HAIKU - The State Commission on Water Resource Management was preparing Wednesday to act on what some members called a historic decision to put at least 12 million gallons a day of water back into five East Maui stream systems, The Maui News reported.

At issue was a 7-year-old petition by the Native Hawaiian Legal Corp. on behalf of Na Moku Aupuni o Koolau Hui and taro growers Beatrice Kekahuna, Marjorie Wallet and Elizabeth Lapenia to restore water currently diverted by the East Maui Irrigation Co. for the Hawaiian Commercial & Sugar Co.

The taro growers are seeking to have sufficient water restored to the streams under the mandates of the State Water Code for farming as well as to maintain the stream ecosystems.

The seven-member commission met until late Wednesday night with about 250 Maui residents at the Haiku Community Center. About half of the audience were HC&S employees, many worried about the company's future viability if it isn't provided enough water for its 37,000 acres of fields.

The other half were taro farmers, Native Hawaiians and their supporters, who were equally concerned about asserting their rights to sufficient water for their farms and maintaining their traditional way of life.

About 65 people were signed up to testify at the hearing, which vacillated between heated and heartfelt. The hearing will reconvene this morning at 9 a.m. A decision by commission members on how much water to restore to the selected streams is expected today.

The state constitution protects rights to water in the streams and HC&S's "doom and gloom" forecasts are not warranted at this time, said Native Hawaiian Legal Corp. attorney Alan Murakami.

In much scientific detail on Wednesday, the commission and its staff examined the amounts of water flowing in five "hydrologic units" at Honopou, Hanehoi, Piinaau, Waiokamilo and Wailuanui. The commission staff recommended restoring a minimum of 12.21 million gallons of water a day to the streams in the units.

"I think the numbers are workable as long as they do not use the same methodology for all (27 streams in the system)," said Rick Volner Jr., HC&S senior vice president for agricultural operations. "It's a start."

For three of those streams, the changes - if approved - could be roughly twice as much natural stream flow than taro farmers and stream critters have been receiving below the East Maui Irrigation Co. diversions.

Staff pointed out that the actual amount of water that would still be available to East Maui Irrigation is uncertain. The amount of water left for diversion will depend on a number of variables - including rainfall, flows from springs and the location of ditch diversions. Some streams have added water from springs below EMI diversion points, staff said.

The staff said that they did not ask for more water from EMI because it took into consideration the company's agricultural business, the county's drinking water requirements, small farmers and Maui Electric Co.'s power needs.

Once the commission's decision is made, it will be instituted sometime in the next year. But Water Resource Chairwoman Laura Thielen was careful to point out that the restoration will be temporary instream flow standards that will be further analyzed, with the data to be examined closely before another commission vote to establish permanent standards.

The commission staff made a significant departure in Wednesday's recommendations from the status quo set 20 years ago when the water commission was first established under a state constitutional amendment, said Deputy Director Ken Kawahara. Prior to 1988, the commission had grandfathered all existing stream-water diversions such as HC&S's.

However, the state Supreme Court called on the commission to revisit its interim instream flow standards after sugar cane production ceased on Oahu, with the commission and the court involved in a series of reviews of stream restoration standards proposed for the Waiahole Ditch system.

The East Maui flow standards would be precedent setting statewide, Thielen said. The system diverting 27 East Maui streams is the largest in Hawaii.

Under the State Water Code, the commission is charged with balancing the needs of stream life and ecosystems, along with wildlife, recreational uses, aesthetics and Native Hawaiian rights, against the need for water from streams for agricultural and domestic uses. The Water Code specifies that the commission must consider economic impact as well.

When the commission staff discussed Honopou stream - which includes the popular Twin Falls pools - they said the stream had poor fish and wildlife diversity, limited aesthetics and few places to safely swim. The reports were similar for the other four hydrological units, which include multiple stream systems.

Among the issues is the amount needed by HC&S to maintain its sugar operations.

The Native Hawaiian Legal Corp. estimated HC&S uses 17,724 gallons per acre a day in the summer and 35,449 gallons per acre a day in the winter.

But HC&S said its total water use is less than one-third of the NHLC estimates. It's more like 5,064 gallons per acre a day in the summer and 10,128 gallons per acre a day in the winter, since they only water the cane twice a week, according to HC&S figures.

The volume is greater in the winter because more water is available.

A Native Hawaiian demanding stream restoration disputed HC&S figures but also disputed the state's authority.

"These guys are ripping us off," said testifier Charles Villalon, claiming authority of the reinstated Hawaiian government and threatening the commissioners as well as HC&S workers with deportation.

The instream flow standards recommended by state Commission of Water Resource Management staff include:

* Honopou, 1.79 million gallons a day

* Hanehoi, 1.72 million gallons a day

* Piinaau, 3.56 million gallons a day

* Waiokamilo, 3.17 million gallons a day

* Wailuanui, 1.97 million gallons a day

Earlier in the day, HC&S attorney David Schulmeister argued for a motion to consolidate the water commission's staff study to include the entire 27-stream system utilized by the company to irrigate 30,000 acres of sugar cane. He said the company's economic viability depends on assurance of water from the 75 miles of aqueducts maintained by EMI.

"HC&S has been locked into a battle for survival that every other sugar grower in Hawaii has lost," Schulmeister said.

The motion would have allowed HC&S another year to make its case. It failed by a unanimous vote.

Still, HC&S insisted in a statement that instream flow standards for only a portion of the streams would "create an even larger cloud of uncertainty over those people and businesses who are dependent on waters from these East Maui streams."

HC&S executives said that an uncertain water supply would limit the company's ability to attract investors in its long-term plans to create more competitive products and develop alternative energy systems.

William Kennison, International Longshore and Warehouse Union Maui Division director, said if HC&S falters, about 800 jobs are at stake, the loss of which would have a "crushing impact" on the Maui economy.

"We represent all the parties involved, and what we would like to see is a happy medium," he said. "No matter what, I don't think what anybody wants to see is the plantation go down."

* Chris Hamilton can be reached at chamilton@mauinews.com.