Expand SMA exemptions to make Lahaina recovery more feasible

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Judiciary and Hawaiian Affairs on March 20, 2025.
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March 20, 2025, 2 p.m.
Hawaii State Capitol
Conference Room 325 and Videoconference

To: House Committee on Judiciary and Hawaiian Affairs
       Rep. David Tarnas, Chair
       Rep. Mahina Poepoe, Vice Chair

From: Grassroot Institute of Hawaii
            Ted Kefalas, Director of Strategic Campaigns

RE: SB1296 SD2 HD1 — RELATING TO DISASTER RECOVERY

Aloha Chair Tarnas, Vice-Chair Poepoe and other members of the Committee,

The Grassroot Institute of Hawaii offers comments on — and an amendment to — SB1296 SD2 HD1, which would exempt any lawfully constructed building destroyed or damaged during disasters proclaimed to be emergencies from needing a Special Management Area minor or use permit, provided that such structures are not on a shoreline parcel and would be built to a similar size as to what existed prior to the disaster.

The bill would also provide that the reconstruction of the building would need to begin within five years of the first emergency proclamation.

Grassroot strongly supports the intent of this measure, but we recommend removing the following language to expand the scope of this measure to include shoreline parcels:

(i) The structure is not situated on a shoreline parcel or a parcel that is impacted by waves, storm surges, high tide, or shoreline erosion;

Second, we request the following language be added to HRS 205A-44A(b):

(6) Work being done consists of maintenance, repair, and minor additions or alterations of legal boating, maritime, or watersports recreational facilities, which are publicly owned, and which result in little or no interference with natural shoreline processes; provided that permitted structures may be repaired, but shall not be enlarged, rebuilt, or replaced within the shoreline area without a variance, unless

(i) the structure was damaged or destroyed in a disaster proclaimed by the governor to constitute a state of emergency pursuant to chapter 127A or a disaster declared pursuant to federal law,

(ii) the rebuilding or replacement commences within five years from the date that the proclamation was issued, and

(iii) the rebuilt or replaced structure is similar to its original footprint or overall dimensions that were existing or permitted and is in compliance with the requirements of floodplain management standards.

These amendments would ensure all Lahaina residents have a chance to rebuild without going through an arduous and confusing land use approval process.

Gov. Josh Green provided multifamily dwellings an exemption from SMA rules in an October emergency proclamation, in addition to the exemption that already exists in statute for most single-family homes.[1]

In early February, the governor also created an exemption for certain commercial structures in Lahaina,[2] but a permanent legislative fix would remove the need for navigating several iterations of an emergency order.

Without a streamlined SMA process, Lahaina’s businesses will face an uphill battle to return to their community, since obtaining an SMA use permit from Maui County could take years.

Typically, obtaining an SMA permit involves an application to the Maui Planning Department and a hearing from the Maui County Planning Commission. Over the past decade, since Jan. 1, 2015, the Maui Planning Commission has issued only 41 SMA use permits.[3] At the rate of four per year, it would take the county decades to approve all the permits needed for Lahaina’s businesses to rebuild.

If businesses cannot return to Lahaina in a timely manner, there will be fewer entrepreneurial and job opportunities for residents, and the town could lose many of its residents, and certainly its historic charm and character.

Thank you for the opportunity to testify.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1]Eighteenth Proclamation Relating to Wildfire,” Office of the Governor, State of Hawaii, Oct. 8, 2024, p. 10. 
[2] Brian Perry, “SMA permits suspended for wildfire-impacted Lahaina properties mauka of Front Street,” Maui Now, Feb. 6, 2025.
[3] Maui’s Automated Planning and Permitting System, accessed Jan. 31, 2025. Plan type: SM1 – Special Management Area Use Permit – Maui. Status: Approved. Applied date: From 1/1/2025.

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