HI HB776

Removes the 20-cent-per-thousand-gallons water delivery toll cap for the Honokaa/Paauilo irrigation system (lower Hamakua ditch) that was established in Act 223 (2014).

Restores the board of agriculture's authority to set and revise water tolls for this irrigation system without the statutory rate limitation.

Addresses the failure of the capped rate to increase irrigation water demand as intended; water use has remained at all-time lows despite the reduced cost.

Projects the reduced rates caused approximately $38,000 in aggregate losses to the irrigation system revolving fund over three fiscal years (July 1, 2014 to June 30, 2017).

Takes effect on July 1, 2017.