HI HB501

Expands preferential utility rates for agricultural activities to include water, electricity, and freight transport services (previously limited to potable water only).

Public utilities commission may establish and approve preferential rates for qualified agricultural ratepayers using land within agricultural districts, with costs subsidized by other customers if necessary.

Requires public utilities to submit proposed preferential rates to the public utilities commission for approval upon receiving a bona fide request from customers engaging in agricultural activities on agricultural district lands.

Directs the public utilities commission to define "qualified agricultural activities" and "bona fide agribusinesses" in consultation with the department of agriculture, ensuring rates apply only to active, substantial, and gainful agricultural production including crops, livestock, and aquaculture.

Takes effect July 1, 2050.