Maui Environmental Court Judge Kirstin Hamman ruled against the Maui Planning Commission’s recently updated special management area rules, siding with the Maui Tomorrow Foundation, a nonprofit dedicated to environmental preservation.

The decision, filed Thursday, invalidates the county’s new coastal management regulations, which allowed developers to bypass certain county oversight requirements.

The case, filed as Maui Tomorrow Foundation v. Maui Planning Commission and County of Maui, challenged the new SMA rules adopted July 26 by Maui Mayor Richard Bissen.

Maui Tomorrow argued the rules unlawfully delegated the commission’s oversight responsibilities to developers, who were given broad exemptions to determine on their own whether their projects were exempt from SMA regulations.

Two years ago, the Planning Commission proposed changes to its shoreline regulations, aimed in part at addressing issues such as sea-level rise and incorporating updated scientific insights on erosion. Among these changes, however, were provisions that removed certain county review requirements for development proposals, raising concerns for environmental advocates.

Maui Tomorrow representatives voiced their opposition, attending public meetings and warning county officials that eliminating these oversight responsibilities was unlawful. Despite their objections, the updated rules were approved and the foundation subsequently filed a lawsuit, asking the court to invalidate the rules and prohibit the county from using them.

The foundation argued that either a revised set of regulations should be adopted, or the previous rules should be reinstated to maintain county oversight on coastal development.

A detailed process is required for assessing projects’ environmental impact along shorelines. The current statute allows projects to be initially excluded from SMA oversight but then reinstated if deemed to have significant or cumulative impacts.

Maui Tomorrow contends the county’s new rules failed to follow this three-step process, a violation of the state’s Coastal Zone Management Act.

The court agreed, with Hamman noting that the rules “impermissibly delegate (Planning Commission) obligations to SMA users.”

Following Hamman’s ruling that invalidated the new SMA rules, Maui Tomorrow Foundation attorney Lance Collins explained that Maui County will either need to revert to its previous SMA regulations or halt all development in special management areas until new guidelines are established.

The court took judicial notice that no other counties in Hawaii have adopted similar categorical exemptions that bypass the three-step CZMA process. Hamman also ruled that the new rules violated CZMA requirements by undermining the commission’s role in enforcing environmental protections. She suggested that if the county finds the SMA assessment process too resource- intensive, it should address its concerns with the state Legislature.

As part of the ruling, the court granted an injunction prohibiting the county from implementing the new rules. The county has the option to reinstate its previous SMA regulations until it drafts a new, legally compliant set of guidelines.

“The court’s order is a relief,” said Maui Tomorrow Executive Director Albert Perez. “Already we have seen the Planning Department directing developers to utilize ‘categorical exemptions’ instead of applying for assessments — even for projects with pretty obvious environmental impacts like the recent tree- clearing operation in the Waipuilani wetlands in Kihei.”

Collins emphasized the importance of the court decision, explaining that Hawaii has designated the entire shoreline as a public resource with a structured approach to managing and regulating these areas. He noted that the county’s attempt to relinquish its responsibility for shoreline management — essentially transferring this oversight to the very developers it is meant to regulate — undermines the state’s commitment to safeguarding the coastline.

The issue is especially critical, Collins added, because most of Hawaii’s development activity, including beach hotels and other shoreline projects, occurs within the SMA. Allowing developers to decide unilaterally if SMA regulations apply to their projects, without notifying the county, poses a significant threat to effective coastal management, he said.