The fate of a bill to require solar water heaters in new homes starting in 2010 has been linked to a separate bill that provides incentives to preserve important agricultural land.

Private negotiations between lawmakers are common near the end of session, when vote-trading becomes a tactic in whether bills live or die. But some environmentalists are disappointed that the solar bill is at risk and by provisions in the agricultural bill they believe could lead to urbanization.

State House and Senate leaders say both bills are important for the environment, but some acknowledge privately that the House may not pass the solar bill if the Senate kills the agricultural bill.

"I guess, for me, the issue is whether these bills should be voted on based on the merits," said state Sen. Les Ihara Jr., D-9th (Kapahulu, Kaimuki, Palolo). "The public expects us to vote on the merits."

Under the solar bill, new homes built in 2010 will have to have solar water heaters. Variances would be allowed if engineers find that solar would be impractical because of insufficient sunshine, would cost more than would be saved by lower utility bills, or if an alternative renewable energy system is used.

"The public benefits are massive, and it doesn't cost the state anything," said state Senate Majority Leader Gary Hooser, D-7th (Kaua'i, Ni'ihau), adding that it would reduce the state's dependence on fossil fuel.

FEARS OF URBANIZATION

The agricultural bill would provide $7.5 million in tax credits for agricultural costs and create a $2.5 million loan guarantee program for projects on land designated important agricultural land. With new spending limited because of concerns about the slowing economy, lawmakers would use money set aside for the Ko Olina Resort & Marina aquarium tax credit to finance the agricultural tax credits next year.

The bill would allow landowners claiming the tax credit to designate 85 percent of their land as important agricultural land and reclassify 15 percent as rural, urban or conservation.

Lawmakers who support the concept believe the incentive will preserve more agricultural land, but some environmentalists believe it will create an opening for more urbanization.

Landowners, for example, would be able to preserve agricultural land at one location and then develop luxury homes on separate property, as long as it is on the same island.

"This is a huge giveaway to landowners," said Jeff Mikulina, director of the Sierra Club's Hawai'i chapter. "We see it as a dangerous bill that will pave over ag lands."

State Sen. Jill Tokuda, D-24th (Kailua, Kane'ohe), the chairwoman of the Senate Agriculture and Hawaiian Affairs Committee, said there are safeguards in the bill to discourage the kind of land speculation the environmentalists fear.

Land designated important agricultural land would have to be quality farmland, not simply open space, and land reclassified to urban would have to be consistent with county or community development plans. The bill also would make it difficult for land designated important agricultural land to be taken out and used for other purposes.

"I did everything I could to strengthen these provisions," Tokuda said. "My main goal was to tighten it so there is no potential for abuse."

Tokuda said the bill addresses three challenges that farmers face: access to land, water and capital.

State House Majority Leader Kirk Caldwell, D-24th (Manoa), said the Sierra Club is "letting the perfect get in the way of the good. They want the perfect.

"We're trying to keep our ag lands in ag."

Caldwell said the solar bill and the agricultural bill are linked because both relate to sustainability.

BARGAINING CHIPS

Late Friday, as lawmakers converged in a third-floor conference room to hammer out bills before a midnight deadline for moving this session, it was apparent that the two bills were being used as bargaining chips.

Senate negotiators did not have the votes to move the agricultural bill and House negotiators were refusing to release the solar bill. According to several accounts, a deal was brokered in part because state Sen. Clayton Hee, D-23rd (Kane'ohe, Kahuku), agreed to vote for the agricultural bill in exchange for the House moving a separate bill authorizing the state to purchase Turtle Bay Resort on the North Shore.

All three bills made the deadline, but lawmakers said yesterday that it is unclear whether there are enough votes in both chambers for final passage on Thursday, the last day of the session.