HONOLULU – April 15, 2025 – The Department of Land and Natural Resources (DLNR) is addressing misinformation circulating amongst commercial boating operators regarding the status of Commercial Use Permits (CUPs), following a series of court rulings.
The DLNR’s Division of Boating and Ocean Recreation (DOBOR) confirmed today that, in compliance with a court order stemming from the case Nā Papaʻi Wawae ʻUlaʻula, et al. v. DLNR, Case No. 2CC-17-1-000483, no new CUPs are being issued at this time.
Existing CUPs in good standing will continue to be renewed, but permittees will be restricted to maintaining or reducing their current activity and/or passenger capacity levels. Vessel substitutions will be allowed, but DOBOR will not authorize increases in passenger capacity, regardless of vessel size.
This clarification comes in response to a lawsuit filed in 2017 which culminated in a December 2024 ruling by the Second Circuit Court. The ruling prohibits DOBOR from issuing or renewing CUPs for commercial activities in Kāʻanapali ocean waters off West Maui until a Hawaii Revised Statutes (HRS) Chapter 343 environmental review is completed, or a determination is made that the activities are exempt from environmental review.
“Permittees planning to upgrade their vessels are advised to ensure that Certificates of Inspection show a passenger carrying capacity that is the same as, or lower than, what is permitted as of December 4, 2024,” DOBOR stated. This measure is intended to ensure compliance with the court order.
Following the December ruling, the DLNR filed a motion for reconsideration, highlighting the potential immediate and unfair impact on commercial operators unable to renew their CUPs. As a result, the court stayed its prohibition on renewals pending a reconsideration hearing. The hearing, originally scheduled for February, has been repeatedly rescheduled at the plaintiffs’ request and is now slated for September.
In a March 27 letter to the Chairs of the House Water & Land and Energy & Environmental Protection Committees, DLNR Chair Dawn Chang explained the broader implications of the court’s decision. “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,” she wrote. “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 Chang also addressed accusations of delaying settlement talks, stating, “This is not true.” She confirmed that the DLNR rejected a settlement offer in early March because the terms were deemed outside the state’s jurisdiction.
The DLNR intends to fully comply with HRS Chapter 343 requirements and is committed to properly managing commercial activities while adhering to the law. Depending on the necessary environmental review, the process could range from six months for an exemption to as long as six years for an Environmental Impact Statement (EIS).
“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 concluded. The DLNR will continue to work towards a resolution that balances environmental protection with the needs of the commercial ocean use industry.
