the applicant can then negotiate the terms of a long-term lease from DLNR for State
marine waters (APA 2011; Sims 2013). The Core Terms are highlighted as follows:
• Limits of Production—No limits are placed on the volume of production, but the
oceanographic characteristics of the site must support the proposed project.
• Species Grown—Any species native to Hawaii may be grown. If the species is
subject to State regulations then a license for procession of the species must be
obtained.
• Site Size—There is no maximum size for a site, but the applicant must justify
the size of the site requested from both the business and environmental
perspectives.
• Method of Site Disposition and Terms—A long-term lease is the disposition
vehicle for commercial projects. Terms could go up to 65 years, however State
policy has been for the initial period to be 15 years, with possibility of renewal
in up to 15 year increments.
• Cost of the Lease—The CDUP processing fee for State marine waters is 2.5% of
the project cost, with a limit of $2500. Lease rents are a flat per acre fee of $100
per acre per year or a percentage of gross sales (1
1
4 %), whichever is higher.
• Bond for Facility Removal—The commercial lease requires a bond to remove
the farm infrastructure and crop should the lease be terminated. The amount
shall be sufficient to protect the public interest with the removal of all structures
and stock.
9.3.2.6 Discussion
Evolution of the Regional Approach
Clearly the establishment of a regulatory mechanism for siting aquaculture in the U.
S. EEZ has been controversial and a struggle, with members of the Congress, the
current Administration and the public being on both sides of the issue, for and
against. The U.S. has had a National Aquaculture Plan since 1980, but emphasis on
open ocean aquaculture has only come to the forefront in the past 10 years, being
fueled by: availability of mass culture hatchery technology for marine species,
development of cage and mooring technology for open ocean conditions, growing
seafood security concerns with growing reliance on imports (currently at 91%),
advances in understanding and monitoring environmental impacts of ocean farms,
and well publicized successes with offshore culture in Europe and the
Mediterranean.
Numerous efforts to establish a national regulatory system for the U.S. EEZ via
national legislation have been frustrated by successful lobbying by environmental
groups and actions by sympathetic members of Congress, as well as the U.S.
industry being fragmented and not having a unified voice. A steady stream of public
and private sector planning and policy studies over the past 10 years state it is in the
9 Regulation and Permitting of Standalone …
207
marine waters (APA 2011; Sims 2013). The Core Terms are highlighted as follows:
• Limits of Production—No limits are placed on the volume of production, but the
oceanographic characteristics of the site must support the proposed project.
• Species Grown—Any species native to Hawaii may be grown. If the species is
subject to State regulations then a license for procession of the species must be
obtained.
• Site Size—There is no maximum size for a site, but the applicant must justify
the size of the site requested from both the business and environmental
perspectives.
• Method of Site Disposition and Terms—A long-term lease is the disposition
vehicle for commercial projects. Terms could go up to 65 years, however State
policy has been for the initial period to be 15 years, with possibility of renewal
in up to 15 year increments.
• Cost of the Lease—The CDUP processing fee for State marine waters is 2.5% of
the project cost, with a limit of $2500. Lease rents are a flat per acre fee of $100
per acre per year or a percentage of gross sales (1
1
4 %), whichever is higher.
• Bond for Facility Removal—The commercial lease requires a bond to remove
the farm infrastructure and crop should the lease be terminated. The amount
shall be sufficient to protect the public interest with the removal of all structures
and stock.
9.3.2.6 Discussion
Evolution of the Regional Approach
Clearly the establishment of a regulatory mechanism for siting aquaculture in the U.
S. EEZ has been controversial and a struggle, with members of the Congress, the
current Administration and the public being on both sides of the issue, for and
against. The U.S. has had a National Aquaculture Plan since 1980, but emphasis on
open ocean aquaculture has only come to the forefront in the past 10 years, being
fueled by: availability of mass culture hatchery technology for marine species,
development of cage and mooring technology for open ocean conditions, growing
seafood security concerns with growing reliance on imports (currently at 91%),
advances in understanding and monitoring environmental impacts of ocean farms,
and well publicized successes with offshore culture in Europe and the
Mediterranean.
Numerous efforts to establish a national regulatory system for the U.S. EEZ via
national legislation have been frustrated by successful lobbying by environmental
groups and actions by sympathetic members of Congress, as well as the U.S.
industry being fragmented and not having a unified voice. A steady stream of public
and private sector planning and policy studies over the past 10 years state it is in the
9 Regulation and Permitting of Standalone …
207