STAND. COM. REP. NO. 588

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1277
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Energy and Environmental Protection, to
which was referred H.B. No. 1277 entitled: 

     "A BILL FOR AN ACT RELATING TO WASTEWATER TREATMENT
     FACILITIES,"

begs leave to report as follows:

     The purpose of this bill is to exclude from the definition
of "public utility" and regulation by the Public Utilities
Commission, any facility that reclaims wastewater provided that
at least ten percent of the wastewater processed is used by a
state or county agency.

     The Department of Health submitted testimony in support of
this measure as it is consistent with the goals of conserving
water resources and enhancing the quality of Hawaii's water.  The
Department of Environmental Services of The City and County of
Honolulu submitted testimony in support of this measure, stating
that the partnership entered into by the City with U.S. Filtering
Services, Inc., was premised upon the assumption that the
operation of the new facilities of the partnership would not be
subject to regulation by the Public Utilities Commission.  U.S.
Filter Operating Services, Inc., submitted testimony in support
of this measure citing the U.S. District Court consent decree
that mandated its partnership project with the City as the basis
for exempting the partnership project from regulation.

     The Department of Commerce and Consumer Affairs submitted
testimony in opposition to this measure, stating its belief that

 
 
                                 STAND. COM. REP. NO. 588
                                 Page 2

 
existing privately-owned wastewater treatment facilities will be
effectively excluded from the definition of "public utility"
under the bill.  The Waimanalo Citizens for a Healthy Future
submitted testimony in opposition to this measure stating
environmental concerns regarding unregulated wastewater
discharge.

     Your Committee has amended this measure by providing that
exempted facilities be solely engaged in processing wastewater
produced by a municipal facility and that such facilities not
engage in processing food waste nor making water sales to
residential customers.

     As affirmed by the record of votes of the members of your
Committee on Energy and Environmental Protection that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 1277, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
1277, H.D. 1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Energy and
                                   Environmental Protection,



                                   ______________________________
                                   HERMINA M. MORITA, Chair