The Kualapu`u reservoir, originally built to supply homesteaders agricultural needs, now supplies 84 percent of all water to 30 non-homestead accounts. State law mandates a two-thirds water allocation for current and future use by Hawaiians, yet the nearly 200 homestead accounts have only 12 percent of the reservoir. With water levels continually decreasing due to increasing non-homestead demands, the water security for future homesteaders may dry up.
State to demand homesteaders to pay up on delinquent water bills.
The struggle for homestead water is about to be cranked up a notch. Hawaii Department of Agriculture (DOA) says that Hawaiian homesteaders owe more than $191,000 in unpaid water bills to an irrigation system that was built specifically to help Hawaiians become sustainable.
DOA representatives say that it’s time to pay up and the failure to do so could result in the shutoff of water, or, in extreme cases, the revoking of homestead leases.
Meanwhile, non-homestead entities, like corporate ag-giant Monsanto, are requesting more water from the Molokai Irrigation System (MIS). Non-homesteaders already account for more than 80% of the water usage from the MIS.
Homestead irrigation has also risen dramatically, up 3 percent in 2007 according to DOA data. Homesteader Martin Kahae, who this year planted five new acres of citrus, says he has noticed a considerable increase in agricultural endeavors amongst fellow Hawaiians.
The heart of the MIS is the Kualapu`u reservoir, the largest rubber-lined basin in the world with a capacity of 1.5 billion gallons, is showing signs that the current demand may not be sustainable. According to DOA data, water levels are roughly 200 million gallons less than they were at this time last year.
But a state audit performed in 2007 reports that the MIS is ailing because of system-wide mismanagement by DOA including improper maintenance, a lack of leadership, and mishandling of finances. The audit suggests that one way to improve finances is to collect on the on the unpaid bills owed by numerous Hawaiian Homesteaders.
Non-Payment
Kahae has been a homesteader since 1978. He says that he is current on all his farming bills and living expenses except for a whopping $10,000 owed for MIS water use. He said his bill averages around $800 a month and that he pays some of it.
Kahae argues that Hawaiians should not have to pay for water. “As a homesteader, the original definition was free water to sustain the Hawaiians. MIS was created for me to be sustainable; to be Hawaiian.”
The Hawaiian Homes Commission Act of 1920 states in section 221 that the Department of Hawaiian Home Lands (DHHL) has a right to use, “free of all charge,” government-owned water for agriculture and domestic needs.
In the previous section, the Act states that DHHL is to directly undertake water irrigation projects for homesteads, and can derive no revenue from homesteaders for this project, as well as reserving sufficient water for current and future irrigation activities on Hawaiian home lands.
“The intent of the Act was to rehabilitate the Hawaiians. How can you rehabilitate us without water?” asked Glenn Teves who is an extension agent for the University of Hawaii's College of Tropical Agriculture and homesteader.
Teves said many homesteaders feel any fee for water is unfair, citing the original 1920 act as their legal defense.
Kahae is not worried about his water bill. In fact he plans to expand his citrus grove so that one day it will span across the entire 40 acres of his leased homestead.
“As long as we are homesteading to take care of our ohana, (water) should be free,” said Kahae. “As soon as we sell a product, then look at our financial statement and charge us accordingly.”
Adolph Helm, is a homesteader, chairs the MIS advisory board, but also heads operations on Molokai for Mycogen Seeds, is sympathetic. “I am sure each individual delinquent account holder has compelling reasons why they cannot pay, or should not pay for water delivered to their property,” he said. “We intend to work with each (individual) so as to identify the best way forward.”
Randolph Teruya, asset manager with the DOA said, “Water is always free, it always has been, but to collect and deliver the water to a customers location is what costs money. Homesteaders make the claim that their water is supposed to be free, and we tell them it is the delivery service that costs.”
Forgiveness
The amount homesteader’s owe may seem large; however, former Governor Ben Cayetano waived $280,000 in delinquent MIS water bills when Tokyo Kosan sold the Kaluakoi Resort to Molokai Ranch in 2001. Another $150,000 was waived in MIS debt when Coffees of Hawaii was purchased out of foreclosure in 2004.
“Homesteaders are given the short-end of the stick. There should be a clean slate for us, like Coffees and Kaluakoi,” said Lynn DeCoite, Molokai Homesteaders Farmers’ Alliance (MHFA) president. DeCoite’s water bill is paid in full; she is considered one of Molokai’s most successful homestead farmers.
Teves says that DOA has a building on DHHL land which it did not pay rent on for 17 years. He said the bill was waived by DHHL under the auspice that the DOA helps homesteaders. Teves noted that the DOA charges for their services.
“You forgive these guys and now (DOA) wants to come after the small guys,” Teves said.
Reconciliation
The State says that delinquent users will be contacted either by phone or by home visit. In the middle of the month, a standardized reminder would be mailed. If payments are still not paid, DOA will send a demand letter stating agency authority, and attempting to create an agreement with the water user.
“One person owes $50,000, there’s our backhoe right there,” said Duane Okamoto, deputy to the DOA chair, who explained that these unpaid bills can be used to update and upgrade the MIS.
“The big hammer is pulling the meter and shutting their water off, and we have the authority to do so. We can also intercept tax refunds or go to a collection agency.” He added that this would only come after “frank conversations with the MIS board and with the community.”
DHHL representative George Maioho said the worst-case scenario would be to cancel the land lease on delinquent accounts; however he also said that DHHL is willing to work out a payment plans with their beneficiaries.
“The people who are not paying are taking money, and raising the cost of water for those who do (pay),” Okamoto said. Six of the top ten delinquent accounts are still drawing millions of gallons of water a year.
Between now and the middle of May, DHHL will be contacted by DOA to let homesteaders know how the collections process will progress.
“This is not an easy task, but it is the challenge in front of us. We will have to look at (delinquent accounts) for the health of the system and the users,” Helm said.
“I pay my bills, but I understand those that don’t,” DeCoite said.
Kahae says to expect homesteaders unpaid water bills to continue increasing. “We can talk about accountability as soon as (DOA) becomes accountable.”
Homesteaders Rights and Representation
The MIS is ruled by a seemingly simple rule: two thirds rights of the water guaranteed to homesteaders. But non-homestead farmers consume 84 percent of the system's annual draw making it impossible for future homestead use to meet the two-third allotment.
“If the homesteaders have two-thirds right to the water, shouldn't they have two-thirds of the seats on the on MIS Board of Directors?” Teves reasoned.
“They are undermining our abilities,” Teves said. “Without proportionate homesteader representation, who will protect our interests?”
The MIS board is currently required to have only one of the six seats allotted to a homestead farmer. Three of the six MIS board members are employed by corporate seed companies: Steven Arce and Adolph Helm work for Mycogen, a subsidiary of Dow AgroSciences, and Audwin Calario works for Monsanto.
The 2007 MIS audit recommends the board be more transparent in its membership rules, and consider additional homestead seats, as well as giving a clear definition of homesteader.
“The bottom line; the board is not formulated the way it should be,” DeCoite said.
Ever-Increasing Demands
Water use is increasing annually for all MIS users. In 2007 homesteaders used 114,511,000 gallons, roughly 12 percent of the total draw. Non-homesteaders used 791,548,000, or 84 percent of all MIS water.
DOA data shows that Homesteaders irrigate 936 acres from 158 accounts, versus 1,470 acres on 30 accounts for non-homesteaders.
“I see the increase in homesteader’s farming production, and I try to emphasize crops for a fast turnover combined with an education to utilize the land,” DeCoite said in response to the increase.
Monsanto representatives recently met with DOA to request additional water. The seed company offered to pay the electricity to run the pumps longer to help fill the Kualapu`u reservoir which is down 7 feet from this month last year.
Teruya said that the pumps are already running near maximum capacity at ten hours a day. Teruya expressed concerns with the increase in pumping, which must stay within the pump permit guidelines; secondly he is worried about the dry winter, and pumping parts of the system dry.
“Monsanto wants to have some confidence that water will be available for their planting, and if the proposal is denied, they will have to re-determine their plans,” said Teruya who added that who would have a decision for Monsanto by the end of the month.
Teves said the Monsanto request is a typical economics-versus-environment issue, pumping tomorrow’s water for today.
Teruya said that if Monsanto’s proposal put more water in the system that it would benefit all users and that it may be a way to avoid last year’s 20 percent water summertime conservation reduction. A mandatory 10 percent reduction has been given to non-homesteaders already this year.
Board Members
In early April, the Senate Committee on Agriculture and Hawaiian Affairs unanimously approved three Water Users Advisory Board (WUAB) members. James Boswell, a native Hawaiian born and raised on Molokai, represents the Molokai-Lanai Soil & Water Conservation District, and is an assistant professor at Maui Community College.
Richard Wheeler , a resident of Molokai for 25 years, was re-appointed. He represents Hikiola Coop and is one of the largest plumeria growers in Hawaii.
Audwin Calario is also a native Hawaiian born and raised on Molokai, and he represents the non-homestead users. Calario works for Monsanto as a mechanic and maintenance technician.
Further discussion on how to move forward will take place at the next MIS meeting May 20 at their office in Ho`olehua.
