[From the U.S. Government Printing Office, www.gpo.gov]
























































































                   KFI
                   253
                   .B39
                   1995
















                                 PERMITS AND REGULATORY

                                        REQUIREMENTS FOR

                                  AQUACULTURE IN HAWAII






                                                 JANUARY, 1993




               Prepared for the Aquaculture Development Program, Department of Land and
               Natural Resources by MBA International: John H. Bay, Esq. Principal Author







                                                        The preparation of this report was financed in part by the
                                                        Coastal Zone Management Act of 1972, as amerKled,
                                                        administered by the Office of Ocean and Coastal Resource
                                                        Management, National Oceanic and Atmospheric
                                                        Administration, United States Dept. of Commerce, through
                                                        the Office of State Planning, State of Hawaii.




                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                                                                                     I
                                          PropejZ or
                                  NOAA Coastal ervices Center
                                            Library
                                                                                                     I
                                                                                                     I










                                       TABLE OF CONTENTS




            A. INTRODUCTION          .........  ....................................         1

            B. HOW TO USE THIS GUIDEBOOK             ................................        1

             C. THE REGULATORY SCHEME           ...................................          2
                1. Land Use Regulation and Coastal Zone Management         ..............    2
                2. Wetlands and Waterways       ....................................         3
                3. Effluent Discharge    ..........................................          5
                4. Human and Animal Health Regulations      .........................        8
                5. General Business Requirements      ...............................        9

            D. TRADITIONAL HAWAIIAN FISHPONDS               .........................       13

            E. PERMIT SEQUENCING           ........................................         14

            F. LAND USE AND ENVIRONMENTAL REGULATIONS AND PERMITS .                         18

                LFEDERAL     REGULATIONS AND PERMITS             ......................     19
                   Environmental Impact Statement - Federal      ......................     19
                   U.S. Department of the Army Permit     ...........................       21
                   Section 106 Historic Review  ...................................         24


                2. STATE REGULATIONS AND PERMITS            .........................       27
                   Environmental Impact Statement - State   ..........................      27
                   Conservation District Use Application  ............................      32
                   Permit For Work In Ocean Waters       .............................      36
                   Historic Site Review   .........................................         38
                   National Pollutant Discharge Elimination System (N`PDES) Permit       ... 40
                   Zone Of Mixing Approval    .....................................         42
                   Water Quality Certification  ...................................         44
                   Federal Consistency Review   ...................................         46
                   Underground Injection Control     ................................       48
                   Well Construction And Pump Installation Permits      ................    50
                   Water Use Permit    ...........................................          52

                3. COUNTY REGULATIONS AND PERMITS               .......................     54
                   Environmental Impact Statement - County      .......................     54
                   Special Managment Area Use Permit      ...........................       56
                   Shoreline Setback Variance   ...................................         60
                   Flood Plain Management     .....................................         63
                   Grading, Grubbing And Stockpiling Permit      ......................     64
                   Building Permit   .................................      I  ...........  66








             G. REGULATION OF AQUACULTURE OPERATIONS...                  ............         68

                1. FEDERAL REGULATIONS AND PERMITS                .....................       68
                   U.S. Food Drug And Cosmetic Act      .............................         6B

                2. STATE REGULATIONS AND PERMITS             .........................        70
                   Importation Of Non Domestic Animals      ..........................        70
                   Aquatic Food Sale Regulations    ..................................        72
                   Shellfish Sanitation   ..........................................          73
                   Sanitation Permit         ......................................           75

                REFERENCES       .................................................            76










                A. INTRODUCTION


                Aquaculture is currently the fastest growing sector of agriculture in the United States. Hawaii has
                been and continues to be one of the leaders in aquaculture. Every aquaculture operation in Hawaii
                is subject to various Federal, State and County permits and regulatory requirements. These
                requirements relate to the siting and location of the operation, its use of resources such as water, its
                effect on the environment, sanitation, and other matters. These regulations are often complex, with
                overlapping jurisdiction between agencies and levels of govemment. Indeed, a frequent complaint
                from aquaculture developers and operators is that they are burdened by excessive regulation which
                is not necessarily sensitive to the needs and benefits of aquaculture. Regulators may have a very
                different view. In any event, as aquaculture becomes more widespread, it will receive increased
                public attention and increased scrutiny by regulators.

                For the developer, operator, regulator or anyone else interested in aquaculture, it is useful to have
                an overview of the laws and regulations which pertain to aquaculture. This Guide Book is
                intended to provide such an overview for. aquaculture development and operation in Hawaii.

                The State of Hawaii strongly encourages aquaculture development. It has established several
                programs to assist existing and potential farmers. The Aquaculture Development Program in the
                Department of Land and Natural Resources is available to assist aquaculturists and potential
                aquaculturists. It can provide information and access to resources and technical assistance
                available from the State and Federal government. Early consultation with their staff may help a
                farmer avoid many regulatory obstacles and save considerable time and money.


                R HOW TO USE THIS GUIDEBOOK

                Section C of this Guidebook provides. a summary overview of several general areas of regulation
                which are critical to aquaculture siting and operation. Separate sections describe regulations
                concerning land use and coastal resources; wetlands and waterways; effluent regulations;
                regulations concerning health and sanitation of aquaculture food operations; and general business
                requirements. Section D provides a brief discussion of issues that are of particular significance to
                the revitalization and use of traditional Hawaiian fishponds. Section E gives a summary of how
                the various permitting requirements fit together in terms of order, consolidation and coordination
                with other permits. A review of Sections C, D, and E should provide a basic understanding of
                how the permits, regulatory requirements, and jurisdictions fit together.

                Finally, Section F provides a synopsis of over twenty Federal, State and County pern ts and
                regulatory schemes which may apply to aquaculture. Each synopsis includes a brief description of
                the purpose, legal basis, administering agency, information required of pen-nit applicants and other
                pertinent information.

                This Guidebook is annotated with citations to laws, regulations and rules. It is not, however,
                intended to be a definitive legal work on any particular permit or regulation or the applicability of
                permits and regulations to any particular aquaculture site or operation. It does not discuss County
                zoning ordinances.as their application is site and county specific.




                                                                  1








                C. THE REGUIATORY SCHEAW

                1. Land Use Regulation and Coastal Zone Management

                In 1961, the Hawaii State Legislature passed the Land Use Law (Chapter 205, Hawaii Revised
                Statutes (HRS)) to address the increase in urban development and the preservation of prime
                agricultural land. The Land Use Law provides the basic framework for land use regulation in the
                State and provides the delineation between the jurisdiction of State and County government. The
                Hawaii Coastal Zone Management Act (Chapter 205A, HRS) provides an additional regulatory
                management scheme for activities in the near shore areas and coastal zone.

                Land Use Law

                The Land Use Law divided the state into four land use district classifications: Urban (five percent
                of the State's land area); Agriculture (forty-seven percent); Conservation (forty-seven percent); and
                Rural (less than one percent). 1

                'Me Urban District includes lands presently in urban use and a reserve for foreseeable urban
                growth. Uses are permissive only, with the counties issuing permits for development through
                their ordinances or regulations. ï¿½205-2, HRS.

                The Agricultural District includes lands used for cultivation and grazing as well as related uses.
                The permissible uses in this district are extensive, and include aquaculture. Other uses require a
                special permit. Special permits are handled by the respective county for uses requiring less than
                fifteen acres. Special pen-nits for projects larger than fifteen acres are handled by the State Land
                Use Commission.

                The Conservation District includes areas necessary for

                     'protecting watershed..., preserving scenic and historic areas; providing park lands,
                     wilderness and beach reserves; conserving endemic plants, fish and wildlife;... forestry; open
                     space areas whose existing openness, natural condition, or present state of use, if retained,
                     would enhance the present or potential value of abutting or surrounding communities, or
                     would maintain or enhance the conservation of natural or scenic resources; areas of value for
                     recreational purposes; other related activities; and other permitted uses not detrimental to a
                     multiple use conservation concept." ï¿½205-2(e), HRS.

                The Conservation District includes large areas of shoreline lands, and most submerged offshore.
                lands and outlying small islands. Most traditional Hawaiian fishponds are in the Conservation
                district.

                The Conservation District is broken down into four subzones: Protective, Limited, Resource, and
                General. Aquaculture is a pennitted use within the Resource and General subzones.

                Prior to any use of land in the Conservation District, a Conservation District Use Application
                (CDUA) must be submitted and approved by the Board of Land and Natural Resources (BLNR)
                within the State Department of Land and Natural Resources (DLNR). ï¿½ 183-41 HRS.

                Ile Rural District consists primarily of small farms and rural subdivisions on Maui and Kauai.




                         1 State of Hawaii, Department of Business, Economic Development & Tourism, The State of Hawaii Dat
                Book,1990.









              Coastal Zone Management Proeram

              The Coastal Zone Management Act, Chapter 205A, HRS, provides an additional regulatory
              scheme for management of activities in the coastal zone and near shore areas. 7be Coastal Zone
              Management Program (CZMP) involves the management of Special Management Areas (SMA) and
              Shoreline Setback areas by the counties and the review of Federal activities for consistency with
              the CZMP by the Coastal Zone Management Program within the Office of State Planning.

              SMAs are shoreline and coastal water related land inland from the "shoreline" which have been
              designated by counties. No development can occur within the SMA unless a permit is obtained
              from the County. Permits will be granted only if the development will not have substantial adverse
              impacts on the environment and is consistent with the State's CZMP and the County general plan
              and zoning ordinanceS.2

              State statute also designates a Shoreline Setback from 20 to 40 feet back from the shoreline
              (counties can extend the setback requirement further by ordinance). Construction or land
              disturbing activity is prohibited within the Shoreline Setback area unless a Shoreline Setback
              Variance is obtained from the County.

              When Federal agencies are involved in projects in the coastal zone (the entire state, except the
              forest reserves, is included within the coastal zone definition) through funding, permit approval
              (e.g., a Department of Army pen-nit), or direct activity, the Federal agency must get a certification
              from the CZM Program that the proposed activities are consistent with the State's CZMP.

              The regulations and regulatory schemes described above constitute the primary land use and coastal
              management regulations in Hawaii. However, many other environmental and operational
              regulations which are discussed below may also apply to aquaculture activities.

              2. Wetlands and Waterways

              Wetlands have been identified at all levels of government as having numerous beneficial functions.
              Some of these functions are: providing floodwater storage, preventing erosion and providing
              sediment control, providing critical wildlife habitat, recreational opportunities and open space and
              aesthetic values. As a result of the wide array of benefits derived from wetlands, they are the
              subject of significant regulatory protection by the Federal, State and County governments.

              The primary regulators of wetlands development at the Federal level are the U.S. Army Corp of
              Engineers (ACOE) and the U.S. Environmental Protection Agency (EPA). State and County
              governments also regulate wetland development through the Coastal Zone Management Program
              and Special Management Area permits.

              The ACOE has been involved with wetlands regulation since 1899 under Section 10 of the Rivers
              and Harbors Act of 1899 which gave it jurisdiction over navigable waters, For Section 10
              purposes, navig able waters are those waters that are subject to the ebb and flow of the tides and/or




                     2 ï¿½205A-22, HRS, as amended, specifically exempts aquaculture and mariculture from the definition of
              development, as do the SMA regulations of the counties. However, the exemption is qualified in the regulations,
              such that if the activity is or may become part of a larger project, the cumulative impact of which may have a
              significant environmental or ecological effect on the SMA the activity will be defined as "development."
              Construction of facilities which are ancillary to the aquaculture operation, such as storage facilities, maintenance
              buildings, research offices, and restaurants may also not be considered exempt. It is, therefore advisable to check
              with the County administering agency to determine the practical scope and effect of the exemption on any particular
              project.
                                                           3








                are presently used, or were used in the past, or may be susceptible to use in interstate or foreign
                commerce. Under Section 404 the Federal Water Pollution Control Act Amendments of 1972
                (Clean Water Act), the ACOE and the EPA jurisdiction over discharge of dredged or fill materials
                into the "waters of the United States." "Waters of the United States" was expanded to be a much
                broader term than "navigable waters." It includes all navigable waters, plus, all other waters such
                as lakes, rivers, streams, mud flats, sand flats, wetlands, wet meadows, natural ponds, the use,
                @egradation or destruction of which could affect commerce. The regulatory definition specifically
                includes any body of water from which fish or shellfish are or could be taken and sold. Under
                Section 404, a permit is required from the ACOE (a Department of the Army permit) prior to the
                discharge of any dredge or fill material in wetlands or other waters.

                One of the controversial aspects of wetlands regulation is determining what constitutes a wetland.
                Currently, there is an active debate within the Federal government concerning the working
                definition of wetlands. In 1989 and 1991, the ACOE, EPA, U.S. Fish and Wildlife Service, and
                Soil Conservation Service jointly issued new manuals for delineating wetlands. As of this writing
                these new manuals have not been adopted. However, it is likely that new guidelines and
                definitions will be adopted with the change in the Federal administration in 1993. It is the
                responsibility of the ACOE District Engineer to make the initial determination of whether a project
                will affect a wetland. It is prudent to check with the ACOE early to obtain its determination.

                The State and County governments may utilize their own definitions or have their own
                interpretation of what constitutes a wetland. It is therefore also prudent to check with the Coastal
                Zone Management Program and if the project is within a Special Management Area, the County
                planning department (Department of Land Utilization, City and County of Honolulu) if there is any
                question concerning the existence of a wetland.

                The discharge of dredged and fill materials is also interpreted broadly. In addition to the placing of
                fill materials such as dirt or rubble into a wedand, placing of pilings or other structures, and the
                clearing of land with mechanized equipment have been deemed to be discharges requiring a permit.

                Maintenance and repair of existing structures are for the most part exempt from the Department of
                Army (DA) Permit requirements.

                In the process of considering an application for a DA permit, the application will be circulated to
                other Federal agencies, such as the U.S. Fish and Wildlife Service and the National Marine
                Fisheries Service for endangered species concerns, and the Advisory Council on Historic
                Preservation for historic and archaeological concerns. The ACOE must also obtain a determination
                from the State that issuance of the permit will be consistent with the State Coastal Zone
                Management policies and with the State Water Quality standards. The permit cannot generally be
                issued without these determinations by the State.

                Issuance of a DA Permit is based on a "public interest review" which evaluates the probable
                impacts of a project, including its cumulative impacts, and its intended use. This decision process
                requires a balancing of the reasonable benefits which can be expected to accrue from an activity
                against its reasonably foreseeable detriments. All factors which may be relevant to a proposed
                activity are required to be considered including, but not limited to, conservation, economics,
                aesthetics, general environmental concerns, wetlands, historic properties, fish and wildlife values,
                flood hazards, floodplain values, land use, navigation, shore erosion and accretion, recreation,
                water supply, water quality, energy needs, safety, property ownership and in general the needs
                and welfare of the people.





                                                                   4









               The decision whether to authorize a project, and if so, the conditions under which it will be
               permitted to occur, will then be determined by the outcome of this "general balancing process."
               The EPA has the authority to make the ultimate detennination on pen-nit issuance. However, in
               most instances, it does not counten-nand the ACOE determination.

               3. Effluent Discharge3

               One of the greatest concerns of aquaculture operators centers around regulatory requirements
               pertaining to effluent discharge. Aquaculture facilities that discharge directly into natural waters
               will usually come under the jurisdiction of a number of agencies at the Federal, State and County
               level. For example, a discharge ditch constructed between a facility and the shoreline will
               necessarily pass through the County Special Management Area, the County Shoreline Setback, and
               possibly the State Conservation District. The ditch is likely to terminate at or near the shoreline,
               inside the State Conservation District and within the jurisdiction of the Army Corps of Engineers.
               The Army Corps jurisdiction has been discussed in the Wetlands section above. The Special
               Management Area Pen-nit, Shoreline Setback Variance and Conservation District Use Application
               have been discussed in the Land Use and Coastal Management section above. This section
               focusses on other regulatory schemes which relate directly to the permitting and monitoring of
               aquaculture effluent discharges.

               Federal National Pollution Discharge Elimination System Permit (NPDES)

               Under the Clean Water Act of 1977, no "point source" discharge of pollutants into any waters is
               allowed without a pen-nit issued under National Pollutant Discharge Elimination System (NPDES)
               guidelines. An NPDES permit can be issued by the U.S. Environmental Protection Agency (EPA)
               or by an authorized state agency. In Hawaii, the authorized agency is the State Department of
               Health (DOH).

               The EPA has established Federal discharge standards. These discharge standards are quite broad,
               since they are applied to virtually all domestic and industrial wastewater, as well as hazardous and
               toxic chemicals. The EPA has set up specific discharge standards for aquaculture activities that
               take place in open waters. Aquaculture facilities located inland from the coast in enclosed ponds,
               are generally considered as "concentrated aquatic animal production facilities" -- the administrative
               equivalent of agricultural feed lots. In 1979, NPDES regulations for concentrated aquatic animal
               production facilities were redefined, exempting from NPDES permits (on a case-by-case basis)
               warm water facilities producing less than 100,000 pounds of animals per year, and facilities
               discharging during fewer than 30 days per year. However, most large aquaculture facilities exceed
               this level of production. In addition, even facilities which are small enough to qualify for the
               federal exemption must still conform to the state water quality standards.    od                   an-
               Permission to discharge effluent from an aquaculture facility into a natural b y of water (or m
               made body of water which flows into a natural body of water@ is obtained in the form of an
               NPDES permit issued by the DOH. This permit is issued for a set time period and specifies lin-dts
               on discharge volume and on effluent concentrations that are anticipated to exceed state water quality
               criteria for the receiving body of water. The NPDES permit may also specify limits for chemicals
               potentially hazardous to marine life.






                       3 Materials in this section are taken largely from, Aquaculture Effluent Discharge Program: Year I Final
               R=rt, published by the Center for Tropical and Subtropical Aquaculture, February, 1990, (revised and reprinted
               July, 1990).
                                                                  5









                For-particular facilities, the limits are currently established through negotiations between the
                discharger and the DOH. The most important considerations are the ability of the receiving
                environment to assimilate the waste and the practicality of treatment to reduce concentrations of
                various effluents prior to discharge. Once the NPDES pem-iit is granted, the discharger is required
                to monitor effluent volume and concentration.

                Hawaii State Water Quality Standards

                Pursuant to the Clean Water Act of 1977, the State of Hawaii, through the DOH, has adopted
                specific water quality regulations. The state regulations that may apply to aquaculture discharges in
                state waters are described in detail in Title 11, Chapter 54 of the Hawaii Administrative Rules
                (HAR).

                In general, these standards are designed to preserve "ambient" conditions in streams, wetlands,
                and the ocean around Hawaii. Historically, these standards have been applied based on the
                assumption that any change from ambient conditions is detrimental. Thus, ambient conditions for
                a particular project are generally defined as "water quality conditions that would occur in the
                receiving waters if these waters were not influenced by the proposed new human activity."
                Because Hawaii's coastal waters are generally low in nutrients and suspended material, the State's
                standards for these pollutants in the marine environment are relatively strict.

                According to State law, no project is allowed to lower the water quality below the State standards
                unless this change is "justifiable as a result of important economic or social developments, and will
                not interfere with an ongoing legal use of the waters." ï¿½11-54-01.1 HAR. Section 11-54-04
                HAR provides, as a basic criterion, that "All waters shall be free of substances attributable to
                domestic, industrial, or other controllable sources of pollutants."

                For regulatory purposes, Hawaii's marine waters have been divided into those which are relatively
                pristine (Class AA), and those which are not as pristine (Class A). In Class AA areas, no Zones
                of Mixing are allowed, which severely limits the possibility of obtaining a discharge permit.
                Specific Class AA regions around each island are listed in ï¿½11-54-03(b), HAR. Allareasnot
                specifically listed as Class AA are assigned to Class A. In Class A areas, the discharge of
                pollutants can be permitted, with due consideration for environmental impact and public interest.
                One should check the Department of Health maps to deten-nine the classification of any specific
                body of water or area of coastal water.

                State law provides separate regulations for discharges into different types of aquatic environments,
                each involving a different set of parameters to be measured and standards which must be met.
                These environments include: 1) inland waters; 2) estuaries; 3) bays; 4) open coastal waters; and 5)
                oceanic waters.

                New "industrial discharges" (most new aquaculture discharges would come within the regulatory
                definition) in estuaries and bays have been significantly curtailed by State regulation, and are
                limited to a few already developed areas.

                Zones of Mixing (ZOMs)

                State and Federal regulations require that all effluent be treated before disposal, using the "Best
                Available Technology" that is feasible from an economic and technical standpoint. In cases where
                the "best available" treatment cannot yield an effluent clean enough to meet State standards, a Zone
                of Mixing (ZOM) can be established and permitted by DOH to allow "initial dilution" of the
                effluent. ï¿½ 11-54-09, HAR.



                                                                   6








                A ZOM is a defined area around a point of discharge where concentrations of pollutants are
                allowed to be higher than those specified in State standards. Beyond the boundary of the ZOM,
                concentrations. of all pollutants must remain below the appropriate criteria for the receiving water.
                In practice, many state waters do not meet the specified standards for some parameters under
                "natural" conditions. In such areas, pre-discharge monitoring is important to establish that the
                discharger is not responsible for violations of ZOM pen-nit restrictions.

                Since the ZOM is a form of variance, it can only be issued if the DOH determines that:

                    ï¿½   the project is in the public interest;
                    ï¿½   there is no substantial danger to human health and safety;
                    0   serious hardship (without compensating public benefits) would result from requiring the
                        discharge to comply with State water quality standards;
                        the discharge does not violate the "basic discharge standards" applicable to all waters;
                    ï¿½   the discharge will not unreasonably interfere with other actual or probable uses of the water
                        area; and
                        the discharge has received or will receive the best degree of treatment or control.

                Section 11 - 54 09(c)(5), HAR. S tate law requires that a public hearing be held before a ZOM can
                be issued. This hearing can also double as the hearing for the NPDES pen-nit, if necessary.

                'Me process of defining a site-specific ZOM can be one of the more difficult steps in obtaining a
                permit for an aquaculture discharge.

                Zones of Mixing are most easily applied to offshore projects, such as municipal waste outfalls. In
                these cases, it is relatively easy to model plume dispersion, and such outfalls are often relatively far
                away from "sensitive receivers" (i.e., unique natural areas and popular recreational areas).
                However, because offshore outfalls are extremely expensive to design and construct, most
                aquaculture effluent is discharged near the shoreline. The resulting nearshore effluent plumes are
                much more difficult to model and monitor than those offshore. Mixing rates and plume dispersion
                are influenced by many factors, including wind, waves, tidal currents, bottom contours, and
                nearby terrestrial runoff. In addition, the nearshore biotic environment is generally more
                heterogeneous than offshore, so environmental impacts are relatively difficult to forecast.

                For these reasons, extensive oceanographic studies are often necessary to determine appiopriate
                ZOMs for nearshore discharges. Such studies may need to consider a variety of factors, including
                the distribution of sensitive aquatic or marine environments, valuable marine resources in the area,
                and the location of popular recreational sites, in relation to the discharge point.

                Zone of Mixing perrnits must be renewed and reevaluated at least every five years. If better
                treatment technologies or new information become available, the ZOM may be modified to require
                new technologies.

                Section 401 Water Quali1y Certification

                A Section 401 Water Quality Certification is a prerequisite for obtaining a Department of the Army
                (DA) pen-nit (described above). In essence, the applicant certifies that the proposed project will
                comply with State and Federal water quality regulations and must submit to the DOH appropriate
                data in support of this claim. Such data would include estimates of discharge quantity and quality,
                and a demonstration that the best practicable methods of effluent treatment or control will be used.
                ï¿½11-54-9.1,HAR. These data are reviewed by DOH, which publishes the proposed Water
                Quality Certification for public comment prior to its issuance.



                                                                   7











                Conservation District Use Pen-ni

                As discussed above, the Conservation District covers submerged lands seaward from the
                shoreline. Construction and operation of a discharge ditch or pipe between an aquaculture facility
                and the shoreline (or an offshore discharge pipe) requires a permit from the Department of Land
                and Natural Resources (DLNR) through a Conservation District Use Application (CDUA).
                Construction activities in the ocean will also require an Ocean Waters Work Permit from DLNR.
                In practice, these two permits can be processed simultaneously.

                Generally, information which accompanies a CDUA for a discharge or ouffall must be quite
                detailed and focus on marine resources and benthic ecology. The requirements for these permits,
                as well as those for the SMA pen-nit prescribe that a detailed Environmental Assessment or
                Environmental Impact Statement must be prepared for an aquaculture discharge into the marine
                environment. The field studies and preparation of this assessment document, which can also
                accompany a Department of the Army permit application, represent a major "initial cost" involved
                in obtaining the pen-nits for an aquaculture facility.

                UnderMund In-jection Control

                If an aquaculture operation discharges its effluent into an underground injection well, it will not
                need any of the effluent related permits discussed above. It will, however, need an Underground
                Injection Well pen-nit from the DOH. For purposes of underground injection control (UIC) the
                State has classified aquifers and underground sources of drinking water as either exempt, i.e.,
                generally not serving as a source of drinkingwater, or non-exempt, i.e., all other aquifers. On
                each island, the Department of Health has established a UIC Line. Lands mauka of the line are non-
                exempt. Lands makai are exempt. The standards for issuing permits depend upon whether the
                proposed injection well is into an exempt or non-exempt aquifer.

                Aquaculture injection wells may be classified as a subclass B well and pennitted mduka of the UIC
                Line if the water in the receiving formation has either: 1) an equal or greater chloride concentration
                as that of the injected fluid; or 2) a total dissolved solids concentration in excess of five thousand
                mg/L. ï¿½ 11-23-06, HAR. If this test is not met, the well can only be sited makai of the line.

                4. Human and Animal Health Regulations

                As indicated by the sections above, there are many land use and environmental regulations which
                may apply to the siting and operation of an aquaculture facility. There are also regulations which
                control the manner in which an aquaculture facility operates, particularly as it relates to the
                production of food for human consumption, and the protection of indigenous animals from outside
                species. A potential farmer must be aware of these restrictions from the early planning stages, as
                they affect the type of fish and organisms may be raised in Hawaii and the type of pesticides,
                chemicals, drugs and feed additives that may be used.

                Hawaii has strict restrictions on the importation of non-domestic animals and organisms into the
                State. The Federal government also has strict controls on the importation of certain species. The
                Hawaii State Department of Agriculture maintains lists of permitted, restricted and prohibited
                animals and organisms. One should verify with the Plant Quarantine Division that the specie or
                organism one wishes to raise is permitted in Hawaii.

                Both Hawaii and the Federal government have regulations designed to protect humans and animals
                from unhealthful and injurious food and food products. At the Federal level, the primary
                regulations are those promulgated under the Federal Food Drug and Cosmetic Act. Generally, the
                Food and Drug Administration (FDA) regulates the use of food additives while the U.S. EPA


                                                                    8








              regulations establish levels of tolerances for various chemical pesticides for use on agricultural and
              food products. In addition, the FDA must approve any animal drugs used directly on animals or as
              feed additives. An FDA spokesperson at a recent conference, stated that "the FDA will be
              tightening surveillance of the aquaculture industry ...... 4 Again, it is important that the potential
              fanner ascertain whether the desired method of aquaculture is affected by these regulations.

              The State also has regulations which make it unlawful to take, or sell, any aquatic food from any
              body of water which the DOH finds and declares polluted to the extent that such pollution
              contaminates the food and renders it unwholesome or injurious to health. ï¿½1 1-29-4(a), HAR. If
              the DOH finds such polluted conditions at an aquaculture facility, it can shut the facility down.

              The State also has specific requirements for handling and processing shellfish and general
              sanitation requirements for facilities handling or storing food.

              5. General Business Requirements

              Anyone starting an aquaculture operation in Hawaii will be subject to a variety of government
              taxes, regulations and requirements which apply to all businesses. This section will provide a brief
              overview of a number of these requirements and the contacts where one may obtain more detailed
              information.

              Where To Obtain Infon-nation

              There are several good sources of information and assistance for the small business person in
              Hawaii. The Department of Business, Economic Development and Tourism (DBED) operates the
              Business Action Center, specifically to assist small business development in the state. They
              publish several excellent guides, including "Starting A Business In Hawaii" and "Hawaii's
              Business Regulations: A Summary." These publications can be obtained from the Center at the
              address and phone number listed below. Each State department administering the various taxes
              and requirements also provides specific information regarding compliance. Finally, there are
              several useful private publications available at local bookstores.

              State Requirements

              State Income Tax     Employers are required to collect and withhold State income tax from
                                   employees. Information and forins for this purpose can be obtained from
                                   the Department of Taxation.

              General Excise Tax   Virtually anyone doing business in Hawaii must obtain a General Excise
                                   Tax License from the Department of Taxation. The one-time fee is $20.00.

                                   Most businesses must pay a General Excise Tax of four percent (4%) of
                                   gross revenue. For certain wholesale transactions the rate is only one-half
                                   percent (1/2%). The tax is on the business, not on the consumer, and must
                                   be paid monthly, quarterly, or semi-annually, depending upon the level of
                                   the gross revenues. A use tax may also apply on imported tangible personal
                                   property upon which the General Excise Tax is not paid. Both taxes are
                                   deductible from one's State income tax liability. Information and report
                                   forms can be obtained from the Department of Taxation.




                     4 Guy Jensen, Ph.D, Director of FDA Center for Veterinary Medicine speaking at the National Convention
              of Catfish Fanners of America, February 1992, reported in "Regional Notes, Center for Tropical and SubTropical
              Aquaculture," June, 1992.
                                                           9








                Business Registration Businesses other than sole proprietorships must register with the State
                                        Department of Commerce and Consumer Affairs. The fees range from
                                        $3.00 for a general partnership to $50.00 minimum for corporations.
                Unemployment            Hawaii imposes an unemployment tax on any employer with one or
                Insurance               more employees. The tax rates vary from year to year, and for ongoing
                                        business rates also vary according to the claims experience of the employer.
                                        Infon-nation on current rates and other requirements can be obtained from
                                        the State Department of Labor and Industrial Relations, Unemployment
                                        Insurance Division.
                Workers'                Employers are required to carry Workers' Compensation Insurance. This
                Compensation            coverage must provide medical benefits and certain scheduled wage
                Insurance               replacement benefits for work-related injury or illness. 'Me cost of the
                                        insurance must be bom entirely by the employer and cannot be passed on to
                                        the employee. Failure to provide the required insurance can result in a
                                        penalty of not less than $250, or $ 10 for each worker for every day during
                                        which the failure continues, whichever sum is greater. Information on
                                        benefits and other requirements can be obtained form the State Department
                                        of Labor and Industrial Relations, Disability Compensation Division.
                Temporary               Employers must provide Temporary Disability Insurance (TDI) or sick
                Disability              leave benefits to eligible workers who are unable to work due to a nonwork
                Insurance               related disability or injury. Generally, workers are not eligible unless they
                                        have been working at least 20 hours per week for at least 14 weeks and
                                        earning at least $400 during the four most recent calendar quarters.
                                        Generally, the TDI provides 55% of the worker's average weekly wage for
                                        up to 26 weeks. An employer can meet the requirements by purchasing the
                                        insurance from an approved carrier or providing an approved sick leave
                                        policy. The employer may collect part of the cost of providing the TDI
                                        from covered employees. The employee share can be deducted from the
                                        employees wages but only up to one-half of one percent of the employees
                                        weekly wages, up to a maximum set by the Department of Labor and
                                        Industrial Relations each year. Failure to provide the required coverage can
                                        result in a penalty of not less than $25, or $1 for each worker for every day
                                        during which the failure continues, whichever sum is greater. Information
                                        on benefits and other requirements can be obtained form the State
                                        Department of Labor and Industrial Relations, Disability Compensation
                                        Division.
                Prepaid Health Care     Employers must provide covered workers with medical and hospital care
                Insurance               for nonwork-related illness or injury by purchasing an approved health care
                                        plan such as Kaiser or HMSA, by adopting an approved self-insured health
                                        care plan, or negotiating a collective bargaining agreement which provides
                                        benefits at least equivalent to the required benefits. The employer may
                                        collect part of the cost of providing the coverage from covered employees.
                                        The requirements do not apply to workers employed for less than 20 hours
                                        per week. The requirements also do not apply to seasonal agricultural
                                        workers and certain other types of workers. The employee share can be
                                        deducted from the employee's wages up to one half of the premium cost at
                                        a rate of no more than one and one-half percent (1.5%) of the worker's
                                        monthly wages. Failure to provide the required coverage can result in a
                                        penalty of not less than $25, or $1 for each worker for every day during

                                                                   10








                                     which the failure continues, whichever sum is greater. Information on
                                     benefits and other requirements can be obtained form the State Department
                                     of Labor and Industrial Relations, Disability Compensation Division.

              County Requirements

              Business License       In certain circumstances, a business license from the County may be
                                     required. One should contact the Department of Finance in the respective
                                     counties for further information on their requirements.

              Property Tax           Real property, land and improvements are subject to property tax. No
                                     property tax is assessed on business inventory or other personal property.
                                     Assessments are at 100% of "fair market value." Various rates apply for
                                     land and improvements and classes of property. According to the DBED
                                     handbook, fiscal 1992 cominercial rates per $1,000 net assessed value are:
                                     Oahu $8.51; Hawaii $8.50 (building), $10.00 (land); Kauai $7.59
              Federal RNuirements    (building), $7.99 Gand); and Maui $6.50.
              In addition to the various State requirements, any business operation faces a number of Federal
              requirements. Again, a prospective aquaculturist should consult the various information sources
              listed above and the Federal government agencies for detailed information. This section lists only
              some of the more significant requirements.

              Social Security and    Employers are required to collect and withhold federal Social Security and
              Income Tax             income taxes. In addition to withholding Social Security taxes, an
                                     employer must also pay Social Security on the employees wages. One
                                     should consult the Internal Revenue Service for detailed reporting
                                     information and forms.

              Federal                In addition to the State unemployment tax, an employer must pay Federal
              Unemployment           unemployment tax if the employer pays an employee more than $1,500 in a
              Tax                    calendar year. At certain levels of tax liability, the payments must be made
                                     with a tax deposit coupon at an authorized bank.

              Other Requirements     An employer must also comply with employee health and safety
                                     regulations, wage-hour and child labor laws, if certain fi-inge benefits are
                                     provided, with ERISA. The newly enacted Americans with Disabilities Act
                                     also effects hiring practices and physical access requirements for
                                     businesses. More specific information regarding these programs and
                                     requirements is available from the federal government.

              Federal Income Tax     Federal Income tax requirements and considerations that may apply to
                                     aquaculture are well beyond the scope of this work. However, in many
                                     instances under the Federal tax laws, aquaculture is considered to be a type
                                     of fanning or agriculture and may be given to special tax treatrnent.
                                     Therefore, anyone with an aquaculture operation should consult with an
                                     accountant or tax attorney for more specific advise and information.










              General Business Requirements Contacts

              State Department of Business Economic              State Department of Taxation
                Development & Tourism                            Taxpayers Services Branch
              Business Action Center                             830 Punchbowl Street
              1130 North Nimitz Highway, Suite A-254             Honolulu, Hawaii 96813
              Honolulu, Hawaii 96817                             (808) 548-4242
              (808) 586-2545

              Small Business Information Service                 State Department of Commerce
              Grosvenor Center, Mauka Tower                        and Consumer Affairs
              737 Bishop Street, Suite 1900                      Business Registration Division
              Honolulu, Hawaii 96813                             1010 Richards Street
              (808) 586-2600                                     Honolulu, Hawaii 96813
                                                                 (808) 586-2727

              Internal Revenue Service                           State Department of Labor and
              Prince Kuhio Federal Building                        Industrial Relations
              Room 1002                                          830 Punchbowl Street
              300 Ala Moana Blvd                                 Honolulu, Hawaii 96813
              Honolulu, Hawaii 96813                             Workers' Compensation
              (808) 541-1040                                       (808) 548-4180
                                                                 Temporary Disability Insurance
                                                                   (808) 548-7821
                                                                 Pre-Paid Health Care
                                                                   (808) 548-4046
                                                                 Labor law information
                                                                   (808) 548-6594
                                                                 Disability Compensation Division
                                                                   (808) 548-7821
                                                                 Unemployment Insurance Division
                                                                   (808) 548-3024






















                                                             12








                 D. IRADITIONAL HAWAILAN FISHPONDS

                 One aspect of aquaculture that is unique to Hawaii is its ancient Hawai     ian fishponds. The early
                 Hawaiian people used a system of natural and man made enclosures to raise, trap and harvest fish
                 and other aquatic organisms. Although some of the fishponds have been destroyed by
                 development or natural forces, many exist today.
                 There is currently growing interest in revitalizing the fishponds and placing them back into
                 production, on both subsistence and commercial bases. Anyone interested in operating a Hawaiian
                 fishpond for aquaculture purposes faces all of the same concerns that would be faced by any other
                 similarly sited aquaculture operation. In addition, because of their unique historic, cultural, and
                 social significance, revitalization, development and operation of fishponds raises its own set of
                 issues and concerns.

                 Hawaiian fishponds have been the subject of extensive study, concerning their archeological and
                 cultural significance, the economics of revitalization and operation, pen-nitting problems and the
                 like.5

                 The State of Hawaii in conjunction with the community has also taken several recent initiatives to
                 promote the revitalization of fishponds. In September 1991, the Governor convened the Molokai
                 Fishpond Restoration Workshop to examine issues and questions regarding fishpond
                 revitalization. During 1992, the Governor's Task Force on Molokai Fishpond Restoration met
                 periodically to continue the exploration of fishpond related issues and set in motion the process for
                 revitalizing and operating two fishponds on the island of Molokai. The Task Force has done
                 considerable work in identifying and exploring community, regulatory, archeological and other
                 concerns relating to fishpond development. In the context of the revitalization of the two ponds,
                 the Task Force and the Aquaculture Development Program in the Department of Land and Natural
                 Resources are taking innovative approaches to the applicable land use and environmental
                 pen-nitting. This work may significantly change and simplify the permitting for revitalization and
                 operation of fishponds in a traditional manner. Anyone interested in fishpond development should
                 inquire specifically with the Aquaculture Development Program concerning these efforts and the
                 unique nature of fishpond revitalization.

                 The following are some of the concems which are of heightened significance for fishpond
                 revitalization and operation. This list is intended to be illustrative, not exhaustive of all concerns.

                          Historic and archaeological significance. Any activity involving fishponds will require
                          appropriate historic and archeological review.
                      0   Cultural issues. Fishponds have cultural significance to the Hawaiian community and
                          issues concerning appropriateness of restoration techniques, subsistence versus
                          commercial use etc., may arise.
                      0   Navigational servitude issues. Where fishpond walls have broken down and the fishponds
                          have been used for boating and recreation, issues concerning U.S. Army Corp permitting
                          and the navigational servitude may arise.
                      *   Submerged lands issues. Many fishponds encompass public submerged lands, raising
                          leasing, resource allocation and other issues. Some fishponds, likewise encompass ceded
                          lands raising issues concerning the entitlements of native Hawaiians.
                      0   Konohikifishing rights. Hawaii state law preserves the essence of certain fishing and



                          5       A good bibliography regarding fishponds can be found in DHM Planners, Inc. and Public
                 Archaeology Section, Applied Research Group-Bishop Museum, 1989. Hawaiian Fishpond Study: Islands of
                 0'ahu, Moloka'i, and Hawai'i. Report prepared for the Hawaii Coastal Zone Management Program, Office of State
                 Planning, Honolulu.
                                                                      13








                        fisheries management rights vested under the 1839 Law of Kamehameha III. ï¿½ 1 87A-23
                        HRS. Exercise of these rights may conflict with submerged land leasing and the operation
                        of certain fishponds. For a good discussion of Konohiki fishing rights see Native
                        Hawaiian Rialits Handbogk, M. MacKenzie, 1991, and Ocean Leasing for Hawaii,
                        Aquaculture Development Program, 198 1.

                E. PERMIT SEQUENCING

                Despite the fact that aquaculture development is supported by the State of Hawaii, the sheer
                number of agencies and permits involved can give the impression of creating enormous
                roadblocks. However, with careful planning and preparation, the process of obtaining permits and
                certifications from various government agencies, while complex, can proceed more or less
                concurrently through several agencies at once, and the data requirements of most agencies can be
                satisfied by a single Environmental Assessment document.

                Planning, preparation and an understanding of which permits will be required are essential to
                efficiently obtaining permits for an aquaculture facility. The first step for a potential farmer should
                be to determine in which land use and coastal management areas the project site is located, and to
                identify any sensitive resources, such as wetlands, shorelines or waterways, which may be
                affected. Based on the location and the potentially affected resources, one should determine which
                regulations and permit requirements might apply and consult with the appropriate agencies as to
                whether they will assert jurisdiction, their concerns, and information requirements. It is also a
                good idea at the outset to consult with the Aquaculture Development Program, DLNR, for its help
                in planning the most efficient course of action.

                In planning a course of action, one should be aware of two different considerations. First, there
                are certain legal requirements as to which permits must be obtained and which approvals must be
                granted before others. Second, one must consider the types of information needed for each permit
                or approval and coordinate the collection and presentation of the information. In other words, if
                water quality information is required for a DA permit, a CDUA, and an NPDES pem-iit, determine
                the data needed for all of the applications and consider developing it 0 at one time, regardless of
                the order the applications are made. This will mitigate costs and save repetition and time.

                The environmental review process is a good way to minimize repetition of effort and
                documentation. Frequently, a well prepared comprehensive environmental review document can
                provide the basic project information required by all the various permitting agencies in one
                coordinated document. The one document can be the foundation for each application. This can
                save time and money. For these reasons and because the environmental review process must be
                completed prior to any final agency action on any permit, the environmental review process is
                always a good place to begin the permit approval process.

                Under Hawaii law, the decision-making authority concerning the environmental review documents
                is granted to the first agency receiving an application for project approval (the "lead agency"). In
                practice, it is often preferable to have this authority reside with the agency having jurisdiction over
                the resource subject to the greatest impacts from the proposed project. Thus, based on the
                location, affected resources, and agency concerns, one should determine the expected level of
                environmental review, i.e., an Environmental Assessment (EA), or a full blown Environmental
                Impact Statement (EIS), the agency with the most critical concerns, and decide, if there is a choice,
                which agency to approach first.

                If this "lead" agency reviews the environmental assessment and grants a "negative declaration," no
                further environmental review should be required by other agencies. However, if the lead agency
                determines that an EIS will be required, an EIS must then be prepared, reviewed, may be subject to


                                                                  14








               a public hearing, and finally accepted by the lead agency prior to final action on any pen-nit by any
               agency. Thus, it is critical to begin the environmental review process at the earliest feasible time.

               The order of obtaining certain pennits is provided by law. If an SMA permit is required, it must be
               obtained prior to any other pen-nit decision. Grading and Building permits, on the other hand
               cannot be issued until all other permits have been obtained. Other permits also have sequencing
               requirements. Within the legal sequencing parameters, the actual order of applying for and
               obtaining pennits will depend on the location, scope and nature of a particular project, and is
               ultimately up to the applicant. The following illustrates some of the considerations in pen-nit
               sequencing which n-dght apply to aquaculture projects.

               Perinit Sequencing Approach:

                   SLQ One. Detem-dne your land use district and other location attributes: Are you in a
                   Conservation District? A Special Management Area? On the Shoreline? In a Ground Water
                   Management Area? Will you affect waters of Hawaii or the United States?

                   Sto Two. Determine what significant resources you will affect: Are there Historic
                   Properties? Wetlands? Ocean, stream or lake waters?

                   Step Three. Detennine which pennits you will be required to obtain. See Table I for an quick
                   overview of some permit requirements.

                   Step Four. Detennine the lead agency and begin preparation of environmental review
                   documentation.

                   Step Five. If historic properties are involved, you should begin working with the State
                   Historic Preservation Division immediately. The Historic Preservation office must be given an
                   opportunity to review the project prior to final action by any other agency.

                   S= Six. If you are in a Special Management Area (SMA), you must obtain your SMA permit
                   before you can obtain any other pem-iit. You may process a Shoreline Setback Variance in
                   conjunction with the SMA permit. You must complete the environmental review process
                   before an SMA pen-nit can be granted. The historic review process must also be completed
                   prior to approval, if historic properties are involved.

                   Step Seven. If you need an Department of Army (DA) pem-dt you should begin the application
                   and review process early. All other pem-dts, except a building pem-lit and grading and
                   grubbing pen-nit must be obtained before the DA permit can be granted. However, the DA
                   permit must be reviewed by other Federal agencies, and the applicant must obtain a Water
                   Quality Certification and a Coastal Zone Consistency Determination from the State prior to DA
                   permit approval. These reviews, and particularly the Water Quality Certification, can take
                   considerable time and require the collection and development of considerable data by the
                   applicant and the agencies. Environmental review must also be completed prior to approval.

                   Step Eight If you are in the Conservation District, you will need to submit a Conservation
                   District Use Application (CDUA). Prior to approval of the CDUA, you will need to obtain a
                   Sanitation permit, if applicable, and a Water Use permit if you are in a Ground Water
                   Management Area. Environmental review must also be completed prior to approval.






                                                               15









                   Step Nine If you need an NPDES pen-nit, you should begin discussions with DOH at an early
                   time. Although there are no other permits or requirements, other than environmental review,
                   which must precede an NPDES permit, the collection of water quality data and the agency
                   consideration can take a considerable amount of time. If the process is not started early, it
                   could delay the ultimate granting of a DA pen-nit, if needed, or a Building or Grading pen-nit.

                   S= Ten. If a DA permit is required, have all other pen-nits, except the Building Permit and
                   Grading permit been granted?

                   Step Eleven. Obtain a Building permit and a Grading permit, if all other required permits and
                   approvals have been granted.









































                                                               16




                                





                              SIGNIFICANT REGULATORY AREAS FOR AQUACULTURE A

              0      0
              
               C         SEAWARD OF SHORELINE                               SHORELINE AREA                                         INLAND


                            LIKELY REQUIRMENTS:
                                                                         LIKELY REQUIREMENTS:                             LIKELY REQUIREMENTS:
                  :3
                  CL
                C M
                fu          EIS                                          EIS                                              EA
                            DA Permit                                    Special Management Area Permit                   NPDES/ZOM/UIC
                  0-
                  3         Conservation District Use Application        Shoreline Setback Variance                       Grading, Grubbing Pe
                            Ocean Waters Permit                          NPDES/ZOM/UIC                                    Building Permit
                            CZM Consistency(Federal permits)            Grading, Grubbing Permit
                57 M        Clean Water Cert.(Federal permits)           Building Permit                                  POSSIBLE REQUIREMENTS:
                '0.8
                            NPDES/ZOM
                a           Building Permit                              POSSIBLE REQUIREMENTS:                           EIS
                                                                                                                          Historic Review
                            POSSIBLE REQUIREMENTS:                       DA Permit                                        CDUA
                j3                                                       CZM Consistency(Federal Permits)                 CZM Consistency(Fed
                0 >         Historic Review(Flshponds)                   Clean Water Cert.(Federal Permits)               DA Perm It(Wetlands)
                D
                                                                         Historic Review                                  Water Use(Water Mana
                0                                                        CDUA
                U @                                                      Water Use(Water Management Area)



                                                                                  SPECIAL MANAGEMENT AREA
                CL
                M                                                                      MINIMUM 100 YARDS
                ï¿½                                                      SHORELINE        FROM SHORELINE
                0
                a                                                       SETBACK
                                                                           20-40
                                                                           FEET                                                            PF 17 P1 1@
                0


                (D
                                                                                                                                            P
                                                                                                                                             1@PP
                                                                                                                                             P P



                                                                                      TABLE I
 







               F. LAND USE AND ENVIRONMENTAL REGULATIONS AND
                  PERMITS6


               This section provides synopses of over twenty Federal, State, and County permits and regulations
               which may apply to aquaculture operations. For each permit or regulation, the legal authority,
               purpose, applicability to aquaculture, administering agency, application information requirements,
               public participation, sequencing requirements, and where applicable the fees or costs, are
               provided. No synopsis can substitute for reading the statutes and regulations themselves, and for
               contacting the agencies directly to discuss their requirements as applied to any specific project.
               Furthermore, laws, regulations and interpretations change constantly. One must therefore, always
               check on the currency of any particular law or regulation. 'Me pen-nits and requirements are
               organized by whether they are administered by the Federal, State or County governments.




































                       6      Preparation of this section greatly assisted by the work of William W. L. Yuen, Esq. and Cynthia
               D. Charlton, Esq. found in DHM, Inc., Hawaii FishpQnd Study, Coastal Zone Management Program and the
               Historic Preservation Division, Department of Land and Natural Resources, September, 1990; and of William A.
               Brewer, Pen-nits and Environmental Rf4uirements for Aquaculture in Hawaii, published by Department of Planning
               and Economic Development, 1980.









                   1. FEDERAL REGULATIONS AND PERMITS


                        FEDERAL ENVIRONMENTAL IMPACT STATEMENT


               Authority

                   National Environmental Policy Act of 1969, Public Law 91-190, 42 U. S.C. 4321 et seq.
                   Title 40 Code of Federal Regulations, Parts 1500-1508, Council on Environmental Quality
                   Guidelines

               Purpose

               The National Environmental Policy Act of 1969 (NEPA), establishes a process for review of the
               environmental impacts of actions taken by the Federal government. This review is intended to
               ensure that environmental concerns are examined and alternatives considered prior to making the
               final decision on a project or action. This is accomplished by the preparation of either an
               Environmental Assessment (EA) or an Environmental Impact Statement (EIS), which reviews the
               environmental impacts of a project and discusses alternatives and mitigation measures.

               Applicability to Aquaculture

               Enviromnental review is required for any project involving Federal funding, issuance of a Federal
               permit, or undertaken by the Federal government, which activity has the potential to significantly
               affect the human environment. Federal agencies may allow categorical exemptions for activities
               which do not individually or cumulatively have a significant effect of the human environment. 40
               CFR 1507.3. If a project is not categorically exempt, an EA must be prepared which briefly
               provides sufficient evidence and analysis for determining whether the project will have a significant
               effect and require and EIS or whether the agency can make a Finding Of No Significant Impact
               (FONSI).

               If the reviewing agency concludes the project will have a significant effect, an EIS must be
               prepared. An EIS is a full and fair discussion of the significant environmental impacts and should
               inform the public and the decision makers as to reasonable alternatives which would minimize
               adverse impacts or enhance the quality of the environment.

               Aquaculture related activities which could require a Federal environmental review include: projects
               involving sites listed or eligible for listing in the National Register of Historic Places; dredging and
               filling of wetlands and other waters; activities in navigable waters; and activities affecting
               endangered species.

               Administering Agency

               The Federal agency which funds, permits, or undertakes the proposed activity is responsible for
               determining the need for an EIS and coordinating its preparation and review. If more than one
               agency is involved, then the agency with the most significant involvement or concerns will usually
               be designated the "lead" agency. Federal agencies must, to the fullest extent possible, cooperate
               with state and local agencies to reduce the duplication between Federal, state and local
               environmental review requirements. 40 CFR 1506.2. Such cooperation includes: 1) joint
               planning processes; 2) joint environmental research; 3) joint hearings; and 4) joint environmental



                                                               19








              assessments or environmental impact statements. Generally, a single environmental review
              document will suffice for Federal, state and local compliance.

              Information Requirements

              Format and informational requirements are detailed in 40 CFR 1502. These requirements are
              similar to those for environmental reviews at the state level, which are detailed in the State EIS
              section below. Each Federal agency typically has its own specific regulations concerning the
              preparation of EAs and ElSs. Basically, an EIS must describe the full scope of the activity and
              consider direct and indirect environmental impacts of the activity over time. Such impacts include
              changes in land use patterns, energy supply and demand, floodplain development, air and water
              quality, noise levels, water resource use, wetlands, coastal zone and fish and wildlife habitat.

              Public Participation

              When an EIS is required, the agency must solicit public comment on the draft EIS. A public
              hearing will be held when required by the agency's enabling statutes or regulations or when the
              agency deems it appropriate considering the degree of environmental controversy or public interesL
              40 CFR 1506.6. An agency must respond to written comments and comments received at public
              hearings as part of a final EIS. 40 CFR 1503.2.

              Processing Time

              The time requirement to complete the environmental review will vary on the scope of the proposed
              project, the magnitude of the impacts, and the number of Federal, state and local permits required.
              Periods of three to four months for a minor non-controversial project and a year or more for major
              actions with significant impacts would not be unusual.

              Sequence of Filing

              lie environmental review process must be completed prior to a final decision on the proposed
              project by the Federal agency(s) involved. 7he environmental review process should be
              commenced early in the planning process to assist with project design and to ensure the timely
              processing of required pen-nits.

              Cost

              The cost of preparing the environmental review documents is highly variable, depending on the
              scope of the project, its impacts, the number of permits involved and the amount of controversy
              surrounding the project.
















                                                             20








                                     U.S. DEPARTMENT OF THE ARMY PERMIT


                  Authority

                  ï¿½   Section 10 of the Rivers and Harbor Act of 1899, 33 U.S.C. 403
                  ï¿½   Section 404 of the Clean Water Act, as amended, 33 U.S.C. 1344
                  0   Section 103 of the Marine Protection, Research and Sanctuaries Act, 33 U.S.C. 1413
                  ï¿½   Title 33 Code of Federal Regulations, Parts 320-330, Regulatory Programs of the Corps of
                      Engineers

                  Purpose

                  The Department of the Army (DA) Perrrdt program was originally established to ensure that the
                  navigational characteristics of coastal waters of the United States were not impaired by
                  development. The jurisdiction of the permit program under the Army Corp of Engineers (ACOE)
                  originally extended only to those waters of the United States which were considered navigable.
                  Activities which could interfere with navigation required a permit under the Rivers and Harbors
                  Act. However, with passage of the Clean Water Act, the authority of the ACOE was extended to
                  include issuance of permits for discharge of dredge or fill material into "waters of the United
                  States" which includes, wetlands, ponds, and any waters the degradation of which could affect
                  commerce.

                  Applicability to Aquaculture

                  Under Section 10 of the Rivers and Harbors Act, a DA pem-iit is required for structures or work in
                  navigable waters of the U.S. Structures and work include piers, pilings, boat docks, breakwaters,
                  revetment, riprap, permanent moorings, power transmission lines, or any other obstacles or
                  obstructions, and any dredging or disposal of dredged material or other modification of a navigable
                  water. 40 CFR 322.2(b) and (c). For Section 10, navigable waters are those waters that are
                  subject to the ebb and flowV the tides and/or are presently used, or were used in the past, or may
                  be susceptible to use in interstate or foreign commerce.

                  Under Section 404 of the Clean Water Act a DA permit is required for the discharge of dredged or
                  fill materials into waters of the United States. Waters of the United States includes all navigable
                  waters, plus, all other waters such as lakesi rivers, streams, mud flats, sand flats, wetlands, wet
                  meadows, natural ponds, the use, degradation or destruction of which could affect commerce. The
                  regulatory definition specifically includes any body of water from which fish or shellfish are or
                  could be taken and sold. 33 CFR 328.3(3)(ii).7

                  Maintenance and repair of existing structures is for the most part exempt from the DA Permit
                  requirements.
                  @ssuance of a DA Permit is based on a "public interest review" which evaluates the probable
                  impacts of a project@ including its cumulative impacts, and its intended use. This decision process



                           7        The reconstruction of an existing fishpond wall would in most cases not trigger the full
                  requirements of the DA Permit process, providing the wall is to be reconstructed in the same location and is similar
                  in size to the original fishpond wall, and providing that the pond is not being used for navigation. A certain amount
                  of discretion is provided the ACOE in interpreting the DA Permit requirements so that certain actions which are
                  generally permitted can be processed administratively. An ap plicant should consult the ACOE regarding their
                  specific wall reconstruction proposal.


                                                                           21








                requires a balancing of the reasonable benefits which can be expected to accrue from an activity
                against its reasonably foreseeable detriments. All factors which may be relevant to a proposed
                activity are required to be considered including, conservation, economics, aesthetics, general
                environmental concerns, wetlands, historic properties, fish and wildlife values, flood hazards,
                floodplain values, land use, navigation, shore erosion and accretion, recreation, water supply,
                water quality, energy needs, safety, property ownership and in general the needs and welfare of
                the people. 33 CFR 302.4(a). The decision whether to authorize a project, and if so the under
                what conditions, will be detern-iined by the outcome of this "general balancing process."

                Administering Agency
                The U.S. Army Corps of Engineers is responsible for administering and granting DA Perrriits.

                Operations Branch
                U.S. Army Engineer District, Honolulu
                Building 230
                Fort Shafter, Hawaii, 96858-5440
                (808) 438-1500

                Information    Requirements

                The ACOE basically requires that the proposed work be physically described in sufficient detail so
                that its potential impact on the affected environment can be fully evaluated. The ACOE's
                Fvaluation extends considerably beyond the potential impact of the project on navigation and
                includes consideration of. conservation, economics, historic values, water quality, aesthetics,
                coastal zone management, recreation, water supply, general environmental concerns, and use,
                energy needs, safety, food production, flood damage prevention, fish and wildlife values, and, in
                general, the needs and welfare of the people.

                Both narrative description and detailed plans and drawings are required. In the case of actions with
                significant potential environmental effects, an EIS is required.

                Public Participation

                A public notice soliciting comments on the permit application is issued within 15 days after the
                receipt of a complete application. 33 CFR 325(2)(d)(1). The comment period on the application is
                15 days to 30 days from the date the public notice is issued, which period can be extended an
                additional 30 days. Depending on the complexity of the proposal, a public hearing may be
                required.

                Processing Time

                The DA Permit process varies with the scale and complexity of the proposed action. If all
                information requiremepts have been met and there are no substantive comments to the proposed
                action, a DA Pen-nit can be issued 60 days after the receipt of a complete application. If an action
                provokes controversy and/or additional inforniation is required (e.g., preparation of an EIS)
                issuance of a DA Permit can take one year or more.

                Sequence of Filing

                A DA permit will not be issued until all related permits, certifications, and authorizations required
                by the Federal, state and county governments have been obtained. At the discretion of the ACOE,
                however, the DA permit can be processed and issued concurrently with other permits. Prior to
                issuing a DA permit, the ACOE must consult with other affected Federal agencies: U.S. Fish and


                                                                 22








               Wildlife and National Marine Fisheries Service, if endangered species critical habitat is involved;
               Advisory Council on Historic Preservation if a site listed or eligible for listing on the National
               Register of Historic Properties is involved. If the project is located within the State's coastal zone
               (see section on coastal zone management) the ACOE must obtain a determination that the project
               will be consistent with the coastal zone management program. If discharges of effluent into waters
               of the State are involved the ACOE must obtain a certification from the State that the project is
               consistent its with water quality standards.

               Cost

               The cost of preparing the application, project plans, an EA and if required an EIS, can be
               substantial depending on the size of the property, the complexity of the proposed action and
               surrounding environmental conditions.

               A permit fiding fee of $ 100.00 is charged for commercial or industrial uses and a $ 10.00 filing fee
               is charged for non-commercial use. Payment of the fee will be required prior to issuance of the DA
               Permit.













































                                                                23








                                                  SECTION 106 REVIEW

                                      NATIONAL HISTORIC PRESERVATION ACT


                Authority

                    National Historic Preservation Act of 1966, as amended, Public Law 89-665; 16 U.S.C. 470
                    et seq.
                    Title 36 Code of Federal Regulations, Part 800, Protection of Historic Properties, Regulations
                    of the Advisory Council on Historic Preservation

                Purpose

                The purpose of Section 106 of the National Historic Preservation Act (NHPA) is to avoid
                unnecessary harm to historic properties from Federal actions. Section 106 of the NHPA requires
                Federal agencies to take into account the effects of their undertakings on historic properties, and to
                afford the Advisory Council on Historic Preservation (ACHP) a reasonable opportunity to
                comment on such undertakings.

                Applicability to Aquaculture

                A Section 106 review is required whenever properties listed on the NationalRegister of Historic
                Properties, properties formally determined to be eligible for listing, and properties not formally
                determined eligible but which meet the National Register eligibility criteria, may be affected by a
                Federal action. This broad applicability means that properties which have not yet been listed and
                even those not yet discovered can be subject to the Section 106 requirements. Federal actions are
                actions undertaken directly by Federal agencies, activities receiving direct or indirect Federal
                financial assistance, or activities requiring pen-nits or other approvals from Federal agencies.

                The review process involves five basis steps:
                    1)  identifying and evaluating historic properlies;
                    .2) assessing effects of the project;
                    3)  consultation between the agency and the State Historic Preservation Officer (SHPO)
                        regarding the manner in which to proceed;
                    4)  ACHP review and comment; and
                    5)  implementation and action by the agency.

                The intent of the process is for the agency, SHPO and ACHP to reach agreement on the manner in
                which to proceed in light of potential effects on the historic property.

                If it is determined that there will be an adverse effect and agreement is reached as to what steps the
                agency will take to mitigate the adverse effects, a Memorandum of Agreement (MOA) will be
                signed and the agency will act accordingly. If no agreement is reached, the ACHP makes its
                comments and the entire package is forwarded to the applying agency for consideration prior to
                proceeding with the proposed activity. It is up to the agency to deten-nine the course of action to
                take in light of the historic preservation considerations.







                                                                  24









             Administering Agency

             The Advisory Council on Historic Preservation in consultation with the SHPO is responsible for
             administering the Section 106 review and providing comments.

             Advisory Council On Historic Preservation     State Historic Preservation Division
             1100 Pennsylvania Avenue, N.W.                Department of Land and Natural Resources
             Suite 809                                     State of Hawaii
             Washington, D.C. 20004                        '33 South King Street, 6th Floor
                                                           Honolulu, Hawaii 96813
                                                           (808) 584-0045

             Information Requirements

             Ile information required depends on the course of the review and the result of the initial evaluation
             of the property. If the process is fully executed the information will include at least the following:

                   a description of the undertaking, including photographs, maps and drawings, as necessary;
                .  a description of the efforts used to identify historic properties;
                *  a description of the affected historic properties, with information on the significant
                   characteristics of each property;
                   a description of the effects of the undertaking on historic properties and the basis for the
                   determinations;
                   a description and evaluation of any alternatives or mitigation measures that the agency
                   proposes for dealing with the undemiking's effects;
                0  a description and evaluation of any alternatives or mitigation measures that were considered
                   but not chosen and the reason for their rejection;
                0  documentation of the consultation with the SHPO;
                0  a description of the agency's efforts to obtain and consider the views of affected local
                   governments and other interested persons;
                0  the planning and approval schedule for the undertaking;
                   copies or summaries of any written views submitted to the agency concerning the effects;
                   any additional information needed to understand the undertaking; and
                   a summary of the views of the SHPO and any interested parties.

             Public Participation

             The agency is required to provide adequate opportunity for the public to receive information and
             express their views. 36 CFR 800.5(e).

             Processing Time

             'Me time required to complete Steps 1 through 3 of the review process are dependent on the
             agency. If the agency submits a signed MOA with the required documentation for review by the
             Advisory Council, review can take up to 30 days. If there is no MOA the agency can request
             issuance of the Advisory Council's comments within 60 days after all of the required
             documentation is submitted. 36 CFR 800.6.









                                                       25









               Sequence of Filing

               It is important that consideration of historic properties occur in the early stages of project planning
               to ensure that preservation concerns receive thorough consideration as the project is planned. Early
               review also permits modifications to a project while they are relatively easy to accomplish and
               reduces the potential for conflict and delay.

               Cost

               The cost to the agency of preparing the required documentation varies with the size of the property
               and the complexity of the proposed undertaking.








































                                                                26








                     2. STATE REGUIATIONS AND PERMITS


                           ENVIRONMIENTAL IMPACT STATEMENT - STATE


                 Authority

                     Chapter 343, Hawaii Revised Statutes, as amended, Environmental Impact Statements
                     Title 11, Chapter 200, Hawaii Administrative Rules, Environmental Impact Statement
                     Administrative Rules

                 Purpose

                 Chapter 343, HRS, establishes a system of environmental review at the State and County levels
                 which is intended to ensure that environmental concerns are given appropriate consideration in
                 decision making along with economic and technical considerations. ï¿½11-200-1,HAR. Thisis
                 accomplished first by the preparation of an Environmental Assessment (EA) to determine whether
                 an action may have a significant environmental effect. If it is detennined to have such an effect the
                 an Environmental Impact Statement (EIS) must be prepared. An EIS is an informational
                 document, which describes the proposed action and which discloses the environmental effects of a
                 proposed action, the effects of a proposed action on the economic and social welfare of the
                 community and State, the effects of the econon-dc activities arising out of the proposed action,
                 measures proposed to minimize adverse effects, and alternatives to the action and their
                 environmental effects.

                 The State environmental review process is modelled on the Federal National Environmental Policy
                 Act of 1969. If both Federal and State agencies are involved with the proposed project the
                 environmental review must be coordinated.

                 Applicability to Aquaculture

                 Except for unusually small aquaculture projects or projects entailing administratively detem-iined
                  insignificant" environmental impacts, an EA is required for actions which are proposed by State
                 and County agencies, as well as actions proposed by the private sector which require prior
                 approval from an agency, and which fall within any of the following categories:8

                     1) propose the use of State or County lands or funds, other than funds to be used for
                         feasibility or planning studies for possible future programs or projects which an agency has
                         not approved;
                     2) propose any use on land within the Conservation District, as classified under Chapter 205,
                         HRS;




                         8   Section 183-44, HRS, provides that "repairs, strengthening, reinforcement, and maintenance and
                 emergency repair of fishponds shall not be construed as actions 'proposing any use' within the.context of ï¿½343-5,
                 HRS." Emergency repair is defined by ï¿½ 183-44 b(l), HRS, as "that work necessary to repair damages to fishponds
                 arising from natural forces or events of human creation not due to the willful neglect of the owner, of such a
                 character that the efficiency, esthetic character or health of the fishpond, neighboring activities of persons, or existing
                 flora and fauna will be endangered in the absence of correction of existing conditions by repair, strengthening,
                 reinforcement, or maintenance." Section 183-44b(2), HRS, defines repairs and maintenance of fishponds as "any
                 work performed relative to the walls, floor, or other traditional natural feature of the fishpond and its appurtenances,
                 the purposes of which are to maintain the fishpond in its natural state and safeguard it from damage from
                 environmental forces."
                                                                   27








                    3)  propose any reclassification of land within the Conservation District, as classified under
                        Chapter 205, HRS;
                    4)  propose any use within the shoreline area as defined in ï¿½205A-41, HRS (see Shoreline
                        Setback Variance);
                    5)  propose any use within any historic site as designated in National Register of Historic
                        Properties or Hawaii Register of Historic Places as provided for in the National Historic
                        Preservation Act of 1966, 16 U.S.C. 470, as amended, or Chapter 6E, HRS; or
                    6)  propose any amendment to existing County general plans where such amendment would
                        result in a designation other than agriculture, conservation or preservation.

               If a proposed action is not exempt (see below) an EA must be prepared. If the administering
               agency determines, after reviewing the EA, that the proposed action will not have a significant
               impact on the environment a "negative declaration" will be issued stating that preparation of an EIS
               will not be required. If an. agency anticipates that a "negative declaration" will be issued, a draft
               EA must be made available for public'review for at least 30 days and in the final EA the agency
               must respond in writing to comments received. ï¿½343-3(b), HRS.

               If, for actions covered by the categories described above, the responsible agency detem-dnes that
               the proposed action may have a significant impact on the environment an EIS is required. Actions
               which may affect State-designated endangered species or the habitat of endangered species are
               likely to require an EIS.

               Section 11-200-8, HAR, provides a list of "classes of action" which are exempt from the
               preparation of an EA because they are judged to not have a significant impact on the environment.
               However, if the cumulative impact of actions are significant where the action is normally
               insignificant, the exemptions listed below are inapplicable.

                    1)  operations, repairs or maintenance of existing structures, facilities, equipment, or
                        topographical features, involving negligible or no expansion or change of use beyond that
                        previously existing;
                    2)  replacement or reconstruction of existing structures and facilities where the new structure
                        will be located generally on the same site and will have substantially the same purpose,
                        capacity, density, height, and dimensions as the structure replaced;
                    3)  construction and location of single, new, small facilities or structures and the alteration and
                        modification of same and installation of new, small, equipment and facilities and the
                        alteration and modification of same including but not limited to:
                           (A) single family residences not in conjunction with the building of two or more such
                               units;
                           (B) multi-unit structures designed for not more than four dwelling units if not in
                               conjunction with the building of two or more such structures;
                           (C) stores, offices and restaurants designed for total occupant load of twenty persons or
                               less, if not in conjunction with the building of two or more such structures; and
                           (D) water, sewage, electrical, gas, telephone, and other essential public utility services
                               extensions to serve such structures or facilities; and accessory or appurtenant
                               structures including garages, carports, patios, swimming pools, and fences;
                    4)  minor alterations in the conditions of land, water, or vegetation;
                    5)  basic data collection, research, experimental management, and resource evaluation activities
                        which do not result in a serious or major disturbance to an environmental resource;
                    6)  construction or placement of minor structures accessory to existing facilities;
                    7)  interior alterations involving things such as partitions, plumbing, and electrical
                        conveyances;
                    8)  demolition of structures, except those structures located on any historic site as designated in
                        the National Register of Historic Properties or Hawaii Register of Historic Places; and



                                                                 28








                   9) zoning variances except: use, density, height, parking requirements and shoreline setback
                       variances.

                Administering Agency

                For State environmental review purposes, actions are divided into two groups, Applicant Actions
                and Agency Actions.

                   Applicant Actions -- The State or County agency to whom the applicant first applies for any
                   permit connected with an action that falls under any of the categories requiring an EA, is
                   responsible for determining the need for an EIS. The agency is also responsible for
                   acceptance of the final EIS.

                   Agency Actions -- Government initiated actions (e.g., those projects involving the use of State
                   or County lands or funds) are assessed by the agency proposing the project to determine the
                   need for an EIS. The Governor or the respective County Mayor is responsible for the
                   acceptance of the final EIS for Agency Actions.

                'Me Office of Environmental Quality Control (OEQCj is responsible for handling the processing of
                the EIS for both Agency and Applicant Actions.

                Office of Environmental Quality Control
                Central Pacific Plaza
                220 S. King Street
                Fourth Floor
                Honolulu, Hawaii 96813
                (808) 586-4185
                'Information Requirements

                Title 11, Chapter 200, HAR, outlines the information requirements for an EA and a final EIS.
                Both the EA and EIS must address each of the required information areas in sufficient detail to
                allow decision makers to fuUy anticipate the environmental consequences of a proposed action.

                An Environmental Assessment must contain the following infori-nation:

                   1)  identification of the applicant or proposing agency;
                   2)  identification of the approving agency, if applicable;
                   3)  identification of agencies consulted in making the assessment;
                   4)  a general description of the action's technical, econon-dc, social, and environmental
                       characteristics;
                   5)  a summary description of the affected environment, including suitable and adequate
                       location and site maps;
                   6)  identification and summary of major impacts and alternatives considered, if any;
                   7)  proposed mitigation measures, if any;
                   8)  a determination of the need for an EIS;
                   9)  findings and reasons supporting determination; and
                  10)  agencies to be consulted in the preparation of the EIS, if applicable.

                A final Environmental Impact Statement, at a minimum, must contain the following information:

                   1) a summary sheet which concisely discusses the following:
                           brief description of the action;
                           significant beneficial and adverse-impacts;


                                                                29








                            proposed mitigation measures;
                            alternatives considered;
                            unresolved issues-, and
                            compatibility with land use plans and policies, and listing of permits or approvals;
                   2)   a table of contents;
                   3)   a statement of purpose and need for action;
                   4)   a project description;
                   5)   a description of any known alternatives for the action;
                   6)   a description of the environmental setting, including a description of the environment in the
                        vicinity of the action, as it exists before commencement of the action, from both a local and
                        regional perspective;
                   7)   a statement of the relationship of the proposed action to land use plans, policies, and
                        controls for the affected area;
                   8)   a statement of the probable impact of the proposed action on the environment, which shall
                        include consideration of all phases of the action and consideration of all consequences on
                        the environment; direct and indirect effects shall be included;
                   9)   a discussion of the relationship between local short term uses of the human environment
                        and the maintenance and enhancement of long-term productivity;
                  10)   a discussion addressing all irreversible and irretrievable commitments of resources that
                        would be involved in the proposed action should it be implemented;
                  11)   a discussion of 0 probable adverse environmental effects which cannot be avoided-,
                  12)   a discussion of mitigation measures proposed to minimize impact;
                  13)   a summary of unresolved issues and either a discussion of how such issues will be
                        resolved prior to commencement of the action, or what overriding reasons there are for
                        proceeding without resolving the problems;
                  14)   a list identifying all governmental agencies, other organizations and private individuals
                        consulted in preparing the statement;
                  15)   reproductions of all substantive comments and responses made during the consultation
                        process;
                  16)   comments and recommendations received on the draft EIS;
                  17)   a list of all persons, organizations and agencies commenting on the draft EIS;
                  18)   responses of the applicant to significant environmental points raised during the review
                        process.

                Public   Participation

                If a negative declaration is anticipated the agency must make a "draft EA" available for public
                comment for 30 days. If after reviewing an EA, an agency makes a determination that preparation
                of an EIS is required, a notice is published in the OEOC Bulletin advising the public of the EIS
                preparation. The Environmental Impact Statement Preparation Notice--prepared by the agency
                requiring the EIS--summarizes the proposed action and lists the reasons supporting the
                determination. The Notice includes the name and address of a person who may be contacted for
                further information about the proposed action.

                Following the publication of the Notice, the public has 30 days in which to request to be a
                consulted party during the EIS's preparation. After a draft EIS has be prepared and submitted for
                review, the public has an additional 45 days during which to comment in writing. The applicant
                must respond in writing to any public comments. Both the comments and the applicant's response
                must be included in the final EIS submitted to the administering department.

                For Applicant Actions, a detem-driation as to the acceptability of a final EIS must be made within 30
                days of filing the final EIS with the administering department and the OEQC. The 30-day period
                may be extended at the request of the applicant for a period not to exceed 15 days. There is no
                maximum period for determining the acceptability of Agency Actions. No public hearing is


                                                                  30








               required under Chapter 343 HRS, but one or more public hearings are not unusual in the project
               review and perrriitting process.

               Acceptance of an EA or EIS does not mean that a project is Uprove , it is merely a condition
               which must precede a request for permit approval.-

               State-Federal EIS Coordination

               Section 343-5(f), HRS, requires that whenever an action is subject to both Federal and State
               environmental review, the OEQC and State agencies shall cooperate with Federal agencies to the
               fullest extent possible to reduce duplication between Federal and State requirements. Such
               cooperation, to the fullest extent possible, is required to include the preparation of joint
               environmental impact statements with concurrent public review and processing at both levels of
               government. Where Federal law has environmental impact statement requirements in addition to,
               but not in conflict with Chapter 343, the OEQC and agencies are required to cooperate in fulfilling
               these requirements so that one document complies with all applicable laws.

               Processing Time

               The time requirement to complete the envi  ronmental review will vary on the scope of the proposed
               project, the magnitude of the impacts, and the number of Federal, state and local permits required.
               Periods of three to four months for a minor non-controversial project and a year or more for major
               actions with significant impacts would not be unusual.

               Sequence of Filing

               An EA, and if required an EIS, should be prepared very early on in the planning process to
               evaluate the significance of a proposed action and insure the timely processing of all required
               permits.

               cost

               There is no specific filing or processing fee associated with the environmental review process.
               However, the preparation of the environmental review documents can be very expensive
               depending upon the scope, and complexity of the proposed project and the environmental
               sensitivity of the surrounding environs.



















                                                                 31








                            CONSERVATION DISTRICT USE APPLICATION


               Authority

                   Chapter 205, Hawaii Revised Statutes, as amended, Land Use Conunission
                   Chapter 183, Hawaii Revised Statutes, as amended, Forest Reservations, Water Development,
                   Zoning
                   Title 13, Chapter 2, Administrative Rules of the Department of Land and Natural Resources
                   Providing for Land Use within the Conservation District

               Purpose

               The Land Use Commission (LUC) is charged with classifying all lands in the State as either
               Urban, Rural, Agricultural or Conservation. Conservation districts include areas necessary for
               protecting watershed and water sources; preserving scenic and historic areas; providing park lands,
               wilderness and beach reserves; conserving endemic plants, fish and wildlife, including those
               which are threatened or endangered; preventing floods and soil erosion; forestry; open space areas
               whose existing openness, natural condition, or present state of use, if retained, would enhance the
               present or potential value of abutting or surrounding communities, or would maintain or enhance
               the conservation of natural or scenic resources; areas of value for recreational purposes; other
               related activities; and other permitted uses not detrimental to a multiple @ase conservation concept.
               ï¿½205-2(e), HRS. The Board of Land and Natural Resources (BLNR) in the State Department of
               Land and Natural Resources (DLNR) regulates activity within the Conservation District through
               the requirement that a Conservation District Use Application (CDUA) be submitted and approved
               prior to any use of land *in the Conservation District. ï¿½183-41, HRS.

               Applicability to Aquaculture

               Anyone proposing to make any use of lands within the Conservation District is required to submit
               a CDUA for approval prior to undertaking the proposed use. 'Me Conservation District
               encompasses large areas of mountain and shoreline lands, along with areas necessary for
               protecting watersheds and water sources. Also included is most of the State's submerged offshore
               land and outlying small islands. Most of the State's historic fishponds, are in the Conservation
               District.9

               Pursuant to Title 13, Chapter 2, HAR, land within the Conservation District is classified into one
               of four use subzones:

                   1)  Protective (P): The objective of this subzone is to protect valuable resources in such
                       designated areas as restricted watersheds, marine, plant and wildlife sanctuaries, and
                       significant historic, archaeological, geological, and volcanological features and sites and
                       other designated unique areas. ï¿½ 131-2-11, HAR.
                   2)  Limited (Q: The objective of this subzone is to limit uses where natural conditions suggest
                       constraints on human activities (e.g., land susceptible to flooding, erosion, tsunami,
                       volcanic activity or landslides). ï¿½ 13-2-12, HAR.
                   3)  Resource (R): The objective of this subzone is to develop areas to ensure sustained use of
                       natural resources, (e.g., future parkland, lands for'growing and harvesting of timber,
                       outdoor recreation, and shoreline and ocean waters). ï¿½ 13-2-13, HAR.



                           Section 183-44, HRS, provides that certain repair, strengthening, reinforcement, and maintenance
               activities may occur on fishponds in the Conservation District without the issuance of a CDUA, subject to the
               BLNR's approval.
                                                               32








                    4) General (G): The objective of this subzone is to designate open space where specific
                        conservation uses may not be defined, but where urban use would be premature. ï¿½13-2-
                        14, HAR.

                Permitted uses within the Conservation District subzones are cumulative. All uses permitted in the
                Protective subzone are also permitted in Limited subzone. All uses in the Limited subzone are also
                permitted in the Resource subzone. All uses in the Resource subzone are permitted in the General
                subzone. The specific uses permitted in each subzone are listed below. Aquaculture is a perrnitted
                use in the Resource and General subzones. The restoration or operation of significant historic and
                archaeological sites listed on the National Register of Historic Properties or State Register of
                Historic Places is a permitted use in all of the subzones.


                The following land uses are permitted in the Protective (P) subzone:

                    1)  research, recreational, and educational uses which require no physical facilities;
                    2)  establishment and operation of marine, plant, and wildlife, sanctuaries and refuges,
                        wilderness and scenic areas, including habitat improvements;
                    3)  restoration or operation of significant historic and archaeological sites listed on the National
                        or State Register;
                    4)  maintenance and protection of desired vegetation, including the removal of dead,
                        deteriorated and noxious plants;
                    5)  programs for the control of animal, plant, and marine populations, including fishing and
                        hunting;
                    6)  monitoring, observing, and measuring natural resources;
                    7)  occasional use; and
                    8)  government use where public benefit outweighs any impact on the conservation district.

                The following land uses are permitted in the Limited (L) subzone:

                    1)  all uses permitted in the Protective subzone;
                    2)  emergency warning systems or emergency telephone systems;
                    3)  flood, erosion, or siltation control projects; and
                    4)  growing or harvesting of forest. products.

                Ile following land uses are pen-nitted in the Resource (R) subzone:

                    1) all uses pen-nitted in the Protective and Limited subzones,
                    2) aQuaculture;
                    3) artificial reefs; and
                    4) commercial fishing operations.

                The following land uses are permitted in the General (G) subzone:

                    1) all permitted -uses in the Protective, Resource, and Limited subzones; and
                    2) development of water collection, pumping, storage, control and transmission.

                The BLNR uses the following guidelines in considering CDUAs:

                    0   all applications shall be reviewed in such a manner that the objectives of the subzone are
                        given primary consideration;
                    9   all applications shall be reviewed so that any physical hazard identified shall be alleviated
                        when required by the BLNR;



                                                                33








                     ï¿½  all applications for subdivision shall address their relationship with the County general
                        plan; and
                     ï¿½  all applications shall meet the purpose and intent of the Conservation District. ï¿½13-2-21,
                        HAR.

                Administering Department

                The Conservation District Use Application is adn-dnistered by the Department of Land and Natural
                Resources, Office of Conservation and Environmental Affairs. The Board of Land and Natural
                Resources has the sole responsibility for approving a CDUA and attaching restrictive conditions, if
                any.

                Office of Conservation and Environmental Affairs
                Department of Land and Natural Resources
                State of Hawaii
                1151 Punchbowl Street
                Honolulu, Hawaii 96813
                (808) 587-0388

                Information Requirements

                An application form is available from DLNR. The application must contain:

                        an Environmental Assessment or; if required, an Environmental Impact Statement (If an
                        adequate EA and/or EIS has already been prepared for the proposed project in conjunction
                        with some other permit requirement, preparation of a new document will not be required);
                        a description of the location and boundaries of the area to be utilized;
                        a description of the parcel's characteristics including existing use, structures, utilities,
                        access, vegetation, and topography, including ocean depths and shoreline features;
                        a description of any existing covenants, easements, and restrictions for the parcel;
                        a survey of any historic site which may be affected by the proposed use, including a plan
                        for protection, salvage or restoration;
                        a statement of the reasons for selecting the proposed location;
                        a description of the activities to be conducted, including a specification as to whether the
                        activities are commercial or noncommercial, a timetable for construction, deployment and
                        operation of the facilities, and planned levels of use;
                        preliminary plans of the proposed development (where applicable these should include site
                        and elevation plans, floor plans, grading and drainage plans and landscaping plans); and
                        for use of marine waters a statement on the extent to which the proposed activity will
                        impact the use of marine waters for navigation, fishing and public recreation and a
                        description of any enclosures, fences, stakes, buoys or structures proposed to mark the
                        desired area.

                Public    Participation

                A public hearing is required for:

                        all applications which propose to use conservation land for commercial use;
                        boundary amendments or amendments to pem-iitted uses within a subzone; and
                        conditional uses within the Protective (P) subzone, except, where a public hearing has
                        already been held for the project in conjunction with any federal, state or county pen-nit
                        requirement. ï¿½13-2-23, HAR.




                                                                   34









               Processing Time

               The processing time for a CDUA is 180 days from the date the application is officially received. 10
               The application is considered during regularly scheduled meetings of the BLNR. If the BLNR
               fails to act within 180 days after the receipt of an application, the applicant may automatically put
               his/her land to the proposed use, subject to the conditions outlined in ï¿½13- 2-21, HAR. If the
               application involves an EIS or a contested case hearing, the 180-day period may be extended for an
               additional 90 days at the request of the applicant, or, subject to approval by the BLNR, for a longer
               period. ï¿½183-41(a), HRS.

               Sequence of Filing

               The BLNR will not act on an application until the environmental review process has been
               completed, and if applicable, a Special Management Area Permit, Shoreline Setback Variance,
               Department of Health approval of sanitation facilities, and water supply permits or approvals have
               been obtained. If a Permit for Work in Ocean Waters is required, the two applications will be
               combined under most circumstances. (See, Permit for Work in Ocean Waters section.)

               cost

               A filing fee of $50.00 is required for each Conservation District Use Application filed. An
               additional fee of $50.00 is required for each application requiring a public hearing. The cost of
               assembling the information required to supplement the application can be substantial depending on
               the size of the property, the complexity of the proposed development and surrounding
               environmental conditions.






























                       10 If the application is for State lands under the control of DLNR, the processing time starts when it signs
               the application as the land owner. If the activity is on private land, the time frame starts when the application is
               submitted to DLNR.
                                                                35








                                  PERMIT FOR WORK IN OCEAN WATERS


                Authority

                0 Chapter 200, Hawaii Revised Statutes, Ocean Recreation and Coastal Areas
                -   Title 19, Chapter 42 Section 161, Hawaii Administrative Rules, Department of Land and
                    Natural Resources

                Purpose

                To protect navigation and shoreline processes by regulating development activities and the
                construction or placement of any structure or material within the shores, shore waters, navigable
                streams and harbors of the State.

                Applicability To Aquaculture

                Anyone desiring to perform any dredging, filling or erecting of any construction within the ocean
                waters or navigable streams of the State, is required to obtain a Pen-nit for Work in Ocean Waters
                of the State (sometimes referred to as a Permit for Work in Shorewaters of the State) from the
                DLNR. ï¿½200-4(a)(6), ï¿½200-6(a), HRS; ï¿½ 19-42-16 1, HAR. In locations where a Conservation
                District Use Application is required, as well as the Pern-lit for Work in Ocean Waters, a single
                permit system is employed. An applicant files the CDUA and the two processes are coordinated.

                Administering Agency

                Effective July 1, 1992, the responsibility for these and other functions relating to ocean waters,
                recreational boating and ocean recreation, were transferred from Department of Transportation to
                DLNR pursuant to Chapter 200, HRS. The jurisdiction of DLNR under Chapter 200 is to all
                ocean waters (waters seaward of the upper reaches of the wash of the waves, within the
                jurisdiction of the state) and navigable streams, except for commercial harbors, which remain
                under the jurisdiction of the Department of Transportation.

                Ocean Recreation Division
                Department of Land and Natural Resources
                79 S. Nin-dtz Highway
                Honolulu, Hawaii 96813
                (808) 587-1966

                Information Requirements

                An applicant for a Permit for Work in Ocean Water of the State is required to submit the following
                information:

                    1)  a tax map which identifies the property the applicant proposes to develop;
                    2)  a plot plan of the property drawn to scale with all proposed structures accurately depicted;
                    3)  if the parcel abuts the shoreline, a certified shoreline survey is required which shows the
                        actual field location of the shoreline in relation to the position of the proposed facilities;
                    4)  elevations and soundings;
                    5)  a written description of the proposed project and a statement of objectives;
                    6)  a statement of the project's valuation and construction schedule; and
                    7)  an Environmental Assessment, and if necessary, an Environmental Impact Statement. (See
                        State Environmental Impact Statement section for environmental review requirements.)


                                                                  36









              PUBLIC PARTICIPATION

              There is no requirement for public hearing or notice. If the pen-nit is being processed in
              conjunction with a CDUA, the hearing and notice requirements of the CDUA regulations will
              apply. (See CDUA section.)

              PROCESSING TIME

              There is no specified time limit for review and action on the permit application. The pr ocessing
              time will depend on the scope and complexity of the project and whether an EIS is required. The
              application must be reviewed by the Department of Health for compliance with state water quality
              standards. When the application is combined with a CDUA the processing will be done in
              conjunction with the CDUA. (See CDUA section for processing time.)

              SEQUENCE OF FILING

              If the project also requires issuance of a Special Management Area Permit or a Shoreline Setback
              Valiance, these approvals must precede approval of the Permit for Work in Ocean Waters of the
              State.

              COST

              The filing fee for the permit is $50.00.






























                                                             37








                                                HISTORIC SITE REVEEW


                 Authority

                 ï¿½  Chapter 6E, Hawaii Revised Statutes, Historic Preservation
                 0 National Historic Preservation Act of 1966, as amended, Public Law 89-665; 16 U.S.C., 470
                    et seq.
                 ï¿½  Presidential Executive Order 11593

                 Purpose

                 To protect buildings, structures, objects, districts, areas, and sites, including underwater sites,
                 significant to the history, architecture, archaeology, or culture of the State, its communities or the
                 nation. The review procedure is designed to provide the State adequate advance notice prior to any
                 construction, alteration or improvement of any nature being undertaken on a historic property.

                 Applicability to Aquaculture

                 Before any agency or officer of the State, or Counties, approves any project involving a permit,
                 license, certificate, land use change, subdivision or other entitlement for use, which may affect a
                 historic property, or burial site, the agency shall advise the Historic Preservation Division (HPD)
                 within the Department of Land and Natural Resources and allow the HPD an opportunity to review
                 the effect of the proposed project on historic properties or burial sites. ï¿½6E-8, ï¿½6E-42, HRS.

                 Before any construction alteration, disposition or improvement on private land which will affect a
                 historic property on the Hawaiian Register of Historic Places, the landowner shall notify the HPD
                 and allow an opportunity for HPD to review the effect of the activity. The activity cannot
                 commence until the HPD has concurred or 90 days has passed. Within 90 days the HPD shall
                 concur or begin condemnation proceedings, or undertake to record, preserve and salvage any
                 historical information deemed necessary to preserve Hawaiian history. ï¿½6E-10, HRS.

                 Projects by state agencies shall not commence until the HPD concurs. If the HPD does not concur
                 within 90 days, the agency may apply to the Governor, for a decision overruling or sustaining the
                 HPD.

                 Although the respective State, and Federal historic preservation laws and regulations do not
                 necessarily prohibit alteration or destruction of designated historic places, every effort is usually
                 made by the historic preservation program officials to preserve and protect such resources to the
                 extent permissible by law. Projects affecting historic properties, butjudged to be in the best
                 interests of the public, or projects which produce adverse effects to landowners or other affected
                 parties, may be allowed to proceed (following review), provided the State has the opportunity to
                 record, retrieve, or salvage historical data, information, or artifacts which would be otherwise lost.

                 It is unlawful to take, destroy or alter any historic property located upon lands owned or controlled
                 by the State, or to take injure, destroy or alter any burial site or the contents thereof on any lands,
                 except as pennittedby DLNR. ï¿½6E-11,HRS.

                 Administering Agency

                 The Historic Site Review requirement is administered by the Historic Preservation Division of the
                 Department of Land and Natural Resources.




                                                                   38










               State Historic Preservation Division
               Department of Land and Natural Resources
               State of Hawaii
               33 South King Street, 6th Floor
               Honolulu, Hawaii 96813
               (808) 587-0047

               Information Requirements

               An applicant or agency must file a notice of their intention to preform any action which may impact
               an historic site 90 days prior to the proposed start date. Ile applicant must make clear the nature
               of the proposed action and the precise location of such activities with respect to any historic site.
               A site plan and scale drawings showing the proposed action are generally required. An
               archaeological reconnaissance survey may also be requirecL

               Actions affecting historic sites on the National Register or Hawaii Resister will also require the
               preparation of an Environmental Assessment and if determined to be necessary an Environmental
               Impact Statement. (See State EIS section.)

               Public Participation

               There is no requirement for a public hearing in connection with a Historic Site Review. Projects
               affecting a designated historic property will frequently require an EIS and may entail a public
               hearing on the EIS.

               Processing Time

               The processing time for a Historic Site Review is 90 days from the date the Historic Preservation
               Division is officially notified.

               Sequence of Filing

               By law a permit, license, certificate, land use change, subdivision or other entitlement for use,
               which may affect a historic property may not be approved without allowing the Historic
               Preservation Division the opportunity to comment. ï¿½6E-42, HRS. It is therefore advisable that
               the Historic Preservation Division be consulted early on in the planning process to insure the
               prompt processing of applicable permits.

               Cost

               There is no fee required for the Historic Site Review. The cost associated with the obtaining the
               necessary information will vary depending upon the scope and nature of the historic sites affected.
               An archeological reconnaissance survey, if required, can be costly.










                                                               39








                NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM
                                                  (NPDES) PERMIT


                Authorities

                   Clean Water Act, as amended, 33 U.S.C. 134)
                   Chapter 342D, Part III, Hawaii Revised Statutes, Water Pollution Control
                -  Title 11, Chapter 54, Hawaii Administrative Rules, Department Of Health, Water Quality
                   Standards
                0  Title 11, Chapter 55, Hawaii Administrative Rules, Department Of Health, Water Pollution
                   Control

                Purpose

                To protect water quality by regulating the discharge of wastewater from fixed point sources into
                surface waters including wetlands and coastal waters. Fixed point sources include pipes, ditches
                channel, tunnels,wells, etc. from which pollutants may be discharged. Ponds, tanks or other
                aquaculture activities are generally considered fixed point sources.

                Applicability to Aquaculture

                A National Pollutant Discharge Elimination System (NPDES) permit is required before any
                effluent discharge can be made from fixed point sources into surface waters. Most aquaculture
                operations (unless underground injection wells are -used) will result in discharges into surface
                waters from channels, ditches or other fixed point sources. Warm water facilities producing less
                than 100,000 pounds of animals per year and facilities discharging during fewer than 30 days per
                year, may be exempt from the NPDES permit requirement. 40 CFR 122.24(c). The NPDES
                permit sets specific limits on discharge volume and effluent concentration. It is issued for a set
                time period of no more than five years. Once granted, monitoring of effluent volume and
                concentration is usually required. Title 11, Chapters 54 and 55 of the DOH Administrative Rules
                should be reviewed for specific requirements.

                Administering Agency

                The Department of Health, Clean Water Branch is responsible for adn-dnistering the NPDES permit
                requirements.

                Clean Water Branch
                Environmental Management Division
                Department of Health
                State of Hawaii
                Five Waterfront Plaza
                500 Ala Moana Blvd., Suite 250
                Honolulu, Hawaii 96813
                (808) 586-4200

                Information Requirements

                   1) scaled plans and a description of the proposed activity; and
                   2) a physical-chen-lical characterization of the proposed effluent@ including pH, temperature,
                       dissolved oxygen, nitrogen, phosphorus, chlorine and other information as determined by
                       DOH.



                                                              40









               Tests on the existing quality of the receiving water, a survey of the receiving water's ecosystem
               and an analysis of the prevailing water currents may also be required.

               Although an preparation of environmental review documents is not specifically required by the
               State, if the discharge of effluent or the placement of outfall structures fall under the permit
               authority of a Federal agency and the project involves the potential for a significant effect on the
               environment, an Environmental Assessment and possibly an Environmental Impact Statement will
               be required.

               Public Participation

               There is no required public hearing. The Department of Health must notify the public of their
               intent to issue a permit and a hearing may be required if requested by a member of the public.

               Processing Time

               The processing time for a NPDES permit varies with the complexity of the project. For minor
               project proposals, processing of the NPDES permit can be expected to take from three to four
               months. Projects requiring an Environmental Impact Statement may take considerably longer.
               NPDES permits are issued for a limited period of time, general five years. All NPDES permit
               applications must be reviewed by the U.S. Environmental Protection Agency.

               Sequence of Filing

               There is no specific sequencing requirement for NPDES permits.

               Costs

               A filing fee of $100 must be paid with the NPDES permit application. The cost of preparing the
               permit application and required information varies with the scope and complexity of the project and
               the nature of the surrounding environment. NPDES permits are generally conditioned upon the
               applicant conducting periodic monitoring tests during the life of the permit to ensure compliance.
               'Me costs of conducting such monitoring, including equipment and laboratory analysis, can be
               considerable.

               Other Contacts

               U.S. Environmental Protection Agency
               Water Management Division
               215 Fremont Street
               San Francisco, California 94105















                                                              41








                                            ZONE OF MMNG AP                   PROVAL


                Authority

                    Clean Water Act, as amended, 33 U.S.C. 1344
                    Chapter 3421), Part 111, Hawaii Revised Statutes, Water Pollution Control
                    Title 11, Chapter 54, Hawaii Administrative Rules, Department of Health, Water Quality
                    Standards

                Purpose

                A zone of mixing is a limited area around the outfall of a fixed point source that provides for the
                initial dilution of waste discharges upon entry into the receiving waters. Zones of mixing are
                recognized as being necessary for the assimilation of certain discharges which have received the
                best degree of treatment or control. It is the objective of these limited zones to provide for a current
                realistic means of control over the placement and manner of discharges or emissions so as to
                achieve the highest attainable level of water quality or otherwise to achieve the minimum
                environmental impact considering initial dilution, dispersion, and reactions from substances which
                may be considered to be pollutants. ï¿½ 1 1-54-09(b), HAR.

                Applicability to Aquaculture

                A Zone of Mixing approval is required for any activity that discharges effluent into a location
                where water quality standards for that area would be violated by the effluent without further
                dilution. Specific water quality standards for the State and the classification of receiving waters are
                found in Title 11, Chapter 54 of the Department of Health Administrative Rules. In general terrns,
                zones of mixing are not allowed for discharges into pristine or protected waters. (Class I Inland
                Waters, Class AA Marine Waters, and Class 1 Marine Bottom Ecosystems. The classifications are
                found in ï¿½ 11-54-2, through ï¿½ 11-54-7, HAR. Zones of mixing may be allowed for discharges into
                other waters consistent with the standards and requirements set forth in the administrative rules. A
                Zone of Mixing approval is normally processed in conjunction with an NPDES permit.

                Approval of a Zone of Mixing can only be made if:

                    1)  the operation which is maldng the discharge is in the public interest;
                    2)  the discharge does not substantially endanger human health or safety;
                    3)  compliance with the existing water quality standards from which a zone of mixing is sought
                        would produce a hardship without greater benefits to the public;
                    4)  the basic standards of all waters are not violated; and
                    5)  the discharge has/will receive the best degree of treatment or control. ï¿½ 11-54-09(5), HAR.

                Every zone of mixing approved and established must be monitored on an ongoing basis by the
                applicant. ï¿½11-54-09(6),HAR.

                Administering Agency

                The Department of Health, Clean Water Branch is responsible for administering the Zone of
                Mixing approval. The Department may establish approve the establishment of a zone of mixing'
                after review and concurrence by the U.S. Environmental Protection Agency. ï¿½11 HAR 54-09(9).





                                                                  42








               Clean Water Branch                                 Environmental Protection Agency
               Department of Health                               Water Management Division
               State of Hawaii                                    215 Fremont Street
               Five Waterfront Plaza                              San Francisco, California 94105
               500 Ala Moana Blvd., Suite 250
               Honolulu, Hawaii i 96813
               (808) 586-4200

               Information Requirements

               The application for a Zone of Mixing approval must be made on the DOH form and concurrent
               with any application for a NPDES permit. Information required to accompany an application for a
               Zone of Mixing approval generally includes:

                   -  a complete and detailed description of the present conditions of the receiving waters;
                   a  an explanation of how the proposal will violate the established water quality standards; and
                   0   Additional information as required by the DOH. ï¿½11-54-09(c)(1),HAR.

               Public Participation

               A public hearing is required prior to approval of a Zone of Mixing. If an NPDES pen-nit is being
               considered in conjunction with a Zone of Mixing, the public notification and comment process
               established for the NPDES permit can be substituted for the hearing requirement. ï¿½ 11-54-
               09(c)(4), HAR.

               Processing Time

               The processing time for a Zone of Mixing approval varies with the complexity of the project For
               n-dnor project proposals, processing can be expected to take from three to four months. A Zoning
               of Mixing approval is issued for a limited period of time (generally five years) and is tied to the
               approval period for a NPDES permit.

               Sequence of Filing

               An applicant should consult with the Department of Health early in the planning process to
               consider applicable water quality standards and effluent disposal alternatives to determine approval
               requirements and design alternatives.

               Cost

               The cost of preparing the application and the necessary supplemental information varies with the
               scope of the project. When established, Zones of Mixing are generally conditioned upon the
               applicant conducting certain monitoring tests to ensure compliance. The equipment and laboratory
               cost needed to conduct such monitoring can be expensive.











                                                              43








                                     WATER QUALITY CERTIFICATION


               Authority

                   Clean Water Act, as amended, 33 U.S.C. 1251, et seq.
                   Chapter 342D, Hawaii Revised Statutes, Water Pollution
                   Title 11, Chapter 54, Hawaii Adn-dnistrative Rules, Department of Health, Water Quality
                   Standards

               Purpose

               To certify that any action involving a Federal license or perrn it does not or will not violate
               applicable State Water Quality Standards.

               Applicability to Aquaculture

               A water quality certification is required by section 401 of the Clean Water Act, 33 U.S.C. 1251 et
               seq., of any applicant for a federal license or permit to conduct any activity, including, but not
               limited to, the construction or operation of facilities which may result in any discharge into
               navigable waters of the United States. ï¿½ 11-54-09. 1, HAR. The Director, DOH, will issue the
               certification if there is reasonable assurance that applicable water quality standards will not be
               violated and the best practicable methods of control will be applied to a discharge. ï¿½ 11-54-
               09.1.01(b), HAR.

               Administering Agency

               The Department of Health, Clean Water Branch is responsible for administering the Water Quality
               Certification, which is issued by the Director.

               Clean Water Branch
               Department of Health
               State of Hawaii
               Five Waterfront Plaza
               500 Ala Moana Blvd., Suite 250
               Honolulu, Hawaii 96813
               (808) 586-4200

               Information Requirements

               The applicant must submit a complete description of the discharge involved, which shall include:

                   ï¿½   a description of the facility or activity, the discharge from construction and operation, the
                       characteristics of the discharge and the location of its entry into state waters;
                   ï¿½   a description of equipment and facilities to control discharges;
                   -   a description of the methods and means of monitoring, if applicable; and
                   ï¿½   any additional information requested. ï¿½ 11-54-09.1.02, HAR.

               Public Participation

               The Director may provide public notice and an opportunity for public comment or hearing, upon
               request or at the Director's own determination.



                                                               44








               Processing Time

               The Director is required to act on a request for certification within one year. ï¿½11-54-09.1.02(7),
               HAR. If the Director fails or refuses to act on a request for certification within a reasonable period
               of time (which shall not exceed one year) after receipt of a complete application, then the
               certification requirements shall be waived with respect to federal applications. ï¿½11-54-09.1.04,
               HAR.

               Sequence of Filing

               Water Q@iality Certification is required prior to the issuance of subject Federal approvals or
               permits. Therefore, an applicant should apply for the certification at the earliest feasible time and in
               conjunction with the Federal application.

               Cost

               A private applicant must pay a filing fee of $100. In addition, the applicant must pay the costs of
               publication related to public notification and public hearings.


































                                                                45








                                      FEDERAL CONSISTENCY REVIEW

                                     COASTAL ZONE MANAGEMENT PROGRAM



                Authority

                    Coastal Zone Management Act of 1972, as amended, Public Law 92-5 83, 16 U.S.C. 1451 et
                    seq.
                    Chapter 205A, Part 1, Hawaii Revised Statutes, Hawaii Coastal Zone Management Act
                    Title 15 Code of Federal Regulations, Part 930, Federal Consistency with Approved Coastal
                    Zone Management Programs

                Purpose

                Ile Hawaii Coastal Zone Management Act provides a broad set of goals, objectives and policies,
                consistent with the Federal Coastal Zone Management Act, dealing with protection, management,
                development, restoration and enhancement of coastal zone recreational, historic, scenic, open
                space, economic and ecosystem resources. In Hawaii the regulation of activities within the coastal
                zone is separated into three areas:

                    1) Federal Consistency Review, administered by the Coastal Zone Management Program
                       within the Office of State Planning (OSP);
                    2) Special Management Area Permits; and
                    3) Shoreline Setback Variances, both administered by the counties.

                Federal law requires that Federal agencies conduct their planning, management, development and
                regulatory activities in a manner consistent with the State Coastal Zone Management Program
                (CZMP). Pursuant to Federal regulation, the state may review all Federal activities within the
                coastal zone for consistency with the CZMP. If the State determines the Federal activity is not
                consistent with its CZMP, the Federal activity cannot go forward unless the U.S. Secretary of
                Commerce overrides the determination. 15 CFR Part 930 et seq.

                Applicability to Aquaculture

                The Coastal Zone Management Area (Coastal Zone) is defined as all marine waters extending from
                the upper reaches of the wash of the waves on the shore seaward to the limit of the State's police
                power and management authority, including the United States's territorial sea and all land areas
                excluding those lands designated as state forest reserves. ï¿½205A- 1, HRS. Activities within the
                Coastal Zone which are Federally funded, require a Federal permit or license, or are conducted by
                the Federal government and directly impact the Coastal Zone, are subject to review for consistency
                with the State's CZMP. The review process generally involves:

                    1) a determination by the proponent and applicable Federal agency as to whether the activity is
                       consistent with the CZMP;
                    2) subn-dssion of the detern-iination and related information to the OSP for review; and
                    3) OSPs concurrence with or objection to the determination.







                                                                46









               Administering Agency

               The Office of State Planning, Coastal Zone Management Program is responsible for adn-dnistering
               Hawaii's CZMP and conducting Federal Consistency Reviews.

               Coastal Zone Management Program
               Office Of State Planning
               P.O. Box 3540
               Honolulu, Hawaii 96811-3540
               (808) 587-2879

               Information Requirements

               Detailed instructions for preparing the consistency assessment are found in "Hawaii Coastal Zone
               Management Program Federal Consistency Procedures Guide", available from OSP. In
               conjunction with the appropriate forms, the applicant must prepare an assessment of the proposed
               activity's consistency with the CZMP which discusses the proposed activity's effects on the
               Coastal Zone in terms of how they it furthers or conflicts with the CZMP's objectives and policies;
               information regarding the status of any State and local environmental permits or reviews associated
               with the activity; and any supplemental information such as environmental review documents,
               plans and drawings.

               Public Participation

               Public notice of a consistency review is required and is generally provided in a Federal agency
               public notice. Responses are usually requested within 14-30 days of the notice. The OSP weighs
               all written public comments pertaining to the CZMP policies in its review. Public hearings on the
               proposed activity, if any, conducted by the Federal agency are also a source of public input in the
               consistency review process.

               Processing Time

               The processing time for a consistency review varies with the scope and complexity of the project
               and the number of permits involved. After receipt of the necessary information, OSP conducts a
               preliminary review and may request additional information. Next, input from agencies and the
               public will be requested. When the review is completed, a detern-lination will be made. If OSP
               determines that the proposed activity is not consistent with the CZMP it will recommend alternative
               measures that would be more consistent with the CZMP objectives.

               Sequence of Filing

               The proposed Federal funding, permit or activity cannot go forward until the consistency
               determination is obtained. Therefore, the review process should be initiated early in the planning
               and pem-iitting process.

               cost

               There is no fee associated with the consistency review. The cost of preparing the necessary
               information will depend on the scope and complexity of the proposed activity. Generally, most of
               the necessary information will have been prepared in conjunction with other applicable permits.





                                                              47








                                  UNDERGROUND INJECTION CONTROL


               Authority

                   Federal Safe Drinking Water Act, Pub. Law 93-523, U.S.C. 300f et seq.
                   40 Code of Federal Regulations Part 144
                   Chapter 340E, Hawaii Revised Statutes, Safe Drinking Water
                   Title 11, Chapter 23 Hawaii Administrative Rules, Underground Injection Control

               Purpose

               The purpose of the Underground Injection Control (UIC) program is to protect the quality of the
               State's underground sources of drinking water from pollution by subsurface disposal of fluids.
               The program seeks to control the location, construction and operation of injection wells so that
               injected fluids do not migrate and pollute the underground drinking water sources. ï¿½11-23-01,
               HAR.

               Applicability to Aquaculture

               In certain instances aquaculture operations find it advantageous to discharge wastewater into
               underground injection wells rather than into surface waters. No injection well can be constructed
               and operated in the State without obtaining a pen-nit from the Department of Health (DOH). For
               purposes of UIC the State has classified aquifers and underground sources of drinking water as
               either exempt, i.e., generally not serving as a source of drinking water, or non-exempt, i.e., all
               other aquifers. On each island, the DOH has established a UIC Line. Lands mauka of the line are
               non-exempt. Lands makai are exempt. The standards for issuing permits depend upon whether
               the proposed injection well is into an exempt or non-exempt aquifer.

               In certain circumstances, injection wells from aquaculture may be classified as a subclass B wells
               pen-nitted mauka of the UIC line if the water in the receiving formation has either: 1) an equal or
               greater chloride concentration as that of the injected fluid; or 2) a total dissolved solids
               concentration in excess of five thousand mg/L. ï¿½ 11-23-06, HAR. If this test is not met the well
               can only be sited makai of the line. 11

               All new wells must be sited more than one-quarter mile from any part of a drinking water source.
               Subclass B wells sited mauka of the UIC line must in addition submit data concen-ting the water
               quality of the aquifer at the location. All wells must be constructed consistent with good
               engineering practices as recommended by the Honolulu Board of Water Supply's "Water System
               Standards", dated March 1977. ï¿½ 11-23 -09, HAR. All wells must be operated in such a manner as
               to not cause violations of any DOH rules and regulations. ï¿½ 11-23-11, HAR.

               A permit will be issued, for up to five years, for an injection wells into exempted aquifers if the
               well will not endanger the quality of underground drinking water sources; if it is designed and
               constructed to operate without causing a violation of applicable rules and laws; and if it is designed
               and built in compliance with the standards set forth in the rules. For wells injecting into a non-
               exempt aquifer, the issuance must also be based on an evaluation of the contamination potential of
               the local water by the injection fluids and the water development potential of the aquifer for public
               and private consumption. ï¿½11-23-16,HAR.




                          This assumes that the well is not otherwise prohibited because the disposed fluid is not allowed to be
               injected under ï¿½ 11-23-06, HAR.
                                                               48








                 Administering Agency

                 Wastewater Branch
                 Department of Health
                 State of Hawaii
                 Five Waterfront Plaza
                 500 Ala Moana Blvd., Suite 250C
                 Honolulu, Hawaii 96813
                 (808) 586-4294

                 Information Requirements

                 An application must be submitted on the DOH's application form and must include the following
                 data, as well as other items set forth in the regulations:

                  (2)    facility location;
                  (3)    tax map key number and map;
                  (4)    USGS topographic map showing proposed well and all other wells within one quarter mile;
                  (9)    nature and source of injected fluid;
                 (10)    proposed design capacity and operating volume;
                 (12)    elevation section for proposed well;
                 (13)    description of injection systern-and system blueprints;
                 (14)    details of proposed injection testing;
                 (15)    for injection wells sited mauka of the uic line, water quality data;
                 (17)    well log maintained by a geologist;
                 (19)    complete results of injection testing; and
                 (21)    nature and source of formation water.

                 Numbers refer to item numbers in ï¿½ I 1-23-13(a), HAR. Items 16-22 are required upon completion
                 of the injection well.

                 Public Participation

                 Public notice of applications for injection wells into an underground source of drinking water must
                 be circulated, with a 30 day period provided for public comment. ï¿½ 11-23-14, HAR. If a public
                 hearing is requested by the applicant or an interested party, DOH shall hold a public hearing if the
                 Director determines that there is significant public interest. ï¿½ 11-23-15, HAR.

                 Processing Time

                 The rules do not set forth a specific time frame for permit issuance. However, because of the
                 public notice requirement, the minimum time is thirty days.

                 Sequence of Filing

                 Upon completion of the application with all required data, the DOH may approve the start of
                 construction. However, approval of the start of construction does not guarantee approval to
                 operate.

                 Cost

                 The filing fee for a pem-iit application is $100. In addition, the applicant must pay all fees assessed
                 for publishing the public notice and for the notice of the public hearing, if required.



                                                                   49








               WELL CONSTRUCTION AND PUMP INSTALLATION PERMITS


               Authority

                   Chapter 17 4C, Hawaii Revised Statutes, State Water Code
                   Title 13, Subtitle 7, Chapter 168, Hawaii Administrative Rules, Water Use, Wells, and Stream
                   Diversion Works

               Purpose

               The purpose of the Well Construction and Pump Installation Permit is to regulate the use and
               withdrawal of water to assure the maximum and beneficial use of the ground and surface waters of
               the State. ï¿½13-168-1, HAR.

               Applicability to Aquaculture

               No well can be constructed, altered or repaired and no pump or pumping equipment can be
               installed without the issuance of a Well Construction or Pump Installation Pen-nit, respectively.
               The requirement to obtain a permit extends to all areas of the State including a designated Water
               Management Area (See also Water Use Pen-nit section). ï¿½13-168-12, HAR. All well and pump
               installations must be operated so as to ensure the prevention of waste and the prevention of
               contamination of ground water aquifers. All wells must be constructed to meet at least the
               minimum standards specified in ï¿½13-168-13, HAR, which include the standards in Volume 1, Part
               III, section 5, of the publication entitled Water System Standards, State of Hawaii, 1985, adopted
               by the counties and in the American Water Works Association Standards (ANSI/AWWA E 10 1 -
               77). ï¿½13-168-14, HAR.

               Administering Agency

               The Commission on Water Resource Management is responsible for administering and granting the
               Well Construction and Pump Installation Permits.

               Commission on Water Resource Management
               Department of Land and Natural Resources
               State of Hawaii
               1151 Punchbowl Street
               Honolulu, Hawaii 96813
               (808) 587-0265

               Information Requirements

               In addition to a completed application form the following information will be required:

                   1) the purpose of the well or pump installation;
                   2) proposed withdrawal and use of water;
                   3) water use pen-nit infori-nation if applicable (see Water Use Permit);
                   4) type, size and expected capacity of the well or pump; and
                   5) any additional information the commission needs to clearly understand the proposal.

               A pumping test will also be required for new wells or wells that have not had a previous pumping
               test. ï¿½13-168-12(b), HAR.

               Within 30 days after the completion of the well or pump installation a Well Completion Report


                                                             50








               must be filed. The report is usually prepared by the well driller or pump installation contractor and
               is submitted on behalf of the applicant. The content of the Completion Report is specified in ï¿½ 13-
               168-13, HAR.

               Public Participation

               No public hearing is required in conjunction with the issuance of a Well Construction or Pump
               InstaHation Pen-nit.

               Processing Time

               By rule, the Commission is required to act on an acceptably completed application within ninety
               days of the receipt of the application. The Commission will issue a permit only if the proposal
               complies with all applicable laws, rules and review standards. Before approval, the application
               will be forwarded to the DOH for their review concerning among other things the appropriateness
               of the well location. ï¿½ 13-168-12, HAR.

               Sequence of Filing

               In cases where a Water Use Permit is required, the Conu-nission will not issue a Well Construction
               or Pump Installation Permit until formal approval of a Water Use Permit has been received. An
               applicant is therefore advised to consult the Commission on Water Resource Management to
               sequence the submittal of the applicable permit applications.

               Cost

               A filing fee of $25 is required with each permit application. The cost of preparing the application
               and the necessary supplemental information varies with the scope of the project.

























                                                               51









                                              WATER USE PERMIT


               Authority

                   Chapter 174C, Hawaii Revised Statutes, State Water Code
                   Title 13, Subtitle 7, Chapter 17 1, Hawaii Administrative Rules, Designation and Regulation of
                   Water Management Areas

               Purpose

               The purpose of the Water Use Permit requirement is to establish administrative control over the
               withdrawal and diversion of ground and surface water in designated Water Management Areas.
               Water Management Areas are hydrologic areas where water resources are being threatened by
               existing or proposed withdrawals or diversions of water, water quality problems, or serious
               disputes, which have been so designated by the Commission on Water Resource Management (the
                Commission"). ï¿½13-171-11,HAR.

               Applicability to Aquaculture

               A Water Use Permit is only required in geographic areas which have been designated by the
               Commission, pursuant to ï¿½174C-41, HRS, as Water Management Areas. The Commission has
               designated four Ground Water Management Areas on Oahu: Honolulu, Pearl Harbor, Wailua,
               and Windward Oahu, and the entire island of Molokai.

               In those areas designated as Water Management Areas, no withdrawal, diversion, impoundment or
               consumptive use of water may occur without the issuance of a Water Use Permit. Domestic
               consumption of water by individual users and catchment systems are exempt from this
               requirement. ï¿½13-171-11(a),HAR.

               To obtain a Water Use Permit an applicant must establish that the proposed use of water:

                   1) can be accommodated with the available water source;
                   2) is a reasonable and beneficial use as defined in ï¿½ 13-172-2, HAR;
                   3) will not interfere with any existing legal use of water,
                   4) is consistent with the public interest;
                   5) is consistent with State and County general plans and land use designations; and
                   6) is consistent with County land use plans and policies. ï¿½13-171-13,HAR.

               Administering Agency

               The Commission on Water Resource Management is responsible for administering and granting the
               Water Use Permit.

               Commission on Water Resource Management
               Department of Land and Natural Resources
               State of Hawaii
               1151 Punchbowl Street
               Honolulu, Hawaii 96813
               (808) 587-0265








                Information Requirements

                In addition to a completed application form the following information will be required:

                    1)  source of the water supply;
                    2)  the quantity and quality of water requested;
                    3)  the use of water and any limitations thereon;
                    4)  the location of the use of water;
                    5)  the location of the well or point of diversion; and
                    6)  any other relevant information necessary to adequately understand the proposal.

                It is also advisable that an applicant submit a written document with their application that
                specifically addresses the issues required by ï¿½ 13-171-13, HAR listed in the Applicability to
                Aquaculture section above.

                Public Participation

                Upon receipt of the application, notice is published and a copy of the notice is transmitted to the
                mayor, and the water board of the affected county and any person requesting formal notice.
                Written objections to the proposal must be submitted within 10 working days of the last public
                notice. The Commission may then request additional information from the applicant or objectors.
                A public hearing may also be scheduled at the discretion of the Commission.

                Processing Time

                By rule the Comi-nission is required to approve or disapprove an acceptably completed application
                within 90 days of the receipt of the of the application which does not require a public hearing or
                within 180 days for applications which require a hearing.

                Sequence of Filing

                An application for a Water Use Permit should be submitted early in the project development
                process to secure an allocation of the necessary water for the project. A Water Use Permit is also
                required prior to obtaining a Well Construction permit an a Designated Water Management Area or
                a CDUA approval for Conservation District lands in a designated Water Management Area.

                Cost

                A filing fee of $25 is required to accompany each pern-tit application. The cost of preparing the
                application and the necessary supplemental information varies with the scope of the project and
                proposed water use.













                                                                 53








                   3. COUNTY REGULATIONS AND PERMITS


                       ENVIRONMENTAL IMPACT STATEMENT - COUNTY


               Authority

               0   Chapter 343, Hawaii Revised Statutes, as amended, Envir onmental Impact Statements
               0 Chapter 205A, Hawaii Revised Statutes, as amended, Coastal Zone Management
                   Title 11, Chapter 200, Hawaii Administrative Rules, Environmental Impact Statement
                   Administrative Rules
               0   Charter of the County of Kauai, City and County of Honolulu, County of Maui, and County
                   of Hawaii
               -   County Ordinances of the County of Kauai, City and County of Honolulu, County of Maui,
                   and County of Hawaii

               Purpose

               The requirements of Chapter 343, HRS, apply to County agencies and actions in the same manner
               as to State agencies and actions. For convenient reference the purpose of the environmental review
               process is reiterated here. For a more detailed discussion please refer to the State EIS section.

               Chapter 343, HRS, establishes a system of environmental review at the State and County levels
               which is intended to ensure that environmental concerns are given appropriate consideration in
               decision making along with economic and technical considerations. ï¿½11-200-1,HAR. Thisis
               accomplished first by the preparation of an Environmental Assessment (EA) to determine whether
               an action may have a significant environmental effect. If it is determined to have such an effect the
               an Environmental Impact Statement (EIS) must be prepared. An EIS is an informational
               document, describes the proposed action and which discloses the environmental effects of a
               proposed action, effects on the economic and social welfare of the community and State, effects of
               the economic activities arising out of the proposed action, measures proposed to mi@mize adverse
               effects, and alternatives to the action and their environmental effects of the alternatives.

               The State environmental review process is modelled on the Federal National Environmental Policy
               Act of 1969. By both State and Federal regulation, if both Federal and State/County agencies are
               involved with the proposed project the environmental review must be coordinated.

               Applicability to Aquaculture

               The following actions will require environmental review:

                   1)  proposed use of County lands or funds, other than funds to be used for feasibility or
                       planning studies for possible future programs or projects which an agency has not
                       approved;
                   2)  proposed development on land within the County designated Special Management Area
                       (see Special Management Area Use Pem-iit section);
                   3)  proposed use within the shoreline area as defined in ï¿½205A-41, HRS (see Shoreline
                       Setback Variance section);
                   4)  proposed use within any historic site as designated in the National Register of Historic
                       Properties or the Hawaii Register of Historic Places as provided for in the National Historic
                       Preservation Act of 1966, 16 USC 470, as amended, or Chapter 6E, HRS; or




                                                              54








            5) proposed amendment to existing County general plans where such amendment would result in
              a designation other than agriculture, conservation or preservation.

            See State EIS section for exempt classes of activities.

            Administering Agency

            Actions triggering environmental review at the County level are divided into two groups, Applicant
            Actions and Agency Actions.

              Applicant Actions -- The County agency to which the applicant first applies for any pern-lit
              connected with any non-exempt activity, is responsible for determining the need for an EA and
              an EIS and is responsible for acceptance of the final environmental review document.

              Agency Actions -- For government initiated actions the department proposing the project is
              responsible for determining the need for an EA and an EIS. The Mayor of the County is
              responsible for the acceptance of the final environmental review document before agency
              actions.

            For both agency and applicant actions, the processing of the EIS is coordinated between the
            County department and the Office of Environmental Quality Control (OEQC).

            Information Requirements

            See generally State EIS section.

            Public Participation

            See generally State EIS section.

            Processing Time

            See generally State EIS section.

            Sequence of Filing

            An EA, and if required an EIS, should be prepared very early on in the planning process to
            evaluate the significance of a proposed action and insure the timely processing of all required
            permits.

            Cost

            There is no filing fee associated with the preparation and processing of the environmental review
            documents. The cost will depend upon the scope and complexity of the proposed activity and the
            nature of the affected environment.













                                                 55








                                    SPECIAL MANAGEMENT AREA USE PERMIT

                                           COASTAL ZONE MANAGEMENT PROGRAM


                   Authority
                       Chapter 205A, Part II, Hawaii Revised Statutes, as amended, Special Management Areas
                       Special Management Area Rules and Regulations of the County of Kauai, City and County of
                       Honolulu, County of Maui and County of Hawaii.

                   Purpose

                   As part of the State's Coastal Zone Management Program, Hawaii's four counties are required to
                   designate Special Management Area (SMA) boundaries and through the establishment of a
                   permitting process provide special controls on development within this area. This process is
                   intended to avoid the permanent loss of valuable resources and the foreclosure of management
                   options, and to ensure adequate access, by dedication or other means, to public owned or used
                   beaches, recreation areas, and natural reserves. ï¿½205A-21, HRS.

                   The SMA ranges inland from the "shoreline"12 for a considerable distance (100 yards or greater)
                   and is required to include only shoreline or coastal water related land (Att. Gen. Op. 75-18). The
                   exact boundaries of the SMA are designated on maps which are on file with the administering
                   department of the respective county.

                   Applicability to Aquaculture13

                   No development may proceed in the SMA unless an applicant obtains a Special Management Area
                   Use Permit (SMAP) from the granting authority of the respective county. ï¿½205A-28, HRS.
                   Section 205A-2, HRS, defines "development" broadly to include:

                       *    the placement or erection of any solid material or any gaseous waste, liquid, solid, or
                            thermal waste;
                       0    grading, removing, dredging, mining, or extraction of any materials;
                       0    change in density or intensity of the use of land, including the division or subdivision of
                            land;
                       0    change in the intensity of use of water, ecology related thereto, or of access thereto; and
                       0    construction, reconstruction, demolition, or alteration of any size of any structure.

                   There are, however, a number of exemptions that may cover or partially cover aspects of
                   aquaculture development. These include:





                            12 Shoreline is defined as "the upper reaches of the wash of the waves, other than storm andseismic waves,
                   at high tide during the season of the year in which the highest wash of the waves occurs, usually evidenced by the
                   edges of vegetation growth or the upper limit of debris left by the wash of the waves." ï¿½205A-1,HRS.


                            13 The 1989 Legislature amended Chapter 205A, BRS, Part 11. The requirements described in this section
                   are based on the amendments. The counties are at various stages of revising their existing rules and regulations for
                   Special Management Areas to reflect these amendments. At their discretion, the counties may adopt more stringent
                   requirements than those specified. Therefore, an applicant should review the regulations specific to the county in
                   which they apply.
                                                                           56








                   ï¿½  construction of a single-family residence that is not part of a larger development;
                   *  routine maintenance dredging of existing streams, channels and drainage ways; and
                   ï¿½  the use of land for the purpose of cultivating, planting, growing, and harvesting of plants,
                      .crops, trees, and other agricultural, horticultural, or forestry products or animal husbandry,
                      or aquaculture or mariculture of plants or animals, or other agricultural purposes subject to
                      review.

               ï¿½205A-22, HRS, as amended, specifically exempts aquaculture and mariculture from the definition
               of development, as do the SMA regulations of the County's. However, the exemption is qualified
               in the regulations, such that if the activity is or may become part of a larger project, the cumulative
               impact of which may have a significant environmental or ecological effect on the SMA the activity
               will be defined as "development". Construction of facilities which are ancillary to the aquaculture
               operation, such as storage facilities, maintenance buildings, research offices, and restaurants may
               also not considered exempt. It is, therefore advisable to check with the County administering
               agency to determine the practical scope and effect of the exemption on any particular project.

               The SMA guidelines in the respective County regulations provide that a SMAP will only be granted
               if the applicant demonstrates that:

                   1) that development will not have any substantial adverse environmental or ecological effect,
                      except as such adverse effect is minimized to the extent practicable and clearly outweighed
                      by public health, safety, or compelling public interests;
                   2) that the development is consistent with the objectives, policies and special management area
                      guidelines contained in Chapter 205A, HRS, as amended; and
                   3) that the development is consistent with the general plan, development plans, zoning and
                      other applicable ordinances of the respective county.

               Administering Agency

               The SMAP is administered by the respective County planning department.

               Planning Department                                Department of Land Utilization
               County of Kauai                                    City and County of Honolulu
               4280 Rice Street                                   650 South King Street
               Lihue, Kauai, Hawaii  96766                        Honolulu, Hawaii 96813
               (808) 245-3919                                     (808) 523-4432

               Planning Department                                Planning Department
               County of Maui                                     County of Hawaii
               200 South High Street                              25 Aupuni Street
               Wailuku, Maui, Hawaii 96793                        Hilo, Hawaii 96720
               (808) 243-7735                                    J808) 961-8288

               The granting authority for the SMAP, depends upon the size and scope of the project Proposed
               projects which are less than $125,000 in value and do not have the potential to cause any
               substantial adverse envirom-nental or ecological effect can be handled through a SMA Minor Pern-iit
               which can be issued administratively by the department. For projects which exceed $125,000 in
               value or which may have a substantial adverse envirom-nental or ecological impact, the County
               Planning Commission (on Oahu the City Council) has the authority to grant the SMAP.






                                                             57








                Information Requirements

                Along with a completed application form, the applicant will be required to submit the following
                information:

                    1) a tax map which identifies the property the applicant proposes to develop;
                    2) a plot plan of the property drawn to scale with all proposed structures accurately depicted;
                    3) if the parcel abuts the shoreline, a certified shoreline survey is required which shows the
                       actual field location of the shoreline in relation to the position of the proposed facilities (to
                       be valid the survey must be prepared by a Registered Land Surveyor and confirmed by the
                       Chairman of the Board of Land and Natural Resources);
                    4) a written description of the proposed project and a statement of objectives;
                    5) a statement of the project's valuation as estimated by an architect, engineer, or contractor'
                       licensed by the Department of [Regulatory Agencies];
                    6) an Environmental Assessment (EA) and if determined by the administering department that
                       it is necessary an Environmental Impact Statement (EIS) (See State/County EIS section);
                       and
                    7) any additional information as required by the administering department.

                Public Participation

                A public hearing is conducted in conjunction with the all SMAP applications. If a Shoreline
                Setback Variance is also required in connection with the development proposal, a joint public
                hearing will be held.

                Processing Time

                The processing time for a Special Management Area Minor Pern-lit (i.e., a project which is not in
                excess of $125,000 and will not have significant environmental impact) ranges from 21 days in
                the County of Hawaii to 30 days for the other three counties.

                The processing time for a Special Management Area Use Permit varies considerably between
                counties. From the date the completed application is accepted by the administering department, the
                full processing time for the application is 120 days in the City and County of Honolulu and the
                County of Hawaii; 120 days in the County of Kauai with the Planning Commission's discretion to
                extend; and 165 days in the County of Maui.

                A number of formal sequencing steps are involved with the processing of a SMAP application.
                Although the steps are similar between counties, specific time periods for each step vary. An
                applicant contemplating a development activity in the SMA should consult with the administering
                department of the respective county as early as possible in the planning process to assess the
                required processing steps and identify information requirements.

                Sequence of Filing

                Issuance of a SMAP is required by statue to precede any other gernift approval. If a Shoreline
                Setback Variance is required in conjunction with a SMAP they will be processed concurrently.








                                                                 58










                 Cost

                 The filing fee for a SMAP is ($200) in the City and County of Honolulu14 and County of Hawaii,
                 and ($150) in the County of Kauai and County of Maui.

                 The cost of preparing a Certified Shoreline Survey, project plans, project valuation, an EA, and if
                 required an EIS, can be substantial depending on the size of the property, the complexity of the
                 proposed development and surrounding environmental conditions. An applicant should consult
                 with a planning firm to estimate the costs specific to their project.











































                         14 For all projects other than agriculture, aquaculture, and outdoor recreation, the filing fee for a SNIAP in
                 the City and County of Honolulu increases by $100 per acre up to a maximum of $2,000.
                                                                    59








                     SHORELINE SETBACK VARIANCE (OR SHORELINE AREA
                                                       VARIANCE)
                               COASTAL ZONE MANAGEMENT PROGRAM


               Authority

                   Chapter 205A, Hawaii Revised Statutes, Part III, as amended, Shoreline Setbacks
                   Shoreline Setback Rules and Regulations of the County of Kauai, City and County of
                   Honolulu, County of Maui, and County of Hawaii.

               Purpose

               The purpose of the shoreline setback law is to regulate uses and activities within the shoreline area
               to preserve and protect the natural shore and open space and to protect against encroachment of
               structures which may disturb the natural processes of the shoreline and cause erosion of the
               shoreline. The shoreline setback law establishes a permitting system where, afl non-exempt
               structures must obtain a Shoreline Setback Variance (termed Shoreline Area Variance in Maui
               County), and meet certain guidelines and criteria.

               Applicability to Aquaculturel5

               Anyone proposing to construct a structure16 in the shoreline area or otherwise physicaRy alter the
               shoreline area is required to obtain a Shoreline Setback Variance (or Shoreline Area Variance),
               unless otherwise exempted. The "shoreline area" includes, at least, all of the land area between the
               shoreline and the shoreline setback line (not less than 20 feet and not more than 40 feet inland). It
               may include the area between mean sea level and the shoreline Q205 A-4 1, HRS) 17 and be set back
               at distances greater than 40 feet (ï¿½205A-45, HRS, as amended) by county ordinance. In their
               recently amended rules relating to the shoreline area, Maui County extended shoreline setbacks to a
               distance of 150 feet in some areas. 18

               The law prohibits most activities involving the n-dning or Liking of sand, dead coral or coral rubble,



                       15 The 1989 Legislature amended Chapter 205A, HRS, Part III. Currently the City and County of
               Honolulu, and the Counties of Hawaii and Kauai are in the process of revising their existing rules and regulations for
               shoreline setbacks to reflect these amendments. The County of Maui recently completed their revisions. The
               requirements described in this section are based on the Legislature's amendments which the counties can be expected
               to adopt, or in the case of Maui, have adopted. At their discretion, the counties may adopt more stringent
               requirements than those specified. Recause of this, an applicant should review the regulations specific to the county
               in which they apply.


                       16 As defined "structure" includes, but is not limited to, any portion of any building, pavement, road, p ipe,
               flume, utility line, fence, groin, wall, or revetment. ï¿½205A41, FIRS.


                       17 In the revision of their Rules of the Planning Commission Relating to the Shoreline Area, Maui
               County choose not to extend their jurisdiction to include the area from the shoreline to the mean sea level.


                       18 Section 124-6b(3) of Maui County's Rules of the Planning Commission Relating to the Shoreline
               Area, provides that "a lot with an average lot depth of one hundred sixty feet or more shall have a shoreline setback
                                                C,
               line either at one hundred fifty feet from the shoreline or at a distance from the shoreline calculated by multiplying
               the average lot depth of the lot by 0.25 whichever is the least distance from the shoreline."
                                                               60








               rocks, soil or other beach or marine deposits from the shoreline area. No variance will be granted
               unless the following conditions are imposed as appropriate:

                   1) maintain safe lateral access along the shoreline or adequately compensate for its loss;
                   2) minimize the risk of adverse impacts on beach processes;
                   3) minimize the risk of structures failing and becon-dng loose rocks or rubble on public
                      property; and
                   4) minimize adverse impacts on public views to, from and along the shoreline. ï¿½205A-46(c),
                      HRS.

               No variance is required, however for structures if they are necessary for or ancillary to
               continuation of existing agriculture or aquaculture in the shoreline area on June 16, 1989. ï¿½205A-
               44(b)(4), HRS. A Shoreline Setback Variance (or Shoreline Area Variance) may also be granted
               for a structure or activity otherwise prohibited if the granting authority finds in writing that, based
               on the record presented, the proposed activity is necessary for or ancillary to, among other things,
               Aquaculture, or Drainage. ï¿½205A-46, HRS, as amended.

               Administering Department

               The Shoreline Setback Variance (or Shoreline Area Variance) is administered by the respective
               County planning department.

               Planning Department                                Department of Land Utilization
               County of Kauai                                    City and County of Honolulu
               4230 Rice Street                                   650 South King Street
               Lihue, Kauai, Hawaii  96766                        Honolulu, Hawaii 96813

               Planning Department                                Planning Department
               County of Maui                                     County of Hawaii
               200 South High Street                              25 Aupuni Street
               Wailuku, Maui, Hawaii 96793                        Hilo, Hawaii 96720

               If the Shoreline Setback Variance (or Shoreline Area Variance) is processed alone or in conjunction
               with a Special Management Area Minor Permit the granting authority is the director of the
               administering department. If a Special Management Area Use Permit is required in conjunction
               with the Shoreline Setback Variance (or Shoreline Area Variance), both permit requests are
               forwarded to the County Planning Commission of the respective county for approval (on Oahu the
               City Council is the granting authority).

               Information Requirements

               An applicant for a Shoreline Setback Variance (or Shoreline Area Variance) is required to submit
               with the completed application form a Certified Shoreline survey showing the actual field location
               of the shoreline in relation to the position of the proposed facilities. To be valid the survey must be
               prepared by a Registered Land Surveyor and confirmed by the Chairman of the Board of Land and
               Natural Resources. Detailed construction plans showing the design of the proposed structure and
               its relationship to property boundaries and existing topography in and adjacent to the subject
               property are also required.

               An Environmental Assessment (EA) which evaluates the potential impact of a proposed project will
               be required. If on the basis of the EA's findings it is determined that a significant impact may
               result from a proposed project, preparation of an Environmental Impact Statement (EIS) will also
               be required. If an adequate EA and/or EIS has already been prepared for a proposed project in
               conjunction with some other permit requirement, preparation of a new document will not be


                                                             61








                required. (See State EIS and County EIS sections.)

                A written statement describing how a proposed project is necessary for, or ancillary to, aquaculture
                is also required. This statement should specifically address the relationship between aquaculture
                and each feature of the development proposal.

                Public Participation

                A public hearing is conducted in conjunction with the request for a Shoreline Setback Variance (or
                Shoreline Area Variance). If a Special Management Area Use Permit is also required in connection
                with the development proposal, a joint public hearing will be held.

                Processing Time

                The processing time for a Shoreline Setback Variance (or Shoreline Area Variance) varies with
                scale of the project proposal and the need for additional pen-nits (e.g., an SMAP). Within 30 days
                of the official receipt of a complete application, the Director of the administering department
                assesses the impact of the project and determines the need for the preparation of an EIS. Within 45
                days of the completion of the environmental requirement (i.e., an accepted EIS or if an EIS is not
                required a Negative Declaration) the administering department will hold a public hearing on the
                application. Within 45 days after the public hearing is held, the Director will make a written
                decision and forward it to the applicant. In cases where the variance application is being processed
                with an application for a Special Management Area Use Permit, the recommendation will be
                forwarded to the County Planning Commission (City Council on Oahu) for final decision.

                Sequence     of Filing

                If a Special Management Area Use Permit is required in conjunction with the development
                proposal, the request for a Shoreline Setback Variance (or Shoreline Area Variance) should be fided
                at the same time so that the applications can be processed concurrently.

                Cost

                The filing fee for a Shoreline Setback Variance (or Shoreline Area Variance) is ($100) in the
                County of Kauai, County of Hawaii, and City and County of Honolulu and ($150) in the County
                of Maui. The cost of preparing a Certified Shoreline Survey, construction plans, an EA, and if
                required an EIS, can be substantial depending on the size of the property, the complexity of the
                proposed development and surrounding environmental conditions.
















                                                                   62








                                        FLOOD PLAIN MANAGEMENT



               Authority

                   National Flood Insurance Act of 1968, 42 U.S.C. 4001 et seq.
                   Flood Disaster Protection Act of 1973,
                   Chapter 179, Hawaii Revised Statutes, Flood Control and Flood Water Conservation
                   Chapter 46, Section 11, Hawaii Revised Statutes
                   County Ordinances

               Purpose

               To protect life and property and reduce public costs for flood control, rescue and relief efforts,
               Flood Hazard Districts have been established in which various flood proofing measures may be
               required in accordance with the National Flood Insurance Program.

               Applicability to Aquaculture

               Structures located in a Flood Hazard District may be required to be constructed with flood proofing
               features designed to eliminate or reduce the potential for flood damage. Some examples of flood
               proofing include the placement of walls or levees around buildings; elevation of buildings;
               watertight closures; and location of electrical equipment and circuits above expected flood levels.
               For specific requirements, contact the planning and/or building department in the appropriate
               county.

               Administering Agency

               County planning agencies.























                                                              63







                        GRADING, GRUBBING AND STOCKPILING PERMIT


               Authority

                   Chapter 180C, Hawaii Revised Statutes, Soil Erosion and Sediment Control
                   County Ordinances of the County of Kauai, City and County of Honolulu, County of Maui,
                   and County of Hawaii

               Purpose

               To control activities which alter land forms and which have the potential to change drainage
               patterns, destroy vegetation, cause erosion and produce unsafe or unsightly disfigurement of the
               landscape.

               Applicability to Aquaculture

               Anyone desiring to perform any grading, grubbing, stockpiling, or clearing activities is required to
               obtain a permit from their respective County Department of Public Works.

               Administering Department

               The Grading, Grubbing and Stockpiling Pen-nit is administered by the Department of Public Works
               of the respective county in which the project is located.

               Department of Public Works                                Division of Engineering
               County of Kauai                                           Department of Public Works
               3021 Urni Street                                          City and County of Honolulu
               Lihue, Kauai, Hawaii 96766                                650 South King Street
               (808) 245-3318                                            Honolulu, Hawaii 96813
                                                                         (808) 527-5056

               Department of Public Works                                Department of Public Works
               County of Maui                                            County of Hawaii
               200 South High Street                                     25 Aupuni Street
               Wailuku, Maui, Hawaii 96793                               Hilo, Hawaii 96720
               (808) 243-7845                                            (808) 961-8321

               Information Requirements

               The information required for a Grading, Grubbing and Stockpiling Permit is normally presented in
               the form of a scale drawing, with explanatory and/or supplementary data annotated. An applicant
               is required to submit the following information:

                   1)  all pertinent terrain features;
                   2)  a layout and arrangement of the proposed works on a plan view;
                   3)  representations to scale of typical cross-sections of cut and fill areas;
                   4)  details of topography both before and after work (i.e., existing and proposed elevations);
                   5)  identification of erosion control measures;
                   6)  estimates in cubic yards of the amount of excavation and embankment and the area in
                       square feet of the land to be graded;
                   7)  if material is to be imported or exported from the site, an indication of where the material
                       will come from or where it will be deposited. A grading permit is also required for any
                       such off-site locations as well; and


                                                              64








                   8) a soils report may also be required in some cases.

                Where a graded area is 15,000 square feet or more, the plan should be prepared by a civil engineer
                licensed in the State of Hawaii. If the project involves more than on acre of land, the applicant
                must also submit a temporary erosion control plan19 for review and approval by the administering
                department.

                A performance bond, in an amount equal to the cost of all work and services required to complete
                the project, is required for all projects involving the movement of more than 500 cubic yards of
                earth or for excavations and fills of over 15 feet in vertical height.

                Public Participation

                There is no mandatory requirement for a public hearing in connection with a Grading, Grubbing
                and Stockpiling Permit.

                Processing Time

                The processing of the permit application varies with the size of the project proposal. Providing the
                application contains all the required information, the processing time generally ranges from two to
                three weeks.

                Sequence of Filing

                The Grading, Grubbing and Stockpiling Pern-lit will not be granted until an applicant complies with
                all other environmental and regulatory requirements.

                Cost

                The filing fee for a Grading, Grubbing and Stockpiling Permit is based on the volume of earth
                moved or square feet of area denuded. The cost of preparing the required information to
                accompany the application can be substantial depending on the size of the property and the extent
                of proposed earth moving activities. An applicant should consult with a civil engineering firm to
                estimate the costs specific to their project.


















                        19 Assistance in preparing an erosion control plan can be obtained free of charge from the U.S. Soil
                Conservation Service.


                                                                65









                                               BUILDING PERMIT


               Authority

                   Hawaii Revised Statutes
                   Charters of the County of Kauai, City and County of Honolulu, County of Maui and County
                   of Hawaii
                   County Ordinances of the County of Kauai, City and County of Honolulu, County of Maui
                   and County of Hawaii

               Purpose

               To protect the health, safety and welfare of the public through the enforcement of various codes as
               provided by law including, zoning, building, housing, electrical, and plumbing codes.

               Applicability to Aquaculture

               Anyone desiring to erect, construct, enlarge, repair, move, improve, convert, alter, remove, or
               demolish any building or structure (including most fences and retaining walls) is required to obtain
               a Building Permit prior to undertaldng the activity.

               Actions related to the various fishpond types which could potentially require a Building Permit
               include: construction or reconstruction of walls and fences; and the development of any accessory
               buildings, roadways or structures.

               Administering Department

               The Building Permit is administered by the Department of Public Works in the County of Kauai,
               Maui and Hawaii and the Building Department in the City and County of Honolulu.

               Building Division                                         Building Department
               Department of Public Works                                City and County of Honolulu
               County of Kauai                                           650 South King Street
               3021 Umi Street                                           Honolulu, Hawaii 96813
               Lihue, Kauai, Hawaii 96766                                (808) 523-4564
               (808) 245-3318

               Land Use and Codes Administration                         Building Division
               Department of Public Works                                Department of Public Works
               County of Maui                                            County of Hawaii
               200 South High Street                                     25 Aupuni Street
               Wailuku, Maui, Hawaii 96793                               Hilo, Hawaii 96720
               (808) 243-7845                                            (808) 961-8331

               Information Requirements

               The information required for a Building Permit is presented in the forrn of detailed scale drawings,
               with explanatory infon-nation annotated. An applicant is required to submit the following
               information, as pertinent to their project proposal:
                   1)   a plot plan showing the location of the 'roposed action in relation to properly lines, other
                                                             p
                        buildings or structures, roadways and easements and any other pertinent information;
                   2)   a floor plan which indicates the dimension and use of the rooms;


                                                             66








              3)  a, framing plan or typical section view showing ceiling heights and the size and spacing of
                  beams, floor joists, studs, siding, foundation, rafters, etc.;
              4)  exterior elevation views showing the height of the building or structure;
              5)  location of property and owner's address;
              6)  name and address of person preparing the plans (if other than the property owner);
              7)  a contractor's statement as required by Chapter 444, HRS; and
              8)  any additional information as deemed necessary by the administering department.

           As required by Chapter 464, HRS, plans and specifications submitted in conjunction with the
           request for a Building Permit, shall bear the seal and signature of an architect or structural engineer
           licensed in Hawaii.

           Public Participation

           There is no requirement for a public hearing in connection with a Building Permit.

           Processing Time

           The processing of the pen-nit application varies with the size and complexity of the project
           proposal. The administering department reviews the application and plans for compliance with the
           respective county zoning ordinance, building, housing, electrical and plumbing codes. The
           application is routed through a number of County and State agencies with jurisdiction over specific
           aspects of the proposed work. Each of these agencies is required to sign the application form to
           indicate the applicant's compliance with applicable laws. If an applicant has not met all of the
           agency requirements the application will not be signed and the Building Pen-nit will be denied.

           Sequence of Filing

           A Building Pemiit will not be granted until an applicant complies with all other environmental and
           regulatory requirements.

           Cost

           The filing fee for a Building Permit is calculated on the value of the proposed project. An applicant
           should consult the administering department of their respective county for specific fee schedules.




















                                              67







               G. REGUIATION OF AQUACULTURE OPERATIONS

                   1. FED   ERAL REGUIATIONS AND PERMITS


                                  U.S. FOOD DRUG AND COSMETIC ACT


               Authority

                   Federal Fobd Drug and Cosmetic Act, 21 U.S.C. 301 et seq.
                   Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C 136 et seq.
                   Title 21 Code of Federal Regulations Parts 500 - 589, Animal Drugs, Feeds and Related
                   Products
                   Title 40 Code of Federal Regulations Part 180, Tolerances and Exemptions from Tolerances
                   from Pesticide Chemicals in or on Raw Agricultural Commodities

               Purpose
               T@e purpose of the Federal Food Drug and Cosmetic Act (FDCA) is to protect the public from
               misbranded or adulterated food, drugs, and cosmetics.

               Applicability to Aquaculture

               The FDCA prohibits the addition of any poisonous or deleterious substance to food products in
               interstate commerce, unless pen-nitted by the Food and Drug Administration (FDA). The
               jurisdiction of the FDA covers virtually all commercial aquaculture production. The regulatory
               scheme has three areas applicable to aquaculture, food additives, pesticide use on raw agricultural
               commodities, and animal drugs used directly or in animal feed. For otherwise prohibited food
               additives which are required for food production or cannot be avoided, the FDA under 21 USC
               346 has established regulations as to the quantity and circumstances under which the substance can
               be used. Pesticides applied to raw agricultural products are regulated pursuant to 21 USC 346 and
               346a and the Federal Insecticide, Fungicide, and Rodenticide Act. The standards concerning
               allowable quantities of regulated pesticides are found at 40 CFR Part 180. Drugs for use on
               animals used for food and used in animal feed must be approved by the FDA . The regulations
               concerning the approval and regulation of animal and feed are found at 21 CFR Parts 500 to 589.

               Administering Agency

               U.S. Food and Drug Administration
               5600 Fishers Lane
               Rockville, MD 20857
               (301) 443-3783

               Information Requirements

               Permits and approvals required for sale of food additives, pesticides and animal drugs and feed
               would generally apply only to manufacturers. Specific standards, permits and approvals which
               may apply to the use of food additives, pesticides and animal drugs and feed are beyond the scope
               of this summary.





                                                             68









              Sequencing
              The FDA regulations only apply if and when regulated substances are used by an operator. It is
              important, however, that the operator be aware of possible restrictions and regulations before
              engaging in production.















































                                                              69








                   2. STATE REGULATIONS AND PERMITS


                            IMPORTATION OF NON-DOMESTIC ANIMALS


               Authority

                   Chapter 150A, Hawaii Revised Statutes, Hawaii Plant Quarantine Law
                   Lacey Act, 18 U.S.C. 42
                   Title 4 Subtitle 6, Hawaii Administrative Rules, Department of Agriculture, Division of
                   Plant Industry
                   50 Code of Federal Regulations 16 et seq.

               Purpose

               The purpose of the Permit to Import Restricted Commodities Into Hawaii is to restrict or prohibit
               the importation of specific non-domestic animals or microorganisms that are detrimental to the
               agricultural and aquacultural industries, natural resources and environment of Hawaii. ï¿½4-71-1,
               HAR.

               Applicability to    Aquaculture

               Anyone desiring to import animals and microorganism cultures into Hawaii must obtain a Permit to
               Import Restricted Commodities. The Division maintains three lists: 1) Conditionally Approved
               Animals; 2) Restricted Animals; and 3) Prohibited Animals. An aquaculture business may obtain a
               permit to import animals on the Conditionally Approved list and for animals on Part B of the
               Restricted list. A permittee desiring to import animals on the Restricted Est must obtain prior site
               approval. A bond may be required for certain animals on the restricted list. ï¿½4-71-6.5, HAR. The
               lists should be obtained and the Branch consulted when considering the importation of any species
               of aquatic animal.

               Administering Agency

               The pen-nit is administered by the Plant Quarantine Branch. Permit decisions on animals for which
               a permit application has been previously made and the Board of Agriculture has ruled, can be made
               by the Branch Chief. Decisions on new animals or organisms are made be the Board. ï¿½4-71-13,
               HAR.

               Department of Agriculture
               Plant Quarantine Branch
               701 11alo Street
               Honolulu, Hawaii 96813-5524
               (808) 586-0844











                                                               70









        Information Requirements

        For animals the entry of which has been previously permitted, an applicant shall submit:

           ï¿½ name and address of the shipper and importer;
             approximate number and Idnd (scientific name) of animal;
           ï¿½ sex if determinable;
           ï¿½ object of importation;
           ï¿½ mode of transportation; and
           * approximate date of arrival.

        For new animals or organisms, the following additional information is required:

           - a statement of reasons for importation;
           * the person responsible for the animal or microorganism;
             a description of safeguarded facilities;
           0 the method of disposition;
             an abstract of the animal or microorganism; and
             any other pertinent documented information that supports and justifies the
             proposed introduction. ï¿½4-71-4, HAR.

        Public Participation

        There is no requirement for a public hearing.

        Processing Time
        The regulations do not provide specific time fi-ames for decision on the permit application.

        Sequence of Filing

        The permit must be obtained prior to importation of the animals.

        COST

        None.






















                                    71








                                STATE FOOD, DRUG, AND COSMETIC ACT
                                   AQUATIC FOOD SALE REGULATIONS


               Authority

                   Chapter 328, Hawaii Revised Statutes, Food, Drug, and Cosmetics
                   Chapter 321 - 11, Hawaii Revised Statutes, Department of Health
                   Title 11, Chapter 29 Hawaii Administrative Rules, Department of Health, Food and Food
                   Products

               Purpose

               The purpose of the regulations is to establish standards of identity, quality and labeling for foods,
               and to regulate the sale of aquatic foods in the interest of consumer protection and the public
               welfare. ï¿½11-29-1,HAR.

               Applicability to Aquaculture

               It is unlawful to take, sell, deliver for sale, hold for sale, or offer for sale, any aquatic food from
               any body of fresh, brackish, or salt water which the State Department of Health (DOH) may find
               and declare to be polluted to the extent that such pollution constitutes a condition whereby the
               aquatic food found therein may have become contaminated with filth, or rendered diseased,
               unwholesome or injurious to health. ï¿½ 1 1-29-4(a), HAR. It is also unlawful to offer for sale any
               fish which have been bruised, torn, or otherwise rendered liable to spoilage. ï¿½ I 1-29-4(d), HAR.

               Bait fish must be stored separately and away from food fish and labeled clearly. ï¿½ 1 1-29-4(c),
               HAR.

               The DOH has a separate set of rules and regulations which apply to shellfish, oysters, clams, and
               mussels. (See Shellfish Regulations section).

               The DOH regulations also incorporate by reference various Federal regulations promulgated under
               the U.S. Food, Drug and Cosmetic Act. The applicable sections are listed in the DOH regulations
               and are generally found in Title 21 of the Code of Federal Regulations.

               Administering Agency

               The regulations are administered by the Department of Health, Food and Drug Branch.

               Food and Drug Branch
               Department of Health
               591 Ala Moana Boulevard
               Honolulu, Hawaii 96813
               (808) 586-4725

               Information Requirements

               There is no permit or permit application required by these regulations.






                                                              72








                                            SHELLFISH SANITATION


               Authority

               -  Chapter 328, Hawaii Revised Statutes, Food Drugs and Cosmetics
               0  Title 11, Chapter 35, Hawaii Administrative Rules, Department of Health, Shellfish Sanitation
                  U.S. Food, Drug and Cosmetic Act, 21 U.S.C. 301 et seq.
                  National Shellfish Sanitation Program Manual of Operations, Public Health Service Publication
                  Number 33, U.S. Department of Health and Human Services

               Purpose

               The purpose of these regulations is to establish sanitary controls for the shellfish industry. ï¿½11-35-
               1, HAR.

               Applicability to Aquaculture

               No person in the State of Hawaii shall operate a plant or business engaged in growing, harvesting,
               shucking, packing, repacking, or reshipping fresh or fresh-frozen shellfish for sale to the public
               for human consumption without a valid permit issued by the department. ï¿½11-35-3(a),HAR.
               Shellfish include all edible species of oysters, claims, and mussels of the molluscan class
               Pelecypoda, unless in their final packaging they have been heat-sterilized and packaged in
               hermetically sealed containers.

               Shellfish growing areas (offshore ocean, coastal, estuarine or fresh water area suitable for natural
               shellfish growth or artificial shellfish propagation) will be surveyed and classified by the
               department. Areas not surveyed are automatically classed as prohibited areas. Shellfish from
               approved areas may be harvested for direct marketing. No person shall sell, transport, receive or
               take any shellfish not declared to be approved or otherwise fit for direct marketing. ï¿½11-35-6,
               HAR.

               Artificial growing systems for shellfish must meet the performance criteria for natural growing
               systems. The operator of an artificial growing system shall be issued a shellstock shipper's
               certificate. ï¿½ 11-35-7, HAR.

               Harvesting, processing, packing, storing and shucking operations must meet the standards set
               forth in the regulations.

               Pen-nits issued are valid for up to one year, with an automatic expiration date of June 30 of each
               year. ï¿½11-35-3(d), HAR.

               Administering Agency

               Food and Drug Branch
               Department of Health
               591 Ala Moana Boulevard
               Honolulu, Hawaii 96813
               (808) 586-4725

               Information Requirements

               Permit applications shall be accompanied with sufficient written data, drawings and descriptions
               for the department to evaluate the operation relative to the regulations. ï¿½11-35-3(b),HAR.


                                                              73









               Public Participation

               There is no requirement for public notice or participation.

               Processing Time

               The regulations do not set forth any specific time frames for action on pennit applications.

               Sequence of Filing

               The permit must be obtained prior to conducting shellfish operations.

               Cost

               There is no filing fee associated with the pen-nit application.




































                                                              74








                                               SANITATION PERMIT


               Authority

                   Chapter 32 1 - 11, Hawaii Revised Statutes, Department of Health
                   Hawaii Public Health Regulations, Chapter I -A, Food Service and Food Establishment
                   Sanitation Code

               Purpose

               The purpose of the regulations is to provide minimum requirements for the handling, processing
               and service of foods to protect the public health, safety and welfare. Chapter I -A, Art. I Section
               1, Public Health Regulations(PHR).

               Applicability to Aquaculture

               The need for a sanitation permit will depend on the nature of the aquaculture operation. Any
               person operating a food establishment must obtain a permit. Art. 1, Sec. 5, PHR. Food
               establishments include: fish markets, fish-processing plants, or facilities for the production,
               preparation for sale, packing, storage, sale or distribution of any food. Art 11, Definitions, PHR.
               According to the department, if one is only harvesting and wholesaling to a processor or other
               permitted facility, a sanitation permit may not be required. It is advisable to check with the
               department directly regarding the applicability of the requirements to any specific operation. Article
               VI of the regulations details the various applicable requirements.

               Administering Agency

               The Sanitation Permit is administered by the Department of Health, Sanitation Branch.

               Sanitation Branch
               Department of Health
               591 Ala Moana Boulevard
               Honolulu, Hawaii 96813
               (808) 586-8000

               Information Requirements

               Permit applications can be obtained from the Sanitation Branch.

               Sequence of Filing

               An applicant must apply for a permit prior to beginning construction, extensive remodelling or
               conversion work. Operation can begin pending a permit decision so long as the application has
               been made to the department. Art. 1, Sec. 4, Item 2, HAR.

               Cost

               There is no pem-iit fee for a Sanitation Pem-iit.






                                                              75










                                                      REFERENCES




                Brewer, William A.
                Permits and Environmental ReQuirements for Aquaculture in Hawaii
                State Department of Planning and Economic Development
                Honolulu, Hawaii, 1980.

                DHM Planners, Inc.
                Hawaiian Fishpond Swdy
                Coastal Zone Managment Program, Office of State Planning
                State Historic Preservation Division
                Department of Land and Natural Resources
                Honolulu, Hawaii, 1990.

                Dr. David Ziemann, et al.
                Aquaculture Effluent Discharge Program: Year I Final Roort
                The Center for Tropical and Subtropical Aquaculture
                Honolulu, Hawaii, 1990.

                Melody Kapilialoha MacKenzie, Editor
                Native Hawaiian Rights Handbook
                Native Hawaiian Legal Corporation
                Office of Hawaiian Affairs
                Honolulu, Hawaii, 199 1.

                Gerald S. Clay, Esq., Principle Author
                Ocean Leasing for Hawaii
                Aquaculture Development Program
                Department of Planning and Economic Development
                Honolulu, Hawaii, 1981.

                P. Achitoff, N. Conroy, L. Munger, S. Nagata
                Key Issues In Wetlands Regulation In Hawaii
                National Business Institute, Inc.
                1992.


                Michael D. Jenkins
                Starting and Operating a Business in Hawaii
                Oasis Press
                Grants Pass, Oregon, 1991.











                                                                76




                                                                                                                             ,,NOAA COASTAL SERVICES CTR LIBRARY
                                                                                                                              3 6668 14111236 9