Hawaii's DLNR Puts New Commercial Boating Permits on Hold Amid Kāʻanapali Lawsuit and Environmental Review

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Hawaii's DLNR states new Commercial Use Permits for ocean activities are on hold due to a court order pending environmental review.

Tensions are bobbing along the surface as the Hawaii Department of Land and Natural Resources (DLNR) released a statement clarifying the status of Commercial Use Permits (CUPs) for ocean activities. After some backwash from commercial boating interests, the DLNR's Division of Boating and Ocean Recreation (DOBOR) has made it clear that, for now, new CUPs are off the table due to a judicial order, as detailed in a DLNR recent announcement.The crux of the issue lies in a lawsuit filed back in 2017, which has rippled into the current prohibition on DOBOR's ability to issue or renew permits for certain commercial boating activities in Kāʻanapali ocean waters.

According to the lawsuit Nā Papaʻi Wawae ʻUlaʻula, et al. v. DLNR, the Second Circuit Court has clamped down on the issuance and renewal of CUPs until an environmental review is completed or deemed unnecessary.



DOBOR is treading water until the hearing for reconsideration, previously set for February, now pushed to September. Permit holders who are currently in compliance can still renew, but can't inflate their activity or passenger capacity; they are advised to keep the passenger capacity listed on their Certificate of Inspection same or lower than what was allowed as of December 4, 2024.The lawsuit's implications could extend beyond the picturesque Kāʻanapali waters, having a potential domino effect on similar commercial ventures across the Aloha State.

"The initial scope of the litigation targeted six CUPs issued by DOBOR, but the court’s immediate decision also affects the renewal of over 30 active DOBOR CUPs for Kāʻanapali ocean waters. The department believes that the court's ruling has broad implications beyond commercial activities in Kāʻanapali ocean waters and could have statewide implications to other commercial activities permitted or authorized by the department as a whole," Chair Dawn Chang mentioned in a letter to the House Water & Land and Energy & Environmental Protection Committees, which was reported by the DLNR.DLNR rebuffed accusations that it was dragging its feet on settlement discussions, stating in no uncertain terms that a settlement offer received in early March was rejected because the proposed terms fell outside state jurisdiction.

Compliance with Hawaii Revised Statutes Chapter 343 is a top priority for DLNR, Chang stated. The environmental assessment process required under this chapter could take anywhere from six months to six years, depending on the nature of the review—be it an Environmental Assessment, Environmental Impact Statement, or a programmatic environmental review. "We realize the potential impacts of the court's decision could have significant economic impacts on many permittees and businesses, however the DLNR needs to comply with the law," Chang stressed, as per the DLNR's recent announcement.

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