instream flow stan- 71(4) added). (emphasis Code’s in- dards, conversely, presents the least desir- provisions stream flow standard also man able scenario: no assurance that date: rights receiving adequate are provision, no impact In order to or avoid minimize the genuine comprehensive planning process, existing of preserving, enhancing, uses certainty permit and no ap- modicum values, restoring instream the commis- plicants grantees. Concerned Citi Cf. solutions, physical sion shall consider in- Putnam, Responsive zens County Gov’t cluding exchanges, modifications of Dist., Management v. St. John’s River Water project operations, changes points (“[I]t (Fla.Ct.App.1993) 622 So.2d diversion, changes in time and rate di- imagine difficult ... supply how the water version, from alternative managed can be without the establishment of sources, other solution.... mínimums.”). *49 added). 174C-71(1)(E) § (emphases HRS recognize, We as several leeward implication provisions The clear of these is out, parties point largely that this case in may that the Commission reclaim instream “existing” predating volves diversions displacement values the inevitable exist- But ing Code. this does not relieve the Rep. Commis offstream Whole uses. Comm. Cf. (“[T]he duty support sion its to consider and 1 Proceedings, No. at 1026 explained: satisfy superior (e.g., 52. The Commission to modification to claims appurtenant rights). subject (cid:127)unexercised Existing uses which are of a water Study Advisory permit application COLs at 27-28. See also Com- use must meet the Water Resources, Report requirements subject permit mission on Water Code and be Thir- (" any permit Legislature teenth Hawaii conditions holder. While as a 'Grandfa- matter, practical existing thering' present riparian all most uses meet the and correlative uses requirements, prior law’s matically uses are not would have thwarted the and effi- auto- conservation (so code.”). goals granted permit ciency proposed agree a We water use called “grandfathering'').... be with That could inconsis- the Commission and add that in- requirements among "superior tent constitutional and stream uses are which, claims” to factors, proof upon burden of established in the Water of all Code. consideration may relevant existing existing may subject yield. In the future some uses be uses have to pursuant to HRS standards flexibility regulate manent” agency have should 174C-710). § usage as well as future existing resources... Hawaii’s water 174C-71(2) part: § states relevant HRS Code, there The constitution (A) standing Any person proper with the fore, “protecting,” among not differentiate do adopt an may petition commission “enhancing,” “restoring” public instream for streams interim instream flow standard undoing values, preventing and or between protect public interest in order sure, providing To be “harm” thereto. permanent pending establishment a uses, duly must the Commission instream standard; instream flow in con significant public interest consider the (B) flow standard Any interim instream existing tinuing reasonable beneficial adopted terminate under this section shall 174C-71(1)(E), HRS offstream uses. See permanent upon the establishmént of Debates, (2)(D); Proceedings, instream the stream standard Waihee) flow (statement (explaining by Delegate standards were which interim XI, language in section 7 article that adopted.... appur legislature to requiring “assur[e] riparian rights existing and cor tenant (1993 added.) (Emphases HRS 174C-3 & policy protect uses” enunciates relative “interim instream flow Supp.1999) defines of, others, existing among “the small ing temporary instream flow as “a standard” agricultural as well as the taro farmer adopted applicability, of immediate standard users”). token, By the the Commis same necessity of a by the without commission flow duty proper establish instream sion’s upon terminating public hearing, and notwithstanding existing continues standards stan- an instream establishment of flow diversions. added.) (Emphases dard.” contemplate in- provisions Because these Objections to the WIIFS 2. Procedural preced- stopgap as a solution terim standards Amendment permanent stan- ing establishment of knowledge “firm Having that dards, found argues allowing that DOA/DLNR to reach some upon streams which about interim standards to amend Commission require .... will consid permanent solution permanent provi- standard would render the years away,” erably work agree more “meaningless.” We sions intention, begin its announced Commission of bona fide envisions establishment Code case, in- ning “to amend ‘interim’ -with this instream flow standards as “permanent” per periodically until stream flow standards objective in its “instream ultimate mandated adopted.” can COLs §§ standards manent 174C- protection program,” previously adopted in 71(4), -5(3). 16. The Commission share We also DOA/DLNR’s when, streams for windward terim standards amendments interim standard concern 4, 1992, May promulgated rule effective means of circum- convenient serve amount of designating the as the WIIFS objective indefi- venting repeatedly time, see flowing however, stream at DOA/DLNR, each nitely. misdirects As HAR 13-169-49.1.53 amending objection procedure the mere decision, present the 1992 in its admitted such interim standards as source *50 ratify nothing the more than standards did problem. existing.54 major already diversions argument for however, As textual basis its

DOA/DLNR, that Com the asserts the only to limits the Commission authority to alter the 1992 that the Code lacks the mission stream, per “per- standard one interim pending the establishment DOA/ standards explained it "established promulgated The Commission it the 54. act in which In the same existing Code, on the adoption [1992] interim flow basis legislature the mandated the the standards, than on the structures ... rather be- diversion flow state-wide interim instream ecological any biological or value of the ginning Haw. Sess. L. basis of Windward O'ahu. See given flow level.” COLs at 17. § stream Act 4 at 101. passing DLNR on relies references to “modi allows Code the amendment of in- interim appearing permanent fication” in the stan stream flow standards. provisions, 174C-71(1)(D), § dard see HRS argues also the DOA/DLNR (F), provi but not the interim standard must establish interim standards situations, In sions. certain reasoning such through rulemaking procedures under may control, based on the rule of construc HAPA, § see (Supp.1999). HRS 91-3 The legislature]

tion that “[w]here [the includes provides contrary, defining Code such particular language in one of a section stat “temporary standards as instream flow stan ute but omits it in another section of the adopted dard[s] ... the commission with Act, generally presumed same it that [the necessity public hearing.'” out the a HRS legislature] intentionally acts purposely added). § (emphasis Indeed, 174C-3 the disparate in the inclusion exclusion.” Go require Code does not rulemaking even States, v. zlon-Peretz United 498 U.S. standards; permanent the establishment (1991) S.Ct. L.Ed.2d 919 174C-71(1)(F) § merely HRS states States, (quoting Russello v. United 464 U.S. adoption “[b]efore of an instream flow stan (1983)). 104 S.Ct. 78 L.Ed.2d 17 dard or modification of in- an established case, however, In this argument bears standard, stream flow First, the commission shall weight. legislature little mandated give hearing notice pro and hold on its adoption original interim standards posed modification,” standard or see also in the act in it same which established the 174C-71(1)(D) Code, § (specifying HRS supra the notice legislature see If note 53. requirements). preclude intended to the amendment these standards, then it would not have included adopted by rule the Commission provisions adoption interim following 1992 includes the relevant caveats: importantly, standards in the Code. More (1) upon Based additional information or 174C-71(2)(A) “petitions calls for to need, compelling public person may peti- adopt an interim instream flow standard for tion the on commission resource protect streams in order inter management to amend the to al- standard added.) est(Emphasis Notwithstanding diversion, restoration, low future or other effect, therefore, temporary their interim utilization of streamflow. provide meaningful still pro standards must authority commission reserves light tection of instream uses.55 modify standard or new establish foregoing language general design and the [sic], including standards area-wide Code, prevent see no sound basis for stream-by-stream standards, sup- based on ing amending the Commission from interim plemental or additional information. provide protection standards further

where, Commission, according to the the evi provisions HAR 13-169-49.1. These make generally dence demonstrates the need for rulemaking; require- no reference such flows, increased but nonetheless falls short of fact, would, ment su- render rule a showing establishing perma the desired 91-3, perfluous repetition of HRS which nent standards. already allows of rules rule- amendment making. During hearing, the Commis- respond Interim standards must interim 16,” sion issued “Order No. objects wherein con- circumstances. DOA/DLNR foregoing provisions cluded that the allowed amendment of the interim standards based evidence, the modification of instream flow standards on less than conclusive but insists standards, underlying keeping the 1992 without amendment rule. which lack any evidentiary Considering ambiguity proposition basis. This of the rule and purpose agency readings strains the overall Code deference owed see, regulations, Maha‘ulepu limits of e.g., well reason. We thus affirm their own Comm’n, 332, 339, Commission’s determination Land Use Haw. *51 much, duly acknowledged protect 55. The Commission to at stat- sion’s instream uses.” COLs ing that fact the ”[t]he that interim standard is 15. adopted quickly more does not alter the Commis- 174C-71(2)(E),—50(d), (1990), §§ say that time limit in cannot the HRS P.2d we -53(c) time commission “until such as the interpretation. erred in its Commission applications is to act on merits of the able the of one also while the We observe City that the petitions.” The maintains rulemaking “generality hallmarks of its not such extensions. Code does authorize Co., effect,” re Elec. see In Hawaiian that, although foregoing first note the We 459, 466, (1996), P.2d Hawai'i provisions phrased in the man are deadline at concerned the instream the decisions hand con datory, they provide no indication the In particular streams. Or flow standards may just sequences noncompliance. One explained: der No. the Commission legislature easily surmise that the intend petition modify flows at ... A to instream period statutory time expiration ed the fact-intensive, specific a indi- locations is operate approval, to as an automatic rather site that determination each vidualized See, denial, pending application. than directly may 1994) downstream offs- affect (repealed e.g., § HRS 183-41 claims [Individual tream interests.... (automatically granting applicant’s proposed may site-spe- expiration to The need be examined. use of conservation distinct land 180-day statutory period); § inquiry in this case is not HRS 91- required cific 13.5(c) (requiring agencies act (Supp.1999) to making, with a compatible with rule but develop application for a or on an “business process due provides method which approval” permit, or ment-related license procedures necessary to assess individual appli provided, time limit “or the within the interests. approved”). be cation shall deemed agree with assessment We the Commission’s event, point any City In fails and, thus, reject that the contention objection in the Commission’s record improperly Commission amended WIIFS Ap Hawaii Rules of extension time. See adjudication rulemaking. via instead 28(b)(4) (HRAP) pellate Rule Procedure City yet proce another The raises (2000) (requiring point of to include error objection, arguing that dural the Commission objected appellant in the record the where granted petitions improperly to amend error). suggests alleged City The no expiration of the statu the WIIFS after the depart why gener from the reason should petitions. on tory time limit for action such properly al not raised shall rule issues 174C-71(2)(E) provides: HRS Inouye, 90 be See Hill v. deemed waived. (1998). reject Hawai'i grant shall commission Furthermore, appear not does adopt petition instream an interim flow City objected prior to the Commission’s deci under this section within one standard proceedings sion for the to consolidate eighty days peti- date the hundred petitions to amend the and the water WIIFS eighty days tion one is filed. The hundred applications, should permit which have of one hun- be extended maximum parties respec that the placed all on notice eighty days request of dred at the probably limits would not met. tive time subject petitioner approval granted par numerous the commission.... hearing ties it admitted in the considerable attention, escapes City’s Although it presenting argu latitude evidence imposes decisions also a deadline on Code City little concern for ment. The showed applications. regarding permit water use fully availing itself of this time constraints in 174C-50(d) (Supp.1909), relating to reasons, opportunity. these we hold For uses,” 174C-53(c) “existing and HRS objections City waived uses,” (1993), identically relating re- “new to extend the statuto Commission’s decision ninety quire application “within action an proceeding. ry instant deadlines days application requiring calendar an hearing, eighty calendar within hundred Objections to Instream Al- Substantive hearing.” days application requiring locations 13, 1995, designation reviewing July the Commission issued the Commission’s On WIIFS, it is instructive to distill the 180-day which

Order No. extended *52 Commission, analysis. required by Commission’s The information the commission.” first, petitions however, considered the statute, amend assign any does not permit applications WIIFS and the water use proof, burden of and dowe that believe together hearing. Regarding the same justifying the ultimate burden of interim estuary ecosystem, the windward stream and petitioner. standards falls on Apart from acknowledged generally the Commission process the adversarial initiated WWCA’s flows, beneficial effect increased instream petition, has an the Commission affirmative but concluded that “a more definitive deter- duty protect under the trust and depends mination of [WIIFS] on the promote instream trust uses. accordance collection of additional information and sub- duty, with this the Commission estab- must sequent weighing of instream and values permanent lish instream flow standards of its Having offstream uses....”56 at 31. COLs necessary protect own accord “whenever conceded the lack of a firm scientific basis for interest the waters disposition, the Commission then allocated 174C-71(1); § supra State.” see HRS also quantity of water to windward streams 1740-71(4) § note 49. requires HRS “practicable” light it deemed of immediate Commission to “[e]stablish instream flow and near-term offstream demands. Id. 19. enhance, reestablish, program protect, and time, however, granted At the same permit practicable, where beneficial instream uses of applications for offstream uses based investigations water” and to “conduct and “prima facie” standard and the conclu- bare fishing, collect including instream flow data adequate sion that “there water to meet wildlife, aesthetic, recreational, quality, water water immediate use needs as set forth ecological and and information basic stream & Id. at [D O].” 23-25. Close review of necessary flow characteristics for determin- therefore, reasoning, the Commission’s re ing requirements.” instream flow The Code pro veals the of its decisionmaking nature planning provisions mandate the Commission any proper findings cess: without as to the “study inventory requirements existing and water purposes, actual instream for. or the reasonableness offstream diversions resources the State and the means and requirements, relative to these the Commis augmenting conserving methods of and such effectively assigned sion resources,” 174C-31(c)(1) windward § HRS remaining streams the water it had after (Supp.1999), formulating a “water re approved per the bulk of the offstream use protection quality plan,” sources and which requests. mit information, include, among must other “re quirements for beneficial instream uses and City argues that WWCA failed protection,” § environmental 174C- proving to meet its burden of actual 31(d)(2).57 obligates The Code also the Com required for amount uses. HRS instream “abridge mission to ensure that it does not 174C-71(2)(C) § requires petitions deny” customary rights traditional'and adopt interim standards forth “set data 174C-101(c) § Native Hawaiians. See HRS concerning information protect the need to (1993); (pre- wa see conserve beneficial instream uses of also HRS 174C-63 serving appurtenant rights). ter other relevant and reasonable impact restricting 56. The summarized the “methodol- as well as the economic ogy” establishing finally, un- instream flow standards such Fourth uses. the Commission water, der HRS 174C-71 as follows: any, may weigh must and decide what if effectively be removed from its source First, investigate the Commission must diverted from windward streams for offstream ecology including stream stream and, sought Second, information, use both within the watershed flows. with this here, outside watershed. Commission determines how different (in- COLs protection flows affect different levels restoration, needed) cluding partial if required 57. The Commission was to have should be afforded the streams at issue ' adopted plan evaluating later the entire Hawaii "not the water flows needed for instream Third, July years values. deter- than three 1987.” HRS Commission must uses, 174C-32(c) (1993). present potential mine the offstream *53 154 preliminary is made Where scientific evidence numerous

The Commission findings yet regarding lack of scienti not man regarding the current conclusive inability experts knowledge fic agement which of fresh water resources stream quantify the correlation between trust, to prudent to part is are de flows benefits. We and environmental pro adopt “precautionary principles” in judgment for Com our cline substitute is, tecting resource. That there where concerning ruling that its ultimate mission’s present potential threats of are serious a support there was insufficient evidence certainty damage, full lack of scientific flow conclusive assessment instream more postponing should not be basis for effec requirements.58 a mixed determination Such prevent tive measures to environmental Commission’s of law and fact lies within the certainty degradation. “Awaiting for will discretion, designated expertise and sound reactive, only preven not often allow in case not dem and the does evidence tive, regulatory Ethyl Corp. v. action.” clearly onstrate it to be erroneous. 1, 25, (D.C.Cir.), F.2d cert. 541 5-29 EPA Hawai'i 927 Agricultural, Ko'olau at denied, 2663, 49 426 U.S. 941 S.Ct. [96 (according at to the P.2d deference (1976). addition, In where 394] L.Ed.2d expertise designation Commission’s exists, duty pro uncertainty trustee’s areas); Camara, Haw. management mitigates in favor tect resource (“[I]n at at deference choosing presumptions protect that also agency’s expertise experi administrative Lead Ass’n v. the resource. Indus. EPA field, particular the courts should ence (D.C.Cir.1976 647 F.2d 1152-56 judgment for that of not their own substitute (1980). [1980]), denied, 449 U.S. 1042 cert. ques agency where mixed the administrative presented.”). tions of and law fact are added). (emphasis “precau- at COLs tionary principle” appears in forms diverse however, that emphasize, must We throughout field of law. environmental largely present disposition Commission’s 20-29;59 See, e.g., Ethyl Corp., F.2d at pro purpose of instream use defeats (rely- Industries, Lead F.2d 1154-55 in HRS 174C-71. tection scheme set forth statutory safety” ing “margin on the re- Every offstream de concession immediate quirement rejecting argument agency that by the increases mands made only designed to could authorize standards impairment in- risk of unwarranted against “clearly harmful values, protect health ef- arbitrary planning, ad hoe stream (9th fects”); Reilly, object 968 F.2d 985 parties Les distribution. A number of Cir.1992) (confirming agency no dis- that: that has the Commission’s conclusion special judicial protec- explained: interest in 58. As the Commission favor of ("IFS”) people, re- tion health and even in The Instream Flow Standard welfare of investigation quires rigorous certainty con- a more areas where does not exist. process than the Interim Instream sultation involving Questions the environment are ("IIFS”) part Flow because Standard uncertainty.... particularly prone to Yet the compre- "permanent” implies IFS that after a regula- statutes—and common sense—demand study, is certain the conclusion more hensive and harm, prevent regu- even action to if the tor lator is will be reason revisit the there less than certain that harm is otherwise less changes. compelling situation absent inevitable. COLs at 15. Undoubtedly, certainty ide- is the scientific Ethyl Corp., opinion 59. the lodestar be cer- al—to the extent even science can Appeals Cir- United Court of for the D.C. States certainty[, Awaiting tain of ever,] how- its truth.... Agen- upheld cuit cy's authority the Environmental Protection reactive, only will allow often Act, Air 42 United under the Clean suggest preventative, regulation. Petitioners 7401-7626, (U.S.C.) regulate States Code anything certainty, any spec- less than uncertainty. at 20- the face of scientific See id. ulation, irresponsible. But when statutes Skelly majority opinion Judge Wright’s J. catastrophe, can to avoid environmental seek policy an extensive discussion includes while cerns, uncertain, legiti- preventative, albeit decisions addressing specifically con- human health mately be so labeled? illuminating pub- is also relation to omitted) (em- (citation and footnote Id. 24-25 lic interest in instream flows: added). phases Regulators must [Commission] such flexibility, recognizes flexibility that accorded permit eretion under statute to use of carcin Commission’s amendment of the WIIFS additives, ogenic regardless degree food evidentiary lack aof concrete basis. Uncer- denied, risk), cert. 507 U.S. 113 S.Ct. tainty regarding protection the exact level *54 (1993); generally L.Ed.2d 740 see necessary justifies protec- neither the least Fullem, Comment, Gregory D. The Precau tion feasible nor of protection. the absence tionary Principle: Environmental Protec above, As although stated interim standards Uncertainty, tion in the Face measures, merely are stopgap they of Scientific must still (1995). any Willamette L.Rev. 495 As with protect practi- instream values to the extent general principle, meaning vary its must ac Here, cable. the Commission determined 6.0 cording to only the situation can develop mgd purposes, to be available for instream case, over time. In this we believe Com even as it made substantial allocations for mission principle quintes describes the in its present and near-term offstream use and minimum, sential form: at the absence of proposed to reserve more for future off- firm proof scientific should not tie the Com uses, agricultural “prima stream all under a mission’s hands in adopting reasonable mea standard, facie” and set aside even more as designed public sures to further the interest. unspecified “buffer” for future offstream defined, precautionary So principle do uses. We not consider the Commission’s simply restates the Commission’s duties un- remaining decision to add mgd 6.0 Indeed, der the constitution and Code. overly protective. Quite oppo- WIIFS certainty lack of full scientific does not extin- site, appears provide to it to close the least guish the presumption public in favor of trust protection amount of practica- instream use purposes or vitiate the Commission’s affirma- ble under the circumstances. duty protect tive purposes such wherever present inability Nor feasible. does to fulfill reasons, For similar disagree protection instream use framework ren- with designation Commission’s 5.39 any der the statute’s directives less mandato- mgd pur otherwise available for instream ry. requiring In the Commission to establish poses “nonpermitted as a ground water buff early instream flow planning standards at an satisfy er” the Commission could use to stage, contemplates the Code designation permit applications amending future without only the standards based not on scienti- Nothing in authorizes WIIFS. Code facts, fically proven predic- but also future fundamentally, such a More measure. tions, generalized policy assumptions, and freely notion of a buffer available uniden

judgments.60 Neither the constitution nor uses, tified offstream flow while instream Code, therefore, constrains the Commission proper designation, standards still await of certainty fulfilling to wait for full scientific public spirit fends the trust and the duty its towards the in mini- interest protection instream use scheme. We have mum instream flows. rejected serving the idea streams as case, private proper understanding convenient reservoirs for offstream Robinson, of the Commission’s use. mandate reveals the 65 Haw. at faulty logic arguments challenging (maintaining private parties at 311 do early planning stage, designate management 60. At this Commission Commission only reasonably need determined, estimate instream and offs reasonably can be "[w]hen areas supra, MacDougal, tream demands. See at 66 n. conducting investigations after scientific and re Board, (citing State Water Resources Control search, may that water in an area be resources 180); Cal.Rptr. 227 Code, at 107(5) see also Model Water added)). (emphasis threatened” The Commis supra, (requiring agency the state regulations, example, own allows sion’s "using to calculate instream flows the best infor uses, DLNR, assessing "employ instream available"); Joseph Dellapenna, Regu mation W. significance various methods determine the 905(b), Riparianism, Rights § lated in 1 Water require each use and its associated stream water ("The process, plan 534 ning generally minimum flow ... like quantitatively ments. Instream uses ..., place is to take more in the rated, recognizing qualitatively instream will abstract and establish a benchmark on the may rely than on factors other streamflow competing basis of which users can malee much plans development maintain their overall value.” HAR 13—169— more definite for the use and water.”); 174C-41(a) 33(b) (1988) added). (requiring (emphasis cf. trustee, Thus, pursuant duties right “to drain rivers unfettered not have the fit”). they precaution, the Commission purposes s[ee] the interest dry for whatever very Nonetheless, “mar- providing achieves that reasonable buffer should consider result, safety” purposes the constitution- gins as it reverses for instream trust insofar statutory proof establishing standards. burden estab- instream flow al and when against public Commission, however, working presumption con- should not lishes uses. “buffer” at instream cern itself with allocations Rather, should the outset. the Commission portrayed the buffer un- for scientific incorporate allowances precautionary principle. aspect “one *55 certainty initial the into its determination of error in the margins for A buffer allows Any in minimum flows excess standard. recognizing delay in and for the estimates until remain in the stream standard shall this changes.” 33. measuring at On COLs actually for offstream permitted needed “buff- contrary, the we do not believe use, policy against waste keeping in with the er,” category of distinct as a formal and merely recognition in that the standard allocation, truly protective or fulfill a would required under an absolute minimum states above, precautionary purpose. As stated flows, any These unallocated circumstances. yet designate has the Commission where however, catego- will not constitute a distinct standards, a flow buffer proper instream according ry quantity, will fluctuate but on their constitution and Code stands the supply and demand. variations heads, allowing flows of instream diversions requisite completion proce- the before foregoing, we Based on the vacate the analysis protec- for use instream dure designation of the Commission’s WIIFS out the Commission sets tion. Even where groundwater “nonpermitted buffer” appropriate in- in earnest to determine the proceedings consis and remand for further standards, we think that a for- stream flow opinion. In order to effectu tent with this in- category less an mal “buffer” serves in- framework for ate the Water Code’s protection than as a distraction strument of protection, the Commission stream use establishing mini- task from the mandated shall, purpose, work haste and with utmost flows and an invitation mum instream establishing permanent instream towards light tem- this minimum the understate In standards for windward streams. flow by If protection provided the buffer. porary meantime, desig the shall Commission in- determines the minimum the Commission standard based on the best nate interim first, contemplated stream flows presently available. Cali information Cf. Code, designate formal “buffer” it need not Trout, Court, Superior Inc. v. fornia precaution. flows for the sake of As Cal.App.3d Cal.Rptr. recognized, policy against Commission (ordering the water board estab any above des- waste dictates that data lish flow based on available rates ignated minimum flows and not otherwise proceeding with more elaborate stud while any for use remain the streams needed ies). Commission, do not bar We therefore, best, super- a buffer event.61 At pending permanent the establishment fluous; worst, it is a violation of standards, setting from the interim stan instream and an end run around the trust than combined total of the dard lower no provisions. it protection Since serves previous “base” and “buffer” flows62 legitimate refuse to stand. purpose, we let subsequently. amending the standard case, however, In general princi- Part III.E. this no fault with the findWe infra in- reasoning. suggest to us that underlying several factors ples the Commission’s Commission, may designate example, 62. The for We also the Commission’s 61. are unconvinced reasoning enables the for that the buffer Commis- as to allow fluctua- the interim standard so study flow reductions on the effect of permitted sion III.F.5. uses. See Part tions infra easily just as The Commission could streams. alternating purpose by accomplish flows this streams, diverting among instead of flows offstream uses. should, term standard least for the time applicable standard all speci- streams in a being, incorporate pres 174C-71(2)(F). much of total fied area.” 1) ent instream lack of proper flows: case, the Commission amended WIIFS adequate studies and information on the basis, general on a still but which identified streams; 2) corresponding inability streams would receive the increased base presently to fulfill the in- findings, flows. In accordance with its 3) protection framework; stream use respect Commission should do the same substantial, largely expert uneontroverted to the new minimum flows established testimony present instream flows remand and flows excess of this mini- represent necessary the minimum to sus mum, including proposed agricultural re- 4) habitat; adequate tain an stream serve. finding “in general, Commission’s it is expected additional flows Interim Standard Waikane Stream streams would increase the native biota habitat”; petitioned 5) WWCA the Commission gener the Commission’s particular to amend the provision ous interim standard for and near-term immediate *56 windward streams. “prima offstream demands a Waikane Stream was under facie” among assignment petition. standard. The Commission’s the streams of identified streams, only the buffer flows to the windward Commission nonetheless amended face, on its seems to amount to a the base flows of determi Waiáhole and Waianu “practicable” nation “protect, that it is Streams. enhance, by and reestablish” instream uses presented WWCA evidence of the need for quantity, for least the interim. If Stream, increased flows in of Waikáne none so, generally this would meet the definition parties dispute.63 which the The Commis- purpose of “interim” standards under sion, however, not does mention Waikáne Code. analysis We leave the final Stream at all in its allocation instream foregoing factors and determination of In appeal, flows. its brief on the Commis- appropriate interim standard to the gates sion states that “the available for water remand. put restoration cannot now water Waikane Finally, providing for the release Any physical Stream.... reconstruction of agricultural “proposed “buffer” system the ditch in-depth should await more streams, reserve” into windward Com not, justifica- studies.” Whether valid this specify did not it appor mission how would appears tion in the nowhere Commission’s “supplemental among tion these flows” Nothing decision. in the decision indicates specific ambiguity streams. Such hinders practica- that the Commission considered progress a towards rational instream use bility restoring flows Waikane Stream. protection program. The Commission found agency “[T]he must make its more “[a] suitable restoration of wind findings reasonably parties clear. The

ward partitioning streams would involve the guess, the court should be left to among of flow systems a number stream fact, any respect question [Kahana, Waikane, material or to Waianu, such as any Streams],” 172, group of minor matters that have Waiáhole FOF and that “[i]t significance, precise finding cumulative makes a difference how the water is distrib agency.” into the re Elec. Div. uted streams. Water should In Kauai Co., 166, 183, Citizens 60 equally more This Utilities Haw. distributed.... is an un (1978) restoration,” (quoting natural P.2d In re FOF 180. The Terminal Code Inc., 134, 139, grants adopt Transportation, the Commission discretion to 54 Haw. (1972)). stream-by-stream standards “on a interim P.2d also Kilauea See general Neighborhood Comm’n, basis or ... instream flow [as] Ass’n v. Land Use Roberts, Aquatic biologist Hodges, example, Henry part-Hawaiian Marc for farmers resid- ing Valley, probably require testified that it would dou- Waikane testified that diminish- bling support current flow Waikane Stream to ed are their flows insufficient desired good create a stream habitat. Denise Medeiros levels of taro cultivation. possibility 227, 230, of additional diversions. 751 P.2d Haw.App. (“An correctly investi- identified the agency’s findings suffi Commission must be ecology stream and determina- gation of the reviewing track court to cient to allow the tion of the correlation between flow levels its steps by agency reached which Akiba, steps as first in the values decision.”); 87- and instream 81 Hawai'i Rife (review determining “methodology” for the instream (App.1996) 584-85 standards, supra see note but admit- flow practical ing numerous reasons re conclusions). that the lack of “firm” scientific evidence ted adequate findings and quiring properly completing these prevented it from is Clarity agency’s decision all the sum, inquiries. In are still preliminary “in a case as this where such more essential question how with the the Commission performs trustee and left agency should, presently and fu- for the foreseeable duty it has to demonstrate bound ture, competing instream and offs- balance it the discretion vested properly exercised develop proceeds tream interests statute.” Save constitution and the instream flow standards. permanent Ourselves, 452 at 1159-60. So.2d decision, recognized the Commission case, pro- has not In this the Commission flows, high stating: base the need findings that would or conclusions vided estuary High important flow is decision re- base meaningful review its enable ecosystem as well as the stream itself. thus remand garding Stream. We Waikane generated during proper The flows storm events resolution matter Electric, perform function from that 60 Haw. at different Commission. Kauai 185-86, estuary (recognizing flows. The does not assimi- P.2d at 537-38 re- base *57 great from flood remedy late a deal nutrients appropriate mand as an “where the invalid, events, through the water moves agency inadequate, or in- because has made system rapidly. Those flows flush findings”); so complete see also 3 Kenneth C. Pierce, Jr., system. flow J. Administra- out the estuarine The base

Davis & Richard (3d ed.1994) (dis- steady that is carries the load nutrients tive Law Treatise 18.1 productivity, remedy for estuarine and cussing aside and essential the usual “set remand”). to sustain the nutrient levels essential

throughout year. IN- INTERIM BALANCING E. OF long-term flows are FOF 262. Consistent AND OFFSTREAM USES STREAM conducting meaningful also essential that, The Commission found stream studies. foregoing rulings concerning the Our adequately any impacts “to on evaluate permit any nor preclude WIIFS neither change regime, study in flow would need present future allocations for offstream and period of to be conducted over an extended recognized, “[g]iven As the Commission use. (2) time, starting or with at least two three long work to define an term needed (3) years,” “it and that is better to FOF particular ecologically necessary in a flow gather years of data de- accumulated before stream, to amend the Commission will need ciding impact,” whether there was an FOF periodically perma until standards] [interim 13-169-20(2), generally §§ HAR 200. See adopted.” can nent standards be COLs -22(1), im- (recognizing -23 “vital” Thus, desig the Commission even after program “systematic of a of base- portance on remand based nates the WIIFS requiring line research” Commission information, may available amend the best part to conduct research as of the man- such further informa in either direction as WIIFS protection program). dated instream hand, tion available. On the other becomes adequate information be- merely affirming interim Until scientific the Commission’s available, therefore, ongoing fur- or effectively assigning to instream comes solution of subject only allocations not not otherwise allocated for ther offstream uses uses, impairment unknown instream values to and near-term offstream immediate risk, undermine efforts at effective yet validity but also have not addressed allocations, Conceivably, alone the the Commission present offstream let research. dry incrementally, may could drain a stream interest. The Commission still dry perpetuity, leave diverted stream act when not benefits and risks are determining without appropriate times, ever in- capable quantification. all exact At say, stream flows. however, Needless we cannot the Commission not should hide accept proposition. such a uncertainty, behind scientific but should con- systematically judiciously it as front alternative, however, opposite does possible—considering every offstream use appear very practicable. WWCA insists potential view of the cumulative harm Commission of any bar the issuance instream uses and values and the need permits for offstream until uses sufficient meaningful require- studies flow stream require- scientific information on instream expect easy ments. do not We this to be an ments becomes available. doWe not believe nothing it is task. Yet novel to adminis- per the law such a mandates se rule. legal process gener- trative function or the hardly can expected Commission Ethyl Corp. al. 541 F.2d at 28 uses, n. suspend all offstream reason- however (explaining how of risk is a beneficial, “assessment nor- period able and for an indefinite judicial part mal Commission, administrative fact- according time may finding”). And it is no and no less than years. more amount to people what of this state created the simple This dilemma offers no solution. Commission to do. time, present only At the we hold that the inability to designate Commission’s more de- matter, practical As the Commission finitive instream flow standards al- neither foregoing supports decide that balance prolonged question lows the deferral of the uses, postponing holding certain them to protection instream use nor necessarily higher proof, pending standard of more con- precludes present and allocations future require- clusive evidence instream flow purposes. Accordingly, offstream Com- 174C-31(d)(2) See, (re- e.g., ments. words, apply, mission must in its own “a quiring to include methodology recognizes preliminary protection plan resource “desirable incomplete existing evidence,” nature worthy preservation by permit, *58 16, and, indeed, incorporates COLs at ele- permits may undesirable uses for which be uncertainty part ments of as and risk its 174C-31(k) denied”); (Supp.1999) § HRS analysis. nature, a methodology, Such its (mandating “careful consideration” of “the rely policy must much as on considerations recreation, requirements public protec- the Ethyl on hard as scientific “facts.” See environment, procreation tion of the the and (“[The Corp., 541 F.2d at 29 Commission] enabling and and fish wildlife” the Com- act, issues, part large- must in on factual but prohibit to mission or restrict uses on certain ly on policy, choices of an assessment of may streams which be inconsistent with risks, predictions dealing and on with mat- 174C-31(Z) objectives); § (Supp. these HRS knowledge ters on the frontiers of scientific 1999) (allowing designate the Commission ” EPA, .... (quoting v. Amoco Oil Co. in particular certain connection with a uses (brackets (D.C.Cir.1974)) F.2d and use,” source as an “undesirable for which the omitted)); quotation internal marks Indus may deny permit), Commission HRS Dept. trial Union American AFL-CIO 174C-31(m) § (Supp.1999) (allowing the Petroleum U.S. 100 S.Ct. Inst. designate Commission to uses in con- certain (1980) (Marshall, J., 65 L.Ed.2d 1010 particular “shah nection with a source that be (“[W]hen dissenting) question involves preferred permitting in over other uses” risk, acceptable determination of the level process). tentatively if it Even decides necessarily the ultimate decision must be proceed, certain allow offstream uses policy based as well on considerations as subject may Commission still the uses facts.”). empirically verifiable permit designed protect conditions 174C—31(j). obligations, public § In At furtherance its trust interest. See HRS least, should, may it precau- very make Commission reasonable the Commission as case, presumptions in tionary or so permits allowances did in this condition as to Applicants’ statutory au- 1. Permit Burden and confirm constitutional of Proof permits modify thority to revoke the Code, and public trust Under the present in- should later determine justify permit applicants have the burden of § inadequate. HAR 13- flows are stream light protected in ing proposed Cf. their 171-22(a) (“The (1988) commission shall re- rights the resource. As stated public jurisdiction to have for the tain and continue above, effectively public trust creates this every modifying purpose reviewing and through presumption in its inherent burden necessary permit may as be in fulfillment use, access, enjoyment. public favor Code].”). obligations under [the its duties specific proce legislature supplied potential to meet this burden dure users however, circumstances, no Code, provisions of permitting in the Under allow the Com 174C, the constitution Code does chapter part HRS IV. grant permit applications mission 174C-49(a) § HRS enumerates the Here, scrutiny.

minimal de the Commission permits under the conditions adequate water to meet “there is clared Code, supra of the conditions see note Two needs,” and made immediate water use require applicant, and uses based for offstream liberal allowances turn, requested of the address the effect standard, reasoning “prima mere facie” on a public “rea- allocation on instream values: management that “careful defer use,” § HRS 174C- sonable-beneficial higher scrutiny to consider a level need 49(a)(2); in- public “consistent with [permit applications] analyzing the until 174C—49(a)(4). terest,” two con- HRS inadequate is water for com time when there overlap; defines “reason- ditions the Code truth, peting at 25. demands.” COLs in such able-beneficial use” “use water uncertainty regarding instream flow actual necessary quantity is economic any requirements prevented determination utilization, purpose, for a efficient adequacy present as to the consis- manner both reasonable and which justify any rigorous not supply and did less county plans land use tent with state permit applications than analysis of the (em- interest,” and the 174C-3 required event. would added). phases above, discussed the Commission troubled, therefore, As Com- are We erroneously as a examined instream use permissive di- mission’s view towards stream “competing use” under HRS 174C-54. versions, instream flow particularly while the Nevertheless, it properly construed ap- standards remained limbo. Such instream values as an intrinsic element proach only contradicts the Commission’s inquiry permitting process. involved in the conclusions, *59 findings and but also the own Code, Water the source the Model management logic water resource law of “reasonable-beneficial Code’s definition mind, in this these concerns in state. With 1.03(4), use,” stan see id. states permitting provisions turn the Code fea dard was intended to combine “best permits use issued water riparian use” under law tures” of “reasonable Commission in this case. prior appropria under and “beneficial use” commentary id. at 171.64 tion law. ch. F. WATER USE PERMITS As one of the authors the Model Water explained: Code HTF use contest WWCA They beneficial use” permits granted by Commission. A standard “reasonable matter, that, incorporates the “best general permit which features argue .as use and beneficial use” meet burden of both reasonable applicants failed to their required specific would be standard which proof. also raises various thus WWCA use, purpose of permits of the objections to the issued. examination (Second), 12.03(c)(2) (beneficial use). supra, generally 64. See Restatement Anderson, use); (reasonable supra, § 850A value, levels”). society its economic its value to in- maintenance of minimum flows cluding possible consideration harm continuing uncertainty to Due to the regarding society through Commission, harm body, requirements, instream flow balancing admission, and a by by harm caused fully apply its own could not against currently use methods avail- and assess the results of the “reasonable- able reduce or eliminate that “public harm. beneficial use” interest” tests under the Code. The thus Commission was Maloney, Prank E. Florida’s “Reasonable subject permits constrained to all to condi- Water Use Have Standard: East Beneficial” “providing tions for stream restoration if the Met?, and West 31 U. Fla. L.Rev. Commission determines that additional water added); (emphasis see also Model Wa should be returned to the D streams.” & O Code, supra, § commentary ter at 179 Therefore, although many at 30. pro-lee- (clarifying under the “consistent -with parties pre- ward criticize the Commission’s standard, public proposed interest” “a liminary WIIFS, designation they of the fail use, valid, which otherwise would have an to realize that the of a absence more conclu- unreasonably harmful effect fish or wild necessary sive determination of instream might rejected life being well be inconsis predetermined every aspect flows of the public with the express tent statement of decision, including Commission’s provision [the interest model for HRS issued, permits use tentative at best. ]”). 174C-3(c) thus confirm and We em phasize that the “reasonable-beneficial use” explained uncertainty We that the above standard and the related criterion of “consis by the lack created of instream flow stan- public with tent demand interest” exami dards modifies nature Commis- proposed only nation of the not standing use analysis, but sion’s does reduce the level alone, but also in public relation to other scrutiny apply. Similarly, it must such private particular uses and the water source uncertainty permit appli- does not excuse Hence, question. permit applicants re affirmatively justifying pro- cants their questing water diverted from streams must posed uses insofar as circumstances allow. duly into public take account the interest minimum, very applicants At prove must Dunn, instream flows. Shokal v. Cf. own their actual water needs. The Code’s (1985) (“[T]he 330, 707 Idaho P.2d use” “reasonable-beneficial standard allows all proof burden of as to cases where the only quantity necessary “in such a as is public ... appli interest lies with the rests for economic and efficient utilization.” HRS cant....”). added). Furthermore, § 174C-3 (emphasis case, prior unavailability advocating the instant besides social and economic proper uses, utility proposed appli- instream flow standards made permit their permit applicants’ justifying task of their cants must also demonstrate the absence measures, proposed practicable mitigating including more difficult. Had the Com- previously mission been able establish the use alternative water sources. Such standards, trust, more applicants requirement conclusive is intrinsic to the show, only respect would statutory protection have needed to instream use values, scheme,65 instream uses and that their and the definition “reasonable- use, impair designated (Second), allocations would not beneficial” Restatement *60 cf. 850A(f) 174C—31(j), §§ § instream flows. supra, See HRS -71 & h (considering cmt. the (last Code, paragraph); supra, “practicality avoiding Model Water adjusting of harm 1.07(6) commentary (explaining § at 107 that in the use method of use” as one factor provision 174C-31(j) the for riparian inquiry), model HRS is an “reasonable use” and granting any consumptive “prohibits part any balancing of of com- essential between interests, permit see, adversely e.g., use that peting would affect the Kahana Sunset above, 174C-71(1)(E) 65. As discussed re- Commission must also consider alternative quires existing permitting the Commission in to consider various sources or new uses in the solutions,” instance, "physical including analysis part of "uses water first as a of sources,” determining from alternative when in- “reasonable-beneficial” and "consistent with the public permit. stream flow standards. It is axiomatic that the interest” for a conditions Maui, uncertainty at This agriculture.” Id. 6. County 86 Hawai'i fied Owners Ass’n embryonic largely from the (explaining appears to stem 66, 72, 947 P.2d agricultural operations. state diversified analysis under Hawaii Environmen that on permits based Policy mitigating must mea The Commission issued the tal Act include demand, alternatives). Notwithstanding approximate but mandated re- and sures any permitted into and tentative nature lease unused present uncertain therefore, streams, permit ap at and process, windward id. conditioned permitting permits on a final of water plicants still their actual determination must demonstrate and, years, Al- quantity five id at 30. constraints of available use within the needs draining though appear appropriate at knowledge, propriety of these measures time, permits satisfy those that should needs. we reiterate streams actual water needs.

reflect Generally, Agriculture, 2. Diversified specifically Commis- WWCA contests the of2,500 per Allocation Gallons and the 2,500 per per provision gallons acre sion’s Day per Acre day (gad) every for acre of land diversified outset, agree At the we only fraction of such agriculture, where matter, general as a Commission any given land is in actual cultivation at time. agriculture on land zoned diversified dispute does not the reasonableness WWCA agriculture is with the consistent 2,500 gad figure applied acreage policies in use fulfills state interest. Such actually in cultivation. Parties testified use, and beneficial water favor reasonable amounts, higher support lower and but agri agriculture, diversified conservation “more selected this conserva- Commission lands, self-sufficiency and cultural increased “starting point,” noting figure tive” that XI, §§ 1 Const. art. this state. See Haw. adjustable and will evalu- “it is an number Moreover, 174C-2(c). 3; in this & HRS periodically upon request, based on ated case, primarily considered Commission experience.” the best available data and field applications agricul granted permit asserts, however, that the Id. 6. WWCA existence, already adding the tural uses per-acre figure every application of this and, if appropri that would caveat “revisit land, including ly- those agricultural acre of ate, existing permits if ground-water reduce fallow, ing “gross in a resulted over-alloca- is available and reclaimed water becomes exceeding far actual need. tion” of water allowable, subject to economic health hear- evidence at the uncontroverted D For time & 0 considerations.” ing establishes that leeward farmers cultivate therefore, disposi being, the Commission’s only any to one-half of their land at one-third more maintains the interim solu tion or less testi- given time. This evidence includes the during the contested case hear tion reached Sou, mony Larry and Alec of farmers Jefts ing positive effects on the windward on which the Commission based its determi- resulting streams therefrom. Because 2,500 gad figure. nation The Commis- must still determine ultimate Commission that, according sion observed its decision validity present allocations relation Sou, any point, they maximum “at one requirements, depending on to instream (½) ground crop have in actual is one-third water, nothing availability is of reclaimed ( n ) land, two-thirds of their while the other standpoint. For long-term settled from harvest, stages plow down and in various however, present apart from purposes, disrupt buildup.” Id. arid aeration insect yet questions regarding actual unanswered mitigating practicable measures needs proffers Campbell Estate the Com- alternatives, say cannot upon testimony dem- mission’s reliance Sou’s accommodating existing erred in duly consid- onstrates the Commission *61 restoring agricultural uses while instream 2,500 gad allocating in uncultivated land ered flows. every acre. Nihonkai further cites Sou’s testimony decision, his direct that estimated its admitted written the Commission 3,500 gad duty represented of to on actual for diversi- “a lack of data added.) average all given over acres (Emphasis mgd all acres Instead the .186 irrigated are at one time. In actual that Sou confirmed would be un- “sufficient” (54,000 practicality, conditions, as much 2” as of water der efficient use Sou received gallons/acre) 2,500 necessary crop is gad every when a is one acres he Nihonkai, planted. first irrigation After leases from inmgd the initial to .48 total. D 15,000 germinate, range water is at a & O at 21. set

gallons per day (gpd) gradually re- Larry Jefts’s with Campbell lease Estate 6,000 gpd. duced to The amount of water “Average usage states: annual ... is esti- vary will depending upon used crop, 2,500 per day per mated be acre of arable season, weather, long how a field was fal- added.) being land (Emphasis cultivated.” low, and market factors. quoted language The Commission in decision, peak

There will be times when is at id. but still allocated water for However, importance. vital during Jefts, certain all 620 regard acres leased to without months, average seasons or will cultivation, we as acreage actually in id. at 21. 5,400 [gad]. much During periods Finally, other Commission noted because 1,800 using [gad]. be as little as per-acre require- the much lower 1,800 agriculture, ments diversified added.) (Emphasis hearing, At the reit- Sou 5,400 gad, compared previously average giving erated that “the we are is an grown 7,500 10,000 sugar, gad, land, average on period all land over would purposes become available for other years.” In questioning Sou about his esti- acreage if planted.” “even the same was mates, Commissioner Miike stated: “I know added). (emphasis COLs The Commis- all your you’re 3500[gad] across saying lands sion, nevertheless, 2,500 assigned gallons per considering fallow land....” Accordingly, day to as much as two or three times the asserts, Nihonkai the record evinces that the acreage actually planted, resulting per- in a Commission in included fallow land its calcu- duty apparently approaching acre that of lations. sugar contradicting the Commission’s occasion, however, appar- On another Sou 2,500 description gad aas “more conserva- ently acknowledged gad figure that ap- figure.” tive plied only actually to land in cultivation. The transcript part: reads relevant “A reviewing judge must court propriety agency solely by action Q:' Now, you signed that lease grounds agency, invoked and that 2,325 says [gad] Nihonkai will rea- be clarity basis must be set forth with such as to sonably your pur- sufficient for cultivation understandable.” poses; right? isn’t that Louisiana-Pacific NLRB, Corp., Western Div. v. 52 F.3d A: Yes. (9th Cir.1995) (quoting Chenery SEC Q: your July And the chart attached to (1947)) (brackets Corp., 332 U.S. 196-97 you 18th affidavit shows that don’t intend omitted). quotation and internal marks to have more than acres cultivation at Here, patent incongrui the record contains time, any one correct? ties that the Commission’s decision does not Yes, exceeding A: run would into a satisfactorily resolve. The failure of the lot trouble. explain address and these math, Q: Okay. my according So precludes contradictions effective review of using 2,325 186,000 [gad] acres would total Electric, its decision. See Kauai Haw.

gallons (cid:127)per your day. according So 183-86, 590 P.2d at do 536-38. We not de figures your your lease, affidavit and in mand from the Commission written assess 186,000 gallons per day reasonably suffi- every piece testimony. ment evidence needs; your right? cient is that Nor do we Commission from foreclose the 2,500 A: provided allocating This would be sufficient gallons per day more than every aspect irrigation, per we accounted for if acre cultivation more is indeed nec line, having system shutting essary. best But where record demonstrates exactly peak.... off uncertainty when it’s at a conflict or considerable *62 164 115, 116, 1)5,

evidence, and 161 fac b. Field Nos. agency must articulate its Cozzens) clarity, (Gentry and analysis giving tual with reasonable discounting for the evidence some reason also 1.19 Campbell Estate received Shalala, See, rejected. F.3d e.g., 51 Green 115, 116, Í45, mgd for Nos. and Field (7th Cir.1995); 96, 101-02 Thompson v. Bow multiplied by consisting 145 total acres (8th Vemco, Cir.1988); en, F.2d that, 2,500 gad. at least The record reveals (6th NLRB, 79 F.3d Cir. Inc. v. 1995, Terry Ranch until Circle “C” Cozzens’s 1996). especially articulation is crucial Such (Cozzens) land for Hay Co. leased this & us, such as those before under circumstances forage production. In November interpreta small in the which variations 115,116, Campbell Estate Fields Nos. leased to vast tion differences of evidence lead Gentry (Gentry). Development and 145 to Co. has Because the Commission failed result. hearing, Campbell rep- Estate At the analysis, provide this minimal we vacate to “I have not resentative testified: been 2,500 gad figure and re adoption its of the [Gentry] they’re do- with on what discussion proceedings for further consistent mand ing, understanding they will my is that but opinion. this growing crops Nos. agricultural [on Fields 115, 116, no record 145].” and .contains Campbell Estate’s Permits crops type or amount of evidence Gentry As No. intends to cultivate. for Field Seeds) (ICI Nos. and 166 a. Field 161, the does not indicate whether record contests the Commission’s WWCA land, occupying is much less Cozzens still to Nos. and mgd allocation of .86 Field present his and the nature and extent of Estate, Zeneca, to leased Campbell 166 of Campbell as- planned operations. Estate (ICI Seeds). Inc., ICI Seeds The Com dba owns the master lease serts that Del Monte mgd by multiplying the mission derived .86 agricultural crops. grow No and intends to 2,500 by gallons acres of both fields total appears in direct of this intent evidence per day (gad). hearing, At per acre record. however, during its Seeds testified ICI basic information on current Absent such February, to peak season from November use, mgd of 1.19 pi'ojeeted and the allocation only and plants com 100 acres seed agriculture fields was diversified these 300,000 average only gallons of clearly We vacate the allocations erroneous. day, mgd. During sum per or .3 115, 116, Nos. and 161 Field months, only plants mer ICI Seeds “three proceedings remand for further consistent crops, com and four” acres of “some other opinion. with this very amounts.” small mgd Campbell Estate asserts the .86 c. Alternative Ground Water Sources provision sorghum allocation includes hearing, Campbell At the time of the soy cultivated ICI ICI bean also Seeds. permits pump mgd Estate held sorg- actually grown stated: “We have Seeds ground agri water from beneath lands for soy past still hum and beans purposes. argues that cultural WWCA grow sorghum, but main focus is on some our Commission, requiring Campbell erred express com.” did not inten- ICI Seeds water, longer in this no use Estate and, in increasing its corn cultivation tion of operations, in order to since OSCo concluded fact, space” ato need for “isolation testified minimize from windward streams. diversions Thus, plots corn. between its Com- using year-round mgd Regarding practicability .86 mission’s allocation of water, 166, nearly ground Campbell pumped three times its Estate Field Nos. 146 testimony during merely that “it average demand its four-month cites effect stated season, put require millions of infra- finds no record would dollars peak basis place pump clearly the alloca- structure in erroneous. We vacate aquifer Campbell for further Pearl Harbor wells tion to ICI Seeds remand currently opinion. which use Waiahole proceedings consistent with Estate fields *63 true, if Ditch water.” Even noting this broad present state- their existence and nonuse. meaning ment has little without evidence and finding One “Campbell states that Estate has analysis per-unit of the actual breakdown of permits well for mgd,” FOF and the these costs relative to cost of ditch water COLs section mentions a footnote that record, fact, and other alternatives. “[a]gricultural permits approxi- water use Campbell reveals that Estate supply up could mgd mately ground for Harbor Pearl mgd permitted to 6.16 ground of its water to water are still parties held various agricultural certain fields for as little 39as used,” being not [are] at 19 10.66 id. n. As per gallons. cents By compari- thousand out, Campbell points Estate the Commission son, pay leeward per farmers 35 cents thou- general did make various findings on the water, gallons sand for ditch county rate irrigation effects on aquifers, leeward many schedules indicate that other farmers sources, costs of developing other alternative dependent municipal supplies water pay growth future water demand. None anywhere from 60 cents to thou- $2.47 per answer, any of these degree reasonable gallons. sand OSCo used extensive amounts clarity, why practicable Camp- it is not for ground Campbell water on Estate lands bell Estate ground permitted to use water apparent difficulty, with little and Del Monte it and not otherwise use an alternative currently profit using turns pumped diverting the sole for source water ground on Campbell water Estate lands. streams, given windward especially the still Royal 0‘ahu Resort decided that it could unsettled state the instream flow stan- feasibly ground water from its on-site dards. and, accordingly, well applica- withdrew its In neglecting to the practicability address tion for water from the ditch. using pumped ground as an water alterna- The Commission maintained that diversion, tive to stream the Commission obliged it not any “is particu ensure that adequate failed to establish for basis lar enjoys subsidy guaranteed user ac granted Campbell allocations Estate. We cess expensive less water sources when to. thus Campbell permit vacate Estate’s alternatives are available and values proceedings remand further consistent are at stake.” agree. COLs at 19. We opinion. with this protection Stream and restoration need not expensive the least alternative for off- .be 4. PMI’s Permit “practicable” stream users to be from a broader, long-term per social and economic argues WWCA also that the Commission spective. uses, Unlike leeward offstream issuing mgd permit erred PMI .75 windward instream uses have no alternatives use, golf contrary legal course to its own ground cost to the windward water in regarding conclusions PMI such use. de- question. Recognizing that such water “is permit challenges fends its allocation and only supplement source base stream validity of the Commission’s conclusions uses, .... satisfy any riparian flow and [to] objections the first instance. PMI’s require appurtenant potential rights, agri offstream our initial attention. culture in the affected area and enhance .... Bay estuary ment the Kaneohe and fisher “Existing a. Use” ies,” id. at conditionally error, approved point As agricultural its first PMI con leeward “[i]f ground until designation treated effluent or tests the Commission’s PMI’s available,” “new,” id. at 28-29. The opposed Commission’s use as to “exist decision, nonetheless, ing,” fails to Camp discuss use under the Code.67 174C- 50(c) (1993) ground permits beyond bell Estate’s provides part: in relevant pro- explained why 66. The same agricultural section in the Commission’s retains these permits seeking posed "Agricultural while windward Oahu water for decision stated: water use agriculture.” permits approximately mgd for Pearl Har- ground (and used) barely bor by water are still held argues point 67. WWCA that the is immaterial Campbell Campbell Estate. Estate has "existing enjoy greater rights because uses” no express ignore statutory deadline ex- permit for a continue application An *64 isting permit applications. a existing must be made within use an use from, date period year one effective 174C-50(c) § HRS allows Commission management designation [of the water cause,” “just filings based on accept late rights, Except appurtenant for area]. fail- accept- precludes the Commission but period creates a apply within this ure to years applications than five ing late “more use, presumption abandonment implementing of rules the effective date after user, if to revive the user desires promulgated chapter.” this Commission use, permit apply must for a under 27, implementing May rules the Code on the commission deter- section 174C-51. If and, thus, any accept late could not just is cause for the that there mines 27,1993. May None of the applications after file, filing. may allow late failure to this deadline. applications in case met However, may not allow a the commission argues PMI that the Commission’s literal years filing more than late after five 174C-50(c) § an reading leads to of HRS implementing this date rules effective deadline insofar as it set the absurd result chapter. expiration filings for late before added). case, In this the Com (Emphases following designation one-year filing period aquifers as designated the windward mission management To con- of the water area. management areas effective ground water legislature trary, could we believe 3, 1993, July 1992. On June Waiáhole filings rationally allow late intended to have (WIC), oper Company former Irrigation during period an of transition to only initial ditch, joint water use ator of the filed regulatory system under the Code. We parties permit application on behalf of the in no error the Commission’s adher- thus see at that time. The using from the ditch 174C-50(c)’s express § terms. ence HRS application no mention PMI. On made 14, 1994, an amendment to WIC filed June questions Finally, timeliness joint application. The amendment mere aside, not an PMI’s use constitute “ex does in exhibits ly to PMI the attached referred isting contemplated by as In use” the Code. many existing proposed along with other ease, “existing identifying in this uses” 0‘ahu, most of which golf courses Central premise proceeded from the from the Octo did not ditch. On seek ‘existing in the term use’ used that “the filed another amendment ber WIC Code, 174C, chapter for pur HRS Water including applicant; PMI finally PMI as poses permits, use refers those of water 3, 1995. February application on filed its own desig particular as of the date a area uses requested an submissions Neither these management area under as a water nated permit “existing for PMI. use” 174C, underlying con This Part IV.”68 HRS however, clusion, plain contradicts the read points acquire that it did not out PMI 174C-50(a) (1993) ing of the Code. HRS question until foreclosure sale property existing in a uses of water “[a]ll also cites states that on 1994. PMI November management ... designated water area testimony representative that the of WIC’s 1, 1987, only July joint application in continued PMI from omission of after July permit issued accordance with sections and the first amendment 174C-53(b).” (Em 174C-52, 174C-51, oversight part.” my These exi- “was an added.) 174C-50(b) (1993) phasis compel the Commission to gencies do sibly contrary, subjects higher "new uses” to a standard the Code "new uses.” On the than gives "existing” legal priority over "new” uses "existing uses.” than permitting process. See HRS in the uses 174C-49(a)(3) (requiring applicant for a new originally in- The Commission advanced this interfere the use "will not to establish that use with case, “existing terpretation use” another water”). legal existing use of also Supply Appli- Water Water UsePermit re Board of Agricultural, 83 Hawai'i Ko'olau Koolaupoko Manage- Water cations Ground preferences (“Existing given are (Oahu), Declaratory Ruling DEC- No. Moreover, ment Area Code....”). out, as WWCAit under the 5, 1995). (April 0A94-G3 points the Commission’s decision osten- self provides PMI, golf-course irrigation qualifies further that “the commission shall as an permit “agricultural issue a of a the continuation under use” the Code. July if in existence on criteria in policy favoring PMI cites the “max- Code’s (a) existing subsection are met and the use is imum ... purposes beneficial use such as (Emphasis reasonable beneficial.” add- uses,” ... irrigation agricultural and other ed.) provisions initial These the Code’s 174C-2(c) added), (emphasis sup- §HRS “ “existing section on uses” establish port argument ‘irrigation’ for its is and legislature “existing intended term use” *65 always ‘agricultural’ was an use.” PMI existing July to refer to uses the provision. reads too much into this lan- The Code, of effective date the see 1987 Haw. guage question “agricultural in confirms that 102; § Sess. L. Act 10 at also see infra irrigation, uses” entail but does not ren- (listing analogous provisions note 98 in other “irrigation” “agricultural der synon- and use”

jurisdictions).69 We thus hold that the Com- ymous or coextensive. 15,1992, in identifying July mission erred the “change “any in The Code defines use” as designation ground of date of the windward change modification or in water use or from areas, management water as the relevant domestic, municipal, military, agricultural to “existing for cut-off date uses” under the (including agricultural processing), or indus- Code. 174C-3; § generally trial uses.” HRS see PMI, According prior to “[t]he owner of (1993) § (requiring permittees HRS 174C-57 property PMI began using the Waiahole seeking change apply permit for use Ditch water the late summer or fall of modification). PMI contends because 1991.” property The water use on the PMI irrigation privately golf of a owned course entirely postdates July apart 1987. Even statutory meets neither the definitions of “existing from the untimeliness of PMI’s use” use,”72 “municipal “domestic use”71 and nor therefore, permit application, PMI’s use did meanings “military” the common of “in- or not meet Code’s “existing definition of use,73 elimination, process dustrial” it use.”70 “agricultural must The constitute use.” case, however, any instant not does involve b. “Agricultural Use” use,” believe, “change and not we do event, objects any also legislature PMI Commis that intended golf possible sion’s classification of water for limit use the universe use classifica- “nonagricultural According single pro- courses as use.” tions to those enumerated this provisions reporting management per- 69. The water Codé corrobo- nated area” without a reading, requiring "[a]ny mit, person making 174C^48(a), this rate regarding HRS silent any use of [to] water area the State file a July uses initiated after 1987 but before water year person's declaration of the use within one context, designation. management In this area implementing from effective date of the rules say erred in we cannot Commission 174C-26(a) (1993), chapter,” this HRS and allowing pending Com- PMI’s use continue mandating the Commission issue "certifi- mission's final decision. confirming cates” based on these declarations usage recognized "shall be com- “ any 'Domestic means use of for use’ 71. resolving relating existing mission in claims personal pur- needs and for household individual rights including appurtenant and water rights, uses poses drinking, bathing, heating, cook- such as use,” riparian and correlative ing, gardening, noncommercial and sanitation.” added). (emphasis pro- 174C-27 These §HRS 174C-3. legislature's visions reflect inventory intent limit the "existing rights and uses” to those “ Code, existing adoption at the time of the domestic, ‘Municipal use’ means the indus- 72. than some rather unidentified future date such trial, through pub- and commercial use of water designation management of a water area. county persons lic available to of a services health, protection promotion of their however, agree, 70. We do with WWCA’s con- comfort, safety, protection proper- for the necessarily prevented that the Code tention fire, ty purposes listed under the from allowing PMI to continue its term use’.’’ Id. ‘domestic pending use Waiahole Ditch final application. Although decision on its the Code withdrawal, diversion, "any Code define terms. prohibits impound- does not these ment, any consumptive desig- use water in Indeed, golf “agricul- “Nonagri- Treatment courses fit c. Distinctive vision. readily any of cultural category no more than Uses” tural” others, comparisons suggested be- require legal its discussion cultivating growing land cover and tween permits, the Commission ments for use crops notwithstanding. legislature ap- expressed repeatedly to hold intention agreed, amending pears recently to have course, “golf “nonagricultural such as uses” clarify “agricultural use” means Code to irrigation” to parks landscape different growing, process- “the of water for the other uses in standards and conditions than livestock, aquatic ing, treating crops, that, in Having concluded times of case. animals, plans and ornamental flowers greater competition, the standard review “existing foliage,” agri- and that and similar higher, agricultural would alternating “replacing use” means cultural “existing golf stated that Commission further crop any agricultural cultivation non-agricultural existing course and other crop, agricultural shall not other which subject already higher to this stan uses are *66 change as in be a use.” HRS construed dard, light higher in for windward uses added). (Supp.1999) (emphases § 174C-3 water, including retaining water in surface 27. at The Commission streams.” COLs points that PMI out under state “non-agricultural in that uses also concluded law, agricultural land in use districts golf landscap Leeward Oahu for course and facilities, “open clude area recreational in ground uses which could utilize available ing ranges.” cluding golf golf driving and courses carry heavy a treated ... effluent 205-2(d) agricul (Supp.1999). §HRS State why to show stream water should be burden districts, however, tural also include “wind origin,” out of id at diverted its watershed farms” machines and wind and “small-scale out “[t]he and that use surface water meteorological, quality, air noise and other irrigate golf side to courses in the watershed and data collection scientific environmental region an will arid not be reasonable bene monitoring facilities.” The inclusion Id. alternatives, including ficial if reusable use “agricultural of a in under a use districts” wastewater, are available and other needs separate land not establish use statute does upon dependent exclusively surface water “agricultural” as allocation use frustrated,” id. at 24.74 on would be Based purposes. conclusions, these the Commission decided subject require special will to that “[PMI] golf irrigation classifying In course including duty to alternative ments seek use,” ap “nonagricultural as the Commission reasonably they are available sources when irrigation parently golf that course decided in and that “Mililani the near future” Golf policy than raised different considerations duty to also has a use alternative Course “agricul typically those associated reasonably they when available.” sources are attempt PMI not to tural use.” does discred Id. 25. it determination of fact and this mixed law erroneous, merely rulings clearly argues but that the PMI asserts that these are arbi- trary, capricious, to an of discretion. by Commission is constrained statute des abuse First, “agricul They nothing ignate golf irrigation although of the sort. course are permit approach PMI it tural use.” Such an contradicts asserts that received different similarly objections rigid categories. allegedly than own conditions situat- PMI’s (MGC),75 support in Ac Mililani Golf the Commis- It also finds little the Code. ed Club requires PMI sion’s in fact both cording due deference the Commission’s decision interpretation, hold that the MGC to use alternative sources when reason- Commission Moreover, ably assuming excluding golf irrigation in did not course available. even err imposed category “agricultural that exclusive re- use.” the Commission party appeal. pro- "[a] is not to this 74. The Commission further ruled that MGC posed golf would show course use have to (emphasis no alternatives are available.” id. added). (1958)). “nonagricultural ease,

strictions on not use” shared 5.01 this Treatise ease,76 by required other uses such measures Commission was law to rule on lay squarely ap- within the competing permit applications, Commission’s the various pointed weighing PMI, negotiating including function by way adjudica- that of of an competing regulating interests in the water proceeding. Agricultural, tive See Ko‘olau See, e.g., resources of this state. (“At HRS 83 Hawai'i at 927 P.2d at 1379 (k)-(m). 174C-31(d)(2), allega- PMI’s bald permitting stage, required the Commission is aside, nothing suggests tions in the record respective rights determine the of water subject the Commission’s decision users; ... hearings pursuant contested case golf irrigation course to different standards chapter required.”). are Based than arbitrary conditions other uses was presented hearing, the evidence at the capricious. decided, particular Commission view the question specific source and the reject We also PMI’s contention that involved, competing interests would engaged illegal rulemak- hold higher certain uses than standard ing “nonagrb its distinctive treatment of not, others. The Commission did as PMI uses,” 91-1(4) (1993).77 cultural see HRS allege, propose any general and others rules previously recognized, weAs have the “line circumstances, automatically applicable in all [agency rulemaking adjudica between but a principled instead devised to a solution always tion] fact clear one and specific dispute applied based on “facts merge many points.” two functions already promulgated rules that have been *67 Transp., Shoreline Inc. v. Robert’s Tours & Comrn’n, legislature,” Town v. Land Use 585, Inc., 591, 868, Transp., 70 Haw. 779 P.2d 538, 84, (1974)—the 548, 55 91 Haw. 524 P.2d (1989) (citation omitted). exploring 872 In adjudication. agency definition of distinction, therefore, problematic we decision, rendering In adopted its the Commission general have that rule “the developed policies guidelines new proceeding and by ‘general choice between rule individual, may very by precedentially well affect litigation ad future or hoc is one that involving System in cases the Waiáhole Ditch primarily lies the informed discretion ” perhaps and water sources. a agency.’ administrative other Such Hawaiian 467, Electric, process rulemaking. does not constitute As 81 Hawai'i at P.2d at 918 569 203). in Chenery, we Hawaiian (quoting 332 at stated Electric: U.S. rulemaking exercising quasi-judicial

One useful distinction between its func- [I]n tion[,] adjudication is agency frequently that “the former affects must decide rights of individuals the abstract controversies basis of doc- new ...[,] trines, operates concretely spe- [the while not applied latter] theretofore to a problem, upon capacity.” though individuals in individual their cific drawn to be sure 466-67, (quoting at 918 at principles reflecting Id. P.2d 568-69 1 broader Davis, purposes Kenneth C. Administrative Law of the statutes involved evidently subjected agricul The 77. HAPAdefines a "rule” as requirement a tural uses to similar native to seek alter agency general particular each statement of or concluding it would sources "revis applicability implements, future and, effect existing ground appropriate, if it reduce interprets, policy, prescribes or law or de- permits or if reclaimed water becomes avail allowable, subject organization, procedure, prac- able and is to economic and scribes 8, considerations,” D health & O at requirements any agency. term tice ground "[i]f and until treated effluent or water is regulations concerning only not does include available, strong the State has interest in re management agency the internal of an and not lands,” taining agriculture on COLs these at 28- affecting rights private procedures avail- 29. The to all standard conditions attached is public, to the nor able does term include permits proviso include that: sued permit "This declaratory rulings pursuant issued to section by may be modified the Commission and 91-8, intra-agency nor memoranda. initially granted per- of water the amount Id. may mittee be reduced if Commission deter necessary adequate ... mines it is to: c. insure conservation measures....” D & O at28. 170 giving prece- dealing Accordingly, we hold that

from the rules invoked prior commission decisions deci- dential effect problems. agency If the related rule-making. constitute adjudicatory ... does not sion under reached precedent, guides power becomes 467-68, at Hawai'i 569-70 81 way conduct in much same future (footnote (some original) omit alterations promulgated though it were a new rule ted). rule-making power.... under PMI, Aluli v. Lew The decisions cited 591-92, (1992), Shoreline, in, 56, Vega P.2d P.2d 70 Haw. at 779 73 Haw. 828 802 Co., Co., Wyman-Gordon Fire 67 Haw. (citing 872 NLRB v. National Ins. Union 1432, 759, 770-71, (1984), inapposite 89 S.Ct. P.2d 73 to this 682 are U.S. (1969) (Black, J., Aluli, concur quality In air L.Ed.2d case. we invalidated ring)). Department imposed standards permit pollution in an individual air Health Supreme also United States Court pertinent proceeding statute con where Chenery, supra, this issue addressed development the standards templated the Co., Wyman-Gordon progeny, and in its question, by rulemaking, and the matter Co., Aerospace NLRB supra, and v. Bell emissions, hydrogen susceptible was sulfide 94 S.Ct. L.Ed.2d U.S. “generalized” regulation. 73 Haw. at 58- (1974). Chenery, explained: Court In Vega, simply 828 P.2d at 803-04. [Pjroblems may in a which arise case “touch[ing] the confirmed that a rule affairs agency could administrative not reason- delineat[ing] the of the entire foresee, problems which must be ably rights of an class of unnamed future entire despite rele- resolved the absence subject to indeed a “rule” individuals” was agency general vant rule. Or rulemaking procedures of HAPA. 67 experience with a had sufficient have 155-56, 78 (quoting Haw. at 682 P.2d at particular problem rigidifying to warrant Autk, Aguiar v. Hawaii Hous. Haw. into hard and judgment tentative (brackets (1974)) 485-86, 522 P.2d *68 may so problem Or be fast rule. omitted). quotation and internal marks specialized varying in nature as to Aluli, Here, in contrast neither the Code capture impossible be within subject regulated nor the matter favors the general of a rule. In those boundaries promulgation universally applicable stan- situations, agency must retain the In- through rulemaking. dards Unlike power problems on a to deal with the therefore, Vega, in surance Commissioner if the administrative case-to-case basis develop chose to the statuto- the Commission is thus process is to be There effective. ry an ad standards on hoc basis instead place case-by-ease evo- for the definite judgment into a “rigidifying its tentative statutory lution of standards. Electric, 81 hard and fast rule.” Hawaiian 202-203, at Chenery, (quoting 332 U.S. at 67 S.Ct. at Hawai'i 918 P.2d at Chenery Corp., 1580-81. 332 U.S. at 67 S.Ct. 1575). subsequent Supreme As noted Court

decisions, “[ajdjudicated may regard, present and do In this case more eases Electric, closely parallels ... Hawaiian wherein as vehicles for formation serve applied light an- agency which we held the uncertain health policies, are fields, therein,” electromagnetic “general- the Public and such eases effects nounced properly ly guide agency decided provide a to action that the Utilities Commission may cases. transmission lines expected place to take future whether electric Subject underground by way adjudication qualified role of deci- rather stare 468-69, 471-72, process, they rulemaking. id. at than sis in the administrative 570-71, Likewise, at do precedents.” Wyman-Gordon 573-74. serve Co., 765-66, the Commission abused its at at not believe that 394 U.S. S.Ct. case-by-case pursuing (emphasis original). Aerospace discretion in evolu- See Bell Co., adjudicative policy through 1771. at tion of water use 416 U.S. S.Ct. proceedings hearing. ticability using such as instant ground We water stands analysis thus hold that the Commission’s distinctive odds with the Commission’s own “nonagricultural treatment of concerning nonagricultural uses” decision uses. “illegal decision did constitute permit rulemak- We PMI’s vacate remand ing.” proceedings in further accordance with the

decisions of the Commission and this court. Application d. the Commission’s Standards Moving Average 5. Twelve-Month

Our objects affirmance of the distinct stan WWCA to the Commis nonagricultural dards for developed Moving Average sion’s use of 12-Month (12-MAV) this case us leads to measure leeward uses. Accord allegation WWCA, WWCA’s ing the Commission the 12-MAV “almost allows apply time, failed to per these standards to PMI’s given unlimited” diversions at but application. mit required especially months, The Commission during drier so summer PMI and long MGC to use alternative sources diversions are offset these below- available,” “reasonably when observing average year. use over the rest This golf the use diverted arrangement, stream water for argues, WWCA reduces the irrigation in region course an arid would not incentive to conserve water and frustrates protection. be reasonable-beneficial if alternatives were efforts at instream use stated, previously available. supra As we see previously, As noted the Commission found III.F.1., Part and the Commission itself rec high, “throughout consistent base flows ognized, supra see note all users have year” was “essential” stream duty practicable to seek alternatives when estuary ecosystem. Despite finding, conflicting public faced with interests. Re practical Commission did not address the however, garding specifically, PMI WWCA effect on the base flows of 12-MAV asserts that the Commission failed consid streams, simply windward but observed: already er alternative sources available to “The 12-MAV allows seasonal fluctuation PMI, namely, pumped ground water. demand], generally [in offstream and is used testimony, PMI reporting requirements.” adduced and the for all D Commis- water use found, original developers sion that the ignores had O at 12. This & blanket rationale planned caprock irrigate well water to apparent stream di- differences between golf course under much “rosier” econom- versions and uses from other present. ic than aquifers.78 conditions FOF sources such as basal *69 insight This offers regarding little the cur- Campbell Commission and ar- Estate practicability using of rent such In water. gue that of unused water into the the release brief, requiring its PMI declares that PMI to requirement permittees streams that and the caprock the use well water “would render the pay provide adequate for their water use golf economically PMI course unfeasible.” safeguards. properly if to Even limited actu- question Although the of relevance PMI’s however, need, may al still offstream ability water, pay current to the record subject windward streams to extreme and demonstrates, any event, that alterna- potentially harmful flow fluctuations base supply ground tive of water would cost a year. disputes over the of a No course one per of gallons blended rate 58 cents thousand agricultural the nature of variable water de- users, PMI, including to various leeward corresponding mand and the flexi- need for opposed per gallons to the thousand $1.20 decision, however, bility. Nowhere its did pays that PMI for Waiáhole Ditch water. duty to the Commission fulfill its consider grant requested impact fluctuating of of in- PMI’s allocation the diversions on any prac- practicability without reasoned flows and discussion of the stream base the storage aquifers reducing 78. The sustainable characteristics based draft rates less than the yield periods.” during Department allow "draft rates in the other excess sustainable Honolulu, yield periods high during Planning, City County demand and low General & (1990). recharge, Management long compensation § so as there is Oahu Plan 2.4.1 Water maily request application. D & specific mitigate to denied adopting measures Conceding “operational losses 11. that impact. occur,” however, Commission declared: portion and remand this We vacate presented no “Because there was evidence In order to Commission’s decision. present for the concerning any demand use mitigate impact of offstream de variable water, water should and because of Kahana flows, the base Commis mand instream wasted, temporarily be Commission coordi measures such as sion shall consider recognizes mgd 2.1 Kahana surface wa and rates of offstream nation of the times operational corresponds approximately to ter reservoirs, uses, and use construction also Id. at 5-6. The Commission losses.” period of a shorter time over which jurisdiction that it lacked over the asserted see, average usage, e.g., HAR 13- measure an permitting of Kahana surface water and 171—14(b) (requiring the Commission process nounced its intention initiate average in meas to consider a three-month designating the Kahana watershed as a uses).79 necessary, If uring existing management Id. at water area. 6: surface designate so WIIFS higher accommodate offstream demand perceive defects in We several year. See HRS 174C- times certain reasoning. First and most Commission’s (defining as a “instream flow standard” suggestion retaining flow, troublesome is depth “required of water quantity, waste, contrary water in streams constitutes specified ... times present at certain be ” added)). protection. public trust mandate year (emphasis Second, any apart management water STREAM SUR- G. OF KAHANA USE juris designation, the Commission has area FACE WATER TO COMPENSATE any dispute regarding “to diction hear DITCH LOSSES” FOR “SYSTEM protection, permits, or consti resource interests,” tutionally protected see also contests Commis WWCA (1993),80 investigate § 174C-1Ó and to mgd 2.1 from Kahana Stream to sion’s use of response appropriate action” in and “take sys ditch operational losses from the cover wasting ditch is allegation WWCA’s decision, the proposed In Commis tem. operation upkeep, water due deficient operator request ditch sion denied (1993).81 Third, rely 174C-13 see HRS recognition system mgd “as losses for 2.0 inaction, justify ing on a lack of evidence that such losses “shall be as use” and ruled ignores its own affirmative the Commission permitted use in part of each considered a statutory duty trust and subject under the shall to the over system, protection to investi [, scheme instream use permit ... shall be cap and] all within each consider, gate, protect interest im proposed and addressed identified The Commis supra in the flow of Kahana stream. plan[, note.79].” see plementation decision, duty recognized this when it again apparently sion final the Commission for-. Presumably, matter shall be made have al- The final decision on some such measures ready "Implementation adopted the commission. been *70 added.) required agricul- (Emphasis that the Commission Plan” users, operator along with the ditch and tural DOA, provides part: § in relevant within six months of the Commis- 81.HRS 174C-13 to draft to "coordinate and facili- sion's decision order any complaint person com- If files a delivery D & at of water.” tate any wasting person other is or mission that polluting diversion, making with- water or is 80. HRS 174C-10 states: drawal, impoundment, consumptive use wa- any activity occurring within or other or ters Dispute The commission shall resolution. area, management not ex- a water dispute outside any jurisdiction to statewide hear have regarding of exempted code, pressly without a under this protection, resource water water permit required, the commission constitutionally where one is protected permits, water in- made, investigation terests, take shall cause an be water where there is insufficient action, water, notify complainant appropriate and competing whether or meet needs designated as a thereof. area involved has been not the added.) chapter. (Emphasis management area under this water petition designate subjects considered the ground Wind ment both area and surface ward as a management 0‘ahu surface water water designated diversions from the area to area in 1992. The Commission decided not statutory permit requirement. on petition to act at that time based argues WWCA that the allocation of water “designation staff recommendation that operational losses is wasteful and dis- ground protects water surface waters and courages system repairs. Campbell Estate essentially comparable designation necessary counters that such losses are and Kahana, Poko, [the surface water in Ko‘olau compare favorably inevitable and with other systems.” aquifer Waimanalo] In the systems express opinion nationwide. We no case, however, present the Commission con time, on this at this merely issue but decide that, designating cluded without a surface that the Commission must scrutinize such an management area, “jurisdic water it lacks allocation proposed as -would other permit tion” to regulate or otherwise surface “use,” pursuant permitting process. to the water diversions from Kahana stream. remand, On the Commission shall consider The Commission’s apply rationale would permit application mgd for 2.0 to cover any surface water diversion from windward system losses and determine whether this watersheds; extreme, taken to its it would request is appropriate given the still uncer- anyone permit allow require- to evade the flows, tain interest in instream by simply ment diverting same any practicable based on actual need and above, below, rather ground. than measures, mitigating including repairs to the Although presumes prior desig- Code system. ditch management nation of a water area its permit requirement, see HRS 174C-48 H. KSBE’S POINTS OF ERROR82 (1993), prescribes different criteria for Zoning Requirement I. designation ground surface permit application, KSBE re - areas, 174C-44, management §§ see HRS for, alia, quested mgd golf 4.2 inter course (1993 Supp.1999), provisions & these landscaping connection with its should not rigidly be construed so proposed by Gentry” development. ‘Waiawa absurdity, yet, create or worse to circum- request The Commission denied the without vent Commission’s constitutional and prejudice reapplieation “at such time statutory obligations. The Commission rec- proper [KSBE] obtains the land use classifi ognized integrated nature of the waters cation, plan development approvals, and zon present collected the ditch in its decision. ing changes, and when it be determined 13-169-20(3) (“Recognition See also HAR that the actual of water will use commence given shall interrelationship natural proposed within a reasonable time frame waters.”). ground between surface and This proj COLs at 27. KSBE as ect.”83 similarly beyond court has looked artificial serts that the Commission in conclud erred surface-ground distinctions with the under- ing that proposed KSBE’s water uses must standing part that “all waters are of a natu- zoning conform with classifications addi ... constituting part ral watercourse other, general tion to plans land more body moving whole Reppun, water.” policies. (citation omitted); Haw. at 73at supra dispute see also Part III.B.3.a. begin, Given un- To KSBE does not disputed interrelationship finding direct between although the Commission’s I Phase case, ground surface and in this development develop- waters had received therefore, designation plan we hold that approval, ment Phase II had not. FOF ground Windward manage- requested mgd 0‘ahu 496. Much of KSBE’s 4.2 *71 error, points one granted mgd 82. As of its KSBE contends 83. The Commission KSBE 0.17 by rejecting pro- that the Commission erred its existing agricultural D uses. O& at 8. KSBE, however, posed findings. pres- not does any supporting argument, ent and our review of record does not demonstrate the Commis- clearly sion’s action to be erroneous. thus, general develop- fall under Commission’s to Phase II allocation related authority, § permitting see HRS 174C-48. respect part to that of the With ment.84 therefore, KSBE, however, argues objection that the Commis fails application, KSBE’s sion, manage by regulating separate on its own terms. water effectively proceeding, ment areas one cre 174C-49(a) permit requires appli- § HRS new, management consolidated water ated use,' proposed cants to establish that their complying statutorily with area without “(5) consistent with state and inter alia: is §§ HRS 174C-41 procedures, mandated see plans designa- county general and land use (1993 disagree. Supp.1999). & to -47 We (6) tions; county with land is consistent [and] merely provisions pro The cited describe the plans policies....” (Emphasis add- use designa management for water area cedures ed.) Zoning nothing than a “land other tion; way they require no the Commis do argues designation.” Although KSBE sion, management water once establishes merely “imple- zoning classifications areas, compartmental regulate them a plans, it development cannot erase ment” Indeed, the Code’s abolition of ized basis. practical, legally distinction established against common law restrictions water the two. See Revised Charter between “beyond overlying land or transfers and uses § County City and of Honolulu 5-408 174C-49(c) watershed,” (1994) § HRS (“development outside the plans”); id. 6-907 (1993), approach. ordinances”); tends to belie such an also (“zoning see GATRI v. course, Blane, 108, 112-15, 367, Commission, designate must Hawai'i water specific (rejecting argument management findings based on 371-74 areas independent community plan no general relating particular had area. See HRS each apart zoning). 174C-44, designa from independent §§ Given force effect -45. But statute, regula we cannot plain language preclude tion does not consolidated requiring here, say where, delivery system Commission erred tion water zoning compliance county classifications. from several different water draws water

management areas. Sys- Regulation the Ditch 2. Unified by provisions invoked fail to Other KSBE tem contradict, support, flatly argument its objects to the Commis also KSBE regulate by must that the Commission water Sys Ditch sion’s treatment the Waiáhole 174C-50(h) (1993) hydrologic units. HRS integrated regulatory single unit for tem as competition arising addresses between exist- out, part purposes.85 points As KSBE “they ing draw water from the uses when system underlying its lands on Waiawa hydrologically area and same controllable part side of Ko'olaus and the the leeward quantity aggregate water consumed collecting side lie water the windward appropriate exceeds the sustainable users hydrologic respectively, units: separate yield or flow standards established instream ground management the Pearl Harbor water (Emphasis pursuant law for the area.” and the Ko'olau Poko and Kahana area added.) “hydrologic unit” The Code defines KSBE ground management water areas. ground drainage area or as “a surface contends that the Commission exceeded two,” basin or a combination statutory authority bounds reason 174C-3, “hydro- but does define by collectively regulating drawn from plain logically area.” The read- controllable hydrologic units. different ing of the latter term indicates that the area system qualifies, “controlled” the ditch question All the lie within lands and, “hydrologic designated management irrespective of units.” areas 1,88 motion, proceedings, average bifurcate the the mea- use to be 84. KSBE estimated its mgd mgd completion I at the of Phase and 2.92 ditch flows at Adit and the alloca- surement of at full build-out. of water drawn from KSBE’s lands to other tion parties. specifically the denial of the KSBE contests order, proposed staff's and KSBE's *72 174C-53(b) (1993) requires contemporaneous HRS consolidation or Commission, acting permit in applica- hearing on a will be proper conducive to the tion, only objections to consider “those filed dispatch of its business to the ends by person a has property who some justice unduly delay interest pro- and will not any hydrologic land within the unit from ceedings. sought by applicant which the water is to KSBE criticizes the Commission’s unified directly be drawn or who bemil and imme- system “arbitrary, treatment of the ditch as diately by proposed the water use affected capricious and inconsistent with the laws added.) application.” (Emphases Not- gravity,” “patently absurd” and “fictitious.” withstanding alleged independence Initially, apart pointing out that water hydrologic involved, units allocations from by gravity through flows leeward force portion system the leeward ditch “di- lands, underlying manmade tunnel its KSBE rectly immediately” affect the windward proven developed has not the water parties any insofar as allocation of the lee- not, conditions, its lands would under natural supply proportionately ward reduces the windward, way thereby affecting find its amount of water otherwise demanded from event, In windward stream flows. we terms, By therefore, windward streams. its believe that the Commission’s consolidated 174C-53(b) allows the consolidated approach in this case demonstrates re- due regulation single of a diversion such works gard for the direct and inevitable interrela- System. the Waiahole Ditch tionship among the waters collected Finally, although KSBE insists that system. system’s ditch Given the existence manage Commission must the “source” of operation, no continued we consider it water, very provision it cites states: regulation more absurd a unit or fictitious place “Water “aquifer systems” source” means a -within or than the various and “sec- tors,” may developed, units,” from which is or water “hydrologic manage- and “water (1) including but to: generally, not limited ment areas” it traverses.86 such area as watershed defined reasons, foregoing For the we hold that boundaries, topographic or a definitive regulating did err in the Commission (2) ground body; specifically, water Waiahole Ditch infrastructure as unified stream, particular other surface system. regulation consolidated tunnel, body, spring, or 'well or related single comports entirely diversion works combination thereof.” comprehensive the Commission’s function of added). (emphasis §HRS 174C-3 management. planning and HAR expressly 13-167-31 autho- Rights” 3. “Ali‘i pro- rizes the Commission combine related ceedings, providing: alleges that KSBE the Commission commission, upon wrongfully ignored abridged

Consolidations. The its “ali‘i its motion, upon rights” denying permit application. own initiation or consoli- its essence, “sovereign preroga or hearing purposes date for for other KSBE claims may contemporaneously along recognized consider two or tives” over water the lines McBryde progeny, by proceedings more which involve substan- and its virtue of tially parties legacy same or issues which are status “the of the Kamehameha related, closely the same or if it finds ali‘i.”87 assigns significance permit ap- particular properly

86. KSBE Commission denied KSBE’s result, representations by nothing both plication. illegal leeward and windward we see As a parties during proceeding one that no but allocating irrational seeking KSBE was water from KSBE’s lands. flowing otherwise into the ditch from KSBE’s matter, agree practical We as a the Com- permitted lands uses elsewhere. has mission water drawn from allocated parties. other KSBE’s lands to leeward Kanahele, generally George S. Pauahi however, object permittees, leeward do not (1986) (documenting derivation of 164-66 so, they sensibly disposition, do nor could lands). KSBE given the indivisible nature of the ditch’s flow. objection, As have for KSBE's held that the *73 Peck, 1387-39; 661-63 state a P.2d at Haw. at have held that the has We cf. rights (rejecting duty protect to Native Hawaiian the claim that the owner trust acknowledge larger part ahupua'a superior to water. also KSBE’s of an had We background rights paramount”). a charitable trust need not unique as as “lord We by repeat analysis ably presented a Whatev in those founded Native Hawaiian ali‘i. significance legacy may carry, legal disposing argument this in er of KSBE’s decisions however, certainly grant not KSBE does here. right or to all

“absolute” “undiminished” with its lands. KSBE’s water connected Rights 4. Correlative all, sovereign right, first claim of must parties appeal, to and Two this KSBE yield sovereign ultimately to which it Castle, rights” ground assert “correlative XII, (pro appeals. art. See Haw. Const. by prede- collected the ditch. Castle’s water customary rights and viding traditional applied permit a as originally cessor subject right “the State to are ditch of the Uwau Tunnel of the “owner” rights”). regulate such To the extent system mgd approximately 2.7 sovereign authority exercised over ali'i Com- ground water derived therefrom. The water, they by authority dele received such ownership did not address the claim mission gation sovereign.88 from the Pursuant permit; granting appeal, a on Cas- Castle mandate, statutory constitutional and final permitted merely its tle defends allocation as presently delegated authority resides protected “existing correlative use.” Commission, to be exercised the benefit maintaining gone KSBE has further people of the state. See Haw. Const. ground throughout that it “owns” the water 174C-7(a). XI, 7;§ art. by the from its lands. drawn ditch Moreover, prior as our case law makes on Castle and KSBE base their claims this clear, speak “sovereign it is fruitless City court’s decision Mill Co. v. Honolulu rights” “sovereign responsibili- apart from (1929). Comm’n, Sewer & Water 30 Haw. See, 547-48, Reppun, 65 at e.g., ties.” Haw. case, appellant City peti- In that Mill (pointing at out the “funda- P.2d 68-69 Com- tioned the Honolulu Sewer Water “separation mental of the mistake” permit mission for a drill artesian well ‘right’ its to control water from concomitant property. at com- on its See id. 918. The ”).89 ‘duty’ no KSBE undertakes substantive application on mission denied the based evi- sovereign of any duties owed to discussion well dence the new would further threat- good. supra III.B. In the common See Part ground already en the overburdened regard, this KSBE does little more than supply. Id. at 921. right revive the same claims absolute previously disapproved appeal, the court first court. On reviewed the See, 184-87, e.g., McBryde, governing ground law Haw. 504 common rules waters: Hutchins, System (kapu') Wells The Hawaiian of the ali'i nui was sacred A. son 21-22.(1946) Rights ("Subject (akua). though god power Water he were His power, persons king [sovereign] (mana) all down authority complete. was But this was rights considered to have in the lands were or some .European concept equivalent not to our added)); (emphasis products.” FOF 981 nui, right.” The Hawaiian "divine ali'i old ("Generally, apportionment were thinking person- practice, did not exercise chiefs, although highly ... ulti- controlled dominion, al but channeled dominion. oth- king....”). authority mate rested with the words, er he was trustee. The instances in rejected which an nui and even killed ali'i was 89. As we observed in that case: abuse of his role are sufficient because his mo'i], paramount chief nui born [The] [ali'i authority proof personal was that it but the soil and hence first-born maka'ai- trusteeship right (pono). that established (island [commoners] nana a moku dis- Water, then, sunlight, like as a of life source trict), was in whom a medium was vested man, possession of to land and was the no authority. power divine But this invest- man, even nui the ali'i or mo 'i. ment, ritualistically which was established (quoting 548 n. at 68-69 n. 14 Id. at by genealogical primacy, well as was instru- 63). supra, Handy Handy, & providing only channeling pow- mental in authority, per- right. The er and not a vested *74 added). (emphasis doctrines have

Three been advanced Id. at 922-23 es- After courts and text writers which or chewing bear more as “common-law rule” “unsound” directly subject. less on this One referred free-flowing and inconsistent with nature argument to in this in waters, underground case some adopted the court of the books as “the common-law rule,” doctrine” rights that: “correlative to the effect piece is that an individual owner of [landowner] Each should so his exercise land, good who has to sink fortune right deprive as not others of their successfully an his [or artesian well on her] rights in part. whole or in In times land,' is the owner absolute of all the water greater plenty probably use freedom of naturally that from flows well or that permitted ordinarily can be would be by any can be drawn pump, therefrom permitted question. without times powerful, however and that he [or she] greater scarcity or scarcity of threatened may pleases as [or she] use water he waters, quality or all deterioration of the may conduct to supply lands and required this would be under view to so communities at from [or distance his conduct their use of wa- themselves piece parcel may her] own of land and ter as not to take more than their reason- Another, even it. waste sometimes called able share. doctrine,” “the is reasonable use that an possessing individual owner of land such a Id. at 925.90 may flowing

well use all of the waters from Having plaintiffs determined the nature the well nature or obtainable therefrom water, rights ground the court reversed by pumping, provided the is used on plaintiffs permit the commission’s denial of only, his [or her] own land but that [or he application for of a the construction new well. may so she] use it either for domestic held, police power, not the court did purposes or for irrigation or for the main- case, “justify, showing under the made this pur- tenance of factories or other industrial prohibition appellant’s proposed poses. this rule no Under there is limit to permitting well while at same all time may used, quantity that be existing operated wells to to be continue provided it is on used the owner’s land. without diminution.” Id. at 946. The third is known “the as rule correla- rights” recognize tive and is to the that all of “cor effect This state continues to rights owners lands under which lies an See Haw. Const. art. relative rule.” rights XI, uses”); artesian basin (referring have the waters of 7 to “correlative basin; 174C-27(a) (same); that that Reppun, each use water there- HRS long injure as not she] he at n. 656 P.2d at n. 16 [or does Haw. 555-56 Mill).91 thereby rights City (citing of others and that court As this noted however, Reppun, “groundwater rights times not when there is sufficient water have all each will be limited to a never been with exactness and the reasonable defined precise scope always rights share of the water. Under third of those rule have subject development.” diversion of to lands other than 65 Haw. remained origin permitted might, perhaps, City that at at n. 16. In be 556 n. Mill, only not court that under some circumstances and under decided the state uses, larger arbitrarily prevent for in- others and certain could not one landowner’s might, purposes, perhaps, allowing dustrial use while other landowners’ permitted origin necessity, on freely even the land of and saw “no under continue therefore, permitted stating being pre some circumstances while with exactness the principles govern ad- under others. cise which should indicates, Mill, City description 90. As this the correlative 91. on the facts of WWCA Based right overlying "analogous argue rights only of an landowner City correlative encom- right riparian [of of a owner's reasonable pass purposes. We no domestic find Dist., Wright use] in a stream.” v. Goleta Water precedent reason for such limitation Cal.App.3d Cal.Rptr. rights. these (1985). (1903). shaw, 141 74 P. each [landown of the share of Cal. measurement lands transporting 30 Haw. at Parties water to distant er.” “appropriators,” subor deemed mere are matter, preliminary affirm As right overlying landowners. See dinate conclusion the rule the Commission’s 749; Tarlock, id.; Cal.Rptr. Wright, 219 ground all wa rights applies to correlative no supra, 4:14. can thus claim Castle 29.92 As ters the state. COLs *75 in rights” “correlative this case. observed, although facts of the specifi City involved “artesian” waters Mill KSBE, As for the correlative cally, offers no sound basis the decision a rights grants overlying rule landowners any distinguishing from oth “artesian” water only necessary for right to such as water water, ground including the category of er Katz, 772; City P. at reasonable use. See 74 in dike-impounded “percolating” waters (“[E]ach Mill, 30 Haw. at 932 landowner hydrology has volved in this case.93 Modern [or restricted to a reasonable exercise his among traditional distinctions erased the a rights own of his her] reasonable use Tarlock, categories. ground su water See property, her] own in view similar [or necessity knowledge § pra, 4:5. Present City rights (quoting Meeker v. others.” the compelled states abandon have also Orange, A. 77 N.J.L. 74 380 East rule, dominion” or “common law” “absolute (1909))). overlying develop Until landowners a no on landowner imposed which limitation water, ground an actual to use nonover- need injury “percolating” to drain water lying parties may any use “sur available 4:18; §§ neighbors. his or her id. 4:7 to See 772; Katz, Wright, 74 P. plus.” See Mill, City (recognizing Haw. 926-33 case, Cal.Rptr. In was at 747. this KSBE away rule general from the of absolute trend asserting rights to use water for correlative City The Mill court avoided the ownership). landscaping prior purposes obtaining issue, stating that common law rule necessary approvals proposed for its land not, “may, may applicable or to waters development. thus proper The Commission merely oozing seeping through in or soil.” premature, ly application as denied KSBE’s here, Haw. with it we at 924. Presented addressing without reasonableness adopt rights City Mill correlative rule proposed use. KSBE’s ground water in relation to all the resources previous To of our the extent that state. apart from the Even correlative “ab may following cases as be construed rights and KSBE have at com Castle ground rule” for wa solute dominion certain law, however, mon the Water Code estab Afong, see 5 Haw. categories, ter Davis priority gov order lishes different (1884); Irwin, Wong Leong v. 222-23 structured, currently this As erns case. (1896), they hereby Haw. are over system establishes a “bifurcated of wa Code ruled. rights.” Agricultural, Ko’olau Ha ter P.2d [water waii at at 1374. “In case, Turning the instant areas], management permitting provi note that and KSBE’s “correlative Castle prevail; rights sions of Code water rights rights” scope of claims exceed the such non-designated governed by areas are right to use at common law. Castle asserts case, common Id. lands ground drawn lands law.” water from windward ground from which seek rights, Castle KSBE on distant leeward lands. Correlative however, overly management only ground water lie water areas. to uses lands extend therefore, ing Any rights, Katz the water source. See v. Walkin determination their pressure, parties dispute Tar- 92. this conclusion. ferred water confined under see None of lock, supra, Today, § 4:3. all diffuse waters are traditionally as water was classified Ground water, water "va- known "vadose” or in the "artesian,” "percolating,” "under- either zone," denotes but sub- dose and "artesian” one Tarlock, supra, ground watercourses.” See general category known set of of water bodies "Percolating” 4:5. referred to diffuse 20.07(b)(1), supra, § "aquifers." Murphy, watercourse, flowing see Earl defined at 101. Law, Murphy, in 3 Quantitative F. Ground Water 20.07(b)(1), Rights re- Water and "artesian” proceed according must transport to the relevant Code ground and use surface provisions, rather than common law. beyond overlying land or outside wa- tershed which it is if com- taken I, Article section 7 of Hawaii Constitu- mission transport determines that such tion mandates that the Commission “assur[e] and use are consistent with in- appurtenant rights existing correlative general plans terest and the and land use added.) riparian (Emphases uses.” policies of the State and counties. legislature preserved this distinction 174C-27, Code. HRS example, provides 174C-49(c). §HRS existing usage validated in certifi- foregoing provisions, therefore, cates issued the Commission “shall be legislative purpose reflect substituting, recognized by resolving the commission in designated areas, management compre claims relating to existing rights system regulatory permits hensive based on including appurtenant rights, riparian *76 place issued the Commission in added.) (Emphases correlative use.” regime rights common law of water adminis § HRS in part: 174C-63 states relevant Tarloek, tered courts. generally “Appurtenant rights preserved. Nothing are supra, §§ 3:89 to 3:100 (reviewing statutory part in this deny shall be construed to riparian modifications of rights); common law appurtenant of an right by exercise the hold- statutory note 98. permit Under the infra any er at permit time. A for water use ting process, common law riparian and cor based on an existing appurtenant right shall 1) rightholders priority relative receive upon application.” be issued See also HRS they extent that an have established “exist 174C-101(d) (“The § appurtenant water a) ing” comports use that with the common rights lands, of kuleana along and taro with b) beneficial, law rules and is reasonable and those customary rights traditional and as- 2) only but in relation to “new” uses. See section, sured shall not be diminished Rep. Conf. Comm. No. 1987 House or extinguished by apply a failure to for or Journal, (“Appurtenant rights may at 1069 permit receive a chapter.”). under this Riparian not be lost. and correlative uses comparable Code provisions contains no pre- protected designated (emphas are areas.” serving riparian “rights.” and correlative added)); Agricultural, es Ko‘olau Hawai'i 174C-50(b) requires the Commission at (“Existing at 1376 uses are to permits existing issue upon uses com- given Code; preferences pref under the pliance proper procedures, with the see su- lost, however, is existing erence if the user (definition pra Part III.F.4.a “existing apply permit fails to for a to continue use”), provided they are reasonable and use”). existing 174C-49(a)(3) beneficial. HRS conditions Neither Castle nor have permits KSBE established for “new” on applicant existing legal pres- correlative use in showing that the use “will not interfere with ent case. any Castle and KSBE thus cannot existing legal (Emphasis use of water.” added.) any superior right claim or to a entitlement existing “compet- When uses are permit any permit however, appli- relation ing,” other grants the Code the Commis- Consequently, cant under discretion, Code. sion hearing, after a “to determine ability Commission’s conclusions that quantity “the water that be consumed transport away overlying water from its land imposed and the conditions to each subject origin ... 174C-50(h). area is to other existing use.” HRS claims,” superior at and that COLs Finally, although the common law rules of rights ground “[KSBE] has correlative riparian rights impose and correlative certain land,” underlying water its id. at have no restrictions on export out bearing statutory permitting process on the lands, nonoverlying watershed the Code and, case, in this amount to mere academic expressly provides: legal commentary. The common law of the to the con- State trary notwithstanding, summarize, the commission To and KSBE Castle have permit shall allow the holder any established entitlement to water under underlying ownership rulé owners absolute scope of the common law the traditional event, regulation.96 ground water free such rights. In under of correlative controlling permitting provisions, Code simple recognized that a generally It is “right” superior and KSBE no have Castle ownership property private model permit they not established because have conceptually incompatible the actual- any “existing” correlative uses. Rather, ities natural watercourses. re- and transient nature variable Takings 5. KSBE’s Claim source, necessity preserv- as the well legal Having founda reviewed who ing purity and flow for others are right, claims of we address enjoyment tion of have led KSBE’s entitled to its use and has allegation that the rights being uniformly regarded KSBE’s to water “taking” of an unconstitutional na- effected usufmct[ua]ry and correlative just compensat property without KSBE’s ture. request by denying to use KSBE’s ion94 Robinson, P.2d 305-06 65 Haw. allocating ground water and

Waiawa Mill, added); City (emphases see also all, parties. First of other leeward (acknowledging the fluid and Haw. at 925-27 properly we have that the Commission held migratory rejecting nature application for non permit denied KSBE’s ownership). line with this rule of absolute conditions, statutory 'see compliance with the *77 of understanding, rights correlative rule is supra takings claim Part III.H.l. KSBE’s unqualified City Mill not describe an does PASH, Ha entirely premature. See 79 thus limited, right ownership, situational of but 452, (citing wai'i 903 P.2d at 1273 William at contingent right of at all on numer- use times v. Planning County Regional Comm’n son (recognizing at ous variables. id. 931 See 172, Bank, 185-86, 473 105 U.S. Hamilton “strong away from the doctrine of trend” (1985); 3108, 126 Robinson 87 L.Ed.2d S.Ct. irresponsible control” towards “unlimited Cir.1989)). (9th 215 Ariyoshi, v. 887 F.2d considering according various factors rule rights cannot argument suffers to the maxim one exercise But KSBE’s Gagnon v. injury (quoting relies to the of others fundamental flaws. KSBE more Co., 687, insisting Springs in all of French Lick Hotel 163 Ind. City on Mill “owns (1904))). 849, emphasizes 72 852 KSBE ground underlying its lands.” N.E. rule, fact, given case, aspect priority rejected the of the expressly one That rule, overlying of landowners. The ownership of advanced uses notion absolute Moreover, however, of at also includes element “reason- KSBE. 30 Haw. 923-24. See ableness,” reading, City requires of the contrary Mill which examination to KSBE’s manner, quantity pro- purpose, all proposition stands for narrow government posed both in abstract and relation being equal, cannot use things uses, regard to using to other and with due entirely prevent one landowner from supply oth available water and broad issues allowing while the uses of ground water (“[E]ach land- public policy. It id. at 930 unabated.95 er landowners to continue only in a such water reason- preclude regulation not of water owner use does upon comprehensive system and to a reasonable extent pursuant able manner highest his own land and without undue [or her] and best designed to ensure the resources, rights of land- other grant land interference state’s water (1993); e.g., Kan. Stat. Ann. 42-311 N.D. Cent. to the United States 94. The fifth amendment part: (1995). shall "[N]or states relevant Constitution Code 61-04-02 use, private property without be taken I, just compensation.” 20 Article section recognition rights 96.This that water have court’s property "Private Hawai'i Constitution states: see, purposes, value eminent domain financial damaged public use not be taken or shall without Collins, City County e.g., 42 & Honolulu v. just compensation.” 199, (1957), any inapposite is Haw. 210-14 states, contrast, pre- analysis power have police or the 95. Statutes other under either the right to initiate domestic uses served the trust. See, City plaintiff in Mill. unlike those denied the

181 ” enjoyment use, owners to a like .... rights” use and cial with “administrative based Smith, v. 407, Patrick (quoting Code, systems. 75 134 See Model Water permit Wash. 1076, (1913))).97 P. Consequently, 1079 supra, commentary de- (identify ch. 1 at 78-79 situation, pending on landowner could ing permit advantages systems three over 1) entitled certain uses of water but not rights common regimes: agency law others. Even established uses could later makes disputes decisions before have fall shortage 2) into disfavor. A could severe erupted litigation; agency into makes altogether. Usufructuary foreclose use wa- comprehensive, its decisions on a rather than sum, rights, always ter “have been incom- 3) basis; piecemeal, agency decisionmak- plete property rights, expectations so the experts ers are their base decisions on [rightholders] enjoyment of these XI, plans).98 long-range Pursuant to article rights generally are expec- weaker than the constitution, section of its 7 this state has right tation of exploit full value jurisdictions followed suit. Courts in other Tarlock, supra, dry 3:92, land.” 3-153. at regulation against have sustained such con Code, supra, See also Model Water 2 ch. State, See Omernik v. challenge. stitutional commentary (recognizing un- 165-68 6, (1974); 64 Omer 218 734 Wis.2d N.W.2d certainty riparian rights and the corre- Department [sic] nick v. Natural Re sponding “property absence of a interest sources, 370, 114, cert. 238 Wis.2d N.W.2d particular prevail- those rules of distribution denied, 1679, 425 U.S. 96 S.Ct. time”); ing Sax, The Con- Joseph L. (1976); Village Tequesta v. L.Ed.2d 184 stitution, Property Rights and the Future (Fla.), Jupiter Corp., Inlet cert. So.2d Law, Water 61 U. Colo. L.Rev. 267-69 denied, U.S. S.Ct. (ex- Sax, Law] Water [hereinafter (1979); Valley Town Chino L.Ed.2d 377 plaining “change how unchanging Prescott, City 131 Ariz. jurisprudence”). chronicle of water (1981) (en banc), dismissed, appeal 457 U.S. (1982); protection

In the interest and maximum 102 S.Ct. 73 1310 L.Ed.2d Steiner, resources, Cherry (D.Ariz.1982), v. beneficial use water numerous 543 1270 F.Supp. (9th Cir.1983), 'd, legislation replacing cert. states enacted have 716 F.2d 687 aff denied, 931, 1719, rights, particularly common law yet those not 466 104 U.S. S.Ct. 80 (1984).99 join into reasonable They many converted actual and benefi- L.Ed.2d 190 others City speculating designation); KSBE cites dictum Mill use area Iowa Code Ann. entity (West 1, person 455B.265(2) 1985); pur- (July § Supp.1999) "[i]f a or other should Ann., 5-502(c) large § chase all of a of land (Supp.1999) tract under which an Md.Code Envir. exists, 1, easy (July uses); agricultural artesian basin it would be to take 1988 for Gen. Mass. view, think, 21G, (West 1994) (effective § that that owner of the land would Laws Ann. ch. 7 regulations); implementing be the sole owner the water underneath it.” date of the Miss. 51-3-5(2), (3) (1999) 1, (April § Id. at 924-25. KSBE has not demonstrated that Code Ann. 1985); ground (West Supp. § it is the sole owner of the entire N.J. Stat. Ann. 58:1A-6 event, 1999) 13, 1981); question. (August basin in to the. extent N.Y. Conserv. 1, 1979); Envtl. 1997) foregoing suggests (McKinney (Sept. § that the dictum that a land- Law 15-1501 (date 143-215.16(e) ownership ground capacity § owner water, claim absolute N.C. Gen.Stat. contrary designation) (1999); we overrule it as rule use area S.C.Code Ann. reasonableness, (date 49-5-70(F)-(H) (Law understanding Co-op. Supp.1999) the basic of usu- area); fructuary rights, public capacity and the trust. declaration use Va.Code (Michie 1998) §§ Ann. 62.1-243 and 62.1-261 1, 1, water, (July July Code, 1989 for 1992 for surface gen 98. Like the State Water such statutes water); 30.18(6)(b) ground (West 1998) Wis. Ann. Stat. erally grant preferences exemptions or 1, 1957). (Aug. deadline, usually existence a certain the effec statute, See, e.g., § 9- date of the Ala.Code tive Council, 10B-20(a), (b), (d) (within (Supp.1999) 505 90 180 99.Lucas v. South Carolina Coastal 1003, 2886, days promulgation implementing of the 112 120 L.Ed.2d 798 U.S. S.Ct. 1, (1992), systems, public taking regulation rules for certain where or Jan. which found uses); irrigation economically deprived 1993 for certain Conn. Gen. landowner of all benefi- 1, 1982); land, (1999) (July provides guidance Stat. 22a-368 Fla. Stat. cial use of his little here. 25, 373.226, (West (April §§ Supp.2000) Ann. KSBE has shown that the denial of its re- 1972); 12-5-31(a)(3), particular §§ quest 12-5- Ga.Code Ann. for water from this source and 105(a) (1996) 1, 1988); (July specific proposed, Ann. even if final Ind.Code (date (Burns 1995) deprive takings purposes, § 14-25-3-11 would it of all econom- restricted 182 (holding (Tex.Civ.App.1961) 853 taking seem- 346 S.W.2d statutes

that have validated step abolishing ingly substantial riparian more land Mexican Spanish riparian ground common law unexercised irrigation grants appurtenant not include did rights in to accommodate the order 381, 355 502 rights), aff'd, 163 Tex. S.W.2d private appropriative development (1962). power, beyond police Even rights.100 public therefore, original limitation of the justi primai-ily foregoing courts have of absolute enti KSBE’s claims trust defeats regulations based on the disputed fied the PASH, 79 Hawai'i at to water. See tlement Omernik, See, 218 power. e.g., police 452, (acknowledging that P.2d at 1273 903 670; 743; Tequesta, 371 at at So.2d N.W.2d assuredly per government can assert a “the 711-14; 127 N.W.2d Knight, California- pre-existing that reflects manent easement 567-69; Power, Hud Oregon 73 F.2d at cf. upon (quot title” the landowner’s limitation McCarter, County Co. v. U.S. son Water ing v. Coastal Coun Lucas South Carolina 529, 349, 356, L.Ed. 828 28 S.Ct. 1003, 1028-29, cil, (averring public interest substan S.Ct. that the U.S. “omnipresent” tially (1992)) (internal undiminished rivers quotation 120 L.Ed.2d 798 “private proper and that and “fundamental” marks, omitted)); ellipsis, and brackets cf. deeper supposed ty to have ... cannot be v. Mississippi Highway Gi State Comm’n roots”). compelling in this rationale is While (Miss.1992) lich, (holding 609 So.2d itself, principle on the further the Code rests compensa right no had landowners all of the state that the state holds waters respect to land trust tion with beach held people. of its As stated trust for the benefit use); public v. by the state for Wilson Com sovereign preroga previously, reserved monwealth, Mass.App.Ct. 583 N.E.2d precludes over the waters of state tives trust (noting public if were rights to water con the assertion vested outset, “plaintiffs, apply, from the found to purposes. This restric trary to trust property formation of preceded rights tion only qualified shore- had their have words; jurisdiction; in other rights in this no investment- reasonable land have ownership exclu right to of water absolute expectations to mount backed under which accompanied sive of trust never taking challenge”), part rev’d in aff'd rights” in the conferred the “bundle (1992); part, 597 N.E.2d 43 413 Mass. Robinson, 65 Haw. Máhele. See Slotness, 289 Minn. 185 N.W.2d State *79 312; PASH, 79 Hawai'i at at see also P.2d 530, (“Riparian rights ... held 533 are 1263-68; 442-447, 903 P.2d cf. California- subject public rights naviga to the stated 142, 725, Power, 295 55 S.Ct. 79 Oregon U.S. waters, of those and the mere exercise ble patents (holding that federal land L.Ed. 1356 taking public rights not constitute a does of the Desert the enactment issued after such, As riparian property”). neither common law Act carried with them no Land Plantations, nor denial of of the Code rights); v. enactment State Valmont Smrha, (1935); F.Supp. Tequesta, v. 145 So.2d at 1356 Baumann ic 371 use of its land. 863, 96, (D.Kan.), aff'd, 1 (holding U.S. 77 S.Ct. 617 352 that restriction on landowner’s 669-70 Wichita, (1956); City 73 v. "deprived L.Ed.2d Williams [owner] of no beneficial use water use and, thus, 317, (1962), appeal 374 P.2d 578 dis did not constitute a 190 Kan. the land itself” 46, 7, missed, 7, Lucas, 38 taking); at 1017 n. 375 U.S. 84 S.Ct. 11 L.Ed.2d also 505 U.S. see Hoisveen, (N.D. (1963); (relying "rich tradition of N.W.2d 728 S.Ct. 2886 on the Baeth v. 157 112 Grimes, 517, 1968); protection” simple Knight in land at "fee interest” v. 80 127 S.D. finding (1964); court's of a law and on the state 708 In re Deadman CreekDrain common N.W.2d Basin, 686, deciding land in age all economic use of the 694 P.2d 1071 loss of 103 Wash.2d Massachusetts, occurred). (1985); taking” v. that a "total had see also Connecticut 286, 660, 670, L.Ed. 602 282 51 S.Ct. 75 U.S. River, 112, See, (1931) (”[E]very change laws State is free to e.g., (1924), 114 227 In re Hood Or. dismissed, 647, permit governing riparian ownership appeal and to 273 U.S. P. flowing 245, (1926); pur appropriation for such waters L.Ed. 47 S.Ct. California wise.”). Co., poses Franco- as it deem But see -Oregon v. Beaver Portland Cement Power Co. Charolaise, Cir.1934), (9th Resources Ltd. v. Oklahoma Water American on other 73 F.2d 555 aff'd ., (Olkla.1990). Bd 855 P.2d 568 grounds, 79 L.Ed. 295 U.S. 55 S.Ct. permit application KSBE’s testimony thereunder effect ersmit’s as irrelevant. We review taking.101 ed an unconstitutional evidentiary rulings concerning admissibility on right/wrong based relevance under 6. Ankersmit’s Testimony Staley, v. standard. See State 91 Hawai'i 275, 281, (1999). 982 P.2d KSBE finally KSBE contends that the Commis- public opinion poll that the asserts was rele refusing sion qualify erred one of proposed vant whether its water use was witnesses, (Ank- KSBE’s Barbara Ankersmit interest,” public “consistent with the ersmit), expert striking her 174C-49(a)(4). assuming Even the accura testimony. request, At KSBE’s Ankersmit cy nothing findings, Ankersmit’s in the public opinion had poll conducted of ap- constitution or Code identifies current 1,600 proximately adult 0‘ahu residents re- opinion as a relevant consideration in the garding growth the direction of future comprehensive, long-term process regulatory 0‘ahu the allocation of from implemented by agree the Commission. We System. During Waiahole Ditch hearing, with public opinion the Commission that a initially objec- the Commission sustained an random, poll taken regard without to the qualifications, tion to Ankersmit’s allowing respondents’ background knowledge con testify her to survey, nonetheless about the cerning issues, bearing the relevant has no testimony then her entirety, struck in its constitutionally on the Commission’s stating particular that “this information is statutorily appointed comprehen mission irrelevant.” planning manage sive resource We review determinations of Corp. ment. Kaiser Hawaii Kai v. Dev. Cf. expert qualifications under the abuse dis Honolulu, City County & 70 Haw. cretion standard. Rodrigues, See State v. 67 483-84, (1989) (holding 777 P.2d 246-47 70, 73-74, (1984). Haw. An zoning enabling leg that the statute evinced abuse of discretion occurs when the decision- policy against zoning islative land use maker “exceeds bounds of reason or dis “[zjon- through process the initiative because regards principles practice rules or of law or ing by goal initiative is inconsistent party.” the substantial detriment of a long planning”). Accordingly, range Kunimoto, Bank Hawaii 91 Hawai'i properly excluded Ankersmit’s (1999). 1198, 1213 P.2d testimony hearing. consideration (HRE) Hawai'i Rules Evidence (1993) provides REQUIREMENT qualification

Rule 702 I. TO FUND STUD- skill, expert “by knowledge, of an experience, IES training, proffered education.” KSBE Estate, Campbell joined by other “public opinion” expert. Ankersmit as a parties, (collectively, leeward the leeward regarding

Ankersmit testified her extensive permittees) object requirement experience opinion poll the field of they subsequent contribute stream studies ing, years spanning 23 and “over 2000” sur *80 monitoring part activities. The relevant veys private government for various or Commission’s reads: decision ganizations. objecting party presented The permittees on The whose lands the wa- specific qualifications. no to rebuttal her system ter from the Ditch is Waiahole record, Based on the we hold that the Com for, prepare, por- or a used shall contract by declining mission abused its discretion to monitoring tion studies and activities qualify expert. Ankersmit (see, resulting example, from for this order believe, however, Lake,

We do not In re: Mono Decision State of Board, excluding that the Commission in Ank- erred California Resources Control Water (1943) alleges taking (holding 101. KSBE a also of its "ali'i 87 L.Ed. 1390 that the supra rights.” See III.H.3. The grant power Part withdrawal sovereign of the of eminent domain delegated sovereign authority, or limitation of private party privilege to a mere a "is revocable however, taking proper- does not to amount a required which to' for a state cannot be make See, ty. e.g., Valley United ex States rel. Tennessee compensation”). Powelson, 266, 276, Auth. v. 319 U.S. 63 S.Ct. 184 (last ¶ 8e).

9/20/94, (stating a transfer that paragraph) that Funding shall be page change any a in condition of the “involves on the amount water used based constitutes a pro permit ... is also invalid and rata basis. The Commis- shall on 174C-62(f) revocation”); § ground for HRS a committee to recom- shall establish sion (1993) (requiring permittees to funding, notice a reasonable amount mend permit change in conditions due to declared up set the mechanism coordinate and collection, provisions, expressly accounting, shortage). and distribu- water These for the grant implication, obvious the Com- committee shall tion the funds. The authority to condition wide-ranging findings and recommendations mission submit its with its approval permits within use accordance to Commission (8) re- protect regulate the Final mandate eight months from the date Presumably, good. common sources 0]& is issued. [D requirement authority encompasses the such at 10. D & 0 that permittee to studies that a contribute permittees maintain The leeward determining will assist the Commission requires to fund the Code the Commission impact permitted of the the water on. provisions they simply cite studies. n source. conduct vari- mandate that Commission studies, investigations, and inventories. ous assert, permittees The leeward do command Commission to They not however, amounts to un condition own, prohibit finance activities these “regulatory leveraging” in vio constitutional ordering appropriate alternative lation of fifth amendment the United funding. §§ HRS See 174C- sources I, States Constitution and article section -71(4) -48, -71(1)(E), 5(1), -31(c), -41(a), Constitution, supra see note of the Hawaii (1993 Supp.1999). & claim, they their cite 94. As the basis of Commission, 174C-31(j) § the Nollan v. Coastal HRS mandates California 825, 107 permits 483 U.S. S.Ct. L.Ed.2d “shall condition under (1987), Supreme States chapter a manner as which the United Part IV of this such building permit condition in- Court invalidated protect' instream flows.” Code permit requiting dedication of a access other references cludes numerous 174C-49(e) (1993) easement, § condition lacked an “es where the conditions. See HRS underly subject permits purpose nexus” to of the (stating that all shall be sential 834-37, ing regulations. id. department building of Hawaiian rights of the City also S.Ct. 3141. See Dolan home lands “whether condition Tigard, permit”); S.Ct. explicitly stated in the HRS U.S. (1994) (1993) “rough (requiring (requiring propor the Commission L.Ed.2d 174C-56 study tionality” development condition comprehensive of all is- between the conduct a develop proposed every twenty years impact and the permits sued once ment). however, conditions); Dolan, dealt compliance Nollan and permit monitor 174C-57(a) (1993) regulation simple (providing that with the fee HRS interests police power. aspect under the This or condition of a estate “modification one real case, contrast, management permit permittee’s involves the may be conditioned on water, aspects usufructuary a state changes in interests acceptance of other 174C-58(2) to which no individual permit”); (allowing trust resource Hence, per- right.102 the lee suspend can claim exclusive Commission to or revoke *81 any permitees’ argued analogy between the “any violation of ward mit for willful condition funding requirement and the land permit”); (Supp.1999) instant 174C-59 Seattle, cases); City takings question v. 147 Garneau We need not address the additional degree 802, (9th Cir.1998) (“Assuming whether and to what Nollan and Dolan [Nollan F.3d 812 beyond to mone extend tary land dedications include physical apply Dolan outside the context of ] presently at exactions such as those issue. invasions, plaintiff must still show in the first a F,3d See, Petera, e.g., Clajon Corp. v. Prod. government imposition of the ex [instance] that 1566, (10th Cir.1995) (viewing & 1578-79 n. 21 taking.’’). a action would constitute physical and Dolan as an extension the Nollan States, development invalidated in exactions Nollan Ass’n United 415 U.S. (1974)). Sax, at

and Dolan fails S.Ct. L.Ed.2d 370 lee- the outset. See Wa The (“[A]n Law, permittees acknowledge, swpra, at 280 ward fail to ter owner of a howev- er, directly right the studies relate to their property has right lesser than proving burden of that their uses are “rea- the ... landowner Nollan. The state is sonable-beneficial” with ‘taking* owner, “consistent the something belonging not to an 174C-49(a). interest,” public §HRS pre- As asserting right always but is it held as a discussed, viously any previous lack of the burdening servitude owners of water comprehensive precluded permit- studies rights.”).103 from proving, tees Commission from permittees’ The leeward contention determining, the actual extent to which the funding requirement that the constitutes an public diversions would sacrifice values illegal point, “tax” is closer to the but similar estuary ecosystem. the windward stream and ly unavailing. See Kentucky River Auth. v. denying Rather than permits for insuffi- Danville, City (Ky.Ct.App. S.W.2d 374 proof, cient grant Commission decided to 1996), denied, cert. 520 U.S. 117 S.Ct. permits with the condition per- that the (1997) (inquiring L.Ed.2d 682 mittees to at contribute studies aimed deter- charge by authority whether assessed river mining the effect of the diversions. The illegal legiti water use was an tax or a studies, therefore, “directly benefit” leeward fee). acknowledge mate user We while permittees ways: only by in two not helping authority the Commission has the to condi requisite proof, them to marshal their but permits payment appropriate tion on the by allowing public also them exclusive use fees, any taxing it power. does not have interim, despite resources in present Const, VIII, generally art. Haw. section 3. In proof. public absence of such The as a Medeiros, State v. 89 Hawai'i whole, 973 P.2d sure, gain will also from the (1999), question addressed wheth through knowledge studies enhanced charge imposed by governmental Nevertheless, er enti regulation. informed better ty is a “fee” instead of a “tax.” We devel grant the extent that the studies the leeward oped three-part “analyz[ing] therein a permittees test by benefits not shared (1) charge applies large, perhaps whether direct at public’s even at the ex- (2) service, beneficiary particular pense, require of a is allo unfair to we do believe it directly defraying pro permittees provide cated the costs a reasonable share service, viding reasonably pro is of the costs. portionate to Id. the benefit received.” at prong The second of Medeiros

367, 973 P.2d at 742. is satisfied test insofar as the Commission’s permittees The leeward “it assert is by provides any decision contributions not fair to require pay [them] to for studies permittees help the leeward will fund the which primarily determine the effects prong, studies. As the last we cannot general public decision the wind- funding determine at this time whether the words, respect ward users.” other requirement “reasonably proportionate” is test, prong they to the first of the Medeiros by permittees the benefits received be argue directly that the do not studies benefit yet cause the has not settled them in a manner “not charged. shared other it how will calculate the fees The society.” of a Id. permittees protest members leeward that “the fees to (quoting National Television Cable fund the studies are not set forth on a sehed- apply precisely point; per- 103. Even if we were Nollan’s "essential misses the because the test, funding disputed requirement nexus” have while fall- mittees ing received allocations even Here, readily pass funding would muster. proof short in their burden of that the studies directly requirement relates to the interest Commission, course, necessary. are has investigating protecting instream uses and note, yet to determine the actual fee rate. We permittees’ values. leeward insistence that event, any require that Nollan and Dolan do not the proven Commission must "measure extent of precision level of mathematical demanded anticipated granting harmful effects of permittees. the leeward *82 permits" imposing the before such a condition objected, regarding seeking the uniformly; clarification applied rather the ule not meaning of The “reasonable time frame.” imposed on an individual basis are to be fees ini the final decision affirmed Commission’s monetary limit.” any Their without defined ruling requested clarification. tial without the Certainly, objections premature. the are appeal, contends that the On DOA/DLNR decision to measure the fees Commission’s clarify its Commission’s to decision failure according imposed pro a rata basis to on arbitrary capricious. was many should answer amount of water used River, Kentucky concerns. their that “[DOA]’s Cf. The Commission concluded (upholding on actual at 377 fee based S.W.2d agricultural proposed for an use basin). regulated the river use planning yet park stage still in the and not details, remaining the Commission As to use within a enough certain assure actual them as it adequately should address deter In frame.” reasonable time COLs on final schedule based mines the fee short, application premature. DOA’s was pursuant committee’s recommendations dispute ruling, this but does not DOA/DLNR proce decisionmaking appropriate to simply protests that the lack clarification observe, however, term that the dures. We prospective as as “leaves well other DOA a “reasonably proportionate” less describes great uncertainty” [applicants], in because exacting applicable than standard making legal “no will risk a or financial one do not demand “[W]e land exactions. agricultural commitment for an venture with- precise value equality between the conferred avail- out water will be the assurance that valid, charged. however, a and fee To fee need explain, fails able.” DOA/DLNR only relationship to the bear a reasonable proper as to how mere clarification time agency.” services rendered un- reapplication cost lessen the frame would FCC, certainty Television Ass’n surrounding National Cable the ultimate availabili- (D.C.Cir.1976) (emphasis ty F.2d water. Even if the Commission advised exactly reapply, v. United when original). See also Massachusetts DOA Commis- States, later 463 n. sion would still have to decide at that 435 U.S. S.Ct. only application a “fair fulfilled (requiring date whether 55 L.Ed.2d statutory permit sup of the cost of criteria. approximation benefits plied”). acknowledge the for assurances We need availability development plan- of water in the conclusion, gen- In Commission has the ning specifically address- process. Code permits upon authority to eral condition however, need, providing for water es this require- compliance funding instant with the did not rule reservations. Commission ment, properly falls under which more petitions instant reservation fee, regulatory category a rather than a proceeding, only that it could not but decided development Under the stan- land exaction. DOA, yet permit. issue DOA water use fees, applicable to dard such hold determination, again, challenge does not matter, funding requirement a general Along do and we not deem it erroneous. illegal tax. We does constitute re- lines, say same we cannot Commis- question, of this howev- serve final resolution request for sion’s denial of DOA’s clarifica- er, appro- pending the determination tion as the “reasonable time frame” priate by the fee schedule Commission. arbitrary capricious. reapplication was MISCELLANEOUS J. DOAJDLNR’s also Com contests the DOA/DLNR OBJECTIONS mgd 1.58 as a to set aside mission’s decision reservation,” decision, pending proposed “proposed agricultural the Com rulemaking pro ap pursuant confirmation permit water use mission denied DOA’s Code, by the plication seeking mgd for DOA’s cedures mandated see HRS 0.75 174C-49(d) (1993); prejudice supra 3. Accord park “without note agricultural DOA/DLNR, ing to lacks reappl[ication] when DOA can demonstrate authority designate specified amount that actual use will commence within rea proposed D reservation. time frame.” & 0 10. DOA sonable *83 objection present satisfy is unfounded. at the time to DOA/DLNR’s water use reservation, proposed permit applicants existing The as its indi- name those cates, amount, merely a suggested con- offers future offstream uses in the [de- identified approval tingent proper through on rulemak- .... cision] ing. The not by Commission is bound This determination does not mean that case, proposal. In this it even as ruled on [CityJ’s projected growth demands can permit applications peti- the water use Waijajhole water, be Ditch from satisfied tions amend the interim standard for [CityJ’s projected rather the needs will re- streams,

windward an- Commission could quire greater analysis. even The evidence ticipate already the need address the presented by in this case indicates that pending petitions for By reservations. ear- year pro- water demand for Oahu’s marking an estimated amount of re- water (an jected growth mgd) additional will quired subsequent in proceedings, remaining exceed the island’s estimated provided specific notice (76 ground supply mgd) at least proposal agricultur- for further diversions for mgd. al use in the generally near future. See added). (emphases Contrary COLs at 23 91-3(a)(l)(B) (requiring agency, City’s reading, suggests this discussion prior hearing, to the to make available the prospective City’s no bar use of proposed adopted). rule to be No error re- Rather, simply Waiahole Ditch water. from such sulted action. inescapable reality in states the times of one, scarcity competition, no be it the K. THE CITY’S MISCELLANEOUS user, City any potential expect can other OBJECTIONS quantities to demand water in such from City The takes issue with the discussion such sources as it sees fit. concerning Commission’s final decision City’s City future water needs. The first rejects City apparently this lat- even alleges erroneously the Commission however, proposition, ter inasmuch as it also City using foreclosed the from Waiahole opposes requirement “prioritize” that it Ditch water the future where “no notice portion its future relevant demands. The given City’s was ... future use the Commission’s decision states: [the would be Commission] considered competition As in- water resources expressly precluded City presenting creases, analysis both begin, City evidence on that To issue.” and of interest reasonableness must be- does mention or contest the Commis- rigorous come both more and affirmative. City’s petition sion’s denial for a be required The counties will articulate grounds reservation untimeliness. The priorities greater spec- their land moreover, City, point single fails to to a ificity. example, present For at the even evidentiary ruling adverse the Commis- time, there more land zoned various fact, Commission, granted sion. The supply than water to available those City ample opportunity during hearing Thus, proposed uses. it is not sufficient to present evidence on its future water de- merely parcel particular conclude that a mands.104 properly land is zoned and that the use is event, City overstates Com- That minimal conclusion “beneficial.” ruling. portion mission’s of the decision inadequate resolve situations City by the contested reads as follows: competitive supply. which demand exceeds term, quantities analysis At least for the near Further criteria interest conservation, (e.g., excess of the alter- amended interim instream relevant to water uses, subject comparative public flow standard and to the conditions native costs and benefits) affecting supplemental flows are will available be needed. City argues Nothing

104. The also the Commission record or deci- the Commission’s claim, impact failed restoration on consider the economic of stream sion substantiates this potential municipal water uses. *84 added). City’s land portion illegally will “restrict” the use (emphasis Another at 25 Id. authority any planning the decision states: unless it accedes of City’s of water Such and all the demands. all of concludes that The Commission powers the expansive an view of counties’ permit applicants proposed water use express headlong into the constitutional runs propose are “consistent have or uses that county policies” and plans statutory designation land use of the Commission with and except as noted above. While [KSBE] over matters of water as the final authority applications are all “consistent” with these planning regulation. Haw. and See use lack plans policies, use and such land Const, 174C-7(a). 7; I, § §HRS art. county plans poli- among the and ;priority by only provides a minimal standard cies alleging that Commission judge applications. which to imposed prioritize a uses on “directive” added). (emphasis 27at Id. counties, City misapprehends position. has Commission’s The Commission City requiring the coun- asserts that The acknowledged appeal consistently on that it designate priorities among proposed ties usurps planning authority their land zon- use nor inclination has neither expressly authority. ing The Water Code City any such action and that force authority respect the counties’ reserves “is, fact, priorities a re its discussion planning policy. The Code’s land use City’s] help.” As quest for the Commis [the policy” states: “The state wa- “declaration decision, existing sion observed its liberally interpreted code shall ter already supply is to accom insufficient which conforms with applied in manner planned and zoned modate the land uses plans in terms intentions the counties Thus, City. City accepts it or whether the 174C-2(e). planning,” § land use HRS not,'this compel the shortfall will Commission provides: § 174C-4 further HRS prioritize among proposed making uses in contrary “Nothing chapter in this shall Indeed, among ultimate choices them. zoning power planning or restrict the must, plan City itself as matter sound county chapter 46.” also [HRS] under integrated ning policy, actively develop 46^4(a) (1993) (stating that the coun- HRS contingencies addressing the aris plans liberally powers “shall be construed ties’ see, supply, e.g., ing from the limitations them”). exercising county favor 174C-31(d). if process, prop HRS Such City explain fails to how The nonetheless undertaken, prio erly necessarily will entail any aspect actu- Commission’s decision City’s ritizing among competing uses.105 The ally City’s planning func- interfered with therefore, only objections, contradict the City pres- as tion. Insofar formulated Code, disregard priori but also the need using was plans while OSCo still ent See, managing any scarce resource. ties water, hardly claim Ditch it can Waiáhole applica e.g., (competing §§ HRS 174C-54 availability depend plans 174C-62(a) (1993) tions); (requiring fundamentally, reject this water. More periods City’s suggestion plan Commission to formulate Commission plan integrated An decision includes an ex- mands. water resource 105. The Commission’s description planning process: of this concept plan- cellent encompasses the of least-cost integrated The Commission believes ning types all of resources and considers plan developed must be in or- water resource conservation, equally: supply, reclaimed new prepare for Oahu’s water future. This der to water, structures, rate well alternative as plan how we will meet water must address management The other demand methods. given dwindling supply and must demand prioritize competing our planning process would assess and balance plan demands. urban, agricultural, competing needs such planning scenarios would construct various customary rights, appurtenant traditional and incorporate help decision-makers uncer- to tainties, gathering rights, Lands Hawaiian Home externalities, environmental priori- rights, protection, and stream and set decision-making. community into needs ties for allocation decisions. ranges population assess scenarios would projections water de- D & O 2. and commensurate shortage, including system permit legislature designed tional framers and the classification).106 judi- as an instrument for (cid:127) planning regulation, cious than rather coordination, contemplates The Code rath- management.107 crisis The Commission’s de- conflict, er than between the Commission and *85 cision reflects the considerable time and at- 174C-49(a)(6), the counties. HRS for ex- case; it to tention devoted this we commend ample, requires permits that water use is- its efforts. But much more work in lies the by sued the Commission be “consistent years critical ahead if the Commission is to county plans policies,” land ensuring use and constitutionally realize its statutorily and consistency between water and land uses. purpose. mandated Both planning the water use and instream protection provisions use coopera- mandate We have rendered our decision with ut- tion between the Commission and coun- the care, balancing most due to deference the 174C-31(d) (“the ties. HRS commis- judgment Commission’s of with level scruti- sion in coordination with the ... counties ny importance necessitated the ultimate shall an integrated formulate coordinated present these matters to the and future conservation, program protection, for the and generations of our For state. the reasons management county”); in the waters each opinion, in part stated vacate in we the (“In carrying part, 174C-71 out this Commission’s decision and remand for addi- the cooperate commission shall with ... the conclusions, findings tional and with further county governments any agen- and of their hearings necessary, if consistent with this cies.”). objectives The of the Commission 1) opinion, regarding following: the the des- always converge. and counties not will ignation of an interim instream flow standard respective To the extent that their functions for windward streams based on the best in- however, and duties the Commission permit, available, specific formation as well as the seeking and counties should be common apportionment any flows allocated or oth- ground. regard, agree In this with the released, streams, erwise to the windward see prioritizing requirement Commission that its 2) III.D.3; supra Part the merits but, is not a to City’s authority, threat petition to amend the interim for standard rather, is cooperation a call for and mutual Stream, III.D.4; 3) Waikáne supra see Part accommodation in keeping spirit with the 2,500 gallons per actual per need for acre understood, City’s allega- Code. So day agriculture, over all acres diversified tion of error lacks merit. 4) III.F.2; supra see Part the actual needs (ICI Seeds), Field Nos. 146 and 166 see

IV. CONCLUSION III.F.3.a, supra 115,116, Part and Field Nos. Cozzens), In the to (Gentry supra introduction its decision and or- and 161 and see der, that, III.F.3.b; 5) projected “by the Commission practicability Camp- Part year projected using water demand bell PMI Estate alternative growth ground sources, remaining Oahu will exceed the supra see Parts III. 6) ground-water III.F.4.d; practicable resources on the island.” Id. F.3.c & measures to urgent 1. This mitigate forecast underscores the impact of variable offstream de- streams, planning preparation III.F.5; need for supra mand see Part 7) permit Commission and the counties application before more the merits losses,” complications develop. “system serious supra eonstitu- ditch see Part See, City wrongly alleges e.g„ 106. The Rep. that the Commis- Stand. Comm. No. ("[The Proceedings, public concept system trust] at 688 priori- sion seeks to institute a of “fixed implies only power protect the re- contrary public ties” between uses trust responsibility long sources but the fore to do so be- and the Code. Commission does not demand any develops."); Rep. crisis Comm. Stand. hierarchy rigid applicable a tion, situa- Journal, No. 1987 House 1262-63 merely acknowledges but in future ("[Y]our opinion Committee that the involving System, cases the Waiáhole Ditch serve water code should tool an incen- required deny will certain uses favor of planning tive the wise of Hawaii's water and, thus, prioritize among others will need resources, rather a water than as crisis and proposed uses. mechanism.”). shortage management instream “public status perior claims” aspects all affirm other III.G. We ad- Hawaiian and traditional not otherwise uses” and “native decision Commission’s rights,” thereby trumping opinion.108 customary in this dressed (HRS) chapter Statutes Hawai'i Revised RAMIL, Dissenting Opinion by J. (the (1993 Code), Supp.1999) I dis- 174c & doctrine, expressed public sent. The trust majority nebu- resorts Because in- Hawai'i Constitution as subse- as a law trust doctrine lous common' Code, authority quently incorporated into does not separate assign “su- distinct and revolutionary theory permits. applying for As the Code proposes water use 108. The dissent demonstrates, doctrine, abundantly legislature did not the trust trust which system. The insists that nothing present create such a dissent i.e., what the more than amounts *86 legislature, words, people,” is, "the the "the State” or majority says it “the sum of other policy. law and should determine water competing of the and economic interests social generally We Dissent at 9 P.3d 508. compose public." Dissent individuals that the dissent, sentiment, but, unlike the we share this may purposes the view the 16. While this suit duly follow it. dissent, can finds in law. The dissent it no basis regarding our wa- The dissent voices concern applying public doc- precedent the trust cite no persons, lying in the hands of "six ter future it expansive manner that advocates in the trine case, persons composed four who the this (the proceeded Washington cases cited See id. at 9 P.3d at 508. Commission.” apply; Wash- premise that the doctrine did not Ironically, nullifying protections of the after ington recognized doctrine as a courts have regulatory dismantling public trust and see, e.g., protection applicable, where substantive Caminiti, by legislature, the dis- framework established Weden, supra). supra; un- The reason people sent would leave the of this state with reality doubtedly an obvious that such lies in the agency nothing but unchecked its discre- an interpretation public trust would render guided regulatory tion "free-for-all” and meaningless—a all result that the dissent seems "balancing,” necessity reminder of the mere embrace, notwithstanding ready rich to too 192, P.3d at 504. see id. at heritage jurisdiction and law in this common objections permit appli- to the The dissent’s recognizing public as a concrete trust others guarantee namely, proof prove point, our cant’s burden of rights public intent and the manifest legislature intended the Commission to that the adopt the our to of the framers of constitution investigate, plan, provide for instream flows trust, understanding “disposi- where of the basic yet possible. remaining as That mandate as soon unfulfilled, done with [are] use of these resources tion and recognized have that the Commis- we fairness, justifi- purposes procedural for that are balancing interim task entails the of risks sion’s are consistent with able and results that implementation of the Code based on the and the perpetuation protection and of the resource.” supra Part III.E. best information available. See Debates, Proceedings, in 2 at 866-67. not, alleges, impose We an do as dissent astonishing attempt Equally to is the dissent’s permit applicants on insurmountable burden can to views. The dissent conform the Code its interim, applicants we neither do allow but only "rewriting Code” because accuse us of justifying disregard their burden of their uses to provisions. ignores many See, express of the Code’s so allow. the extent that circumstances (condition § e.g., HRS 174C-2 that "ade- Finally, repeated protests against “priori- in its pro- quate provision made” various shall be for uses, against among largely ties” dissent rails 174C-5(3) (mandating § purposes); HRS tective Contrary its a “straw man” of own invention. program instream flow the establishment protect, categorical designation of a the Commission’s preference enhance, reestablish, practi- where protection, we in favor of resource do cable, uses); instream HRS 174C-71 beneficial any "priorities” not commonly as that notion is establish (last ("[t]he imple- paragraph) shall commission in water law and has been understood disposing when flow standards Rather, ment its instream legislature. previously eschewed ("[t]he water”); (j) §HRS commission basic, 174C—31 principle simply reaffirm the modest permits ... in such a manner shall condition precious water resources of our that use protect flows and sustainable regard instream ultimately proceed state must with due (d) yields”); (requiring the com- HRS 174C-31 enduring rights. princi- public This certain plan” protection pletion through of the "water resource ple tution, Code, thread the consti- runs a common adoption use and devel- of the “water before the common law of our state. In- 174C-31(k) (mandating opment plans”); brought principle have attention this protective past. consideration” of various "careful to some in the But short-term convenience allowing pro- legislature purposes and the Commission to under- the constitutional framers stood, pur- proper these hibit uses inconsistent with about the other and others concerned maintains, If, public functioning system in- poses). as the dissent our democratic and the vitality no than receive different treatment of our island environment and stream uses continued community may uses, public, appreciate, presumably that we can ill- the inchoate also other then unborn, yet garden path including re- generations should be afford to continue down this day. quired prove water needs in late in the advocate preference for mandate instream uses or na- to give effect to that v. intent.” State rights. Rather, Mallan, 440, 448, tive Hawaiian a review of 86 Hawai'i history of the 1978 Constitutional (quoting Con- 186 Convention Au Center vention Anzai, reveals that thority the framers viewed the Hawai'i (1995) (internal trust simply fiduciary duty as a on the quotation P.2d “protect, regulate omitted)). control State the marks and citations Accordingly, use Hawaii’s water history resources the bene- I turn trust Const, people.” XI, fit of its Haw. ait. expressed sec- doctrine as in the Hawai'i Consti Therefore, tion I would hold that the Com- tution in order to discern the framers’ intent. mission Management Water Resource Pursuant to the 1978 Constitutional Con- (the Commission) statutory exceeded its au- vention, people of adopted this State thority when it cited to common law following provisions constitutional which de- public trust sepa- doctrine as distinct and fine responsibilities the State’s trust in man- authority justifying rate priority for par- aging its water resources: ticular uses of water. Additionally, in- because more definitive XI ARTICLE designed stream flow standards to restore *87 CONSERVATION, yet and sustain instream uses CONTROL have to be established, I that AND DEVELOPMENT majority believe im- OF poses impossible proof burden of on RESOURCES offs- tream “justify[ users to proposed their ] uses CONSERVATION AND light protected public rights in the DEVELOPMENT OF Majority resource.” 9 P.3d at 472. RESOURCES troubling, perhaps, major- Most is that the of present Section For the benefit ity, process in the reaching their desired generations, and future and its State result, breaches a number of fundamental political subdivisions shall conserve and principles of which recognized law we have protect beauty Hawaii’s natural and all thus, past, creating and adhered to resources, land, water, including natural confusion uncertainty and in an area of law air, sources, energy minerals and and shall desperately requires that clarity. Because promote development and utilization majority essentially rewrites the Code these resources in a manner consistent through opinion today, suspect this I that with their conservation and in furtherance opinion generate litigation by will appli- self-sufficiency the State. arguing particular cants that their use " public by All resources are held public in trust water a trust use value. people.

the State for benefit of Duty, I. The State’s Public Trust En- as Constitution,

shrined in the Hawai’i Re- quires Balancing a Process Between WATER RESOURCES Competing Public Interest Users. obligation Section 7. The has an State majority, its effort define the protect, regulate control and the use of trust, purposes on vague, relies water Hawaii’s resources for benefit of jurisdic- common law foreign notions from people. its tions. I start with our Constitution. legislature provide shall wa- for which, Because provided constitutions derive their authori ter agency resources ty law, people adopt from the who draft and shall set overall water conserva- them, tion, long quality policies; we have held Hawai'i and use bene- define uses; protect ground Constitution must construed accordance ficial and reasonable resources, people with the intent of the framers and the and surface water watersheds it, environment; adopting princi and that the “fundamental and natural stream establish ple interpreting provision a constitutional priorities criteria water use as- while for necessarily regulate” a bal- existing involved suring appurtenant rights and in- riparian ancing competing and establish social and economic correlative and (“When considering of Ha- regulating all uses Id. use and de- procedures terests. resources, water resources. economic velopment waii’s our natural major Const, and benefits are concerns. social (1978) (Em- XI, §§ art. Haw. economics, However, broad definition added). phases resources, thrifty’ that of ‘careful and use reading plain A of the above constitutional of immediate than the narrow sense rather provisions intent to accord does not reveal an return, adopted.”). In financial should be To the con- superior claims certain uses. establishing duty “protect, con- the State’s XI, generally trary, obli- Article Section regulate” benefit of all trol and development gates “promote State presumably meant people, the framers (1) “in utilization” of our water resources more, noth- exactly they said—nothing what conservation” manner consistent their ing less. (2) self-sufficiency “in furtherance Furthermore, contrary to the of the State.” XI, imposes Specifically, section article majority’s expansive use trust (1) con- obligation two-fold State doctrine, XI, plain, Article Section 7 makes protect natural re- Hawaii’s serve legislature provide “the shall for water sources, “in a develop the resources law, which, agency provided resources consistent with their conservation manner pri- ... criteria for use shall establish self-sufficiency of and in furtherance of added.) (Emphasis ...” other orities. The framers further defined State.” words, public policy making “how” or the protection, improve- as “the “conservation” properly legis- reserved function was according resources ment natural Accordingly, constitutional lature. these highest principles assure their will *88 provisions adopt common did not the law or social Stand. Comm. economic benefits.” to public as a determine trust doctrine device 77, Proceedings, (empha- 686 Rep. No. in 1 at or prioritized. water is to be used how added). fashioning duty to In State’s sis the history Turning now to the constitutional resources, its develop conserve and natural nothing equate provisions, I find to of these framers, to cognizant the need the while obligation “protect, public trust to the State’s competing preserving in balance the interests regulate the wa- and use Hawaii’s control resource, using did not mandate and the people” for of its resources the benefit ter particular balancing to favor such be skewed according superior claims to certain with uses. Rather, framers used the term uses. the XI, Furthermore, imposes 7 article section to “public trust” “describe the nature the pro upon fiduciary “obligation a to the State people relationship the and its between State tect, regulate use of Hawaii’s control and the actively duty of to and and the the State people.” its resources the benefit of regulate water affirmatively protect, control history resources, provi development, constitutional behind this including water the support any suggestion to that the sion fails and allocation of water.” Comm. Whole use trust,” “public adoption expressed 1 as Rep. Proceedings No. in the Consti- the Constitution, to Hawaii at Hawai'i was intended tutional Convention grant superior particular types of Proceedings]. In- claims to [hereinafter 1026 Rather, trust,” deed, keenly “public use. were aware that water framers framers,1 formally a fiduciary “protect, by imposed duty to control and defined such a read, keenly proposal subsequently was amended to The framers were aware the nebulous public aspects obligation protect, The initial of the trust doctrine. an control “The State has to by Envi- proposal the Committee on submitted regulate the use of Hawaii’s water resources ronment, Agriculture, Conservation and Land people.” Whole Comm. for the benefit its by part, "All waters shall be held read relevant Proceedings, Rep. No. in 1 at 1026. Accord- people of State as a trust for the Whole, ing it amended to the Committee on Rep. No. in 1 Hawaii." Stand. Comm. proposal in order to added). (emphasis Proceedings, at The term 688 trust," however, "public was deleted and the

193 (“I fiduciary duty “actively ings, on the to thing State at 870 think the one want affirmatively protect, regulate” protect control and ed was small taro farmer as water, agricultural the water resource as well as opposed to the users of mere unless authority to Rep. emergency do it conflicts with so. Comm. Whole No. some overall situ Comm, (statement 1026; Proceedings, ation or priority”) by at use see Dele Debates, Waihee), XI, gate September Whole article section reserved Debates], Proceedings, prioritizing legisla task uses for the [hereinafter Const, (‘What XI, 7; Debates, ture. Haw. art. attempts [amendment] to do (“[W]hat to, all, Proceedings, at is done is fiduciary duty first of we’ve create policy set out to be part considered establish regulate of the State and control ing clear, criteria.... it [J]ust its make thing water. The second it does is only agency setting this that will be coordinating agency regulate establish water.”) policy; done, (Statement criteria this would be in the by all Delegate Wai- by legislature, overall hee); (“The sense the state Id [of intent the amend agency implementing itself would be the de ment] was to it make clear that the State had agency tails. What we wanted was an whose duty responsibility and the to care for policies would have input as broad resources, Hawaii’s simply rather than possible. the overall ... so.”) So scheme (Statement power by do Dele up would be ‘in set accordance law5 or (“Exercise gate Fukunaga); Id. at 867 of the legislature, agency would then police power purely discretionary, and for implementation set the points and the finer results; discretionary language “trust” im this.”) (Statement Waihee)); Delegate poses obligation act the benefit of (“As states, proposal Id. at 869 the amended (Statement people.”) by Delegate all the legislature will allow the to set water use Horniek). again, Once while the framers priorities, ‘set overall water conservation’ and mindful were of the need to balance various forth.”) (Statement by Chong)). so Delegate use, competing in regulating interests Rep. sum, see Comm. Whole No. in 1 Proceed a review of the his constitutional (“Because ings, evergrowing tory at 1026 reveals that the framers viewed the population, present ag “public fiduciary the need to maintain duty trust” as a of the State control, develop ricultural uses and new protect, regulate some ones diminishing supply, and the people. freshwater it is for all The framers made *89 important extremely public that the State act with a it that clear their view of the trust ob fiduciary responsibility regard sense of with ligation also embraced offstream economic water”); Debates, water, of to the use in 2 agriculture, by Proceed uses of such as the clarify the intent behind the the use of term water and fisheries. These be resources are to "public gen- enjoyment peo- trust.” Some confusion has been in held trust the use and for implies ple. already supreme erated the term because "trust” The Hawaii court has However, ownership. navigable imposed public was never intended to the trust waters proposal question Bishop that the confront the of own- and the under lands them the case of Mahiko, However, (1940). ership of water resources is because that more v. Haw. to 35 608 appropriately litigation, your matter the possible for courts. The avoid confusion and question ownership language your re- Committee has substituted which freshwater ability fully conveys theory sources irrelevant to the the State to Committee believes police powers regard “public exercise to water trust.” added). possessed power long (emphases Simply put, because the State has Id. "what protect, regulate attempts to and Hawaii's do ... control amendment to is to define what fresh- Comm, 'public water resources the health and trust’ &eans.” of Whole De- for welfare of Therefore, bates, Debates], people. "public September ... [hereinafter Hawaii’s trust” 1978 (statement by Delegate Proceedings, was used to describe the nature of relation- in 2 at 859 Waihee). ship people between the State and its and the Furthermore, duty actively affirmatively recognized to State and this itself has court resources, protect, regulate obligation control and water "[t]he that extent of the state’s trust including development, and allocation of over all use waters course would not be identical applies navigable water. to that which to waters.” Rob- theory Ariyoshi, public public The trust holds that the v. 65 inson 287, Haw. 658 P.2d denied, (1982), rights important has certain in water re- 310 reconsideration 66 Haw. sources, (1983). including underlying navigable land 726 P.2d 1133 34-35, 9 Majority law. at our constitutional Comm. Whole of the trust. See beneficiaries 1026; Proceedings, Rep. De 443-446. No. P.3d at bates, equally Proceedings, 870. It is obligation by engrafting

apparent that this Regulato- Comprehensive II. Code is a The Constitution, into the framers the Hawaii Trumps Law. ry Statute That Common uses; they prioritize re did intend to not legislature.2 for In years hearings, many matter of exhaustive served After confusion, deed, deleted finally acceptable avoid the framers legislature struck an trust,” “public recognizing that the public term competing interest balance between vague, public law trust doctrine common pass it to Code users that enabled be, been, justify any and has used could Code, legislature Through See, i.e., ownership. e.g., Payne v. thing, only constitutional obli- affirmed the State’s (Pa.1976) Kassab, (rejecting 361 A.2d “protect, regulate gation control appellants state violated the claim people,” of all its it estab- the benefit public by implementing street widen trust comprehensive program “a lished impact ing negatively would “the project that 174C-2(b) (1993 planning,” & resources historical, scenic, environ recreational and that set forth the State Supp.1999), how land). ma values” of a tract of The mental satisfying duty. Haw. go about would public trust doc jority’s expansive use of the Const, (“The XI, legislature shall art. view, case, in my in this will create trine which, provide agency for a water resources uncertainty. public The trust confusion law, provided by ... shall establish crite- obligation merely imposes an on the doctrine priorities....”) (Emphasis ria for water use affirmatively regulate protect State added.) policy, the Code its declaration does not our resources. The doctrine forth embraces the trust set protect “how” provide guidance as to by providing “the Hawaii Constitution guidance, is cru waters. “That which those of the are held the benefit waters State today, is found cial to the decision reach It is citizens State. declared only v. De in the Water Code.” Rettkowski people are the State beneficiaries Ecology, partment 858 P.2d right protected to have waters have a banc). (1) (Wash.1993) (en Given that 174C-2(a) (1993).3 their use.” HRS legislature to called on the create framers various, competing then inter- Code identifies forth the Com to set ests that the Commission must balance law,” ie., authority provided “as mission’s charge “protect, administering the State’s Code, trump common statutes regulate” control and water: law, Kam, 7, 10, Fujioka Haw. liberally interpreted [Code] shall (1973), it be inconsistent to would the wa- obtain maximum adopt conclude that intended to the framers beneficial purposes such as ters of the State for the common law trust doctrine when *90 uses, uses, aquaculture irrigation domestic they urged legislature to enact the Code. the uses, agricultural power other devel- disagree Accordingly, strongly with the I XI, opment, and commercial and industrial majority’s holding that article sections However, provision shall public adequate adopt common law uses. wholesale the protection made the of traditional principle as a fundamental of be trust doctrine for Robinson, (1) Recognizing pa- state the that the waters of the are 2. this court observed that In public authority property in in of the State’s and interests the of the state and are held rameters citizens, developed on case it is declared water resources "should by trust for the benefit of its by particu- legislature the people basis or the case the of as beneficiaries the state of public lar interests the are raised de- right the to have the waters this trust have at 658 P.2d at 312. In fined.” 65 Haw. protected their for use. legislature just that it raised and 1.02, the did (Frank § A at 81 E. Model Water Code competing public in the interests water defined al.1972) added). Maloney (emphases Appar- et. in Code. resources the XI, ently following the framers lead in article Constitution, legisla- 7 of the Hawai'i the section "public not the term trust” HRS Contrastingly, analogous provision, ture did use an the 174C-2(a). § provides: Water Model Code customary rights, pro- legislature Hawaiian prioritize the had the intended to procreation wildlife, water, tection and of fish and would have done so in no proper ecological maintenance bal- Indeed, legislature’s uncertain terms. beauty, preserva- ance and scenic and the adopt proposal failure to a 1995 to amend the tion and enhancement the waters establishing priorities il- Code water use uses, recreation, municipal public State my legislature for point. lustrates In public supply, agriculture, and navi- established review commission on the Code gation. objectives Such are declared to be comprehensively develop rec- review and public in the interest. improving ommendations for the Code.1987 (1998) 174C-2(c) added). (emphases § HRS 45, 5,§ Haw. L. Act Sess. 101. On Decem- view, 174C-2(e) my §HRS falls well short 28, 1994, years ber about seven its after constituting supe- a directive that bestows creation, the review commission its submitted any particular rior claims to classification of report legislature. final Review Com- Rather, 174C-2(e) § uses. HRS reflects the Code, mission of the State Water Final Re- legislature’s intent that the en- port to Legislature the Hawai'i State at 1 gage comprehensive man- resources (December 1994). things, Among other agement by balancing protect the need to the review commission recommended that placing the need use water without the Code be amended to establish a hierar- any otherwise, priority, presumptive fixed or 23-26, chy app. Id. water uses. B at example, classification of For uses. date, legislature yet 49-56. To has process setting even interim and adopt proposal to prioritize water uses. standards, permanent instream flow Accordingly, the State’s trust obli Commission must assess the economic rami- gation, as enshrined the Hawai'i Constitu fications of such standards on offstream uses. 174C-71(1)(E) (“In incorporated Code, (1993) tion and as into does HRS formulat- ing standard, mandate that uses or native proposed [instream instream flow] weigh rights “superior Hawaiian be accorded importance the commission shall present I potential or claims.” would hold that values with therefore instream statutory authority importance potential Commission present of the or exceeded chapter 91 uses of water from for under HRS when it relied on the the stream nonin- including purposes, stream im- common law notion of the trust economic doc uses”); pact grounded of restriction of such HRS trine that is neither Hawai'i 174C-71(2)(D) (1993) (“In considering pe- justify impos Constitution nor in the Code adopt heightened tition to an interim instream flow ing scrutiny” stan- “a level of offs- dard, weigh impor- 91-14(g)(2) commission shall (pro tream uses. present potential affirm, tance reverse, of the or instream viding that a court values importance present with the of the or modify agency if such decision decision potential pur- uses water noninstream statutory authority “[i]n excess poses, including impact the economic of re- jurisdiction agency”); Rettkowski 858 uses”). Moreover, stricting such the Code (holding P.2d at 236 that it is a fundamental specifies provisions liberally that its shall be agency may only rule law that “an do that interpreted to obtain maximum beneficial use Legisla it is do which authorized to “irrigation agricultural and other ture”); Ass’n, County v. Wyo Tri Tel. Inc. uses”; yet, “adequate it also mandates Comm’n, ming P.2d Public Service *91 provision” including shall for be made that, (Wyo.1996)(holding 1361 “As a creature “preservation and enhancement waters for legislature, agency an administrative 174C-2(e). agriculture....” ... powers has do no limited and can more than uses, definition, Agricultural by are offstream do”); statutorily Stop it is authorized to cf. 154, 161, uses, thus, contrary majority’s and State, H-3 v. 68 Haw. Association reading, priority the does not Code establish (1985) 446, (observing P.2d 451 “[a] 706 instream uses. public only agency possesses administrative absolutely rule-making authority delegated that is to to

Given essential such as is state, by may only the continued of this island it legislature existence state and the 196 (1975) 342 A.2d power the framework Pa.Cmwlth. within exercise conferred”); (Bowman, P.Ji, by concurring) in (“Simply it is statute under which the Licensing Industry provision identify v. Corp. Motor Vehicle voking [the

HOH constitutional ., 135, 141, P.2d 69 Haw. ‘public natural ing as the trustee of the state Bd (1987) (maintaining agency resources,’] that an agency] a [the nor third neither pass upon to the “generally power lacks the beyond party enlarge can its ‘trustee’ role has law constitutionality of a statute. The statutory power and parameters the its nullify agencies may not been clear that long tramps authority.”). Simply put, the Code Davis, statutes.”) (Quoting 4 K. Administra law, way the other around. Fu common not (2d 26:6, at 434 tive Law Treatise jioka, at 570. 55 Haw. at P.2d ed.1983)). fiduciary duty a It is the that owes State Majority’s Expansive the III. The View of regulate and people “protect, its control Inject unll Public Trust Doctrine Sub- the Hawaii’s water resources for use of the Uncertainty into the Code- stantial Const, XI, people.” art. of its Haw. benefit Process. Based Water Allocation Thus, body the legislature, it the as 7. is view, majority pub- the my employs making charged responsibility with the (1) a recognize lic trust doctrine device laws, public policy, it is that determines uses, and na- certain such as instream uses legislature who set water use should public rights, tive trust values Hawaiian provided by priorities “as law.” id. Wa See (2) analysis proposi- from the launch state, a is lifeblood of this island ter public supe- have tion that these trust values prioritize competing uses water decision to majority goes rior claims other uses. will un public policy that is a determination any of the trust to “eschew” view doubtedly shape course our future. public private use as embraces commercial should in the Such determination rest Majority 9 P.3d at purpose. trust people of this hands of the State instead agree. approach, With such an I cannot case, persons, of six or in this discretion discussed, I previously As believe composed who the Commission. persons four trust, public in the Hawai'i as established Hawai'i, County C Konno v. f. Code, adopted in is Constitution and as (“The 61, 79, 397, 415 Hawai'i control, fiduciary duty protect, simply law of what the could be determination regulate use of our water resources properly that is left to the should be one people all for the of Hawai'i. benefit sovereign,] through their people, are [who obligation Such an demands State legislative representatives”). To elected actively manage its natural resources dili- does, otherwise, majority conclude as the interests, gently competing both balancing impermissibly transgress separa would social, to arrive at economic order powers by allowing an tion of doctrine execu policy ultimately in of what is determination statutory author agency to transcend its tive interest; public’s not man- best does lawmaking ity usurp legislature’s priority particular uses. The State’s date guise enforcing function under the obligations to “promote diversi- constitutional agency’s interpretation “public of what the agriculture” agricultural fied and “increase R.D. Merrill trust” demands. See Co. self-sufficiency” less consider- warrant no State, P.2d 137 Wash.2d they offstream uses ation because involve (1999) (“[T]he duty] [public trust devolves private gain indi- that result economic State, upon particular agency. Const, (1978). XI, § Haw. art. viduals. [agency’s] enabling does not statute Indeed, interest advanced authority trust grant it assume the no more than the sum of trust amounts to pub state.... [R]esort duties of the competing social and economic interests of as an canon of lic trust doctrine additional public. compose the individuals that necessary light is not construction *92 Huffman, A Fish Water: law James L. Out specific provisions at issue and the water codes.”); The Doctrine in a Constitution- Public Trust policies expressed the state water (1989) 527, Fox, Democracy, Envtl. L. 549 Community College al Delaware (“Public rights by public, are exercised the justifying light burden of their uses] democracy purposes protected people.”). by which in the is the the trust.” Id. at 144, 9 at 454. P.3d majority’s The view of the public trust accepting majority’s Even the articulation essentially invites this court to rewrite the (1) public true, given trust as that the uses, prioritize particular thereby Code to knowledge necessary scientific to establish higher imposing scrutiny level on “non- more definitive instream flow standards—the uses,” public trust legislature where the im- primary to safeguard mechanism instream posed accepting none. Because such an invi- admittedly “years away,” majority uses—is drafted, tation would the devalue Code as (2) 114, 426, scope at P.3d at and full process, circumvent the democratic and in- public consequently instream uses remain ject uncertainty substantial into the Code- undefined, impossible I believe that it is process upon based allocation water which applicants that offs- demonstrate their depends, compelled this State I am to dis- impair public tream will not uses instream sent. majority acknowledges uses. The that “the uncertainty by created lack of instream IV. Impossible Users Face an Offstream flow standards modifies the nature Burden of Proof. 161, analysis....” Commission’s Id. at “[ujnder majority The holds public light uncertainty, P.3d at 473. this Code, permit applicants trust and the have majority applicants holds that for offs- justifying the burden of proposed their uses “[ají uses, minimum,’’ very tream must light protected public rights in the (1) (2) needs, demonstrate and their actual Majority at resource.” P.3d at 472. “within the constraints available knowl- majority by arrives this determination edge, propriety draining water taking following steps. majority needs,” ie., public satisfy streams to those trust, public reasons that by as defined practicable mitigation absence of measures. common law and incorporated into the added). (emphases Id. at 9 P.3d 474. constitution, “begin[s] presumption with a in Despite by majority, floor set due to use, access, public enjoyment.” favor of the lack of more conclusive flow instream Turning Id. at 9 P.3d at 454. standards, apparently the onus remains Code, majority equates following in- applicant justify proposed offs- 174C-2(c) listed in “public terests identifying tream use instream and purposes dependent upon trust instream uses, (2) potential assessing instream how “protection flows”: of traditional and custom- require, much those instream uses ary rights, protection pro- Hawaiian (3) justifying proposed light their uses wildlife, creation fish and the maintenance existing potential instream values. With- ecological proper balance scenic beau- issues, addressing appears out these three ty, preservation and the and enhancement of applicants requesting for offs- uses, municipal public waters of the State may tream uses meet the floor established recreation, public agriculture, supply, satisfying majority only to fall short of 145-146, Majority navigation.” 9 P.3d at justify pro- their ultimate burden their standards, 457-458. Instream flow as the posed light use in of instream values. See observes, majority “primary serve as (“We Majority P.3d at 472. thus duty up- to fulfill mechanism” the State’s emphasize confirm and ‘reasonable purposes. hold instream these trust Id. at beneficial use’ standard and the related crite- Indeed, 146, 9 P.3d majority at 458. public rion of ‘consistent with the interest’ “public declares that such instream uses are proposed demand examination of the use not which, among ‘superior upon claims’ to alone, only standing but also relation to factors, existing consideration of all relevant private particu- other and the uses yield.” Id. at By have n. question.”). granting lar water source Therefore, uses, “superior P.3d at n. 52. because the claims” status to instream majority presumption already trust carries inherent renders this difficult task use,” “public favoring applicants impossible. bear the *93 expired parties that on December via a lease

CONCLUSION 31,1996. Assuming arguendo that such sale join wholeheartedly majority’s call I “use,” common under the water constitutes more defini- for to establish the Commission rights, it law rule of correlative establishes for the flow standards wind- tive instream KSBE, best, “appropriator” at an pur- “utmost haste ward streams with lands, and use on distant ground water for fear, 156, I 9 P.3d at 468. pose.” at Id. existing id. at not “correlative” user. See an however, period necessary to 178, standards, (stating at 490 the rule that more conclusive these achieve transporting lands uses, which, “parties water distant part, in substantial offstream ”). economy promote ‘appropriators’ Accord- the self- are deemed mere drive the State, may sufficiency dry. regard- run ingly, points this court made 1) ing scope “rights” of KSBE’s stand: FOR RECONSIDERATION MOTIONS can assert no common law “correla- KSBE 30, 2000, appellee/cross-appel- August because, On rights” ground tive water absent Campbell (Camp- lant The Estate of James yet requisite approvals, use it has land Estate) a motion for reconsideration bell filed for such establish a need reasonable published of this court’s clarification land, and/or overlying in connection with the Applica- opinion, re Permit In Water Use 2) and, event, id.; any under the see tions, Instream Flow Interim Petitions permitting provisions, controlling Code for Amendments, and Petitions Standard “existing for not an cor- KSBE has established Ditch Reservations Waiahole Water and, thus, cannot claim relative use” Hearing, No. Contested Case Combined permit, superior priority or to a entitlement 2000). 31, August (August On 179-180, Put at 9 P.3d at 491-492. see id. Bishop appellant Kamehameha Schools ability to use simply, while KSBE’s (KSBE) motion for reconsider- Estate filed a System Ditch an from the remains Waiahole mo- Upon consideration of the ation. due to, alia, subject open question, inter KSBE’s argu- supporting tions and documents water, KSBE has no reapplication such ments, rule as follows: entitlement, superior right underlying Campbell motion is denied. Estate’s otherwise, to use such water. “correlative” any questions Campbell should direct Estate arguments for KSBE’s that the denial As use, regarding arguments its interim permit application to an un- of its amounted proceed- pending the outcome remanded “taking” property of its with- constitutional ings, on Resource to the Commission Water just compensation, out we refer KSBE (the Commission). Management We refer in this court’s relevant discussion sections portions of this Campbell to various Estate n. published opinion. See id. at 133-136 & potentially relevant court’s decision (affirming n. 32 9 P.3d at 445-448 & op. 9 P.3d at concerns. See at waters, including applies all trust (maintaining failure Commission’s water); 181-183, ground at at 493- id. P.3d not standards does establish more definitive argument ripeness (rejecting on KSBE’s “preclude!] present and future allocations grounds reviewing the nature of usufruc- use” and that offstream jurisdictions rights, tuary statutes other incorporating methodology employ must rights, modifying law common law case risk); uncertainty id. elements statutes, upholding and the effect of such (ruling did 9 P.3d at 475 that the Commission rights). trust claims of vested water “accommodating agricul- existing not err in time); n. at 167 tural uses” at this id. RAMIL, having Associate Justice (holding commis- n. 70 that the P.3d court, opinion from the does dissented Makakilo, allowing sion did not err Pu‘u not concur. pending using Inc. to continue ditch water application, on its notwithstand- final decision use”). “existing

ing the fact that it was points motion denied. KSBE

KSBE’s previously

out that it sold water to leeward notes public widely (noting public at 73-74 no one It that the trust N.W.2d understood assigns presumptions priorities destroyed no of in the bal- greatly impaired use be would purposes. ancing See National P.2d trust outweighed that the benefit Audubon, 723; Cal.Rptr. XI, harm), and must conform to article section Stevens, Sovereign’s The Public Trust: A Jan S. l’s mandate of "conservation.’’ The Commis- People's Prerogative Environ- Ancient Becomes sion, words, still ensure that all other must Right, 14 223-225 U.C. Davis L.Rev. mental protected purposes are to the extent feasi- trust nevertheless, (1980). balancing, must Such ble. Comm’n, reasonable, see, e.g., State v. Public Serv.

Case Details

Case Name: In Re Water Use Permit Applications
Court Name: Hawaii Supreme Court
Date Published: Nov 29, 2000
Citation: 9 P.3d 409
Docket Number: 21309
Court Abbreviation: Haw.
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