Opinion ID: 6493113
Heading Depth: 1
Heading Rank: 5

Heading: analysis of points of error

Text: MDWS filed a cross-appeal in this case seeking “clarification” of several COL, in which the Commission articulated that it established the IIFS prior to considering noninstream uses, including MDWS’s diversions for the public water supply. MDWS contends that Waiahole I established a “higher status” for public trust uses as compared to commercial noninstream uses, and that municipal use, though a noninstream use, should be afforded higher status and preferential consideration as a public trust use. Hui/MTF filed an answering brief to MDWS’s opening brief; OHA joined the brief. In its answering brief, Hui/MTF argues that MDWS’s point of error is not reviewable by the court because MDWS seeks clarification of language in the Commission’s D & 0 but does not argue that the Commission’s alleged error affected MDWS’s rights or interests. Hui/MTF reasons that because MDWS sought and was issued water use permits in the amounts requested, any treatment of their point of error would be an “advisory opinion.” Hui/MTF accordingly requests that the court dismiss MDWS’s cross-appeal. Hui/MTF’s argument is well-taken. This court has recently affirmed its practice not to issue “advisory opinions on abstract propositions of law.” Kemp v. State of Hawai'i Child Support Enforcement Agency, 111 Hawai'i 367, 385, 141 P.3d 1014, 1032 (2006) (citing Kona Old Hawaiian Trails Group v. Lyman, 69 Haw. 81, 87, 734 P.2d 161, 165 (1987)). This is a longstanding value of the court. The duty of this court, as of every other judicial tribunal, is to decide actual controversies by a judgment which can be carried into effect, and not to give opinions upon moot questions or abstract propositions, or to declare principles or rules of law which cannot affect the matter in issue in the case before it. Wong v. Bd. of Regents, 62 Haw. 391, 394-95, 616 P.2d 201, 204 (1980) (citing Anderson v. Rawley Co., 27 Haw. 150, 152 (1923)) (further citations omitted). MDWS’s point of error seeks resolution of an abstract proposition because any possible resolution of MDWS’s point of error would not affect MDWS’s right—or any other party’s right—to the water use permits issued by the Commission. MDWS sought permits for 1.042 mgd for the Kepaniwai Well (Well No. 5332-05), and 1.359 mgd for the Tao Tunnel (Well No. 5332-02). The Commission found that MDWS’s applications met all the permitting criteria and awarded the permits in full. Analysis of MDWS’s point of error would not affect this determination because MDWS’s request was granted, even without the requested treatment as a public trust use. MDWS’s cross-appeal is therefore dismissed.
OHA and Hui/MTF argue that the IIFS established by the Commission did not protect traditional and customary native Hawaiian rights to the extent feasible. More specifically, both parties contend that the Commission erred in failing to articulate FOF and COL regarding the impact of its decision on traditional and customary native Hawaiian rights. OHA also argues that the Commission failed to weigh traditional and customary rights when it balanced instream values and noninstream uses. The Commission articulated a general conclusion of law relevant to this point of error: 19. In addition to appurtenant rights when practiced for subsistence, cultural and religious purposes, traditional and customary rights include, but are not limited to, kuleana water for domestic purposes, kalo cultivation, and other irrigation purposes, and the gathering of hihiwai, opae, o'opu, limu, thatch, ti leaf, aho cord, and medicinal plants for subsistence, cultural, and religious purposes. COL 19 is, in large part, a quotation from HRS § 174C-101(e), the provision in the water code protecting native Hawaiian rights; it provides an illustrative list of the activities that can be protected under the water code. During the hearing, Hui/MTF and OHA presented several witnesses who testified about native Hawaiian practices specific to Ná Wai ‘Ehá, and the Commission found several facts on the subject. First, as for historical practices, the Commission found several facts indicating a distinct connection between Ná Wai ‘Ehá and Hawaiian history and culture. The Commission found: 34. Due to the profusion of fresh-flowing water in ancient times, Ná Wai ‘Ehá supported one of the largest populations and was considered the most abundant area on Maui; it also figured centrally in Hawaiian history and culture in general. 35. The abundance of water in Ná Wai ‘Ehá enabled extensive lo‘i kalo (wetland kalo) complexes, including varieties favored for poi-making such as “throat-moistening lehua poi.” [...] 40. In addition to extensive agricultural production, traditional and customary practices thrived in Ná Wai ‘Ehá, including the gathering of upland resources, such as thatch and ti, and protein sources from the streams, including ‘o'opu, ‘opae, and hihi-wai. [•••] 43. The waters of Ná Wai ‘Ehá were renowned for the traditional and customary practice of hiding the piko, or the naval cord of newborn babies. “[T]he spring Eleile contained an underwater cave where the people of the area would hide the piko (umbilical cords) of their babies after birth.... The location of where one buries or hides the piko is a traditional custom that represents Native Hawaiian cultural beliefs about an individual’s connection to the land.” 44. Upper Tao Valley contained the royal residences of chiefs in both life and the afterlife. In a secret underwater cave, Native Hawaiians hid the bones of “all the ruling chiefs who had mana and strength, and the kupua, and all those attached to the ruling chiefs who were famous for their marvelous achievements. There were several hundred in all who were buried there.” Thus, the burial of sacred chiefs required a deep freshwater body to ensure the utmost protection of their bones. 45. Ná Wai ‘Ehá is home to several important heiau. Of particular significance are Haleki'i and Pihana Heiau, located between Waiehu and Tao Streams. These heiau were re-consecrated in 1776 as an offering before the famous battle between Hawai'i and Maui. It is said that Kalani-kaukooluaole, a high chiefess and daughter of Kamehamehanui, bathed in the stream water near the heiau, before she entered the heiau. [...] 54. The spiritual practice of hi'uwai, also known as kapu kai, often occurred around the time of makahiki, when individuals “would go into the rivers or into the ocean in order to do a cleansing for the new year[.]” This type of cleansing, which required immersion in the water, was also conducted “before you start or end certain ceremonies!.]” For ceremonies dedicated to Kane, “having a hi'uwai in a stream magnifies the mana[.]” The Commission heard testimony explaining that native Hawaiian practices still continue in Ná Wai ‘Ehá: 51. Despite significant challenges, some Native Hawaiian practitioners in Ná Wai ‘Ehá continue to exercise traditional and customary rights and practices, including “gathering stream life such as hihiwai, ‘opae, ‘o'opu, and limu for subsistence and medicinal purposes,” as well as “cultivating taro for religious and ceremonial uses, gathering materials for hula, lua (ancient Hawaiian martial arts), and art forms.” [...] 53. Kumu hula Akoni Akana gathers materials such as hau, palapalai, la’i, and laua'e from Waihe'e and Waiehu for hula ceremonies and performances. “As part of the protocol for gathering these items, we always soak the leaves we gather in the stream flow nearby. This practice necessitates a flowing stream.” [•••] 55. Other practitioners would like to expand the scope of their traditional and customary practices and plan to do so if water is returned to the streams. For example, Hokulani Holb-Padilla testified that “[m]any families seek to reestablish the tradition of growing kalo” in Ná Wai ‘Ehá. The Commission also found facts to explain the connection between current traditional and customary practices and streamflow levels: 49. Cultural experts and community witnesses provided uncontroverted testimony regarding limitations on Native Hawaiians’ ability to exercise traditional and customary rights and practices in the greater Ná Wai ‘Ehá area due to the lack of freshwater flowing in Ná Wai ‘Ehá’s streams and into the nearshore marine waters. 50. “ ‘O'opu must once have been plentiful in Ná Wai ‘Ehá streams; the wind in Waihe'e is called ka makani kili‘o‘opu, which means the wind that brings the faint odors of the ‘o'opu.” Today, however, “[i]t is very difficult to find ‘ópae, hihiwai, and ‘o'opu in the streams of Ná Wai ‘Ehá, large portions of which are frequently dry.” [•••] 57. According to testimony, “Ná Wai ‘Ehá continues to hold the potential to once again support enhanced traditional and customary rights and practices if sufficient water is restored.” Restoring streamflow to Ná Wai ‘Ehá “would enormously benefit” Native Hawaiians and other communities who seek to reconnect with their culture and live a self-sustaining lifestyle, and more people would be able to engage in traditional and customary practices with more water. 58. Testimony contended that “Restoration of mauka to makai flow to the streams is critical to the perpetuation and practice of Hawaiian culture in Ná Wai ‘Ehá.” “If we are not able to maintain our connection to the land and water and teach future generations our cultural traditions, we lose who we are as a people.” 59. According to testimony, “The return of the waters of Ná Wai ‘Ehá to levels that can sustain the rights of native Hawaiians and Hawaiians to practice their culture will result in the betterment of the conditions of native Hawaiians and Hawaiians by restoring spiritual well-being and a state of ‘pono’ (goodness, righteousness, balance) to the people and communities of Ná Wai ‘Ehá.” 60. Testimony contended that cold, free-flowing water is essential for kalo cultivation, which in turn is integral to the well-being, sustenance, and cultural and religious practices of native Hawaiians and Hawaiians. Kalo cultivation provides not only a source of food, but also spiritual sustenance, promotes community awareness and a connection to the land, and supports physical fitness and mental well-being. OHA and Hui/MTF both argue that the Commission had a duty to make specific findings of fact and conclusions of law with regal’d to the effect of its D & 0 on traditional and customary-native Hawaiian practices. Their argument is grounded in Ka Pa’akai O Ka’Aina v. Land Use Comm’n, 94 Hawai'i 31, 7 P.3d 1068 (2000). In Ka Pa’akai O Ka’Aina, native Hawaiian groups appealed the State Land Use Commission’s (“LUC”) grant of a land developer’s petition to reclassify land in a conservation district to an urban district. 94 Hawai'i at 33, 7 P.3d at 1070. The LUC held hearings on the petition, and reached several findings of fact and conclusions of law regarding native Hawaiian practices. Id. at 36-37, 7 P.3d at 1073-74. The LUC determined that the developer would develop and implement a Resource Management Plan (“RMP”) to coordinate coastal access for the purpose of traditional and customary practices; the LUC specifically found that one family gathered salt in the area, and that the shoreline is used for fishing, gathering limu, ‘opihi, and other resources. Id. at 37, 7 P.3d at 1074. The LUC mandated that the RMP will preserve these practices, archaeological sites and the coastal trail, and required the developer to preserve and protect native Hawaiian rights. Id. at 38, 39, 7 P.3d at 1075, 1076. On appeal, this court recognized that Article XII, section 7 of the state constitution “places an affirmative duty on the State and its agencies to preserve and protect traditional and customary native Hawaiian rights,” while giving the State and its agencies the power to discharge this duty. Id. at 45, 7 P.3d at 1082. The court then provided an “analytical framework” to guide the State in its decisions affecting native Hawaiian rights, specifying that the agency must, at a minimum, articulate: (1) the identity and scope of “valued cultural, historical, or natural resources” in the petition area, including the extent to which traditional and customary native Hawaiian rights are exercised in the petition area; (2) the extent to which those resources-including traditional and customary native Hawaiian rights-will be affected or impaired by the proposed action; and (3) the feasible action, if any, to be taken by the LUC to reasonably protect native Hawaiian rights if they are found to exist. Id. at 46-47, 7 P.3d at 1083-84 (internal footnotes omitted). The court held that the LUC failed to satisfy those criteria for several reasons: (1) the LUC did not enter definitive findings regarding the extent of the native Hawaiian practices, but rather delegated the determination to the developer; (2) the LUC did not enter findings about the practices undertaken outside the RMP, despite evidence that the area outside the RMP could require protection; (3) “the LUC made no specific findings or conclusions regarding the effects on or the impairment of any Article XII, section 7 uses, or the feasibility of the protection of those uses.” Id. at 48-49, 7 P.3d at 1085-86 (emphasis in original). As the court explained, “the promise of preserving and protecting customary and traditional rights would be illusory absent findings on the extent of their exercise, their impairment, and the feasibility of their protection.” Id. at 50, 7 P.3d at 1087. Hui/MTF and OHA argue that the Commission’s FOF/COL D & 0 do not satisfy the analytical framework of Ka Pa’akai 0 Ka’Aina. They cite the Commission’s own findings that the lack of freshwater in Ná Wai ‘Ehá limits the native Hawaiian practices of kalo cultivation and gathering, and argue that the Commission did not fulfill its duty to protect native Hawaiian rights because “nothing in the Decision indicates that the majority even considered the feasibility of protecting those traditional and customary rights.” The court concludes that Hui/MTF and OHA are correct; the Commission’s FOF/COL D & 0, while very thorough in several respects, including its documentation of the area’s native Hawaiian practices, lacks findings or conclusions articulating the effect of the amended IIFS on the native Hawaiian practices of Ná Wai ‘Ehá. It also lacks findings or conclusions explaining the feasibility of protecting the practices. This is particularly apparent with regard to kalo cultivation, considering the Commission’s decision not to restore any streamflow to Tao and Waikapü Streams. In its FOF/COL D & 0, the Commission identified seventeen kuleana ditch/ pipe systems, and divided those seventeen into two categories: the fourteen that are connected to one of the primary distribution systems (and thus rely on diverted water for their kalo cultivation), and the three that divert water directly from a stream (and thus rely on sufficient instream flows from which to pull their water). While the Commission’s analysis considered the needs of the former category of kuleana users, there was no mention of the kuleana users who access their water directly from the streams. This is particularly troublesome for the users who take from two of the ditches, described in the record as the Pellegrino and Duey Kuleana Ditches, which draw water directly from Waikapü and Tao Streams, respectively. The users on those Ditches testified that their water is insufficient, and urged the Commission to amend upward the IIFS for their streams so they could irrigate their lo‘i kalo. The Commission’s FOF/COL D & 0 justifies its decision not to restrict diversions from Waikapü and Tao Streams due to the streams’ lack of potential to support certain native species, described as amphidromous. 16 The Commission does not state the effect of this decision, which is to deny the Pellegrino and Duey Ditch users the water they need to cultivate the lo‘i kalo on their property; furthermore, the Commission did not articulate whether it would be feasible to return flow sufficient to support the kuleana. In addition to neglecting this portion of the kalo cultivation analysis, the FOF/COL D & 0 does not provide any analysis of the decision’s effect on gathering rights. HC & S argues that the Commission’s FOF/COL were adequate on this point, reasoning that “if instream fauna populations increase as a result of the amended IIFS as [the Commission] anticipates they will, that would support gathering practices.” This argument fails for two main reasons. First, the FOF/COL do not satisfy the analytical framework articulated in Ka Pa’akai 0 Ka’Aina. It appears as though the first step of analysis, identification of the scope of traditional and customary native Hawaiian rights, is satisfied by the above-quoted FOF regarding gathering rights, which identify the several items gathered from Ná Wai ‘Ehá. However, subsequent steps of the analysis require the administrative agency to articulate “the extent to which those resources [ ... ] will be affected or impaired by the proposed action,” and then to specify what feasible action can be taken to protect native Hawaiian rights. Ka Pa’akai O Ka’Aina, 94 Hawai'i at 47, 7 P.3d at 1084. The FOF/COL do not contain any information on these two steps of analysis. Furthermore, even if the court accepted HC & S’s post hoc explanation to be adequate, this would only resolve rights to gather am-phidromous species, but the Commission concluded that gathering rights in Ná Wai ‘Ehá also encompassed several other species. The Commission’s analysis does not examine whether the amended IIFS impact these gathering rights, or whether any negative impact may be avoided. Having concluded that the Commission did not discharge its duty with regard to the feasibility of protecting native Hawaiian rights, the court must vacate the Commission’s FOF/COL D & 0 and remand to the Commission for further consideration of the effect the IIFS will have on native Hawaiian practices, as well as the feasibility of protecting the practices. Should the Commission determine that the amended IIFS will negatively impact protected native Hawaiian practices and that protection of those practices is feasible, the Commission may enter amended IIFS to reflect that protection.
Hui/MTF challenges the Commission’s failure to restore flow to the Tao and Waikapü Streams. Hui/MTF argues that such an action was not supported by the record and disregards all instream uses other than sustaining amphidromous species. Hui/MTF further contends that the Commission did not properly weigh the competing interests in this ease, and that the Commission arbitrarily misused the USGS’s temporary flow release figures.
The Commission explained its reasoning in the FOF/COL D & 0 section titled “The Commission’s Analysis and Conclusions.” That section of analysis shows a clear emphasis placed on the potential to restore amphi-dromous species in the streams. This was a main area of controversy in the hearing; the parties presented the Commission with several expert witnesses, all promoting different opinions on the issue. The term “amphidromous” describes species of fish that undergo regular, obligatory migration between fresh water and the sea at some stage in their life cycle other than the breeding period. Native Hawaiian am-phidromous species exhibit “freshwater am-phidromy,” where spawning takes place in fresh water, and the newly hatched larvae are swept into the sea by stream currents. While in the sea, the larvae undergo development as zooplankton before returning to fresh water to grow to maturity. The Commission found that these species suffer in Ná Wai ‘Ehá due to the disruption of natural flow caused by the offstream water diversions; the diversions degrade or destroy habitat, diminish food sources, diminish larval drift by capturing eggs and larvae, and impair flows necessary to transport larvae to the ocean. The Commission also found that discharge of sufficient duration and volume is necessary to attract and accommodate upstream migration of post-larval fish, mollusks, and crustaceans; there is a direct correlation between stream volume and recruitment, such that increased streamflow correlates with increased recruitment at the stream mouth. Dr. Mark Eric Benbow, an Assistant Professor at Michigan State University, testified on behalf of Hui/MTF as an expert in aquatic biology, ecology, and the Central Maui streams. Dr. Benbow testified that the am-phidromous life cycle requires continuous mauka-to-makai flow, though he acknowledged that he did not know the precise volume and duration necessary to sustain the species. Dr. Benbow reached his opinions after conducting multi-year studies of Central Maui streams in which he found that the largest migrations of species occur in streams with minimal or no diversions, while the greatest reductions in recruitment during drought occur in diverted streams. Dr. Ben-bow made two specific recommendations to the Commission: first, he recommended that the Commission require sufficient flow levels to increase the quantity and quality of habitat in order to have a functioning reproduction population of organisms; second, he recommended maintaining continuous mauka-to-makai flow in Ná Wai ‘Ehá. Dr. Benbow testified that, without additional studies, he cannot recommend maintaining the streams at less than 75 percent of their median flow. As the Commission found, however, Ben-bow’s 75-percent figure was an “informed guess,” and the precise volume and duration of streamflow needed to sustain the life cycle of amphidromous organisms is not known. John Ford, Program Director and Office Lead for SWCA Environmental Consultants, testified on behalf of HC & S as an expert in aquatic biology, with specific emphasis on native species in Hawaiian streams. Ford presented a different account of the importance of mauka-to-makai flow for amphidro-mous species. Ford distinguished “ecological connectivity” from “physical connectivity”; the former is the term for streamflows sufficient to allow the normal distribution of a species within an entire watershed, the latter is the term for continuous flow from a specific stream’s headwaters to its mouth. Ford noted that there are naturally interrupted and intermittent streams in Hawai'i with am-phidromous organism populations, and suggested that amphidromous species therefore may not require the continuous physical connectivity of each stream to sustain their population. HC & S retained Ford’s consulting company, SWCA, to evaluate amphidromous species in Ná Wai ‘Ehá. In 2007 and early 2008, SWCA performed a series of larval drift sampling to evaluate the reproduction of am-phidromous species; this survey lasted one week in total, so the Commission found it was “just a snapshot” and could not support “broad extrapolations over time” or “to other streams.” SWCA observed that Waihe'e River was the only stream in Ná Wai ‘Ehá with significant reproductive populations of native amphidromous species. SWCA also observed amphidromous species in Waikapü and ‘lao Streams, which may be evidence of ecological connectivity as those streams do not have physical connectivity to the sea except during prolonged intense flooding events. There may be another explanation, however, as Dr. Benbow testified that he and Division of Aquatic Resources biologist Skippy Hau have planted specimens of amphidro-mous species above the diversions of those streams. SWCA concluded that ecological connectivity exists under diverted conditions in the Waihe'e River and Waiehu Stream. Ford opined that the addition of flow to Waihe'e River and Waiehu Stream would be the most beneficial for increasing populations of native amphidromous species in Ná Wai ‘Ehá. With regard to Tao Stream, SWCA’s final conclusion was that the channelization “is the primary factor” impeding recruitment of amphidromous species. SWCA also found no definitive evidence that Waikapü Stream ever flowed continuously from mauka to ma-kai. The Commission’s Final FOF/COL D & O accepted Ford’s view of the streams with regard to amphidromous species. As the Commission explained in its final analysis section, it concluded that the restorative potentials are highest for Waihe'e River and Waiehu Stream. Tao Stream can be restored to enhance recruitment and increase stream life, but its reproductive potential is severely limited because of extensive channelization in the 2.5 miles immediately above its mouth. Waikapu Stream likely has minimal to no reproductive potential, because there probably was no pre-diversion continuous flow to the mouth, and even if there had been continuous flow, Kealia Pond and the delta below most likely inhibited recruitment. Hui/MTF argues that the Commission’s treatment of Tao and Waikapü Streams is not supported by the record and disregards all instream uses other than amphidromous species. In setting the IIFS, the Commission was charged with weighing “present or potential instream values.” HRS § 174C-71(2)(D). The water code contains a definition of instream uses, as well as an illustrative list of examples. It provides: “Instream use” means beneficial uses of stream water for significant purposes which are located in the stream and which are achieved by leaving the water in the stream. Instream uses include, but are not limited to: (1) Maintenance of fish and wildlife habitats; (2) Outdoor recreational activities; (3) Maintenance of ecosystems such as estuaries, wetlands, and stream vegetation; (4) Aesthetic values such as waterfalls and scenic waterways; (5) Navigation; (6) Instream hydropower generation; (7) Maintenance of water quality; (8) The conveyance of irrigation and domestic water supplies to downstream points of diversion; and (9) The protection of traditional and customary Hawaiian rights. HRS § 174C-3. As Hui/MTF shows, the record contains substantial evidence that establishing mauka-to-makai flow in all of the streams of Ná Wai ‘Ehá would support the public interest by fostering many of the statutorily-designated instream uses. Hui/MTF argues that the Commission focused on am-phidromous species, a subset of parenthesis (1) in the statute, and disregarded evidence supporting the other instream uses. HC & S replies that the Commission is not required to restore streamflow, or even to establish an IIFS, for each stream. The water code requires the Commission to establish IIFS in some instances; as the code provides, the Commission “shall” set an IIFS “in order to protect the public interest”. HRS § 174C-71(2)(A). Accordingly, in resolving the petition to amend the IIFS for Ná Wai ‘Ehá, the Commission was not precluded from retaining the existing IIFS in some or all of the streams, had it concluded that the public interest was sufficiently protected by the existing IIFS. In undertaking a close review of the Commission’s decision, it is apparent that the decision focuses on the flow standards as they relate to amphidromous species, and justifies the decision not to restore water to Tao and Waikapü Streams due to the conclusion that those streams show limited “reproductive potential” for amphidromous species. HC & S, the Commission, and WWC draw the court’s attention to the evidence in the record, especially the SWCA evaluation reviewed supra, that supports the Commission’s conclusion. However, Hui/MTF’s point of error does not merely contend that the Commission’s decision is not supported by the record; it also alleges that the Commission erred in disregarding the evidence of other instream uses. In Waiáhole I, this court held that where “the record demonstrates considerable conflict or uncertainty in the evidence, the agency must articulate its factual analysis with reasonable clarity, giving some reason for discounting the evidence rejected.” Waiāhole I, 94 Hawai'i at 168-64, 9 P.3d at 475-76. In its FOF/COL D & 0, the Commission does not explain its focus on amphidromous species above the evidence of other instream uses. Even if the Tao and Waikapü Streams may not support amphi-dromous species, evidence that they can support other instream uses must be weighed against noninstream uses, as required by HRS § 174C-71(2)(D). The Commission erred in not considering this evidence; on remand, the Commission must undertake and articulate this analysis. Waiāhole I, 94 Hawai'i at 158, 9 P.3d at 470 (remanding where the Commission “made invalid, inadequate, or incomplete findings.”) (citation).
In federal fiscal year 2006, the USGS initiated a study of Ná Wai ‘Ehá. The study consisted of eight parts: (1) compiling and analyzing existing information relevant to the Waihe'e River, and Waiehu, Tao, and Waikapü Streams, (2) conducting baseline reconnaissance surveys of the streams to identify sites of diversion and return flow and significant gaining and losing reaches, (3) establishing low-flow partial-record stations in reaches with flowing water to characterize natural and current diverted flows in Ná Wai ‘Ehá streams, (4) establishing temperature-monitoring sites in reaches with flowing water to provide information on temperature variations for diverted and undiverted conditions, (5) monitoring the frequency of dry days in selected reaches of the diverted streams to establish the number of days during which continuous mauka-to-makai flow is available for the upstream movement of native species, (6) surveying the presence or absence of native and non-native aquatic species in selected stream reaches to provide baseline data for assessing effects of stream-flow restoration, (7) collecting macrohabitat, microhabitat, and channel-geometry information in selected study reaches downstream from existing diversions to characterize the effects of diversions on habitat for native stream macrofauna, and (8) analyzing data and producing a report summarizing the study findings. Photographic information from cameras mounted at three selected sites downstream of all diversions established that from September 2006 to July 2007, North Waiehu Stream was dry about 79 percent of the time, Tao Stream was dry about 70 percent of the time, and Waikapfl Stream was dry about 37 percent of the time. At the time of the Commission’s decision, USGS had requested, as part of its study, to partially or fully restore mauka-to-makai flow to Waihe'e River, Waiehu Stream, and Tao Stream 17 to allow measurements of streamflow, infiltration, and physical habitat for different flow conditions in sections of the stream that are commonly dry due to diversions. The proposal sought to release water into the streams in three phases, each involving a higher flow than the last; each phase would be maintained for about a month and long enough to allow flow conditions to stabilize for observation. For Waihe'e Stream, USGS proposed flows near the coast of 6.5 mgd, 13 mgd, and 26 mgd; this would require flows just downstream of the Spreekels Ditch diversion of 10 mgd, 17 mgd, and 30 mgd, respectively, for each of the three phases. For North and South Waiehu Streams, USGS proposed flows near the coast 18 of 0.6 mgd, 1.6 mgd, and 2.6 mgd. USGS estimated that this would require the following flows: South Waiehu Stream at Spreekels Ditch would be 0.9 mgd, 1.3 mgd, and 1.6 mgd, respectively; North Waiehu Stream at the North Waiehu Ditch would be 1.6 mgd, 2.2 mgd, and 2.9 mgd, respectively. For Tao Stream, USGS proposed flows near the coast of 3.2 mgd, 9.7 mgd, and 16 mgd; this would require flows just downstream of the Tao-Maniania Ditch diversion of 9.5 mgd, 16 mgd, and 22 mgd, respectively. For the Waikapfl Stream, USGS deferred controlled releases entirely. With regard to the USGS controlled release proposals, the Commission specifically found: 606. “The results [following the controlled releases] are intended to be used along with other biological and hydrological information in development, negotiations, or mediated settlements for instream flow requirements.” (Gingerich and Wolff, 2005). The quote originated in a 2005 USGS Study of Na Wai ‘Eha; HC & S’s biologist, Thomas R. Payne, quoted that language to make his greater point that the USGS controlled releases would not be, in his opinion, conclusive to determine IIFS. This is because the controlled releases are designed to study the effect of flow conditions on habitat, not to predict the biological response of the stream to the flow condition; therefore, the scientists have to infer the effect of streamflow on population, “without any direct quantification or prediction of individual species.” In Payne’s words, “considerable work remains to be done before defensible instream flow standards could be recommended from [the controlled release] studies alone.” In its Final FOF/COL 19 the Commission concluded that: The most credible proposals for amending the IIFS are USGS’s proposed controlled flows. Of the three proposed phases, the [first] phase, totaling 12.5 mgd and comprised of 10.0 mgd for Waihe'e River, 1.6 mgd for North Waiehu Stream, and 0.9 mgd for South Waiehu Stream, provide the best balance between instream values and offstream uses, and are the only viable IIFS when stream flows are low and all available practical alternatives are in use. Hui/MTF argues that the Commission “arbitrarily misused” USGS’s temporary flow release figures, noting that the USGS’s figures were not proposals for IIFS, but rather a proposal for scientific study of the area. Hui/MTF argues that USGS certainly did not consider instream values, and adoption of USGS flow levels could not possibly discharge the Commission’s duty to balance in-stream values and noninstream uses. OHA shares Hui/MTF’s criticism; it describes the above-quoted COL as “inexplicabl[e].” In making their argument, Hui/MTF and OHA appear to misstate the Commission’s actual treatment of the USGS figures. Even though COL 261, quoted above, suggests that the Commission simply adopted the USGS figures, the entirety of the FOF/COL D & 0 actually indicate that the Commission merely utilized the USGS figures as a starting point. First, the Commission explained the utility of the USGS figures; the figures “were chosen to correspond to specified flows at the stream mouths, after adjusting for losses into the stream beds in the lower reaches of each stream.” As described earlier, the Commission focused its analysis on establishing mau-ka-to-makai streamflow in streams that would support amphidromous species; for this the USGS estimation of loss in the streams’ losing reaches is helpful data. Second, the Commission did not simply adopt the USGS figures, but rather adapted one of the three USGS figures as part of its analysis; the USGS proposed release for ‘lao Stream was 9.5 mgd, but the Commission decided not to limit diversions of that stream based on its conclusion that restoration was unlikely to support amphidromous species. Even though, as explained above, this reasoning does not adequately discharge its duties in this ease, the Commission did not err in utilizing the USGS figures as a starting point for its analysis.
Hui/MTF argues that the Commission erred in its estimation of HC & S, MDWS, and WWC’s diversions. Hui/MTF alleges that the Commission did not hold the divert-ers to their burden of proof and then “penalized the public trust” for the absence of data, that the Commission failed to consider variable offstream demands in setting the IIFS, and that the Commission did not properly require the diverters to justify system losses. Both Hui/MTF and OHA argue that the Commission erred in its consideration of Well No. 7; Hui/MTF also argues that the Commission erred in its consideration of recycled water as an alternative source. Finally, Hui/ MTF contends that the Commission erred in calculating HC & S’s acreages. The following sections consider each argument in turn.
Hui/MTF argues that the Commission erred because it did not hold the diverting parties to a burden of proof; they argue that Waidhole I requires noninstream users to justify their diversions in light of the water uses protected by the public trust. The flaw of their argument is that the portions of Waidhole I that they cite apply to the WUPA process. In the context of IIFS petitions, the water code does not place a burden of proof on any particular party; instead, the water code and our case law interpreting the code have affirmed the Commission’s duty to establish IIFS that “protect instream values to the extent practicable” and “protect the public interest.” In re Water Use Permit Applications “Waiāhole II ”, 105 Hawai'i 1, 11, 93 P.3d 643, 653 (2004); HRS § 174C-71 (2)(A). Accordingly, our review of the Commission’s analysis of the stream diversions must focus on whether or not the Commission properly discharged this duty. Where the Commission’s decisionmak-ing evinces “a level of openness, diligence, and foresight commensurate with the high priority these rights command under the laws of our state,” the decision satisfies close look review governing public trust resources. Wai’ola, 103 Hawai'i at 422, 83 P.3d at 685.
Hui/MTF argues that the Commission erred in its treatment of testimony from Dr. Ali Fares, a hydrologist who testified as an expert witness for Hui/MTF, OHA, and MDWS. Dr. Fares is an Associate Professor in the Department of Natural Resources and Environmental Management at the University of Hawaii, Mánoa. Dr. Fares testified regarding his estimation of the optimal irrigation requirements for HC & S’s sugar cane fields. Dr. Fares’s model considered historical rainfall data, evapotranspiration or pan evaporation data 20 , and data regarding the soil; he then calculated, over the historical period covered by the rainfall data, how much irrigation water would have been required to grow the sugar crop. Dr. Fares statistically analyzed the results to calculate the average amount of irrigation water needed in the wettest year and the driest year, as well as the amount of water that would have supplied the irrigation requirement between the two extremes. Dr. Fares calculated the optimal irrigation requirements using the 80 percent probability standard because it’s the industry standard utilized in both government and the private sector. Under the 80 percent probability standard, water meeting or exceeding requirements is available four out of every five days. HC & S employees testified that they used a different model called a water balance model, which differs from Fares’s model in that it uses “real-time data” collected from four rain stations and two evaporation stations located in the west Maui fields. The Commission found that real-time data is more reliable than long-term daily averages to calculate irrigation requirements. Both models also consider irrigation efficiency, or the percentage of water that is actually delivered to the plants, as opposed to the amount that is channeled through, and possibly lost in, the irrigation system. Fares used an 85 percent irrigation efficiency figure for his calculations; this is industry standard. HC & S’s estimations takes into account the different types of tubing, the length of tubes, and variations in topography; HC & S’s estimations utilize an 80 percent efficiency standard. The Commission accepted Fares’s use of 85 percent irrigation efficiency. HC & S stressed the importance of basing water management on actual field conditions, rather than models. The Commission found that Fares had not personally visited the HC & S fields or inspected the HC & S irrigation system; he also never studied actual water usage for sugar cane. Moreover, HC & S representatives testified that Fares’s model does not account for several factors increasing water usage, including water run through irrigation lines to detect leaks and irrigation water that is “lost” because it is applied just before it rains. HC & S also testified that it is impractical to assume that HC & S can irrigate to restore soil moisture exactly when necessary; this is not always the case for several reasons, including the facts that only a fraction of the fields actually receive water at any given time, and sometimes fertilizers and herbicides preclude watering. In its FOF/COL D & 0, the Commission accepted Fares’s estimates of irrigation requirements, but added five percent to account for the above-listed factors identified by HC & S that Fares’s model does not incorporate. Hui/MTF argue that this was error because the five percent increase is “random” and accounts for “unsubstantiated excuses.” HC & S responds that the Commission was not limited to choosing between Dr. Fares’s model and HC & S’s estimates, but rather that the Commission was empowered to utilize the information presented as it saw fit, as long as its decision was supported by the evidence. The court has held that, due to the fact that the Commission must articulate an IIFS at an “early planning stage” of water management, the Commission “need only reasonably estimate instream and offstream demands.” Waiāhole I , 94 Hawai'i at 155 n. 60, 9 P.3d at 467 n. 60. The court also explained that the IIFS may be based “not only on scientifically proven facts, but also on future predictions, generalized assumptions, and policy judgments.” Waiāhole I, 94 Hawai'i at 155, 9 P.3d at 467. In this case, the Commission concluded, based on the above-listed facts showing an incongruity between Fares’s model and field conditions, that the model would be insufficient to quantify actual irrigation requirements. The Commission then added five percent to Fares’s figures to account for this difference. The Commission fully explained its logic in predicting the irrigation requirements, and it settled on a figure that is a small deviation from the Hui/MTF expert’s proposal. Faced with the question of whether the record lacks substantial evidence to support the estimates, the answer must be no; the court therefore concludes that the Commission did not err in its use of Fares’s model numbers as a starting point in articulating irrigation requirements for HC & S’s fields.
Hui/MTF argues that the Commission erred in including fields 921 and 922 when calculating HC & S’s acreage. Hui/ MTF alleges error on two grounds: first, the Commission wrongfully took judicial notice of facts affecting an alternative water source for the fields, and second, the soil quality of fields 921 and 922 is poor and it is unreasonable to provide fresh water to cultivate them. As the Commission found, fields 921 and 922 are sandy “scrub land” that HC & S had never cultivated until sometime between 1995 and 1997 when it entered into an agreement with Maui Land and Pine (“MLP”), under which MLP delivered wastewater from its pineapple cannery to irrigate the fields for seed cane. After the close of evidence, the Commission took judicial notice of newspaper reports that: (1) MLP announced that it would cease pineapple operations, (2) Halii-maile Pineapple Company would “revive” the fresh fruit operations, and (3) this “should not result in a restoration of the wastewater source.” Hui/MTF argues that it was error for the Commission to take judicial notice of these three “facts”. Hawai'i Rules of Evidence (“HRE”) Rule 201, limits the scope of judicial notice to facts “not subject to reasonable dispute in that it is either (1) generally known within the territorial jurisdiction of the trial court, or (2) capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned.” HRE Rule 201(b). In this case, the Commission took judicial notice of facts presented in two newspaper articles. There is precedent for taking judicial notice of facts as reported by newspapers. Application of Pioneer Mill Co., 53 Haw. 496, 497 n. 1, 497 P.2d 549, 551 n. 1 (taking judicial notice that a land court judge had announced his candidacy for public office, based upon newspaper articles submitted by the parties). In this case, however, the Commission went further than taking notice of facts reported in newspapers: it predicted the impact of those facts on HC & S’s water supply. HRE Rule 201 does not permit the Commission to take judicial notice of a possible effect of a change in ownership in the pineapple cannery. First, this prediction fits neither prong of the relevant rule of evidence; the effect of the change of ownership on HC & S’s water supply is neither “generally known within the territorial jurisdiction” nor “capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned.” HRE Rule 201(b). Second, the prediction that wastewater will no longer be available is purely speculative. In fact, one of the Commission’s FOF contradicts this speculation, stating “due to the shutdown of MLP’s cannery operation, MLP mill wastewater will only be able to supply approximately half of the irrigation requirements of Fields 921 and 922 in the future.” Furthermore, it is entirely possible that the company that “revived” operations also “revived” the practice of providing wastewater to HC & S. Hui/MTF are correct that the Commission’s taking judicial notice in this instance was improper. Hui/MTF also argues that the Commission erred in permitting HC & S to include fields 921 and 922 in its acreage because it is marginal farm land, or, as found by the Commission, “sandy ‘scrub land.’ ” Hui/MTF argues that the burden is on HC & S to show “the propriety of draining water from public streams” to irrigate this land which had been uncultivated until a wastewater source was available. The Commission found that fields 921 and 922 are similar to field 920, another “sandy ‘scrub land’ ” field on which HC & S ceased cultivation because it “has a very sandy soil and has consumed more water than other fields.” The Commission also explicitly excluded field 920 from HC & S’s acreage and water duty calculations, “because it has consumed more water because of the porosity of its sandy soil and its use for seed cane.” HC & S points to testimony from HC & S’s agronomist that HC & S is able to grow sugar on those fields because the sandy area has loam soil underneath it, thus permitting HC & S to achieve “good crop growth.” Though HC & S draws the court’s attention to this testimony in its briefing, this testimony is not included in the Commission’s FOP/ COL D & 0. In fact, the Commission found no explicit facts regarding the propriety of cultivating the fields; instead the Commission included fields 921 and 922 in HC & S’s acreage without explanation. As evinced by HC & S’s and the Commission’s treatment of field 920, the wisdom of irrigating fields 921 and 922 with Ná Wai ‘Ehá water is questionable. The record does not contain sufficient analysis to support the conclusion that fields 921 and 922 should be treated differently from field 920. Similarly, the record does not contain sufficient analysis showing that the Commission considered these fields with “a level of openness, diligence, and foresight” required when authorizing the diversion of our public trust res. On remand, the Commission must reevaluate its determination that HC & S should be permitted to divert Ná Wai ‘Ehá water to irrigate fields 921 and 922.
Hui/MTF also argues that the Commission erred in failing to hold HC & S and WWC to their burdens of proof regarding losses. Hui/MTF contends that diverting parties bear a burden of justifying losses and adopting practicable mitigation. WWC argues that there is no burden of proof on diverting parties in an IIFS proceeding; WWC also notes that “[n]othing within HRS § 174C-71(2) mandates that the Commission consider or not consider system losses. Likewise nothing within the public trust doctrine mandates that the Commission consider or not consider system losses.” HC & S responds that “some system loss, such as evaporation from open ditches and reservoirs, is unavoidable and not unreasonable,” and that the Commission’s determination of system losses is reasonable and not clearly erroneous. With regard to losses, the Commission found: 375. The great majority of WWC’s ditches are open and unlined. All of WWC’s reservoirs are unlined. 376. WWC did not address the feasibility of minimizing the losses from its system except to state that it “may ... in the future” have plans to line the unlined portions of their system. [...] 423. HC & S estimates that it loses 6-8 mgd through seepage from the Waiale reservoir, depending on the level of the reservoir. Seepage throughout the rest of the HC & S ditch and reservoir system is estimated to be 3-4 mgd. [ ... ] 425. HC & S acknowledges that “high density polyethylene lining could negate much of the seepage, not all of it” and that concrete lining “is obviously another option.” HC & S has no estimates of the cost to line Waiale Reservoir or the other reservoirs and ditches and has undertaken no engineering or financial analysis of what it would take to reduce the losses. The Commission concluded that WWC and HC & S have “not established the lack of practicable mitigating measures to address these losses.” The Commission then “as-sum[ed]” that “losses could be halved” by lining most of WWC’s reservoirs, and concluded that WWC’s reasonable losses are 2.0 mgd. The Commission also deemed HC & S’s reasonable losses to be 2.0 mgd, after estimating that HC & S could line the Waiale Reservoir to prevent 6-8 mgd, and, like WWC, could halve remaining losses. First, in considering these losses, it is necessary to recognize the magnitude of the losses. If the Commission’s estimates are correct and system losses run between 13-16 mgd 21 , then the minimal estimation of that loss is approximately twice the 6.84 mgd the Commission estimated for deliveries to all kuleana system users in Ná Wai ‘Ehá. The lowest estimation of losses, 13 mgd, is higher than the total volume that the final IIFS restore to the Waihe'e and Waiehu Streams. 22 Briefly stated, losses in the water system of Ná Wai ‘Ehá are massive. The Commission’s order that HC & S line the Waiale Reservoir to prevent a large portion of these losses is commendable and shows the “diligence” and “foresight” expected of the Commission in its management of the public trust. Second, WWC contends that the Commission, when setting an IIFS, does not have to consider system losses. The Commission does not respond to the argument in its answering brief, but the water code indicates that a diverter’s system losses may factor into the Commission’s estimations of nonin-stream uses when it sets an IIFS. The statute articulating the IIFS standards mandates that the Commission “weigh the importance of the present or potential instream values with the importance of the present or potential uses of water for noninstream purposes, including the economic impact of restricting such uses[J” HRS § 174C-71(2)(D). The plain meaning of the word “importance” requires the Commission to judge the value of a party’s noninstream use against the other present or potential uses. The value of diverting water, only to lose the water due to avoidable or unreasonable circumstances is unlikely to outweigh the value of retaining the water for instream uses. Therefore, the Commission did not err in considering losses. However, it appears that the Commission erred in its articulation of the burden of proof regarding losses. The Commission’s FOF/COL D & 0 twice cites Waiahole I and Waiahole II for authority that “[o]ffstream users have the burden to prove that any system losses are reasonable-beneficial by establishing the lack of practicable mitigation measures, including repairs, maintenance, and lining of ditches and reservoirs.” The Commission erred placing the burden of proof on the parties in the IIFS proceeding, as the authorities cited by the Commission apply in the context of a WUPA. In Waiahole I, the cited discussion of losses considered Waiahole Irrigation Company’s (“WIC”) request for 2.0 mgd to compensate for the losses of its ditch system. 94 Hawai'i at 118, 9 P.3d at 430. There, the Commission denied WIC’s request, but suggested that WIC could draw “non-regulated” surface water to cover the losses; on appeal, this court concluded that the Commission’s suggestion was erroneous for several reasons, and held that the Commission must consider the 2.0 mgd as a “‘use’ pursuant to the permitting process.” 94 Hawai'i at 118, 173, 9 P.3d at 430, 485. On remand, the Commission found that “Operational losses are a normal component of any water delivery system” and therefore issued a permit to WIC’s successor in interest, Agribusiness Development Corporation (“ADC”), to cover the losses. Wa iāhole II, 105 Hawai'i at 27, 93 P.3d at 669. When that decision returned to this court on further appeal, this court held that the Commission’s decision was incomplete because it did not include findings that ADC met its burden as a permit holder pursuant to HRS § 174C-49(a) 23 . Id. This burden is articulated in the WUPA statute, but is absent from the statutes governing IIFS. The Commission erred when it imposed a WUPA burden on the diverting parties in the IIFS CCH. As noted above, the burden in setting an IIFS is on the Commission to “protect instream values to the extent practicable.” Waiāhole II, 105 Hawai'i at 11, 93 P.3d at 653; HRS § 174C-71(2)(A). The court concludes that the Commission did not meet this burden when it “as-sum[ed]” that WWC’s and HC & S’s losses could be halved. As discussed above, the court has held that, due to the fact that the Commission must articulate an IIFS at an “early planning stage,” the Commission “need only reasonably estimate instream and offstream demands.” Waiāhole I, 94 Hawai'i at 155 n. 60, 9 P.3d at 467 n. 60. Though reasonable estimates are permitted at this stage, the Commission did not provide any analysis on how it reached that figure to show that it had “reasonably estimate[d]” that half of the losses could be eliminated. In choosing a number that appears to be arbitrary, the Commission could have significantly over- or underestimated the potential for mitigation of losses in HC & S’s and WWC’s water systems. On remand, the Commission must “reasonably estimate” losses, mindful of its duty to “protect instream values to the extent practicable.”
Hui/MTF argues that the Commission arbitrarily minimized Well No. 7’s potential contributions. OHA raises a similar challenge regarding Well No. 7; it contends that the Commission did not properly weigh HC & S’s potential use from the well. More specifically, OHA claims that HC & S did not demonstrate that Well No. 7 is not a practicable alternative, and that the Commission’s lowering of Well No. 7’s yield was arbitrary and capricious. Well No. 7 is the only one of HC & S’s sixteen brackish water wells on its plantation that is able to introduce water into HC & S’s internal ditch system. From 1927 until the 1980s, Well No. 7 was HC & S’s primary source of irrigation water for the 3,650-acre Waihe‘e-Hopoi Fields; HC & S pumped an average of about 21 mgd from Well No. 7 until 1988, when a competing sugar company ceased operations, freeing up a great amount of Na Wai ‘Eha water for HC & S use. For the past twenty-five years, HC & S has minimized use of Well No. 7, but it has occasionally used the well; in fact, it used the well heavily on two occasions: for six months from June through November of 1996, HC & 5 pumped an average of 25 mgd, and for six months from May through October 2000, HC 6 S pumped an average of 18.9 mgd. Well No. 7 is currently configured with three pumps: pumps 7A and 7B are at water level and can each pump 17.5 mgd to ground level, for a total of 35 mgd, which it can distribute to about 800 acres of the 3,650 acres of the Waihe‘e-Hopoi Fields. The third pump, Pump 7C, is a booster pump at ground level that HC & S claims can pump 14 mgd 24 from pump 7A to Waihe‘e Ditch for distribution to all of the Waihe'e-Hopoi Fields except for the 175-aere Field 715. During the hearings, HC & S offered four explanations for its argument that it would be impracticable to rely heavily on water pumped from Well No. 7. First, HC & S estimates that it would incur an estimated $1 million dollars in capital costs to install new pipelines and pumps. Second, HC & S claims that it does not have adequate electrical power to run the pumps on a consistent and sustained basis because of its power contract with Maui Electric Company (“MECO”). HC & S estimates it would incur costs of $777,650 to upgrade its pumps and electrical equipment to meet MECO’s standards for servicing such equipment; HC & S also claims it would cost $7,440 per day for energy to run Well No. 7, and that HC & S would lose $1.8 million in revenues under its contract with MECO as well as a decrease in HC & S’s avoided cost rate and penalties three times the power rate for power it does not deliver. Third, HC & S claims that increased pumping would exacerbate the degree to which sustainable yield is already being exceeded and reduce the recharge from the imported surface water that Sustains the Kahului aquifer. Fourth, HC & S claims that increased pumping of the well would increase the salinity of the water. The Commission’s Final D & 0 considered the first three factors listed above (the capital costs, energy costs, and aquifer recharge) and determined that HC & S must pump only 9.5 mgd from Well No. 7. The Commission determined that Well No. 7 is an alternative that most likely would not be available on a daily basis, citing the uncertainties about the recharge rate and electrical power. In determining that HC & S must pump 9.5 mgd, the Commission required that HC & S pay additional energy costs to pump the water, but did not require HC & S to accrue any capital costs. The D & 0 requires HC & S to provide monthly ground water use reports documenting the volume of water pumped from Well No. 7, along with ground water levels and salinity measurements. In his dissent, Dr. Miike criticized the Commission majority for its treatment of Well No. 7, writing that the 9.5 mgd figure is “without any credible foundation.” This is a main point of error on appeal for Hui/MTF and OHA; they argue that the Commission arbitrarily minimized Well No. 7’s potential contributions as an alternative source to Na Wai ‘Eha water. The Commission’s response is contradictory and makes it clear that guidance is necessary in this area. First, the Commission responds that “neither the statutes nor the administrative rules require an analysis of practicable alternatives in setting the IIFS.” The Commission then asserts that Well No. 7 “had a place” in the IIFS analysis because it is a consideration when weighing instream values with offstream purposes when establishing the IIFS. The analysis with regard to alternative sources is similar to the analysis with regard to system losses, supra. The water code requires the Commission to “weigh the importance of the present or potential instream values with the importance of the present or potential uses of water for noninstream purposes, including the economic impact of restricting such uses[.]” HRS § 174C-71(2)(D). The plain meaning of the word “importance” requires the Commission to judge the value of a party’s noninstream use against the other present or potential uses. Furthermore, as the water code’s Declaration of Policy explains, “[t]he state water code shall be liberally interpreted to obtain maximum beneficial use of the waters of the State....” HRS § 174C-2(c) (1993). Allowing a water user to divert water from the public trust res when that user has exclusive access to an alternative water source that is currently un- or under-used would not effect the Legislature’s policy as expressed in the water code. This suggests that the Commission’s second argument is correct; Well No. 7, as an alternative source, “has a place” in the analysis of setting an IIFS because the availability of alternative water sources necessarily diminishes the “importance” of diverting Ná Wai ‘Eha water for noninstream use. Hui/MTF, OHA, HC & S, and WWC do not dispute the relevance of Well No. 7 water to the IIFS analysis; they do, however, disagree on whether the diverting party bears a burden of proof with regard to this point of analysis. Hui/MTF argues that HC 6 S bears a burden to prove that using Well No. 7 is not practicable, and that the Commission is “duty bound” to hold HC & S to its burden. OHA agrees that the burden falls to HC & S to demonstrate that Well No. 7 is not a practicable alternative. HC & S and WWC both argue that the burden falls to the Commission to determine IIFS that best serve the public interest. The Commission’s FOF/COL D & 0 does not specify a burden of proof for alternative sources, as it did for system losses. In its introduction, however, the Commission does specify a general standard that “[f]or those seeking private, commercial uses of water, there is a higher level of scrutiny. In practical terms, this means that the burden ultimately lies with those seeking or approving such uses to justify them in light of the purposes protected by the trust.” More specific to alternative sources, the Commission stated that it “is not obliged to ensure that any particular user enjoys a subsidy or guaranteed access to less expensive water sources when alternatives are available and public values are at stake,” and also that “[a]n applicant’s inability to afford an alternative source of water, standing alone, does not render that alternative impracticable.” In evaluating Well No. 7 and HC & S’s four arguments listed above, the Commission found the following: 494. [... ] From 1927 until additional Na Wai ‘Ehá water became available in the 1980s, HC & S’s primary source of irrigation water for its Waihe‘e-Hopoi Fields was Well No. 7, [ ... ] a brackish water well. 495. Between 1927 and 1985, HC & S pumped an average of about 21 mgd from Well No. 7. Since the additional Na Wai ‘Ehá flows became available. HC & S has minimized its use of Well No. 7 but used it heavily on to occasions: e.g., for the six-month period from June through November of 1996, an average of 25 mgd was pumped; and for the six-month period from May through October of 2000, an average of 18.9 mgd was pumped. [...] 497. According to HC & S, as currently configured, Well No. 7 can supply only 14 mgd to the Waihe'e-Hopoi Fields, with the exception of Field 715. However, HC & S’s records do not indicate that Well No. 7 was ever configured differently than its current configuration. 498. HC & S estimates that it would cost approximately $525,000 to add another booster pump and additional distribution pipeline to increase the volume that can be pumped from Well No. 7 to HC & S’s Waihe'e Ditch from 14 mgd to 28 mgd; and the cost of an additional pipeline to reach Field 715 would be $475,000. 499. HC & S also claims that it does not have adequate electrical power to run the pumps for Well No. 7 on a consistent and sustained basis because of its power contract with Maui Electric Company (“MECO”) and limitations of its capacity to generate electricity through its system of burning bagasse and other supplemental fuels in its power plant and the operation of its hydro power turbines on its ditch system which are supplied by East Maui water[.] 500.HC & S also claims that any increased pumping of water from the Kahu-lui aquifer to replace surface water being imported from the West Maui Ditch System would both exacerbate the degree to which the sustainable yield is already being exceeded and reduce the recharge from imported surface water that sustains the aquifer. These findings of fact are plainly descriptions of testimony. In its conclusions of law section examining “Reasonable Offstream Uses,” the Commission restated several of these “findings,” indicating that the Commission adopted the testimony as fact. The Commission then stated The combined facts that the current sustainable yield of the aquifer is already being exceeded; that increased pumping from Well No. 7 may exacerbate that strain; and that the historically higher levels of pumping occurred during a period where furrow irrigation methods were affecting recharge rates for the aquifer, the practical alternative from Well No. 7 is lower than historic rates. Considering these uncertainties in combination with the Commission’s decision to place the full burden of remedying losses immediately upon HC & S, discussed intra, the practical alternative from Well No. 7 is deemed 9.5 mgd. This alternative will not require capital costs, only the costs of pumping. The Commission erred in adopting HC & S’s testimony without any assessment of the evidence on the record that contradicted HC & S’s arguments. As the court explained in Wai&hole I, where “the record demonstrates considerable conflict or uncertainty in the evidence, the agency must articulate its factual analysis with reasonable clarity, giving some reason for discounting the evidence rejected.” 94 Hawai'i at 163-64, 9 P.3d at 475-76. The record shows that the Commission did not explain its analysis with “reasonable clarity” regarding any of the “facts” recited above. For example, OHA shows that, with regard to HC & S’s claim that pumping Well No. 7 would result in a diminished aquifer, HC & S had represented the exact opposite to the Commission in another context but around the same time as the hearings in this ease. OHA’s exhibit C-90 is a letter dated January 11, 2008 to the Commission from HC & S’s Senior Vice President, Rick Vol-ner, regarding the Public Review Draft Water Resource Protection Plan (“WRPP”) for parts of West Maui, including the Kahului aquifer. In its letter, HC & S states that it has five wells in the Kahului aquifer and eleven wells in the Pa‘ia aquifer. HC & S writes Over the last twenty years, the daily average rate of withdrawal, by year, for all 16 of these wells combined has ranged from approximately 40 mgd to as much as 112 mgd far in excess of the combined sustainable yield of between 7 and 8 mgd for the Kahului and Pa‘ia aquifers recommended in the Draft WRPP. Several of these wells have been in operation for more than a hundred years, and all have been in place and operated for many decades without any long term deterioration in water quality. Though these written comments contradict the evidence it presented regarding its inability to pump Well No. 7 due to the alleged recharge problem, the Commission does not explain why it disregarded the written comments in favor of HC & S’s evidence supporting the existence of a recharge problem. The Commission attempted to analyze the economic impact of requiring HC & S to augment Na Wai ‘Eha water with water from Well No. 7. HC & S claimed that the economic consequences of reduced allowable diversion or increased requirements to pump Well No. 7 would result in HC & S discontinuing all operations on Maui. The Commission found that: HC & S had not “done any economic analysis on how a reduction of available surface water in this case would force HC & S to shut down”; Mr. Holiday[, President of HC & S’s Agricultural Group,] “[could not] say yes or no” when asked whether shifting 9 mgd of Ná Wai ‘Ehá surface water to another purpose would prevent HC & S from being viable, but testified that HC & S is “assuming” that impact “for planning purposes.” As the Commission recited in its FOF/COL, Catherine Chan-Halbrendt, Professor in the Department of Natural Resources and Environmental Management at the University of Hawai'i, Mánoa, testified that “the lack of any economic analysis, or the data required to conduct such an analysis, prevents anyone, including this Commission, from evaluating HC & S’s claims of economic impact.” The Commission agreed that the record was insufficient, stating “It would have been more helpful to the Commission if either or both parties had provided information on incremental decreases in surface water to the 5,000 acres of HC & S’s West Maui Fields.” Nonetheless, the Commission stated that “the lack of such analyses does not prohibit the Commission from its duty of weighing instream values with non-instream uses.” The record shows, however, that the Commission did not merely weigh instream values with noninstream uses; rather, the Commission’s own explanation of how it arrived at the 9.5 mgd requirement shows that cost to HC & S was the determinative factor. The Commission concluded first that there were uncertainties regarding the aquifer recharge, and that therefore “the practical alternative from Well No. 7 is lower than historic rates.” That is, even though the Commission found that historical rates for Well No. 7 showed that “[b]etween 1927 and 1985, HC & S pumped an average of about 21 mgd from Well No. 7,” the Commission decided that a lower number would be more appropriate. Then, in determining that lower number, the Commission explained: Considering these uncertainties [regarding aquifer recharge] in combination with the Commission’s decision to place the full burden of remedying losses immediately upon HC & S, discussed intra, the practical alternative from Well No. 7 is deemed 9.5 mgd. This alternative will not require capital costs, only the costs of pumping. (emphasis added). That is, since the Commission already required HC & S to pay to eliminate some of its system losses, it would not require HC & S to incur any capital costs to improve Well No. 7. The Commission erred when it made its decision regarding Well No. 7 based on cost while explicitly acknowledging that it did not have the data it needed to truly analyze cost. “[T]he Commission must not relegate itself to the role of a mere ‘umpire passively calling balls and strikes for adversaries appearing before it,’ but instead must take the initiative in considering, protecting, and advancing public rights in the resource at every stage of the planning and decisionmaking process.” Waiāhole I, 94 Hawai'i at 143, 9 P.3d at 455 (citations). When such critical information is missing, the Commission must “take the initiative” to obtain the information it needs. Where the Commission’s decisionmaking does not display “a level of openness, diligence, and foresight commensurate with the high priority these rights command under the laws of our state,” the decision cannot stand. Wai’ola, 103 Hawaii at 422, 83 P.3d at 685. On remand, the Commission must revisit its analysis of Well No. 7 as an alternative source to diverting Ná Wai ‘Ehá water, as explained in this opinion.
Hui/MTF argues that the Commission erred in failing to consider the practicability of using recycled wastewater from the Wailuku/Kahului wastewater treatment plant. In its FOF/COL D & 0, the Commission concluded that at least 5 mgd of recycled wastewater “is currently disposed of via underground injection.” In response to Hui/ MTF’s urging that HC & S be required to utilize this water, the Commission found that “the County currently has no existing infrastructure to deliver recycled wastewater to HC & S’s fields.” The Commission also heard testimony that “private parties could construct their own pipeline to the plant.” The Commission appears to have concluded that this alternative did not merit consideration, based solely on the current lack of infrastructure. This decision does not evince “a level of openness, diligence, and foresight commensurate with the high priority these rights command under the laws of our state.” Wai’ola, 103 Hawai'i at 422, 83 P.3d at 685. The recycled wastewater was quantified as “at least 5 mgd”; 5 mgd is nearly enough water to satisfy all kuleana users in Ná Wai ‘Ehá and would be a significant contribution to HC & S’s water needs. On remand, the Commission must evaluate this alternative with “openness, diligence, and foresight” to determine whether it is a viable alternative to diverting Ná Wai ‘Ehá water.