The document summarizes information regarding water rights and usage on Maui by Alexander & Baldwin (A&B) and Hawaiian Commercial & Sugar Company (HC&S). It discusses the various state agencies and legal proceedings involved, including the Commission on Water Resource Management (CWRM) and their management of water resources. It also provides statistics on sugar production by HC&S from 1996-2015 and their water needs to irrigate sugar cane fields and produce raw sugar.

1. THE COMMISSION
Hawaii Department of Land and Natural Resources (DNLR)
Hawaii Commission on Water Resource Management (CWRM)
OVERVIEW and ABRIDGEMENT of HAWAII STATE WATER CODE
Wai – Water, Source of Life
THE HOLD and THE HEIST
Alexander & Baldwin (A&B) – Hawaiian Commercial & Sugar Company (HC&S)
East Maui Irrigation Company (EMI) – Wailuku Water Company (WWC)
THE HAWAII DEPARTMENT OF LAND AND NATURAL RESOURCES (DNLR)
“THE BOARD” – December 2016
“[T]he end of sugar cultivation will affect the allocation between instream
and offsite uses”
“[T]he board [Department of Land and Natural Resources] prefers to wait for the
current CWRM [Commission on Water Resource Management] proceedings”
The board, Department of Land and Natural Resources is unaware of any
evidence that the diversions, “if continued for a few months to allow for the
Water Commission’s review, would permanently harm ecosystems or contribute
to the extinction of any species”
“Petitioners have also not shown that the public interest otherwise requires
that diversions cease during this interim period before the CWRM review is
”completed
[Emphasis and Clarification Supplied]
Source: Environment Hawai`i. HC&S Claims Diversified Ag Needs Will Exceed 100
Million Gallons a Day. Volume 27, Number 6. December 2016. Pages 10 – 12, p. 12.
http://www.environment-hawaii.org/wp-content/uploads/2016/12/December-2016.pdf
Web Accessed: December 14, 2016.
: Iao Ground Water Management Area filed July 9, 2001CONTESTED CASE CCH-MA06-01
: Petition to Amend Instream Flows (27 East MauiCONTESTED CASE CCH-MA13-01
Streams) filed May 24, 2001

2. ALEXANDER & BALDWIN LEGAL PROCEEDINGS
A&B owns 16,000 acres of watershed lands in East Maui that supply a significant
portion of the irrigation water used by Hawaiian Commercial & Sugar Company
("HC&S"), a division of A&B that produces raw sugar. A&B also held four water
licenses to another 30,000 acres owned by the State of Hawaii in East Maui
which, over the last ten years, have supplied approximately 56 percent of the
irrigation water used by HC&S. The last of these water license agreements
expired in 1986, and all four agreements were then extended as revocable
permits that were renewed annually. In 2001, a request was made to the State
Board of Land and Natural Resources (the "BLNR") to replace these revocable
permits with a long-term water lease. Pending the conclusion by the BLNR of
this contested case hearing on the request for the long-term lease, the BLNR has
kept the existing permits on a holdover basis. Three parties filed a lawsuit on
April 10, 2015 (the “4/10/15 Lawsuit”) alleging that the BLNR has been renewing
the revocable permits annually rather than keeping them in holdover status. The
lawsuit asks the court to void the revocable permits and to declare that the
renewals were illegally issued without preparation of an environmental
assessment (“EA”). In December 2015, the BLNR decided to re-affirm its prior
decisions to keep the permits in holdover status. This decision by the BLNR is
being challenged by the three parties. In January 2016, the court in the 4/10/15
Lawsuit ruled that the renewals were not subject to the EA requirement but that
the BLNR lacked legal authority to keep the revocable permits in holdover
status beyond one year. The court has allowed the parties to take an immediate
appeal of this ruling.
In addition, on May 24, 2001, petitions were filed by a third party, requesting
that the Commission on Water Resource Management of the State of Hawaii
("Water Commission") establish interim instream flow standards ("IIFS") in 27
East Maui streams that feed the Company's irrigation system. The Water
Commission initially took action on the petitions in 2008 and 2010, but the
petitioners requested a contested case hearing to challenge the Water
Commission's decisions on certain petitions. The Water Commission denied the
contested case hearing request, but the petitioners successfully appealed the
denial to the Hawaii Intermediate Court of Appeals, which ordered the Water
Commission to grant the request. The Commission then authorized the
appointment of a hearings officer for the contested case hearing and expanded
the scope of the contested case hearing to encompass all 27 petitions for
amendment of the IIFS for East Maui streams in 23 hydrologic units. The
evidentiary phase of the hearing before the Commission-appointed hearings
officer was completed on April 2, 2015. On January 15, 2016, the Commission-
appointed hearings officer issued his recommended decision on the petitions.

3. The recommended decision would restore water to streams in 11 of the 23
hydrologic units. A final decision on the petitions from the Commission is not
expected until at least the second quarter of 2016. Note, Supplied: No decision
has been rendered as of this date, December 14, 2016.
[Emphasis Supplied]
Source: Alexander & Baldwin Annual Report and 10K Filing United States
Securities and Exchange Commission. Filed: February 29, 2016
http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=irol-sec Web Accessed:
December 14, 2016
__________
“A&B holds rights to an irrigation system in West Maui, which provided
approximately 13 percent of the irrigation water used by HC&S over the last ten
years. A&B also owns 16,000 acres of watershed lands in East Maui, which
supply a portion of the irrigation water used by HC&S. A&B also held four
water licenses to another 30,000 acres owned by the State of Hawaii in East
Maui, which over the last ten years have supplied approximately 56 percent of
the irrigation water used by HC&S.” [Emphasis Supplied]
Source: Alexander & Baldwin, Inc. Form 10-K. Annual Report for the Fiscal Year
Ended December 31, 2015. United States Securities and Exchange Commission
February 29, 2016. Web Accessed: December 14, 2016
http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEwNzc5MzYyJkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3
__________
“HC&S, Maui’s largest single water user, dominates agricultural water demand
on Maui Island. HC&S self-supplies about 250 mgd, averaging 72 mgd as mildly
brackish groundwater, 167 mgd as surface water from East Maui Irrigation, and
around 7 mgd from Na Wai Eha (West Maui Irrigation1) requirements. HC&S
purchases an additional 40 – 60 mgd of Na Wai Eha waters from Wailuku Water
Company for a total use of about 300 mgd.” [MGD : Million Gallons a Day]
[Citations Omitted, Emphasis Supplied]
Source: Emily A Grubert and Michael E Webber. Energy for water and water
for energy on Maui Island, Hawaii. Environmental Research Letters, Vol. 10, No.
6. June 9, 2015. Web Accessed: December 12, 2016.
http://iopscience.iop.org/article/10.1088/1748-9326/10/6/064009
1 West Maui Irrigation System. http://hdoa.hawaii.gov/arm/files/2012/12/Map13.pdf (Wailuku Water
Company)

4. “Sugar is a thirsty crop.
“To produce 1 pound of sugar takes 4,000 pounds of water, 500 gallons. One ton
of sugar takes 4,000 tons of water, a million gallons. One million gallons a day
is need to irrigate 100 acres of sugar cane.” [Emphasis Supplied]
Source: Carol Wilcox. Sugar Water: Hawaii's Plantation Ditches. (Honolulu:
University of Hawaii Press, 1997.
___________
Conversion: Water Useage to Acres Irrigated and Sugar Produced
HC&S 2014 14,200 acres harvested ___ 162,100 tons raw sugar produced
Water to Irrigate 14,200 Acres of Sugar Cane 14,200,000 gallons of water a day
Water to produce 162,000 tons of Sugar 16,210,000 gallons of water
Source: Alexander & Baldwin, Inc. Form 10-K. Annual Report for the Fiscal Year
Ended December 31, 2015. Filed with the United States Securities and Exchange
Commission, February 29, 2016. Web Accessed: December 12, 2016
http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEwNzc5MzYyJkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3
___________________
WAI – WATER, THE LIFELINE OF OUR ISLANDS
Surface waters flow over land from mauka to makai, while ground waters
percolate through the ground and are stored in underground aquifers.
Ground water, the primary source of Hawaii’s fresh drinking water, forms a
lens sitting atop a pool of salt water, with a transition (brackish) zone
between. Streams provide water for domestic use, habitat for Hawaii’s
native stream organisms, taro cultivation, agriculture, and more. Together,
the waters of Hawaii are the lifeline of our Islands.

5. “Ke Kahuwai Pono” exemplifies the Commission on Water Resource
Management and it’s responsibility in protecting the water resources of
Hawaii, recognizing that the waters of the State are held in trust for the
benefit of the citizens of the State. In the Hawaiian language, wai is “water”,
kahu means “guardian, caretaker”, and pono stands for “proper, righteous.”
Together, these words translate to “the trustee who oversees the rightful
sharing of water.”
It is with this conviction that the Commissioners, Deputy Director, and staff
strive to ensure the availability of freshwater for generations to come.
Source: Commission on Water Resource Management. Web Accessed: December 14, 2016
http://dlnr.hawaii.gov/cwrm/aboutus/
_______________________
WATER, THE LIFELINE OF OUR ISLANDS
Hawaii Commission on Water Resource Management (CWRM)
June 6, 2011
https://vimeo.com/24745831
________________________
HAWAI`I STATE WATER CODE
Hawaii Revised Statutes Chapter 174C
It is recognized that the waters of the State are held for the benefit of the citizens of the State.
It is declared that the people of the State are beneficiaries and have a right
to have the waters protected for their use. [A]dequate provision shall be
made for the protection of traditional and customary Hawaiian rights,
the protection and procreation of fish and wildlife, the maintenance of
proper ecological balance and scenic beauty, and the preservation and
enhancement of waters of the State for municipal uses, public recreation,
public water supply, agriculture, and navigation. Such objectives are
declared to be in the public interest.

6. KALO
Taro, The Staff of Life
Taro requires land with an ample supply of water to produce efficiently.
The area under cultivation in both East and West Maui can be increased if more
farmers obtain land and water.
On Maui there is considerable acreage that can be used for wetland taro cultivation
if irrigation systems are improved. For instance, in the Wailua area the water
delivery systems are clogged with debris and are in generally poor condition. East
Maui streams are de-watered for plantation irrigation and municipal supply, which
often reduces downstream water availability at existing and potential taro lands. In
the West Maui area, traditional wetland growing areas are being revived. In all,
some 200 additional areas of lo`i (wetland taro pond fields) could be put into
production at the market demands.
The `auwai (irrigation ditches) need repair and cleaning, or perhaps replacement.
Almost all East Maui streams are de-watered for plantation agriculture and
municipal supply, usually leaving less water available downstream for taro
cultivation.
On average, wetland taro requires approximately 0.2 inches (5,400 galons) of new
water per acre per day for growth. To this amount, additional water is required to
compensate for seepage and evaporation from the paddy. Additional water is also
needed to adequately cool the paddy. Water requirements are higher in the
summer, and water requirements vary with location and farm.
Dryland taro requires a minimum of about 10,000 – 15,000 gallons of water per acre
per day for optimal growth.
Source: Taro Industry Analysis Number 4. University of Hawai`i at Mānoa, College
of Tropical Agriculture and Human Resources (CTAHR). By J.R. Hollyer, R.S. de la
Peña, K.G, Rohrbach and L.M. LeBeck. June 15, 1990. Submitted to the Governor’s
Agriculture Coordinating Committee, August 29, 1990.
http://www.ctahr.hawaii.edu/oc/freepubs/pdf/Taro_Industry_Analysis4.pdf
Web Accessed: December 14, 2016
____________________

7. Jerry Konanui
Kalo, Biodiversity, Ancient Wisdom, and Modern Science
https://youtu.be/bE7K3NXFU1I
___________________
Ua Mau Ke Ea O Ka `Āina I Ka Pono
The life of the land is preserved in the righteousness of the people
A.L.O.H.A.

8. ALEXANDER & BALDWIN (A&B), HAWAIIAN COMMERCIAL & SUGAR COMPANY (HC&S)
EAST MAUI IRRIGATION (EMI) and WAILUKU WATER COMPANY (WWC)
SUGAR PRODUCTION - WATER & RAINFALL 1996 TO 2015
YEAR ACRES RAW SUGAR MOLASSES NOTES
HARVESTED (TONS) (TONS)
1993 16,726 224,128 61,954 1
1994 16,457 204,067 58,997 1
1995 17,661 197,803 63,339 1
1996 17,183 201,041 65,525 2
1997 17,005 198,037 77,960 3
1998 17,210 216,188 80,915 4
1999 17,278 227,832 92,246 5
2000 17,266 210,269 70,551 6
JULY 22, 2001 - PETITION TO AMEND INSTREAM FLOW STANDARD - EAST MAUI FILED
YEAR ACRES RAW SUGAR MOLASSES NOTES
HARVESTED (TONS) (TONS)
2001 15,101 191,500 71,200 7
2002 16,557 215,900 74,300 8
2003 15,660 205,700 72,500 9
2004 16,890 198,800 65,100 10
2005 16,639 192,700 57,100 11

9. 2006 16,950 173,600 55,900 12
2007 16,895 164,500 51,700 13
2008 16,961 145,200 52,800 14
2008 - 2009
CWRM FACT FINDING, SITE VISITS, PUBLIC HEARINGS, USGS, DNLR
YEAR ACRES RAW SUGAR MOLASSES NOTES
HARVESTED (TONS) (TONS)
2009 15,028 126,800 41,700 15
OCTOBER 18, 2010 - CWRM DENYS NA MOKU `AUPUNI O KO`OLAU HUI (NA MOKU) PETITION
FOR CONTESTED CASE HEARING
YEAR ACRES RAW SUGAR MOLASSES NOTES
HARVESTED (TONS) (TONS)
2010 15,488 171,800 52,800 16
2011 15,063 182,800 53,100 17
NOVEMBER 30, 2012 - HAWAII INTERMEDIATE COURT OF APPEALS VACATES CWRM ORDER DENYING
NA MOKU `AUPUNI O KO`OLAU HUI (NA MOKU) PETITION FOR CONTESTED CASE HEARING
YEAR ACRES RAW SUGAR MOLASSES NOTES
HARVESTED (TONS) (TONS)
2012 15,900 178,300 50,500 18
2013 15,400 191,500 54,800 19
2014 14,200 162,100 53,200 20
2015 N/A N/A N/A 21

10. NOTES
Information source: A&B Annual Reports [Emphasis Supplied]
1. Reduction in yield due "most significantly the unusual lack of rainfall in 1995."
2. Improvement in yield over 1995 "improvements in cultivation practices."
3. Decreased Production to offset increased cost to produce - personnel reductions.
4. Yield increase over 1997 "due to changes in farm and factory practices."
5. Decrease in cost to produce and improved farm practices resulted 5% increase in production
6. Decrease in molasses production due to "improved sugar recovery."
7. Higher operating costs, unexpected factory problems. weather delays, later-than-expected factory
start up in 2001 resulted decrease in acres harvested.
8. Increase in production "was due primarily to an extended harvesting season, combined with
improved factory efficiency."
9. "The decrease in production was due primarily to an extended drought on Maui. The rainy weather
late in the year, and the arson of 900 acres of cane. The decrease in acres harvested was due primarily
to weather-related slowdowns. The increase in cost per ton was attributable to lower sugar production
and higher operating costs."
10. "The decrease in production was due primarily to rainy weather early in the year that affected
planting, harvesting and milling operations; and to yield losses attributable to significant drought during
the first year of crop growth and the reappearance of leaf scald disease, which had been dormant for
years. The increase in cost per ton was attributable to lower sugar production."
11. "The decrease in production was due primarily to rainy weather early affecting planting, harvesting
and milling operations; and to yield losses attributable to significant drought during the first year of
crop growth and the reappearance of leaf scald disease, which had been dormant for years. The
increase in cost per ton was attributable to lower sugar production."
12. "The decrease in production was primarily due to yield losses from a drought during growing
months, a lower crop age, and fertilizing and other farming issues."
13. "The decrease in production was due to a number of reasons, including adverse weather
conditions, the age of the crop, and various farming practices."

11. 14. "The primary reason for the decline in sugar production has been the unprecedented drought
conditions affecting the island of Maui. In 2008 HC&S had the lowest East Maui water deliveries on
record since the Company first began recording deliveries in 1925. Moreover, the two-year period
beginning in 2007, and extending through 2008 marked two consecutive years of the lowest rainfall
recorded. A chronic lack of water that has extended throughout the crop's lifecycle has had serious
adverse impacts on crop yields. HC&S harvested 16,961 acres in 2008 (compared with 16,895 in2007).
Yields averaged 8.6 tons of sugar in 2008 (compared with 9.7 in 2007)."
15. "The primary reason for the decline in sugar production has been the conditions affecting the island
of Maui in 2007 and 2008. In 2008 HC&S had the lowest East Maui water deliveries on record since A&B
first began recording deliveries in 1925, and 2007-2008 marked two consecutive years of the lowest
rainfall recorded. The two-year crop harvested in 2009 suffered from lack of water throughout its
lifecycle, which significantly reduced crop yields. HC&S harvested 15,028 acres of sugar cane in 2009
(compared with 16,961 in 2008). This reduction in harvest acres was designed to improve future-year
yields by increasing the average age of the crop. Yields averaged 8.4 tons of sugar per acre in 2009
(compared with 8.6 in 2008)."
16. "The primary reasons for the increase in production were improved yields on the plantation due to
better agronomic practices, a higher average age of the crop at harvest, and increased delivery of
irrigation water. HC&S harvested 15,488 acres of sugar cane in 2010 (compared with 15,028 in 2009,
yields averaged 11.1 tons of sugar per acre in 2010 (compared to 8.4 in 2009)."
17. "The primary reasons for the increase in production were improved yields on the plantation due to
better agronomic practices, a higher average age of the crop at harvest, and increased delivery of
irrigation water. HC&S harvested 15,0623 acres of sugar cane in 2011 (compared with 15,488 in 2010,
Yields averaged 12.1 tons of sugar per acre in 2011 (compared to 11.1 in 2010."
18. "The primary reasons for the decrease in production were lower yields on the plantation due to
increase in fields harvested as green cane, which suppresses yields, and drier conditions resulting in
water deliveries to the crop. HC&S harvested 15,900 acres of sugar in 2012 (compared with 15,063 in
2011). Yields averaged 11.3 tons of sugar per acre in 2012 (compared to 12.1 in 2011)."
19. "The primary reasons for increase in production were on the plantation due to improved farming
practices and water deliveries. HC&S harvested 15,400 acres of sugar in 2013 (compared to 15,900
acres in 2012). Yields averaged 12.4 tons of sugar per acre in 2013 (compared to 11.3 tons of sugar per
acre in 2012)."
20. “The primary reason for decrease in production was wet weather during the harvesting season,
which limited HC&S’s ability to harvest the planned acreage and efficiently process the harvested cane.”
21. “On December 31, 2015, the Company determined that it would cease its sugar operations at HC&S
(the "Cessation"), which will result in the eventual layoff of over 650 employees. The sugar operation is
expected to be phased out by the end of 2016, and the transition to a new diversified agriculture model
will occur over a multi-year period.” Note, Supplied: HC&S Final Harvest, December 12, 2016.