Court Opinion

ID: 9964362
Source: CourtListenerOpinion
Date Created: 2024-04-29 19:03:37.94139+00
Date Added: 2024-06-11T08:25:20.921986
License: Public Domain

NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

                                                  Electronically Filed
                                                  Intermediate Court of Appeals
                                                  CAAP-XX-XXXXXXX
                                                  29-APR-2024
                                                  08:04 AM
                                                  Dkt. 50 SO

                           NO. CAAP-XX-XXXXXXX

                 IN THE INTERMEDIATE COURT OF APPEALS

                         OF THE STATE OF HAWAI#I

     NÂ PAPA#I WAWAE #ULA#ULA, an unincorporated association,
      RANDAL DRAPER, individual, and WEST MAUI PRESERVATION
          ASSOCIATION, a Hawai#i nonprofit organization,
                      Plaintiffs-Appellants,
                                 v.
   DEPARTMENT OF LAND AND NATURAL RESOURCES, STATE OF HAWAI#I,
                        Defendant-Appellee,
                                and
                       DOES 1-27, Defendants

         APPEAL FROM THE CIRCUIT COURT OF THE SECOND CIRCUIT
                       (CIVIL NO. 17-100483(3))

                    SUMMARY DISPOSITION ORDER
  (By: Leonard, Acting Chief Judge, Hiraoka and Nakasone, JJ.)

            Plaintiffs-Appellants Nâ Papa#i Wâwae #Ula#Ula, an

unincorporated association, Randal Draper (deceased), an

individual, and West Maui Preservation Association, a Hawai#i

nonprofit organization (collectively, Appellants), appeal from

the March 11, 2019 Final Judgment (Judgment) entered by the

Circuit Court of the Second Circuit (Circuit Court),1 in favor of

Defendant-Appellee Department of Land and Natural Resources,

State of Hawai#i (DLNR).      Appellants also challenge the Circuit

Court's:    (1) January 24, 2019 Order Denying [Appellants'] Motion

     1
            The Honorable Joseph E. Cardoza presided.
  NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

for Summary Judgment; and (2) January 24, 2019 Order Granting

[DLNR's] Motion for Summary Judgment.

            Appellants raise a single point of error on appeal,

contending that the Circuit Court erred in concluding that the

issuance or renewal of six Kâ#anapali commercial use permits

(CUPs) does not constitute an "action" under Hawaii Revised

Statutes (HRS) Chapter 343, the Hawai#i Environmental Policy Act

(HEPA).

            Upon careful review of the record and the briefs

submitted by the parties, and having given due consideration to

the arguments advanced and the issues raised by the parties, we

resolve Appellants' point of error as follows:

            The Circuit Court determined that the issuance or

renewal of the six CUPs at issue in this case did not constitute

an "action" under HEPA because of the limited nature and scope of

the CUPs.    The Circuit Court noted that there are substantial

differences here from the activities permitted by the commercial

aquarium collection permits in Umberger v. DLNR, 140 Hawai#i 500,

513, 403 P.3d 277, 290 (2017).        Appellants argue that DLNR's

issuance of the CUPs constitutes a HEPA action because the CUPs
were a "planned undertaking of commercial activities involving

the use of passenger boats and/or thrillcraft at Kâ#anapali beach

and ocean waters," making them a "program or project."2

     2
            HRS § 200-23 (2011) defines "thrill craft," in pertinent part, as:

                  "Thrill craft" means any motorized vessel that falls
            into the category of personal watercraft, and which:
                  (1)   Is generally less than thirteen feet in length
                        as manufactured;
                                                                (continued...)

                                      2
  NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

            "HEPA defines 'action' as 'any program or project to be

initiated by any agency or applicant.'"          Carmichael v. BLNR, 150

Hawai#i 547, 568, 506 P.3d 211, 232 (2022); see also HRS § 343-2

(2010).    "'Program' is generally defined as 'a plan or system

under which action may be taken toward a goal' [and] '[p]roject'

is defined as 'a specific plan or design' or 'a planned

undertaking.'"     Umberger, 140 Hawai#i at 513, 403 P.3d at 290.

"An important preliminary step in assessing whether an 'action'

is subject to environmental review is defining the action
itself."    Sierra Club v. Dep't of Transp., 115 Hawai#i 299, 306

n.6, 167 P.3d 292, 299 n.6 (2007).

            HRS § 200-4(a)(6)(A)(i),(ii) (2011) authorizes DLNR to

require permits and fees for "[t]he mooring, docking, or

anchoring of recreational and commercial vessels or the launching

of recreational or commercial vessels at small boat harbors,

launching ramps, and other boating facilities," or "[o]ther uses

of these facilities."      Hawai#i Administrative Rules (HAR) § 13-

231-3(a)(6) provides that a boating permit "authorizes the owner

of a commercial vessel to engage in commercial activities as

specified in the permit."       Thus, the activities authorized by the

     2
      (...continued)
                 (2)    Is generally capable of exceeding a speed of
                        twenty miles per hour;
                  (3)   Can be operated by a single operator, but may
                        have the capacity to carry passengers while in
                        operation; or
                  . . . .
            The term includes, but is not limited to, a jet ski,
            waverunner, wet bike, surf jet, miniature speed boat,
            hovercraft[.]

                                      3
  NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

CUPs are the activities specified in the CUPs.           The CUPs

authorize, in pertinent part:
            CUPs T-01 and 02 authorize "THRILL CRAFT RENTALS/SHUTTLING
            PASSENGERS TO & FROM KAANAPALI BEACH & THRILL CRAFT PLATFORM
            WITHIN THE KAANAPALI THRILL CRAFT OPERATING AREA." 3
            CUP C-06 authorizes "PASSENGERS FOR HIRE/EMBARKING &
            DISEMBARKING COMMERCIAL PASSENGERS ON KAANAPALI BEACH
            SEAWARD OF THE HIGH WATER MARK, WITHIN THE INGRESS EGRESS
            AREAS ZONES/CATAMARAN BEACH LANDINGS."

            CUP C-01 authorizes "EMBARKING & DISEMBARKING PASSENGERS ON
            KAANAPALI BEACH SEAWARD OF THE HIGH WATER MARK. CATAMARAN
            SAILING CHARTERS & BEACH LANDINGS."
            CUP C-10 authorizes "PASSENGERS FOR HIRE/EMBARKING &
            DISEMBARKING COMMERCIAL PASSENGERS FROM KAANAPALI BEACH,
            WITHIN THE INGRESS EGRESS AREAS."

            In Umberger, the permits at issue authorized extraction

of aquatic life, authorized recreational permittees to collect

1,825 fish or other aquatic life within a one-year period, and

authorized commercial aquarium collection permittees to collect

an unlimited number of fish and other aquatic life.            140 Hawai#i

at 513, 403 P.3d at 290.       The Hawai#i Supreme Court determined

that the permitted activities qualified as an "action" and

reasoned:
                  The course and scope of conduct allowed by both
            recreational and commercial aquarium collection permits
            issued under HRS § 188-31 and DLNR's administrative scheme
            encompass activity that qualifies as a "program" or
            "project." The activity is a "specific plan" or "a planned
            undertaking" - and, therefore, a "project" - because it
            involves the systematic and deliberate extraction of aquatic
            life using procedures, equipment, facilities, and techniques
            authorized or required by HRS § 188-31 and related
            administrative rules for the specific purpose of holding
            captive such aquatic life for aquarium purposes in order to
            earn profit (in the case of commercial permit holders) or
            for non-commercial use (in the case of recreational permit
            holders).

                  In the same vein, both recreational and commercial
            aquarium collection are "programs" within the plain meaning
            of that word: the "plan or system under which action may be
            taken" is the purposeful and methodical extraction of

      3
            CUP T-03 authorizes exactly the same type of commercial activity
as T-01 and T-02, but some of the language is reworded.

                                      4
  NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

           aquatic life from State waters through the use of fine
           meshed nets and traps and the transfer of such aquatic life
           to facilities that are capable of keeping the collected
           aquatic life alive. The "desired goal" is to take aquatic
           life from its habitat and hold it in a state of captivity
           for aquarium purposes, . . . in order to earn profits (in
           the case of commercial permit holders) or for non-commercial
           use (in the case of recreational permit holders).
           Additionally, the method by which extraction is accomplished
           involves instruments and techniques that enhance the
           efficiency and amount of the collection. Accordingly,
           aquarium collection conducted under permits issued pursuant
           to HRS § 188-31 and DLNR's administrative rules is a
           "program or project" and therefore constitutes a HEPA
           "action."

Id. at 514-15, 403 P.3d at 291-92 (footnote omitted).

           In Carmichael, the supreme court similarly held that

the activity authorized by DLNR's revocable permits – the

"development, diversion, and use of [the] water located across

approximately 33,000 acres of State land in Maui" – constituted

an "action" under HEPA.      150 Hawai#i at 569, 506 P.3d at 233

(internal quotation marks omitted).        While DLNR's continuations

of the revocable permits were not HEPA "actions," the applicant's

permitted activity, i.e. developing, diverting, and using water

across large areas of land did constitute an "action."            Id.     The

supreme court reasoned that the permitted activity constituted an

"action" because it qualified as a "project" or a "program,"
stating:
           The activity is a "specific plan" or "planned undertaking" -
           and is, therefore, a "project" - because the permits
           facilitated a deliberate and coordinated effort by
           [defendants] to use their water system to deliver water and
           manage water use for the permitted areas. 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 [defendants'] (and
           their customers') water needs.

Id. (internal citations omitted).

                                     5
  NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

           In Umberger, the supreme court emphasized that not all

activities under a permitting scheme qualify as a "program" or

"project" and thus constitute an "action."     140 Hawai#i at 519,

403 P.3d at 296.   In that case, the Intermediate Court of Appeals

(ICA) had determined that the aquarium collection permitting

scheme did not constitute an "action" in part because

"[a]ppellants offer no rational distinction or logical reason why

HEPA environmental review procedures should be required for

aquarium fish permits," but not for licenses or permits such as
"hunting licenses, camping permits, collecting permits, access

permits, commercial activity permits (e.g., beach weddings),

commercial harvest permits, and marine event permits."      Umberger

v. DLNR, 138 Hawai#i 508, 517, 382 P.3d 320, 329 (App. 2016),

aff'd in part, rev'd in part, Umberger, 140 Hawai#i 500, 403 P.3d

277 (2017).   In rejecting this rationale, the supreme court

provided that "[t]he activities authorized by the permitting

schemes that the ICA utilized in its analysis are not effective

points of comparison given their substantial differences, both in

magnitude and nature, from the activities sanctioned by aquarium

collection permits."   Umberger, 140 Hawai#i at 519, 403 P.3d at

296.   The supreme court stated that "many of the activities under

the permitting regimes that the ICA identified do not appear to

be 'programs' or 'projects.'"    Id.

           In Carmichael, the supreme court concluded that the

permitted activities constituted a "program" and "project"

because the four permits were all part of the same collection and

delivery system that authorized Alexander & Baldwin, Inc. (A&B)

                                  6
  NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

and East Maui Irrigation Co. (EMI)4 to move 100 million gallons

of water in East Maui to another A&B subsidiary.             See 150 Hawai#i

at 217, 233, 506 P.3d at 553, 569 (noting that the permitted

activity was a "planned undertaking" because "the permits

facilitated a deliberate and coordinated effort by [the

defendants] to use their water system to deliver water and manage

water use for the permitted areas.").           In Carmichael, the supreme

court refused to "opine on the validity of other permits not

before the court" because the "duration, magnitude, and nature of
the uses authorized by the revocable permits here . . . may be

distinguishable from other, smaller-scale uses similarly

authorized by the DLNR."       Id. at 571-72, 506 P.3d at 235-36.

            Here, the CUPs "facilitated a deliberate and

coordinated effort" for each permittee to engage in commercial

activity in Kâ#anapali waters for profit through the use of

authorized equipment such as thrill craft and other vessels,

procedures, and techniques.       See id.; Umberger, 140 Hawai#i at

514, 403 P.3d at 291.      Thus, we conclude that the activities

authorized by the six CUPs constitute action under HEPA.

            The Circuit Court erred in concluding that the

activities authorized by the CUPs do not qualify as a program or

project constituting actions under HEPA.

      4
            EMI is a subsidiary of A&B.   Carmichael, 150 Hawai #i at 553 n.3,
506 P.3d at 217 n.3.

                                      7
  NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

            For these reasons, the Circuit Court's March 11, 2019

Judgment is vacated, and this case is remanded to the Circuit

Court for further proceedings.5

            DATED: Honolulu, Hawai#i, April 29, 2024.

On the briefs:                             /s/ Katherine G. Leonard
                                           Acting Chief Judge
Lance D. Collins,
for Plaintiffs-Appellants.                 /s/ Keith K. Hiraoka
                                           Associate Judge
Daniel A. Morris,
Deputy Attorney General,                   /s/ Karen T. Nakasone
for Defendant-Appellee.                    Associate Judge

      5
            We reiterate that the only issue before the court on this appeal
is whether the issuance or renewal of the six K â#anapali CUPs constitutes an
action under HRS Chapter 343, and therefore we do not address other related
issues, e.g., whether a permittee is exempt from preparing an environment
assessment under HRS § 343-6(a)(2) (2010).

                                       8