Carmichael v. Board of Land and Natural Resources.
This text of Carmichael v. Board of Land and Natural Resources. (Carmichael v. Board of Land and Natural Resources.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
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Electronically Filed Supreme Court SCWC-XX-XXXXXXX 03-MAR-2022 08:48 AM Dkt. 219 OP
IN THE SUPREME COURT OF THE STATE OF HAWAIʻI
---o0o--- ________________________________________________________________
HEALOHA CARMICHAEL, LEZLEY JACINTHO, and NĀ MOKU AUPUNI O KOʻOLAU HUI, Petitioners/Plaintiffs-Appellees/Cross-Appellees/ Cross-Appellants,
vs.
BOARD OF LAND AND NATURAL RESOURCES, SUZANNE CASE, in her official capacity as Chairperson of the Board of Land and Natural Resources, the DEPARTMENT OF LAND AND NATURAL RESOURCES, Respondents/Defendants-Appellees/Cross-Appellees/ Cross-Appellants,
and
ALEXANDER & BALDWIN, INC., EAST MAUI IRRIGATION CO., LTD., and HAWAIIAN COMMERCIAL AND SUGAR CO., Respondents/Defendants-Appellants/Cross-Appellees,
COUNTY OF MAUI, DEPARTMENT OF WATER SUPPLY, Respondent/Defendant-Appellee/Cross-Appellant/Cross-Appellee. ________________________________________________________________
SCWC-XX-XXXXXXX
CERTIORARI TO THE INTERMEDIATE COURT OF APPEALS (CAAP-XX-XXXXXXX; 1CC151000650)
MARCH 3, 2022 *** FOR PUBLICATION IN WEST’S HAWAI‘I REPORTS AND PACIFIC REPORTER ***
RECKTENWALD, C.J., NAKAYAMA, McKENNA, AND WILSON, JJ.1
OPINION OF THE COURT BY WILSON, J.
Since 1986, the water rights for 33,000 acres of
ceded lands in the Koʻolau Forest Reserve and Hanawi Natural Area
Reserve have been governed by four revocable permits issued by
Respondent/Defendant-Appellant/Cross-Appellee/Cross-Appellant
the Board of Land and Natural Resources (“BLNR”) to for-profit
corporate entities, Respondents/Defendants-Appellants/Cross-
Appellees Alexander & Baldwin, Inc. (“A&B”) and East Maui
Irrigation Co., Ltd. (“EMI”). In this case, we consider whether
BLNR’s authorization of these four permits during the past
decade to divert more than 100 million gallons of water per day
from east Maui streams required an environmental assessment
(“EA”) pursuant to the Hawaiʻi Environmental Policy Act (“HEPA”),
Hawaiʻi Revised Statutes (“HRS”) chapter 343.
Given the significant environmental impact of the
permitted action, the BLNR’s authority to issue revocable
permits is subject to the environmental review requirements of
HEPA. The Intermediate Court of Appeals’ (“ICA”) July 31, 2019
judgment on appeal pursuant to its June 18, 2019 memorandum
opinion is therefore vacated, and this case is remanded to the
1 Associate Justice Richard W. Pollack, who was a member of the court when the oral argument was held, retired from the bench on June 30, 2020.
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Circuit Court of the First Circuit (“circuit court”) for
proceedings consistent with this opinion.
I. BACKGROUND
A. 2000 Issuance of Revocable Water Permits
In 1985, the BLNR approved the public-auction sale of
a thirty-year water license that would have consolidated four
license areas—the Honomanū license area, the Huelo license area,
the Keʻanae license area, and the Nāhiku license area
(collectively, the “license areas”)—spanning approximately
33,000 acres of ceded lands in the Koʻolau Forest Reserve and
Hanawi Natural Area Reserve under a single license.2 However,
issuance of the thirty-year license was suspended at the request
of the Department of the Attorney General pending the settlement
of a separate water case. Water rights for the license areas
came to be governed thereafter by annual revocable water permits
issued for each fiscal year.
2 The four license areas are “affected and partly governed by” the East Maui Water Agreement made in 1939 between the then—Territory of Hawaiʻi and EMI. That Agreement provided for “the joint use by the Territory and EMI of the aqueduct system” and “enabled the State to dispose of the water licenses at a public auction instead of restricting the sale only to EMI.” The aqueduct system runs through lands belonging to the government and to EMI.
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On May 26, 2000, the BLNR approved the issuance of
four annual revocable water permits to A&B and EMI,3 effective
July 1, 2000 and expiring on June 30, 2001. Each of the
permits—S-7263 (Honomanū), S-7264 (Huelo), S-7265 (Keʻanae), and
S-7266 (Nāhiku) (collectively, the “revocable permits”)—gave the
permittee4 the “[r]ight, privilege, and authority for the
development, diversion, and use of water” from the relevant
license area, “pursuant to the terms and conditions” in the
relevant expired general leases. These permits authorized EMI
to divert more than 100 million gallons of water per day from
east Maui streams for sugar-cane irrigation by Hawaiian
Commercial and Sugar Co. (“HC&S”), another subsidiary of A&B, in
central Maui. The permits also authorized the delivery of
approximately 8.6 million gallons of water per day from east
Maui streams to Maui County water treatment facilities that
provided the majority of water to a population of approximately
35,000 people in upcountry Maui. Each of the revocable permits
3 A&B is a for-profit corporation that was engaged at all relevant times primarily in real estate development in Hawaiʻi and sugar cultivation in central Maui, and EMI is a subsidiary of A&B.
4 For the 2000-01 fiscal year permits, A&B was the permittee for the Honomanū, Huelo, and Keʻanae license areas and EMI was the permittee for the Nāhiku license area.
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stated that they were issued pursuant to HRS § 171-58 (1993).5
The BLNR added, as a condition to the issuance of the revocable
permits, that the Department of the Attorney General issue an
opinion regarding compliance with HEPA as it related to these
leases.6
B. 2001 Long-Term Lease Application and Continuance of Revocable Permits
On May 14, 2001, A&B and EMI filed an application
requesting that the BLNR (1) consolidate the four license areas
5 HRS 171-58(c) (2011) provides:
Disposition of water rights may be made by lease at public auction as provided in this chapter or by permit for temporary use on a month-to-month basis under those conditions which will best serve the interests of the State and subject to a maximum term of one year and other restrictions under the law; provided that any disposition by lease shall be subject to disapproval by the legislature by two-thirds vote of either the senate or the house of representatives or by majority vote of both in any regular or special session next following the date of disposition; provided further that after a certain land or water use has been authorized by the board subsequent to public hearings and conservation district use application and environmental impact statement approvals, water used in nonpolluting ways, for nonconsumptive purposes because it is returned to the same stream or other body of water from which it was drawn, essentially not affecting the volume and quality of water or biota in the stream or other body of water, may also be leased by the board with the prior approval of the governor and the prior authorization of the legislature by concurrent resolution.
The text of the statute has remained unchanged since the BLNR first issued the revocable permits in 2000.
Free access — add to your briefcase to read the full text and ask questions with AI
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Electronically Filed Supreme Court SCWC-XX-XXXXXXX 03-MAR-2022 08:48 AM Dkt. 219 OP
IN THE SUPREME COURT OF THE STATE OF HAWAIʻI
---o0o--- ________________________________________________________________
HEALOHA CARMICHAEL, LEZLEY JACINTHO, and NĀ MOKU AUPUNI O KOʻOLAU HUI, Petitioners/Plaintiffs-Appellees/Cross-Appellees/ Cross-Appellants,
vs.
BOARD OF LAND AND NATURAL RESOURCES, SUZANNE CASE, in her official capacity as Chairperson of the Board of Land and Natural Resources, the DEPARTMENT OF LAND AND NATURAL RESOURCES, Respondents/Defendants-Appellees/Cross-Appellees/ Cross-Appellants,
and
ALEXANDER & BALDWIN, INC., EAST MAUI IRRIGATION CO., LTD., and HAWAIIAN COMMERCIAL AND SUGAR CO., Respondents/Defendants-Appellants/Cross-Appellees,
COUNTY OF MAUI, DEPARTMENT OF WATER SUPPLY, Respondent/Defendant-Appellee/Cross-Appellant/Cross-Appellee. ________________________________________________________________
SCWC-XX-XXXXXXX
CERTIORARI TO THE INTERMEDIATE COURT OF APPEALS (CAAP-XX-XXXXXXX; 1CC151000650)
MARCH 3, 2022 *** FOR PUBLICATION IN WEST’S HAWAI‘I REPORTS AND PACIFIC REPORTER ***
RECKTENWALD, C.J., NAKAYAMA, McKENNA, AND WILSON, JJ.1
OPINION OF THE COURT BY WILSON, J.
Since 1986, the water rights for 33,000 acres of
ceded lands in the Koʻolau Forest Reserve and Hanawi Natural Area
Reserve have been governed by four revocable permits issued by
Respondent/Defendant-Appellant/Cross-Appellee/Cross-Appellant
the Board of Land and Natural Resources (“BLNR”) to for-profit
corporate entities, Respondents/Defendants-Appellants/Cross-
Appellees Alexander & Baldwin, Inc. (“A&B”) and East Maui
Irrigation Co., Ltd. (“EMI”). In this case, we consider whether
BLNR’s authorization of these four permits during the past
decade to divert more than 100 million gallons of water per day
from east Maui streams required an environmental assessment
(“EA”) pursuant to the Hawaiʻi Environmental Policy Act (“HEPA”),
Hawaiʻi Revised Statutes (“HRS”) chapter 343.
Given the significant environmental impact of the
permitted action, the BLNR’s authority to issue revocable
permits is subject to the environmental review requirements of
HEPA. The Intermediate Court of Appeals’ (“ICA”) July 31, 2019
judgment on appeal pursuant to its June 18, 2019 memorandum
opinion is therefore vacated, and this case is remanded to the
1 Associate Justice Richard W. Pollack, who was a member of the court when the oral argument was held, retired from the bench on June 30, 2020.
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Circuit Court of the First Circuit (“circuit court”) for
proceedings consistent with this opinion.
I. BACKGROUND
A. 2000 Issuance of Revocable Water Permits
In 1985, the BLNR approved the public-auction sale of
a thirty-year water license that would have consolidated four
license areas—the Honomanū license area, the Huelo license area,
the Keʻanae license area, and the Nāhiku license area
(collectively, the “license areas”)—spanning approximately
33,000 acres of ceded lands in the Koʻolau Forest Reserve and
Hanawi Natural Area Reserve under a single license.2 However,
issuance of the thirty-year license was suspended at the request
of the Department of the Attorney General pending the settlement
of a separate water case. Water rights for the license areas
came to be governed thereafter by annual revocable water permits
issued for each fiscal year.
2 The four license areas are “affected and partly governed by” the East Maui Water Agreement made in 1939 between the then—Territory of Hawaiʻi and EMI. That Agreement provided for “the joint use by the Territory and EMI of the aqueduct system” and “enabled the State to dispose of the water licenses at a public auction instead of restricting the sale only to EMI.” The aqueduct system runs through lands belonging to the government and to EMI.
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On May 26, 2000, the BLNR approved the issuance of
four annual revocable water permits to A&B and EMI,3 effective
July 1, 2000 and expiring on June 30, 2001. Each of the
permits—S-7263 (Honomanū), S-7264 (Huelo), S-7265 (Keʻanae), and
S-7266 (Nāhiku) (collectively, the “revocable permits”)—gave the
permittee4 the “[r]ight, privilege, and authority for the
development, diversion, and use of water” from the relevant
license area, “pursuant to the terms and conditions” in the
relevant expired general leases. These permits authorized EMI
to divert more than 100 million gallons of water per day from
east Maui streams for sugar-cane irrigation by Hawaiian
Commercial and Sugar Co. (“HC&S”), another subsidiary of A&B, in
central Maui. The permits also authorized the delivery of
approximately 8.6 million gallons of water per day from east
Maui streams to Maui County water treatment facilities that
provided the majority of water to a population of approximately
35,000 people in upcountry Maui. Each of the revocable permits
3 A&B is a for-profit corporation that was engaged at all relevant times primarily in real estate development in Hawaiʻi and sugar cultivation in central Maui, and EMI is a subsidiary of A&B.
4 For the 2000-01 fiscal year permits, A&B was the permittee for the Honomanū, Huelo, and Keʻanae license areas and EMI was the permittee for the Nāhiku license area.
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stated that they were issued pursuant to HRS § 171-58 (1993).5
The BLNR added, as a condition to the issuance of the revocable
permits, that the Department of the Attorney General issue an
opinion regarding compliance with HEPA as it related to these
leases.6
B. 2001 Long-Term Lease Application and Continuance of Revocable Permits
On May 14, 2001, A&B and EMI filed an application
requesting that the BLNR (1) consolidate the four license areas
5 HRS 171-58(c) (2011) provides:
Disposition of water rights may be made by lease at public auction as provided in this chapter or by permit for temporary use on a month-to-month basis under those conditions which will best serve the interests of the State and subject to a maximum term of one year and other restrictions under the law; provided that any disposition by lease shall be subject to disapproval by the legislature by two-thirds vote of either the senate or the house of representatives or by majority vote of both in any regular or special session next following the date of disposition; provided further that after a certain land or water use has been authorized by the board subsequent to public hearings and conservation district use application and environmental impact statement approvals, water used in nonpolluting ways, for nonconsumptive purposes because it is returned to the same stream or other body of water from which it was drawn, essentially not affecting the volume and quality of water or biota in the stream or other body of water, may also be leased by the board with the prior approval of the governor and the prior authorization of the legislature by concurrent resolution.
The text of the statute has remained unchanged since the BLNR first issued the revocable permits in 2000. 6 Petitioners allege this fact in their first amended complaint, and the State and A&B Defendants admit so in their answers. A May 25, 2001 report from the Department of Land and Natural Resources (“DLNR”) stated that, as of the BLNR’s May 26, 2000 meeting, “[t]he Attorney General ha[d] been reviewing the issues and w[ould] report on that review to the [BLNR].” There is no evidence in the record that such an opinion was ever issued by the Department of the Attorney General.
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under one thirty-year lease and sell the lease at public auction
and (2) authorize “temporary continuation” of the four revocable
permits pending issuance of the long-term lease (“proposed long-
term lease”). On May 23, 2001, Petitioner/Plaintiff-
Appellee/Cross-Appellee/Cross-Appellant Nā Moku Aupuni O Koʻolau
Hui (“Nā Moku”), a Native Hawaiian non-profit organization,
along with three Native Hawaiian individuals, petitioned the
BLNR, pursuant to HRS chapter 91, for a contested case hearing
on the proposed long-term lease for the license areas. The
contested case proceedings—which concerned the same activity as,
but do not form the basis for, this appeal—continued for nearly
six years. Those proceedings included an appeal to and remand
from the circuit court, as well as the publication of several
orders containing findings of fact and conclusions of law by the
BLNR.
1. 2001 “Holdover” of Revocable Permits
At a May 25, 2001 meeting, the BLNR considered an
agenda item titled “Discussion on Long-term Dispositions of
Water Licenses and Issuance of Interim Revocable Permits to
[A&B] and [EMI] for the [License Areas.]” The administrator of
the Land Division of the DLNR recommended that the BLNR
authorize the issuance of interim revocable permits to EMI and
A&B, and “explained that the long-term disposition process [was]
subject to discussion, that there [was] going to be a [HEPA]
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requirement, and that the applicant [would] be required to
prepare the necessary environmental documents.” An A&B
representative requested that the BLNR also approve the proposed
long-term lease it had requested in its May 14 letter to the
BLNR. However, a Deputy Attorney General “clarified that the
only matter before the [BLNR] for action [was] the issuance of
the 4 interim revocable permits” and that the proposed long-term
lease was “listed on the agenda for discussion only and [could
not] be acted on by the Board at [that] time.” A Nā Moku
representative testified that they would be petitioning for a
contested case hearing. The BLNR voted to defer action and
instead “grant a holdover permit on a month-to-month basis [to
EMI and A&B], pending the results of the contested case hearing”
(“2001 holdover decision”).
2. 2002 “Holdover” of Revocable Permits and Subsequent “Continuation” or “Renewal”
Nearly a year later, at the BLNR’s February 22, 2002
meeting, the BLNR indicated that it would review the rental
rates for the revocable permits. At the BLNR’s May 24, 2002
meeting, upon consideration of an agenda item titled
“Re-issuance of Interim Revocable Permits to [A&B] and [EMI] for
the [License Areas]” BLNR staff recommended that the BLNR
“authorize the re-issuance of permits for the subject waters in
the interim and pending the outcome of the contested case.” The
BLNR Chair stated that the BLNR’s intention was “to keep the
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status quo and that [the revocable permits] w[ere] brought back
to the Board because of questions raised about authority to
holdover permits beyond a year.” The BLNR again voted to “defer
and grant a holdover of the existing revocable permit on a
month-to-month basis pending the results of the contest [sic]
case hearing” (“2002 holdover decision”).7
After the BLNR’s 2002 holdover decision, the revocable
permits were annually “continued” by a process in which the BLNR
reviewed and voted to approve for continuation a “master
listing” of hundreds of revocable permits submitted by the DLNR.8
This process continued the revocable permits included on the
master listing on a month-to-month basis for a one-year period.
The DLNR’s submissions to the BLNR from 2002 to 2004 cite HRS §
171-55 (1993) as its authority for this annual review process.9
7 Documentation from the BLNR indicates that because the revocable permits were continued on a “holdover” basis, they did not appear on the December 2002 master listing. 8 The revocable permits were not subject to this annual review and continuation process in 2003 or 2004 and first appeared on the master listing submitted to the BLNR on November 18, 2005. In a declaration, the administrator of the Land Division of the DLNR stated that he put the revocable permits on the 2005 master listing “to be consistent with how all of the other revocable permits were being addressed by DLNR.”
9 HRS § 171-55 (2011) provides:
Notwithstanding any other law to the contrary, the board of land and natural resources may issue permits for the temporary occupancy of state lands or an interest therein on a month-to-month basis by direct negotiation without public auction, under conditions and rent which will serve the best interests of the State, subject, however, to those restrictions as may from time to time be expressly imposed by the board. A permit on a month-to-month basis may
(continued . . . )
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The revocable permits issued to A&B and EMI appeared on the
master listings dated November 18, 2005; October 27, 2006;
November 16, 2007; October 24, 2008; October 23, 2009; November
12, 2010; January 13, 2012; December 14, 2012; January 10, 2014;
and December 12, 2014.10
C. Circuit Court Proceedings11
In response to the BLNR’s December 12, 2014 decision
approving the continuation of the revocable permits (“2014
continuation decision”), on April 10, 2015, Petitioners/
Plaintiffs-Appellees/Cross-Appellees/Cross-Appellants Healoha
Carmichael, Lezley Jacintho, and Nā Moku (collectively,
“Petitioners”) filed a complaint for declaratory and injunctive
relief against the BLNR, its interim chair, Carty Chang,12 and
the DLNR (collectively, “the State Defendants”); A&B, EMI, and
(. . . continued)
continue for a period not to exceed one year from the date of its issuance; provided that the board may allow the permit to continue on a month-to-month basis for additional one year periods.
The text of the statute has remained unchanged since the DLNR first invoked it in 2002.
10 At its December 12, 2014 meeting, consistent with the DLNR’s recommendation, the BLNR again approved the continuation of the revocable permits included in the master listing. The DLNR notified A&B and EMI in letters dated December 29, 2014 that the revocable permits were continued “on a month-to-month basis for an additional year up to December 31, 2015.” 11 The Honorable Rhonda A. Nishimura presided.
12 Current BLNR Chair Suzanne Case was later substituted as a defendant for Carty Chang. See Hawaiʻi Rules of Civil Procedure Rule 25(d)(1) (2001).
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HC&S (collectively, “the A&B Defendants”); and the Maui County
Department of Water Supply (“the County”) in the circuit court.13
Petitioners alleged in their amended complaint that, under HRS
§ 343-5 (Supp. 2012),14 the “renewal of [the A&B Defendants’]
13 Petitioners’ amended complaint stated that the County was “only named as an interested party,” but in its answer, the County denied that it was only an interested party and argued that “[Petitioners]’ prayed [sic] for relief could have serious and widespread consequences on Defendant County and its citizens, and therefore, Defendant County has a heavy interest in the outcome of these proceedings.” 14 HRS § 343-5 provides, in relevant part:
(a) Except as otherwise provided, an environmental assessment shall be required for actions that:
(1) Propose the use of state or county lands or the use of state or county funds, other than funds to be used for feasibility or planning studies for possible future programs or projects that the agency has not approved, adopted or funded, or funds to be used for the acquisition of unimproved real property; provided that the agency shall consider environmental factors and available alternatives in its feasibility or planning studies; provided further that an environmental assessment for proposed uses under section 205-2(d)(11) or 205-4.5(a)(13) shall only be required pursuant to section 205-5(b);
. . . .
(c) For environmental assessment for which a finding of no significant impact is anticipated:
(1) A draft environmental assessment shall be made available for public review and comment for a period of thirty days; (2) The office shall inform the public of the availability of the draft environmental assessment for public review and comment pursuant to section 343-3;
(3) The agency shall respond in writing to comments received during the review and prepare a final environmental assessment to determine whether an environmental impact statement shall be required;
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revocable permit[s]” constituted applicant action proposing the
use of State land and, as such, required the preparation of an
EA pursuant to HEPA. Thus, Petitioners contended that HEPA was
violated (1) when the BLNR failed to order an EA before its 2014
continuation decision, and (2) when A&B and EMI continued to
divert water without preparing an EA.15 Petitioners asked the
circuit court to declare that HEPA had been violated, void the
revocable permits, order the completion of an EA, and enjoin
further diversion of water from the license areas, provided that
(4) A statement shall be required if the agency finds that the proposed action may have a significant effect on the environment; and
(5) The agency shall file notice of the determination of the office. When a conflict of interest may exist because the proposing agency and the agency making the determination are the same, the office may review the agency’s determination, consult the agency, and advise the agency of potential conflicts, to comply with this section. The office shall publish the final determination for the public’s information pursuant to section 343-3.
The draft and final statements, if required, shall be prepared by the agency and submitted to the office. The draft statement shall be made available for public review and comment through the office for a period of forty-five days. The office shall inform the public of the availability of the draft statement for public review and comment pursuant to section 343-3. The agency shall respond in writing to comments received during the review and prepare a final statement.
The office, when requested by the agency, may make a recommendation as to the acceptability of the final statement.
15 Petitioners asserted—and the A&B and State Defendants admitted in their respective answers to Petitioners’ amended complaint—that no EA has ever been completed in connection with the revocable permits.
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up to 8.4 million gallons per day could still be diverted to the
County for the public health, safety, and welfare of existing
customers served by East Maui surface-water diversions.
1. Petitioners’ Motion for Partial Summary Judgment and the A&B Defendants’ Cross-Motion for Partial Summary Judgment
On October 21, 2015, Petitioners filed a motion for
partial summary judgment (“MPSJ”) asking the circuit court to:
A. Declare that Defendants [A&B] and [EMI] violated HRS chapter 343.
B. Declare that the [State Defendants] violated HRS chap- ter 343.
C. Declare that [the revocable permits] are null and void.
D. Declare that Defendants [A&B] and [EMI] have no legal or statutory authority to continue using the land areas or diverting water covered by [the revocable permits].
E. Declare that [the State Defendants] have no legal or statutory basis to authorize Defendants A&B and EMI’s con- tinued use of land areas or diversion of water covered by [the revocable permits].
The A&B Defendants filed a cross-MPSJ, which was joined by the
State Defendants and the County. Opposing Petitioners’ MPSJ,
the A&B and State Defendants argued that the decision
authorizing the use of State lands occurred on May 26, 2000,
when the revocable permits were first issued, and that the
annual review process and continuation of the revocable permits
did not constitute “use of State land” or “applicant action” for
which an EA was required under HEPA. The A&B Defendants
contended, moreover, that Petitioners’ complaint and MPSJ,
actually constituted an untimely challenge to the 2002 holdover
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decision. Petitioners disputed that they were “relitigating the
2002 holdover[ decision]’s validity” and responded that the 2002
holdover decision “ha[d] no legal significance” and that the
BLNR’s 2014 continuation decision was “[t]he only relevant
decision” at issue.
2. Circuit Court’s Order
The circuit court granted Petitioners’ MPSJ. In a
minute-order decision, the circuit court found that the BLNR’s
2014 continuation decision was not HEPA “action” requiring an
EA, but held that the revocable permits were, nonetheless,
invalid because they exceeded the BLNR’s authority under HRS
chapter 171 to issue temporary permits:
At the outset, the December 2014 revocable permits are not “actions” subject to Chapter 343 environmental assessment requirements. The December 2014 revocable permits were not programs or projects INITIATED by DLNR, BLNR, or the De- fendants. Instead, the December 2014 revocable permits were of a continuing (preserving the status quo), temporary nature placing the occupancy of the lands in a holdover status. Nevertheless, both HRS §§ 171-40[16] and 171-55
16 HRS § 171-40 (2011) provides:
Upon expiration of the lease term, if the leased land is not otherwise disposed of, the board of land and natural resources may allow the lessee to continue to hold the land for a period not exceeding one year upon such rent, terms, and conditions as the board may prescribe; provided that if, immediately prior to the expiration of the lease, the land was cultivated with crops having ratoons for at least one cycle, as defined hereinafter, the board may permit the lessee to continue to hold the leased land until the crops from the last remaining cycle have been harvested. The term “cycle” as used in this section means the period required to plant and cultivate the original crop, including the harvesting of the first ratoon, being a period exceeding two years.
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speak to the “temporary” nature of the permits, notwith- standing affording the board discretion to continue the permit on a month-to-month basis for additional one year periods. Temporary is not statutorily defined under Chap- ter 171. Black’s Law Dictionary, 10th Edition, speaks to “temporary” as “lasting for a time only; existing or con- tinuing for a limited (usu. short) time; transitory.”
The revocable permits expired on June 30, 2001. The Decem- ber 2014 revocable permits which were either continued or renewed on a holdover status (uninterrupted for the last 13 years through December 2014) are not “temporary” as envi- sioned under Chapter 171. Otherwise, hold-over tenants could arguably be allowed to temporarily occupy “public lands”, almost in perpetuity for continuous, multiple one- year periods, which would not be in a manner consistent with the public interest or legislative intent. (e.g., fi- nite terms are set forth throughout Chapter 171, see HRS § 171-36, § 171-54, § 171-58.)
(Emphasis added.) The circuit court granted Petitioners’ MPSJ,
invalidated the revocable permits, and denied the A&B
Defendants’ cross-MPSJ. In its order, the circuit court
emphasized that the BLNR had exceeded its authority under HRS
chapter 171 to authorize temporary disposition of water rights
in holding over the revocable permits for over a decade:
[P]ursuant to HRS § 171-58(c), the BLNR authorized A&B’s use on a holdover basis. This holdover status has contin- ued uninterrupted for the last 13 years. HRS §§ 171-10[17] and 171-55 authorize the “temporary” occupation of public lands. A&B’s continuous uninterrupted use of these public lands on a holdover basis for the last 13 years is not the “temporary” use that HRS Chapter 171 envisions. See also
Upon expiration of the one-year extension, if the board has not yet decided upon the re-lease of the land or reservation for other purposes, the board may issue a temporary permit to the lessee, subject to section 171-55 and the rent and such other terms and conditions as the board may prescribe.
17 It appears that the circuit court mistakenly wrote “HRS § 171-10” when it meant to write “HRS § 171-40,” as it did in its minute order. HRS § 171-10 (2011) does not authorize temporary occupations of public lands; it sets out the classifications of public lands used by the BLNR.
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Black’s Law Dictionary, 10th edition. Otherwise, holdover tenants could arguably be allowed to occupy public lands almost in perpetuity for continuous, multiple one-year pe- riods. Such a prospect is inconsistent with the public in- terest and legislative intent.
(Emphasis added.)
D. ICA Proceedings
The A&B Defendants, the State Defendants, the County,
and Petitioners all appealed the circuit court’s order.
Petitioners argued that the circuit court erred by holding that
the BLNR’s 2014 continuation decision did not constitute
“action” subject to a mandatory EA under HEPA. HRS § 343-
5(a)(1). However, Petitioners asserted that the circuit court
did not err in granting their MPSJ, that a correct decision
should not be disturbed on the grounds of incorrect reasoning,
and that they filed their cross-appeal “in an abundance of
caution.” The A&B Defendants argued that the circuit court
erred by: (1) granting Petitioners’ MPSJ despite its finding
that the BLNR’s 2014 continuation decision was not “action”
subject to HEPA’s EA requirement; and (2) granting Petitioners’
MPSJ when genuine issues of material fact existed as to whether
the BLNR’s 2014 continuation decision constituted “action”
within the meaning of HRS § 343-5(a)(1).18
18 The A&B Defendants also argued that the circuit court erred by: invalidating the revocable permits based on the BLNR’s authority (or lack thereof) under HRS chapter 171, when the only basis for relief asserted by Petitioners was under HEPA, and invalidating the revocable permits when the BLNR had the authority to issue such permits under the public trust doctrine. The County and State Defendants advanced similar arguments on cross-appeal.
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On June 18, 2019, the ICA filed a memorandum opinion
vacating the circuit court’s order and remanding the case for
further proceedings. The ICA found that although HRS § 171-58
did not give the BLNR authority to extend the revocable permits
past one year of their issuance (i.e., past July 1, 2001), HRS
§ 171-55 authorized the BLNR to place the revocable permits in
holdover status so long as the revocable permits were
“temporary” and “serve[d] the best interests of the State.” The
ICA reasoned that the BLNR had authority under HRS § 171-55,
“[n]otwithstanding any other law to the contrary” —that is,
notwithstanding HRS § 171-58’s limitation of temporary permits
to a “maximum term of one year.” The ICA found there were
genuine issues of material fact as to whether the BLNR’s 2014
continuance decision (1) was “temporary” or “de facto
indefinite,” and (2) “serve[d] the best interests of the State”
under HRS § 171-55, and held that the circuit court erred by
granting Petitioners’ MPSJ.
The ICA found “no merit” to the Defendants’ arguments that they were not on notice as to the issue of an HRS chapter 171 violation, and construed the HRS chapter 171 issue as if it had been raised in the pleadings, holding that it was “tried by implied consent.” The ICA noted that the A&B and State Defendants had argued in their opposition memoranda to Petitioners’ MPSJ that the ongoing validity of the revocable permits came not from the BLNR’s 2014 continuation decision, but “instead derived from a continuance of the [2002] holdover status,” which was authorized under HRS chapter 171.
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Finally, the ICA found that HRS § 171-55’s
“notwithstanding” clause “nullified” HEPA’s EA requirement for
temporary permits issued under HRS § 171-55, and held that the
circuit court did not err in finding HEPA inapplicable, even
though it used different reasoning. The ICA concluded that the
purpose of HRS § 171-55 is to allow the BLNR to issue temporary
permits to an applicant pursuing a long-term lease and that the
BLNR’s 2014 continuation decision was not subject to HEPA’s EA
and Environmental Impact Statement (“EIS”) requirements.
E. Supreme Court Proceedings
On certiorari, Petitioners contend that the primary
question is “what lawful authority, if any, BLNR acted under
when it placed the challenged revocable permits in holdover
status and thereafter continued to maintain them in holdover
status for over a decade,” and urge us to conclude that the BLNR
acted with no lawful authority.19 Petitioners present five
questions:
1. Does HRS chapter 343 apply to BLNR’s decision to con- tinuously renew revocable permits authorizing the daily use of public lands to divert millions of gallons of water on a holdover basis for over a decade and counting?
2. Does HRS § 171-55 allow for the renewal of revocable permits for the use of state land and water in- definitely despite the maximum term of one year prescribed by HRS § 171-58 for the disposition of water rights specif- ically?
19 The Sierra Club, Maui Tomorrow, and Mahi Pono LLC filed amicus curiae briefs in support of Petitioners.
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3. Did the Circuit Court err by refusing to grant summary judgment to Petitioners on the grounds set forth in counts 1 and 2 of their First Amended Complaint?
4. Did the ICA err by concluding HRS § 171-55’s “notwith- standing any other law to the contrary” language nullifies (a) the maximum term of one year prescribed by HRS § 171-58 for “temporary” revocable permits and (b) HRS chapter 343 EA and environmental impact statement (EIS) requirements for “temporary” revocable permits where such interpreta- tions conflict with well-settled case law, are unsupported by the legislative history, and run contrary to the plain meaning of the statutes?
5. Did the ICA err by refusing to rule that BLNR’s deci- sion to renew the Revocable Permits on a holdover basis vi- olated HRS chapter 171-55 as a matter of law due to BLNR’s failure to make findings that the permits are “temporary” and serve the “best interests of the State”?
Petitioners argue that the ICA erred by ignoring rules of
statutory construction, which led to an incorrect interpretation
of HRS § 171-55 and the erroneous conclusion that HRS § 171-55’s
“notwithstanding” clause implicitly exempts temporary revocable
permits from compliance with (1) HEPA’s EA requirement and (2)
HRS § 171-58’s one-year limit on revocable permits. Petitioners
also argue that the ICA erred by upholding the revocable permits
when the BLNR had not made explicit findings pursuant to HRS
§ 171-55 that “the permit holder’s occupancy [was] temporary”
and that the permit was issued “under conditions and rent which
will serve the best interests of the State.”
The State Defendants assert that both HRS § 171-55 and
the public trust doctrine supported the BLNR’s 2014 continuance
decision. The State Defendants argue that HRS § 171-55 (1) is
the applicable statute in this case, and (2) does not conflict
with HRS § 171-58, which is not applicable to the disposition of
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water rights during the pendency of a contested case. The State
Defendants claim that HRS § 171-55’s “notwithstanding” clause
applies not only to the public auction requirement, but to any
contrary law, including HEPA’s EA requirement. Finally, the
State Defendants contend that Petitioners’ argument that the
revocable permits are invalid is moot because the permits,
continued in 2014 for the year 2015, have long since expired
“and it would be pointless to re-examine the basis for
continuance.”
The A&B Defendants add that Petitioners no longer have
an adverse interest in the case, rendering their claims moot.
The A&B Defendants claim “things have materially changed” since
Petitioners initiated this case, namely, that: sugar
cultivation has ceased, decreasing the water diverted subject to
the revocable permits to a fraction of what it was before; the
Commission on Water Resource Management (“CWRM”) has set interim
instream flow standards, ensuring that Petitioners have
sufficient water to support their customary and traditional
practices; a draft EIS (“DEIS”) relating to the long-term lease
has been published; and the BLNR has capped the diversions
allowed under the revocable permits to 45 million gallons of
water a day for 2020. The A&B Defendants also contend that, as
a consequence of the CWRM’s actions and the publication of the
DEIS, Petitioners no longer have an “effective remedy.” They
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argue further that this case does not fall under the exception
to the mootness doctrine for cases that are capable of
repetition yet evading review because the BLNR has approved the
continuation of the revocable permits for 2020 and a long-term
lease is anticipated to be issued shortly thereafter, meaning
that the revocable permits “will not be needed much longer.”
The County adds that Petitioners’ interpretation of
HRS § 171-55 would lead to absurd results: a “regulatory morass
[that] would apply to hundreds of [revocable] permits” that
would require the BLNR to perform independent environmental
reviews for each revocable permit in every case where there is a
pending long-term lease. The County contends that this
regulatory burden would prevent the BLNR from authorizing the
use of State land and, more importantly, water “that is
necessary to the health, safety and welfare of 35,000 residents
in upcountry Maui.”
II. STANDARDS OF REVIEW
A. Summary Judgment On appeal, the grant or denial of summary judgment is re- viewed de novo. Summary judgment is appropriate if the pleadings, depositions, answers to interrogatories, and ad- missions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a mat- ter of law.
Villaver v. Sylva, 145 Hawaiʻi 29, 34, 445 P.3d 701, 706 (2019)
(internal quotation marks, citations, and brackets removed)
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(quoting Nu‘uanu Valley Ass’n v. City & Cnty. of Honolulu, 119
Hawai‘i 90, 96, 194 P.3d 531, 537 (2008)).
B. Statutory Interpretation
“Statutory interpretation is a question of law
reviewable de novo.” State v. Wheeler, 121 Hawaiʻi 383, 390, 219
P.3d 1170, 1177 (2009) (internal quotation marks omitted)
(quoting Citizens Against Reckless Dev. v. Zoning Bd. of
Appeals, 114 Hawai‘i 184, 193, 159 P.3d 143, 152 (2007)). This
court’s construction of statutes is guided by the following:
First, the fundamental starting point for statutory interpretation is the language of the statute itself. Second, where the statutory language is plain and unambiguous, our sole duty is to give effect to its plain and obvious meaning. Third, implicit in the task of statutory construction is our foremost obligation to ascertain and give effect to the intention of the legislature, which is to be obtained primarily from the language contained in the statute itself. Fourth, when there is doubt, doubleness of meaning, or indistinctiveness or uncertainty of an expression used in a statute, an ambiguity exists.
Id. When there is ambiguity in a statute, “the meaning of the
ambiguous words may be sought by examining the context, with
which the ambiguous words, phrases, and sentences may be
compared, in order to ascertain their true meaning.” Id. A
court may also resort to extrinsic aids in determining
legislative intent, such as legislative history or the reason
and spirit of the law. Id.
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C. Constitutional Law
“Questions of constitutional law are reviewed de novo,
under the right/wrong standard.” In re Gas Co., 147 Hawai‘i 186,
198, 465 P.3d 633, 645 (2020).
III. DISCUSSION
A. The Public Interest Exception to the Mootness Doctrine Applies to Petitioners’ Appeal
Defendants contend that Petitioners’ appeal is moot
because: the revocable permits continued by the BLNR in December
2014 have “long expired”; changed circumstances have eliminated
Petitioners’ adverse interest; and A&B published a DEIS in
September 2019, which precludes this court from ordering an
effective remedy. Defendants also contend that the exception
from the mootness doctrine for cases that are capable of
repetition yet evading review does not apply. Though Defendants
are correct that the continuance granted by the BLNR in 2014 has
expired and A&B has published a DEIS, Petitioners’ appeal
qualifies under the “capable of repetition, yet evading review”
and public interest exceptions to the mootness doctrine.
Under the mootness doctrine, this court will generally
refrain from deciding a case that has “lost its character as a
present, live controversy,” and in which “the reviewing court
can no longer grant effective relief.” In re Marn Family, 141
Hawaiʻi 1, 7, 403 P.3d 621, 627 (2016) (quoting Cnty. of Haw. v.
Ala Loop Homeowners, 123 Hawaiʻi 391, 405, 235 P.3d 1103, 1117
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(2010), abrogated on other grounds by Tax Found. of Haw. v.
State, 144 Hawaiʻi 175, 439 P.3d 127 (2019)). “However, this
court has explicitly recognized two exceptions to the mootness
doctrine: (1) the ‘capable of repetition, yet evading review’
exception . . . and (2) the public interest exception.”
Hamilton ex rel. Lethem v. Lethem, 119 Hawaiʻi 1, 5, 193 P.3d
839, 843 (2008).20
The “capable of repetition, yet evading review”
exception provides that “a court will not dismiss a case on the
grounds of mootness where a challenged governmental action would
evade full review because the passage of time would prevent any
single plaintiff from remaining subject to the restriction
complained of for the period necessary to complete the lawsuit.”
Id. (quoting In re Thomas, 73 Haw. 223, 226-27, 832 P.2d 253,
255 (1992)). Although this case is moot because the 2014
continuation decision—which extended the revocable permits
through 2015—has long since expired, the “capable of repetition”
exception applies. Because the BLNR’s continuation decisions
for revocable permits apply for only one calendar year at a
time, those decisions “evade full review” and no plaintiff would
be able to complete a lawsuit seeking to void the continuation
20 Although these two exceptions have sometimes been treated as though they were the same, we have more recently clarified that they are “separate and distinct.” Kahoʻohanohano v. State, 114 Hawaiʻi 302, 333 n.23, 162 P.2d 696, 727 n.23 (2007).
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of a permit before the continuation itself expired. Id. Thus,
this case satisfies the requirements for the “capable of
repetition” exception to the mootness doctrine.
The second exception, the public interest exception,
is broader than the “capable of repetition” exception; it
overcomes Defendants’ contention that because the 2014
continuation decision has expired and a DEIS has been published,
Petitioners no longer have an adverse interest or an effective
remedy. In determining whether the public interest exception
applies, this court considers “(1) the public or private nature
of the question presented, (2) the desirability of an
authoritative determination for future guidance of public
officers, and (3) the likelihood of future recurrence of the
question.” Kaleikini v. Thielen, 124 Hawaiʻi 1, 12–13, 237 P.3d
1067, 1078–79 (2010) (quoting Hamilton, 119 Hawaiʻi at 6–7, 193
P.3d at 844–45). In this case, all three factors weigh in favor
of applying the public interest exception.
The first factor considers whether the questions
presented by the case are “personal to” the parties and “of a
private nature,” or if they implicate broader “political and
legislative issues that affect a significant number of Hawaiʻi
residents.” Hamilton, 119 Hawaiʻi at 7, 193 P.3d at 845. Here,
although “the underlying proceedings are, at bottom, a private
battle” between different users of water, Doe v. Doe, 116 Hawaiʻi
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323, 327, 193 P.3d, 1067, 1071 (2007), the disposition of the
water rights at issue directly affects a broad swath of the Maui
community and these proceedings have required the involvement
and input of numerous State agencies. Thus, the first factor
weighs in favor of applying the public interest exception.
As to the second factor, this court’s analysis in the
present case will provide necessary guidance to public officers
in the future. The record indicates that the BLNR continues
hundreds of revocable permits yearly. Given this practice,
clarification of the BLNR’s authority to issue revocable permits
under HRS § 171-58 and to continue such permits under HRS § 171-
55 would be of significant value to the BLNR and DLNR officials
who oversee the administration of the revocable-permit system.
Clarifying whether the BLNR is or is not required to conduct (or
order applicants like the A&B Defendants to conduct)21 EAs and/or
EIS’s under HEPA when continuing revocable permits would also be
of value to these officials. Thus, the second factor weighs in
favor of applying the public interest exception.
21 The A&B Defendants contend that this court cannot order effective relief because A&B has already prepared and published a DEIS. As Petitioners note, the DEIS was published in 2019 and is not part of the record on appeal. Moreover, the scope of this case is not limited to the A&B Defendants’ unilateral decision to prepare an EIS; a core issue focuses on whether the BLNR was (1) authorized to continue the revocable permits under HRS chapter 171 and (2) required to conduct or order the permit applicants to conduct EAs and/or EIS’s under HEPA. Thus, the fact that a DEIS has been published does not render Petitioners’ appeal moot.
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Finally, as to the third factor, which considers
whether the issue will recur in the future, there is a strong
likelihood that the question of whether it is permissible for an
agency to continue revocable permits will recur. As noted
above, the BLNR continues hundreds of revocable permits every
year. Disputes over the use of land and State resources are
frequent in Hawaiʻi, and given the ubiquity of these revocable
permits, disputes over revocable permits are likely to arise in
the future. See Ala Loop Homeowners, 123 Hawaiʻi at 405-06, 235
P.3d at 1117-18 (noting the “volume of land development activity
in the State” in the context of individual enforcement actions
concerning the Land Use Commission). In other words,
“[r]esolution of the issue may affect similarly situated parties
who in the future seek to assert their right[s] . . . in
proceedings before agencies and other governmental bodies.” In
re Maui Elec. Co., 141 Hawaiʻi 249, 257, 408 P.3d 1, 9 (2017).
Thus, the third factor weighs in favor of applying the public
interest exception.
Given that all three factors weigh in favor of
applying the public interest exception, Petitioners’ appeal is
not barred by the mootness doctrine.
B. Statutory and Constitutional Authority for the 2014 Continuation Decision
The ICA found that although the BLNR’s 2014
continuation decision was not authorized by HRS § 171-58, which
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limits the disposition of water rights by temporary permit to a
maximum term of one year,22 it was potentially authorized by HRS
§ 171-55, which allows the BLNR to continue revocable permits on
a month-to-month basis for successive one-year periods.23 HRS
§ 171-58 expressly limits the temporary disposition of water
rights to a maximum term of one year; thus, the ICA was correct
in finding that the BLNR’s 2014 continuation decision was not
authorized under HRS § 171-58. Next, the ICA held that although
HRS § 171-55 potentially authorized the BLNR in 2014 to place
the revocable permits in holdover status for a year, there were
genuine issues of material fact as to whether the BLNR’s
indefinite,” and (2) “serve[d] the best interests of the State,”
such that it was inappropriate to dispose of this case at the
summary judgment stage.
The ICA erred by ruling on the basis of perceived
issues of material fact. HRS § 171-55 did not authorize the
BLNR’s 2014 continuation decision because the BLNR did not make
22 HRS 171-58(c) states, in relevant part, that “[d]isposition of water rights may be made by lease at public auction as provided in this chapter or by permit for temporary use on a month-to-month basis under those conditions which will best serve the interests of the State and subject to a maximum term of one year and other restrictions under the law.” (Emphasis added.)
23 HRS § 171-55 states, in relevant part, that “[a] permit on a month-to-month basis may continue for a period not to exceed one year from the date of its issuance; provided that the board may allow the permit to continue on a month-to-month basis for additional one year periods.” (Emphasis added.)
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factual findings or enter conclusions of law positing that it
was serving the State’s best interests. As a trustee of the
public trust, the BLNR failed to demonstrate that it properly
exercised the discretion vested in it by the constitution and
the statute.
1. HRS § 171-58 limits temporary disposition of water rights to a maximum of a year and did not authorize the BLNR to continue the revocable permits in 2014.
As an initial matter, HRS § 171-58 titled,—“Minerals
and water rights”—is applicable to the instant case. As the ICA
noted, the revocable permits themselves stated that they were
originally issued “pursuant to [HRS] section 171-58.” Since the
BLNR would have no authority to make continuation decisions
without valid revocable permits in the first place, the ICA did
not err by considering whether the BLNR’s actions subsequent to
the issuance of the revocable permits were authorized under HRS
§ 171-58.
As the ICA concluded, HRS § 171-58 conferred authority
on the BLNR to issue one-year revocable permits, but did not
authorize the BLNR to extend the revocable permits past one year
of their issuance, that is, past July 1, 2001. As noted above,
HRS § 171-58 limits temporary permits for water rights to a term
of one year:
Disposition of water rights may be made by lease at public auction as provided in this chapter or by permit for temporary use on a month-to-month basis under those conditions which will best serve the interests of the State
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and subject to a maximum term of one year and other restrictions under the law[.]
HRS § 171-58(c) (emphasis added). The “fundamental starting
point for statutory interpretation is the language of the
statute itself” and “where the statutory language is plain and
unambiguous, our sole duty is to give effect to its plain and
obvious meaning.” Wheeler, 121 Hawaiʻi at 390, 219 P.3d at 1177
(quoting Citizens Against Reckless Dev., 114 Hawaiʻi at 193, 159
P.3d at 152). The language of HRS § 171-58 plainly and
unambiguously limits temporary revocable permits to “a maximum
term of one year” with no exceptions or conditions within § 171-
58 that would allow the BLNR to extend a permit beyond that
maximum term.
Moreover, HRS § 171-58 should be read in contrast
with HRS § 171-55. See Wells Fargo Bank, N.A. v. Omiya, 142
Hawai‘i 439, 450, 420 P.3d 370, 381 (2018) (citing the canon of
construction that laws in pari materia, or on the same subject
matter, may be considered together). Significantly, HRS § 171-
55 provides that a permit issued under that section “may
continue for a period not to exceed one year from the date of
its issuance; provided that the board may allow the permit to
continue on a month-to-month basis for additional one year
periods.” (Emphasis added.) By contrast, HRS § 171-58 omits
this and any similar language, bolstering the conclusion that
permits issued under its authority may not be renewed for
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additional one-year periods. Read together, it is clear that
the former statute authorizes permits to be renewed for multiple
one-year periods while the latter does not.
Thus, the ICA did not err in finding that the BLNR was
not authorized under HRS § 171-58 to continue the revocable
permits in 2014.
2. HRS § 171-55 did not authorize the BLNR’s 2014 continuation decision because the BLNR did not demonstrate that the revocable permits served the best interests of the State.
Defendants contend that the BLNR’s 2014 continuation
decision was authorized under HRS § 171-55.
HRS § 171-55 states:
Notwithstanding any other law to the contrary, the board of land and natural resources may issue permits for the temporary occupancy of state lands or an interest therein on a month-to-month basis by direct negotiation without public auction, under conditions and rent which will serve the best interests of the State, subject, however, to those restrictions as may from time to time be expressly imposed by the board. A permit on a month-to-month basis may con- tinue for a period not to exceed one year from the date of its issuance; provided that the board may allow the permit to continue on a month-to-month basis for additional one year periods.
The ICA agreed that the BLNR had authority under HRS
§ 171-55 to continue the revocable permits in 2014, so long as
the continuation of the revocable permits was “temporary” and
“serve[d] the best interests of the State.” HRS § 171-55.
However, the ICA concluded that there were genuine issues of
material fact as to whether the BLNR’s 2014 continuation
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decision (1) was “temporary” or “de facto indefinite,” and
(2) “serve[d] the best interests of the State” under HRS § 171-
55.
While the ICA correctly held that HRS § 171-55
potentially authorized the BLNR to continue the revocable
permits,24 the ICA erred by ruling on the basis of perceived
issues of fact. First, the permits were “temporary” within the
meaning of the statute. Second, the BLNR failed to demonstrate
that the 2014 continuation of the revocable permits “serve[d]
the best interests of the State.” HRS § 171-55. Because the
BLNR did not make factual findings or enter conclusions of law
positing that the permits served the State’s best interests, the
BLNR failed to demonstrate that it properly exercised the
discretion vested in it by the constitution and the statute.
a. The revocable permits were temporary within the meaning of HRS § 171-55.
Unlike the ICA, which found there to be genuine
factual questions related to whether the permits were temporary,
the circuit court held that the revocable permits,
“uninterrupted for the last 13 years” and continued by the
BLNR’s 2014 decision, were not “‘temporary’ as envisioned under
24 This holds true notwithstanding that there is a more specific statute, HRS § 171-58, that deals with water rights. HRS § 171-55 authorizes dispositions of “state lands or an interest therein.” In turn, HRS § 171-1 (2011) defines “land” to include “all interests therein . . . including water.” Thus, HRS § 171-55’s reference to “lands” also authorizes the BLNR to dispose of water rights.
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Chapter 171.” (Citing Temporary, Black’s Law Dictionary (10th
ed. 2014) (defining “temporary” as “lasting for a time only;
existing or continuing for a limited [] time; transitory”).)
The circuit court reasoned that if the revocable permits were
“temporary,” then “holdover tenants could arguably be allowed to
occupy public lands almost in perpetuity for continuous,
multiple one-year periods,” which would be “inconsistent with
the public interest and legislative intent.”
The term “temporary” must be read in the context of
the entirety of HRS § 171-55, which expressly allows a permit to
be continued “for a period not to exceed one year from the date
of its issuance; provided that the board may allow the permit to
periods.” HRS § 171-55. “Temporary,” as used in HRS § 171-55,
is used to distinguish revocable permits from long-term leases;
it refers to the month-to-month nature of revocable permits and
that such permits may last without additional approval for only
one year. The term “temporary” does not, however, prohibit
annual renewal of permits. In fact, HRS § 171-55 explicitly
authorizes the BLNR to continue revocable permits for
“additional one year periods.” Thus, the BLNR’s 2014
continuation decision was not precluded by HRS § 171-55’s use of
the term “temporary.”
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b. The BLNR did not sufficiently demonstrate that the 2014 continuation decision served the best interests of the State.
The BLNR’s authority to make the 2014 continuation
decision was, however, limited by HRS § 171-55’s mandate that
the issuance or continuance of a revocable permit “serve the
best interests of the State.” The BLNR did not make factual
findings or enter conclusions of law positing that it was
serving the State’s best interests when it made its 2014
continuation decision that wholesale continued the revocable
permits along with more than 300 other permits. Thus, the 2014
continuation decision was not authorized by HRS § 171-55 because
the BLNR did not sufficiently demonstrate that it considered the
“best interests of the State” as required by the statute and the
BLNR’s obligation as a public trustee.
As an initial matter, what constitutes “the best
interests of the State” is not explained by the statute.
However, particularly when appraising the legislative history of
HRS chapter 171 as a whole, it is clear that the BLNR’s power to
issue and continue revocable permits under HRS § 171-55 was
intended to be narrowly exercised.
Many of the provisions currently codified in HRS
chapter 171 that govern the management and disposition of public
lands were enacted in a 1962 omnibus public-lands bill, Act 32.
Act 32 was an urgency measure passed to provide “a set of laws
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for the management and disposition of our public lands in
accordance with present day needs.” 1962 Haw. Sess. Laws Act
32, § 1 at 95. Act 32 contained numerous provisions emphasizing
that the public-auction process would be the predominant means
by which state lands would be leased. For example, Revised Laws
of Hawaiʻi (“RLH”) § 103A-14, titled, “Auction,” provided that
“[e]xcept as otherwise specifically provided, all dispositions
of public lands shall be made at public auction after public
notice as provided in section 16 of this chapter.”25 1962 Haw.
Sess. Laws Act 32, § 2 at 101 (emphasis added). Similarly, RLH
§ 103A-32, titled, “Policy,” stipulated that “[u]nless otherwise
specifically authorized in this chapter or by subsequent
legislative acts, all dispositions shall be by lease only,
disposed of by public auction in accordance with the procedure
set forth in sections 14 and 15 of this chapter.”26 1962 Haw.
Sess. Laws Act 32, § 2 at 109 (emphasis added). These
provisions evinced a strong legislative preference for public
auction.27 A 1962 standing committee report further explained
25 RLH § 103A-14 is now codified as HRS § 171-14 (2011) and has remained substantively unchanged since its enactment. 26 RLH § 103A-32 is now codified as HRS § 171-32 (2011) and has remained substantively unchanged since its enactment.
27 In circumstances where disposition by public auction is not possible or appropriate (for example, the issuance of land licenses), the replacement disposition process must serve the public interest. See HRS § 171-54 (“The board of land and natural resources may issue land licenses affecting public lands for a period not exceeding twenty years. No land
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that non-public-auction sales were to be permitted only in cases
of “overriding public interest” and that lease negotiations were
appropriate only “in certain limited situations”:
Your Committee believes that this bill, as amended, incorporates a sound policy for the administration, management, and disposition of the public lands of the State. Every consideration has been given throughout the bill, particularly in the disposition sections, to adequately preserve the assets of the State by authorizing only leases disposable only by public auction, except where an overriding public interest necessitates the disposition by sales in fee simple or by leases without public auction. These overriding considerations are seen in the need for houselots, for small personally occupied farm, dairy and pasture lots, and in cases of natural disasters. Due regard was also given that in certain limited situations, negotiations for leases should be permitted.
H. Stand. Comm. Rep. No. 240, in 1962 House Journal, at 356
(emphasis added). The standing committee report also reflects
the legislature’s original intent that the disposition of State
land by non-public-auction lease would be limited to a narrow
set of circumstances, such as “houselots, . . . small personally
occupied farm, dairy and pasture lots, and . . . natural
disasters.” Id.
The legislative history of HRS § 171-55 also reveals
the legislature’s efforts to constrain the use of revocable
permits by requiring annual review. HRS § 171-55 has remained
license shall be disposed of except at public auction as provided in this chapter; provided that the board may . . . dispose of a land license by negotiation, without recourse to public auction, if it determines that the public interest will best be served thereby. The disposition of a land license by negotiation shall be upon such terms and conditions as the board determines shall best serve the public interest.” (emphasis added)).
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relatively unchanged, substantively, since it was first enacted
in 1962 as RLH § 103A-52, a provision of Act 32.28 In 1967, the
legislature amended the second sentence of RLH § 103A-52 to
clarify that while annual continuations of a revocable permit
were permitted, the BLNR would have to approve each continuation
annually:29
Section 103A-52 is amended to require that at the end of each year during a continuance of a permit, the board must give its approval before a permit may be continued. It is intended that a permit on a month to month basis shall be for a duration of one year unless extended by the board. At the end of each year, if the permit on a month to month basis is extended for another year, the board approval must be had. Certain language clarity was necessary inasmuch as existing law does not expressly state that a periodic annu-
28 As originally enacted, RLH § 103A-52 stated:
The board may issue permits for the temporary occupancy of State lands or interest therein on a month-to-month basis under such conditions which will serve the best interests of the State, subject, however, to such restrictions as may from time to time be expressly provided by law. Where such permit on a month-to-month basis extends for a period beyond one year from the date of issuance, any renewal of the permit beyond such one year period shall be only upon approval of the board.
1962 Haw. Sess. Laws Act 32, § 2 at 116.
29 The second sentence of RLH § 103A-52 originally read:
Where such permit on a month-to-month basis extends for a period beyond one year from the date of issuance, any renewal of the permit beyond such one year period shall be only upon approval of the board.
1962 Haw. Sess. Laws Act 32, § 2 at 116. The above sentence was deleted and replaced with the following:
Such permit on a month to month basis may continue for a period not to exceed one year from the date of its issu- ance; provided, that the board may allow such permit to continue on a month to month basis for additional one year periods.
1967 Haw. Sess. Laws Act 234, § 11 at 355 (emphasis added).
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al review is required but may be construed to mean that on- ly one initial review is necessary after the first one year period.
H. Stand. Comm. Rep. No. 522, in 1967 House Journal, at 670
(emphasis added). In 1990, the legislature amended HRS § 171-55
to include its current language by adding, in relevant part, the
“[n]otwithstanding any other law to the contrary” clause and
language stating that the BLNR could issue temporary permits “by
direct negotiation and without public auction.” 1990 Haw. Sess.
Laws Act 90, § 1 at 165-66. The legislative history indicates
that this amendment was intended to make “absolutely clear” that
the BLNR had the ability to approve permits without public
auction. S. Stand. Comm. Rep. No. 2988, in 1990 Senate Journal,
at 1218.
Thus, the legislative history of HRS chapter 171 and
HRS § 171-55 demonstrates the legislature’s intent that
temporary permits without public auction should be issued only
in cases of “overriding public interest” and subject to annual
review by the BLNR. While attempts were made by the legislature
to clarify that the BLNR had the authority in certain situations
to issue temporary permits without public auction, nothing in
the legislative history indicates that temporary permitting
could or should be used as a long-term substitute for the
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public-auction process.30 In the present case, the BLNR
continued the revocable permits for more than ten years31—using a
sweeping process that applied to hundreds of other permits—
without scrutiny and without an adequate explanation as to why a
continuance served the best interests of the State.
Because the BLNR did not make any findings of fact or
conclusions of law demonstrating that the revocable permits
“serve[d] the best interests of the State,” the BLNR did not
comply with HRS § 171-55 or its public trust obligations. “The
Hawai‘i Constitution adopts the public trust doctrine as a
fundamental principle of constitutional law.” Kauai Springs,
Inc. v. Plan. Comm’n of Kauai, 133 Hawai‘i 141, 171, 324 P.3d
951, 981 (2014) (cleaned up). The public trust encompasses all
the water resources in the state, and it requires that state
agencies “must take the initiative in considering, protecting,
and advancing public rights in the resource at every stage of
the planning and decision-making process.” Id. at 172-73, 324
P.3d at 982-83. In particular, where an agency performs as a
30 There is evidence that at least one legislator, the chair of the House Committee on Lands, expressly disapproved of using temporary permitting as a matter-of-course alternative for leases sold at public auction: before Act 32 was passed, during floor debate of the bill, he posited that one of the goals of Act 32 “was to get the State out of the business of having so many revokable [sic] permits for ten and twelve years.” 1962 House Journal, at 210 (exchange between Representatives Milligan and McClung).
31 This does not include the 2001 and 2002 holdover decisions, but counts from the first continuation decision, made in 2005, when the revocable permits were included on the annual master listings of permits.
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trustee, it is “duty bound to demonstrate that it has properly
exercised the discretion vested in it by the constitution and
the statute.” Id. at 173-74, 324 P.3d at 983-84 (emphasis
added) (quoting In re Water Use Permit Applications, 94 Hawai‘i
97, 158, 9 P.3d 409, 470 (2000)).
In this case, the 2014 continuation decision was not
authorized by HRS § 171-55 because the BLNR did not make any
findings of fact or conclusions of law.32 The BLNR failed to
demonstrate that it properly exercised the discretion vested in
it by the constitution and the statute.33
In sum, the BLNR’s failure to make findings here was
particularly troubling in light of the magnitude of the water
diversions authorized and the BLNR’s role as a public trustee of
the State’s water resources. While we do not fully set out the
scope of the BLNR’s duty to make the requisite findings, we note
that the duty may vary in conjunction with the resources
implicated. At minimum, the BLNR must make findings “sufficient
32 The A&B Defendants’ role under the revocable permits in delivering water “for residential domestic use, businesses, government institutions, schools, churches, farms, non-profits, fire prevention, and Hawaiian Homelands homesteads in Upcountry Maui” is worth noting.
33 We find no merit in the A&B and State Defendants’ argument that the BLNR’s 2014 continuation decision was issued in accordance with the public trust doctrine. As this court has held—and as the BLNR recognized in a 2007 order issued in the contested case proceedings—“private commercial use” is not “a protected ‘trust purpose.’” In re Water Use Permit Applications, 94 Hawaiʻi at 138, 9 P.3d at 450. Thus, the fact that some of the water would be used for public purposes does not necessarily justify the continued use of the remaining water for commercial purposes.
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to enable an appellate court to track the steps that the agency
took in reaching its decision.” Kauai Springs, 133 Hawai‘i at
173, 324 P.3d at 983 (citing Kilauea Neighborhood Ass’n v. Land
Use Comm’n, 7 Haw. App. 227, 230, 751 P.2d 1031, 1034 (1988)).
C. Applicability of HEPA to the Revocable Permits
1. HRS § 171-55’s “notwithstanding” clause does not nullify HEPA’s EA requirement.
In the present case, the State and the A&B Defendants
argue that “there is a fundamental conflict between [HRS] § 171-
55 and the EA and EIS requirements of [HEPA].” Defendants
assert that the mandate in HRS § 343-5(a) that “an [EA] shall be
required” for certain actions conflicts with HRS § 171-55’s
provision authorizing the BLNR to issue revocable permits.
Thus, because HRS § 171-55 also provides that it applies
“[n]otwithstanding any other law to the contrary,” Defendants
argue that the provisions of HRS § 171-55 supersede and control
over HEPA. The ICA agreed with Defendants that HRS § 171-55’s
“notwithstanding” clause “nullified” HEPA’s EA and EIS
requirements for revocable permits. We disagree: HRS § 171-
55’s “notwithstanding” clause does not “nullify” HEPA’s EA
requirement.
The first sentence of HRS § 171-55 states that
“[n]otwithstanding any other law to the contrary,” in certain
circumstances, the BLNR may issue temporary revocable permits
without public auction:
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Notwithstanding any other law to the contrary, the board of land and natural resources may issue permits for the temporary occupancy of state lands or an interest therein on a month-to-month basis by direct negotiation without public auction, under conditions and rent which will serve the best interests of the State, subject, however, to those restrictions as may from time to time be expressly imposed by the board.
(Emphasis added.) When interpreting “notwithstanding any other
law to the contrary” clauses, “[t]he term ‘contrary’ denotes a
‘conflict.’” State v. Schnabel, 127 Hawaiʻi 432, 448, 279 P.3d
1237, 1253 (2012) (citing Merriam-Webster’s Collegiate
Dictionary 765 (10th ed. 1989)) (interpreting a
“[n]otwithstanding any other law to the contrary” clause). “Two
statutes conflict where it is not possible to give effect to
both.” Id. (internal quotation marks and brackets omitted)
(quoting State v. Richie, 88 Hawaiʻi 19, 35, 960 P.2d 1227, 1243
(1998)). Thus, HRS § 171-55’s “notwithstanding” clause has the
potential to nullify HEPA’s EA requirement only if it is
impossible to give force to both statutes. HRS § 171-55 does
not contain an environmental-review process, and similarly, HRS
§ 343-5 does not address the BLNR’s authority to issue revocable
permits without public auction. Because it is possible to
integrate HRS § 343-5(a)’s EA requirement into the revocable-
permitting process authorized by HRS § 171-55, HEPA contains no
“law to the contrary” of HRS § 171-55.
Additionally, the legislative history of HRS § 171-55
supports our conclusion that the “notwithstanding” clause does
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not create an exemption from HEPA compliance. In 1990, the
legislature amended HRS § 171-55 to include the
“notwithstanding” clause. 1990 Haw. Sess. Laws Act 90, § 1 at
165-66. The standing committee report explains the reason for
the 1990 amendment:
[T]he Office of the Attorney General has suggested that it is appropriate to make it absolutely clear that such tempo- rary permits may be issued without public auction. Your Committee finds that the Board of Land and Natural Re- sources should be allowed to issue such permits and be- lieves that this bill should serve as the vehicle for it.
Your Committee has therefore amended the bill by deleting it’s [sic] substance and inserting language allowing the [BLNR] to issue permits for the temporary occupancy of State lands on a month-to-month basis by direct negotiation without public auction.
S. Stand. Comm. Rep. No. 2988, in 1990 Senate Journal, at 1218
(emphasis added).
Thus, the purpose of the “notwithstanding” language
was to clarify that the BLNR has authority to issue temporary
permits without public action. The legislative history does not
indicate that the “notwithstanding” clause was intended to
create an exemption from HEPA or any other regulatory scheme.
The “notwithstanding” clause was directed solely at the issue of
whether public auction was required.
2. HEPA’s EA requirement applies to the revocable permits so long as the A&B Defendants’ “action” does not qualify for an exemption pursuant to HRS § 343- 6(a)(2).
HEPA requires an EA “if three conditions are
satisfied: (1) the proposed activity is an ‘action’ under HRS
§ 343-2 (2010); (2) the action proposes one or more of the nine 42 *** FOR PUBLICATION IN WEST’S HAWAI‘I REPORTS AND PACIFIC REPORTER ***
categories of land uses or administrative acts enumerated in HRS
§ 343-5(a) []; and (3) the action is not declared exempt
pursuant to HRS § 343-6(a)(2) (2010).” Umberger v. Dep’t of
Land & Nat. Res., 140 Hawaiʻi 500, 512, 403 P.3d 277, 289 (2017).
The circuit court held that HEPA was inapplicable to
the present case because it found that “the December 2014
revocable permits [we]re not ‘actions’ subject to [HEPA’s] [EA]
requirements” because the permits “were not programs or projects
INITIATED by DLNR, BLNR, or the [A&B] Defendants.”34 Petitioners
argue that, pursuant to HEPA, the BLNR should order the A&B
Defendants to complete an EA because the A&B Defendants’
activity under the revocable permits constituted “action” that
involves the “use of state or county lands.”35 HRS §§ 343-2
(2010), 343-5(a)(1). Petitioners are correct. Contrary to the
conclusion of the circuit court, the A&B Defendants’ land use
34 Although it has no bearing on this appeal, in 2003 the BLNR issued an order in the contested case proceedings for the long-term lease finding that the proposed long-term lease was “exempt from the requirements of an EA pursuant to [Hawaiʻi Administrative Rules (“HAR”)] § 11-200-8(a)(1)” so long as “existing structures, facilities, equipment or topographical features” were kept in operation with no expansion or change of use. The circuit court reversed this finding on appeal. The BLNR issued a second order in the contested case proceedings in 2005 denying “a summary ruling that an EA must be prepared prior to any interim disposition of water such as the [2002 holdover decision] and/or a stay or continuance of the contested case proceedings with respect to the [2002 holdover decision] and the interim disposition of water.” (Emphasis omitted.)
35 Before the circuit court, in opposition to Petitioners’ MPSJ, Defendants argued that the BLNR’s 2014 continuation decision did not constitute “action” under HEPA because it was not a “program” or “project” that was “initiated” by the BLNR or the A&B Defendants.
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under the revocable permits constituted “action[] that . . .
[p]ropose[d] the use of state or county lands” within the
meaning of HRS § 343-5(a)(1).
a. The A&B Defendants’ development, diversion, and use of water constitutes “action” within the meaning of HRS § 343-5(a).
HEPA defines “action” as “any program or project to be
initiated by any agency or applicant.”36 HRS § 343-2. Because
“program” and “project” are left undefined by HEPA, we “resort
to legal or other well accepted dictionaries as one way to
determine the ordinary meaning” of those terms. Umberger, 140
Hawaiʻi at 513, 403 P.3d at 290 (quoting State v. Guyton, 135
Hawaiʻi 372, 378, 351 P.3d 1138, 1144 (2015)). “‘Program’ is
generally defined as ‘a plan or system under which action may be
taken toward a goal.’ ‘Project’ is defined as ‘a specific plan
or design’ or ‘a planned undertaking.’” Id. (footnotes
omitted) (citing Merriam-Webster.com).
In the present case, the activity Petitioners contend
is a HEPA “action” is the A&B Defendants’ “development,
diversion, and use of [the] water” located across approximately
33,000 acres of State land in Maui. In its minute-order
36 “Agency” is defined as “any department, office, board, or commission of the state or county government which is a part of the executive branch of that government” and “applicant” is defined as “any person who, pursuant to statute, ordinance, or rule, officially requests approval for a proposed action.” HRS § 343-2.
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decision denying Petitioners’ MPSJ, the circuit court rejected
Petitioners’ argument and found no HEPA “action”:
At the outset, the December 2014 revocable permits are not “actions” subject to Chapter 343 environmental assessment requirements. The December 2014 revocable permits were not programs or projects INITIATED by DLNR, BLNR, or the Defendants. Instead, the December 2014 revocable permits were of a continuing (preserving the status quo), temporary nature placing the occupancy of the lands in a holdover status.
While the circuit court is correct that neither the
BLNR’s 2014 continuation decision nor the revocable permits
themselves are HEPA “actions,” the circuit court erred by
concluding there is no HEPA “action” in the present case. As
demonstrated by our opinion in Umberger, it is the applicant’s
permitted activity—i.e., the activity for which the A&B
Defendants initially sought permit approval—that constitutes
“action” within the meaning of HEPA.37 140 Hawaiʻi at 514–15, 403
P.3d at 291–92 (finding that recreational—and commercial—
aquarium collection conducted under permits issued by the DLNR
qualifies as a HEPA “action”). That the revocable permits here
were not requested by the applicant does not preclude the
permitted activity itself from qualifying as HEPA “action.”
37 The A&B Defendants are “applicants” as defined by HRS § 343-2 because they sought official approval from the BLNR pursuant to a statute— i.e., revocable permits pursuant to HRS § 171-5—to engage in the “development, diversion, and use of water” back in 2000.
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The A&B Defendants’ permitted activity constitutes
HEPA “action” because it qualifies as either a “project” or a
program.” The activity is a “specific plan” or “planned
undertaking” —and is, therefore, a “project”—because the permits
facilitated a deliberate and coordinated effort by the A&B
Defendants to use their water system to deliver water and manage
water use for the permitted areas. See id. at 514, 403 P.3d at
291 (finding that recreational and commercial aquarium
collection was a “project” because “it involve[d] the systematic
and deliberate extraction of aquatic life” using established
procedures “for the specific purpose of holding captive such
aquatic life for aquarium purposes”). The activity is also a
“plan or system under which action may be taken”—and is,
therefore, a “program”—because although each revocable permit
corresponded to a separate geographical area, the four areas
“were all a part of the same collection and delivery system
extending from Nahiku to Honopou” and the permits worked in
conjunction to meet the A&B Defendants’ (and their customers’)
water needs. See id. (finding that recreational and commercial
aquarium collection was a “program” because it involved “the
purposeful and methodical extraction of aquatic life” designed
to further the “desired goal” of “tak[ing] aquatic life from its
habitat and hold[ing] it in a state of captivity for aquarium
purposes”). The A&B Defendants’ permitted activity, whether
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construed as a “project” or a “program,” constitutes “action”
within the meaning of HEPA. HRS §§ 343-2, 343-5(a).
Additionally, the A&B Defendants’ permitted activity
constitutes “action” within the meaning of HEPA despite the
“continuing” nature of the activity, which the defendants
characterize as merely maintaining the status quo. In Umberger,
this court held that aquarium collection authorized by one-year
permits from the DLNR constituted “action” under HEPA even
though the aquarium collection had been occurring for years.
140 Hawaiʻi at 513-16, 403 P.3d at 290-93. The continuing water
use in this case similarly constitutes “action” under HEPA.
Furthermore, because the A&B Defendants’ water use was
conditioned on one-year permits, the continued use under a
renewed permit did not merely maintain the status quo. See Pit
River Tribe v. U.S. Forest Serv., 469 F.3d 768, 784 (9th Cir.
2006) (holding that lease extensions did not “merely preserve[]
the status quo” because “[w]ithout the affirmative re-extension
of the 1988 leases, [the lease applicant] would have retained no
rights at all to the leased property”).38
38 We note that HEPA contains provisions allowing agencies to consider and incorporate previous environmental review. See HAR § 11-200.1- 11; HAR § 11-200.1-12. “These provisions alleviate the concern that an environmental assessment would necessarily have to be prepared whenever an applicant applies for [a new one-year permit].” Umberger, 140 Hawaiʻi at 528, 403 P.3d at 305.
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Next, where the “action” is proposed by an applicant
and requires approval by an agency, in order for HEPA to apply
the agency must “exercise[] discretionary consent in the
approval process.”39 Umberger, 140 Hawaiʻi at 512, 403 P.3d at
289 (citing HRS § 343-5(e)). Under HEPA, “[a]pproval” is
defined as requiring “discretionary consent . . . from an agency
prior to actual implementation of an action” and
“[d]iscretionary consent” is defined as “consent, sanction, or
recommendation from an agency for which judgment and free will
may be exercised by the issuing agency.” HRS § 343-2. The A&B
Defendants’ “action” required approval from the BLNR in the form
of a revocable permit issued or continued pursuant to HRS § 171-
55. And the BLNR clearly exercised “discretionary consent”
during the approval process. Under HRS § 171-55, the BLNR “may
issue” revocable permits and “may continue” such permits “on a
month-to-month basis for additional one year periods.” “The
term ‘may’ is generally construed to render optional,
39 In their opening brief, Petitioners contend that the “action” here qualifies as either an “agency action” (i.e., action proposed by the BLNR) or an “applicant action” (i.e., action proposed by the A&B Defendants). The present “action” is more accurately construed as an “applicant action.” The A&B Defendants “proposed” HEPA “action” by seeking the BLNR’s permission to develop, divert, and use the water across the license areas, that is: by expressly requesting that the BLNR “[a]uthorize temporary continuation of the year-to-year revocable permit[s] . . . pending issuance of the [proposed long-term] lease” in 2001. The BLNR’s 2014 continuation decision constituted such authorization, and the BLNR conveyed the authorization to the A&B Defendants. Without the BLNR’s 2014 continuation decision, the revocable permits would have expired on January 1, 2015, and the A&B Defendants would not have been authorized in their ongoing water use. And until the long-term lease is issued, the A&B Defendants will continue to derive the authority to engage in their water use from the revocable permits.
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permissive, or discretionary the provision in which it is
embodied[.]” Umberger, 140 Hawaiʻi at 526, 403 P.3d at 303
(quoting State v. Kahawai, 103 Hawaiʻi 462, 465, 83 P.3d 725, 728
(2004)). The BLNR is not required to issue or continue a
revocable permit; this authority is wholly discretionary under
the statute. Thus, in continuing the revocable permits pursuant
to HRS § 171-55 in 2014, the BLNR exercised “discretionary
consent” in approving the A&B Defendants’ “action.” HRS § 343-2.
b. The A&B Defendants’ “action” involves the use of state lands under HRS § 343-5(a)(1).
Next, the HEPA “action” must involve at least one of
the nine categories of land uses or administrative acts
enumerated in HRS § 343-5(a). Umberger, 140 Hawaiʻi at 512, 403
P.3d at 289. Under HRS § 343-5(a)(1), an EA is required for
actions that
[p]ropose the use of state or county lands or the use of state or county funds, other than funds to be used for feasibility or planning studies for possible future programs or projects that the agency has not approved, adopted, or funded, or funds to be used for the acquisition of unimproved real property; provided that the agency shall consider environmental factors and available alternatives in its feasibility or planning studies; provided further that an environmental assessment for proposed uses under section 205-2(d)(11) or 205-4.5(a)(13) shall only be required pursuant to section 205-5(b).
HRS § 343-5(a)(1) (emphasis added).
HEPA “action” that involves “the use of state land” under HRS
§ 343-5(a)(1). The revocable permits granted the A&B Defendants
the right to “[o]ccupy and use” the Honomanū, Huelo, Keʻanae, and
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Nāhiku premises—all “parcel[s] of government land” —for the
“development, diversion, and use of water.” The A&B Defendants’
“action” undoubtedly “use[s]” state land within the meaning of
HRS § 343-5(a)(1).
c. On remand, the circuit court should determine whether the A&B Defendants’ “action” is exempt from HEPA’s EA requirement.
Having determined that the A&B Defendants’ permitted
activity is HEPA “action” that constitutes a “use of state . . .
lands,” we lastly consider whether such activity is exempt from
HEPA’s environmental-review process under HRS § 343-6(a)(2).
Umberger, 140 Hawaiʻi at 512, 403 P.3d at 289. HRS § 343-6(a)(2)
authorizes the environmental council40 to adopt rules that
“[e]stablish procedures whereby specific types of actions,
because they will probably have minimal or no significant
effects on the environment, are declared exempt from the
preparation of an [EA.]” Pursuant to HRS § 343-6(a)(2), the
environmental council issued Hawaiʻi Administrative Rules (“HAR”)
§ 11-200-8, which provides that the relevant agency may exempt
certain “classes of actions” from environmental review under
HEPA so long as the agency “obtain[ed] the advice of other
outside agencies or individuals having jurisdiction or expertise
40 HRS § 343-6(a) refers to “the council,” which means “the environmental council.” HRS § 343-2. The environmental council was created by HRS § 341-3(c) (2010).
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as to the propriety of the exemption.” HAR § 11-200-8(a)
(repealed 2019).41 For example, under HAR § 11-200-8, “action”
involving the “[o]peration[], repair[], or maintenance of
existing structures, facilities, equipment, or topographical
features, involving negligible or no expansion or change of use
beyond that previously existing” may be exempt from HEPA’s EA
requirement. HAR § 11-200-8(a)(1). However, HAR § 11-200-8
also provides that “[a]ll exemptions under the classes in this
section are inapplicable when the cumulative impact of planned
successive actions in the same place, over time, is significant,
or when an action that is normally insignificant in its impact
41 HAR § 11-200 was repealed and replaced by HAR § 11-200.1 on August 9, 2019. HAR § 11-200.1-32, titled “Retroactivity,” provides that “[c]hapter 11-200 shall continue to apply to environmental review of agency and applicant actions which began prior to the adoption of chapter 11-200.1.” Therefore, as the present case concerns HEPA “action” that occurred pre-2019, the provisions of HAR § 11-200 apply.
HAR § 11-200-8(a) provides in relevant part:
(a) Chapter 343, HRS, states that a list of classes of actions shall be drawn up which, because they will probably have minimal or no significant effect on the environment, may be declared exempt by the proposing agency or approving agency from the preparation of an environmental assessment provided that agencies declaring an action exempt under this section shall obtain the advice of other outside agencies or individuals having jurisdiction or expertise as to the propriety of the exemption. Actions declared exempt from the preparation of an environmental assessment under this section are not exempt from complying with any other applicable statute or rule. The following list represents exempt classes of action:
(1) Operations, repairs, or maintenance of existing structures, facilities, equipment, or topographical features, involving negligible or no expansion or change of use beyond that previously existing[.]
51 *** FOR PUBLICATION IN WEST’S HAWAI‘I REPORTS AND PACIFIC REPORTER ***
on the environment may be significant in a particularly
sensitive environment.” HAR § 11-200-8(b).
Because analysis under HAR § 11-200-8 turns heavily on
the nature and impact of the A&B Defendants’ specific “action,”
we find that this inquiry properly lies within the circuit
court’s purview. On remand, the circuit court should determine
(1) whether the A&B Defendants’ “action” falls into one of the
exempt classes enumerated by HAR § 11-200-8(a) and, if so, (2)
whether HAR § 11-200-8(b) renders the exemption inapplicable.
If the circuit court finds that either HAR § 11-200-8(a) does
not apply or an exemption is inapplicable under HAR § 11-200-
8(b), the circuit court should determine how best to apply
HEPA’s EA requirement to the revocable permits, taking into
consideration relevant actions already taken by Defendants
toward issuance of the long-term lease, including A&B’s
publication of a DEIS.
Although the court is aware that the permits in this
case were continued along with hundreds of other permits, we do
not opine on the validity of other permits not before the court.
Given the duration, magnitude, and nature of the uses authorized
by the revocable permits here, they may be distinguishable from
other, smaller-scale uses similarly authorized by the BLNR.
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IV. CONCLUSION
For the foregoing reasons, the ICA’s July 31, 2019
opinion is vacated and the circuit court’s October 21, 2015
order granting Petitioners’ MPSJ is affirmed in part as to its
holding that the revocable permits were not authorized under HRS
§ 171-55. The circuit court’s October 21, 2015 order is vacated
in part as to its holding that there is no “action” within the
meaning of HRS § 343-5(a) and that HEPA’s environmental review
process is, thus, inapplicable. The case is remanded to the
circuit court for further proceedings consistent with this
opinion. On remand, the circuit court should continue to
exercise its equitable power as it pertains to the municipal-
and residential-water needs of the upcountry Maui community.
David Kauila Kopper /s/ Mark E. Recktenwald for petitioners Healoha Carmichael, Lezley Jacintho, /s/ Paula A. Nakayama and Nā Moku Aupuni O Koʻolau Hui /s/ Sabrina S. McKenna Linda L.W. Chow (William J. Wynhoff on the briefs) for /s/ Michael D. Wilson respondents BLNR, Suzanne Case in her official capacity as Chairman of BLNR, and DLNR
David Schulmeister (Trisha H.S.T. Akagi on the briefs) for respondents Alexander & Baldwin, Inc. and East Maui Irrigation Co., Ltd.
Caleb P. Rowe (Kristin K. Tarnstrom on the briefs) for respondent County of Maui, Department of Water Supply
Related
Cite This Page — Counsel Stack
Carmichael v. Board of Land and Natural Resources., Counsel Stack Legal Research, https://law.counselstack.com/opinion/carmichael-v-board-of-land-and-natural-resources-haw-2022.