REPORT TITLE:
Environmental Permits; Waikiki


DESCRIPTION:
Establishes a 5-year environmental permit assistance pilot
program for proposed developments in Waikiki.  Provides for the
establishment of a Waikiki permit assistance center and the
voluntary appointment of project facilitators and coordinating
permit agencies to streamline the processing of permits.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           84
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO ENVIRONMENTAL PERMIT ASSISTANCE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that:
 
 2      (1)  Hawaii's environmental protection programs have
 
 3           established strict standards to reduce pollution and
 
 4           protect the public health and safety and the
 
 5           environment.  The single-purpose programs instituted to
 
 6           achieve these standards have been successful in many
 
 7           respects, and have produced significant gains in
 
 8           protecting Hawaii's environment in the face of
 
 9           substantial population growth.
 
10      (2)  As the number of environmental laws and regulations
 
11           have grown in Hawaii, so have the number of permits
 
12           required for proposed development projects.  This
 
13           regulatory burden has significantly added to the cost
 
14           and time needed to obtain essential permits throughout
 
15           Hawaii, and especially in Waikiki.  The increasing
 
16           number of individual permits and permit authorities has
 
17           generated the continuing potential for conflict,
 
18           overlap, and duplication between the various state,
 
19           local, and federal permits.  There is a need to
 

 
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 1           establish a pilot program for Waikiki to streamline the
 
 2           permitting process for proposed developments in Waikiki
 
 3           without sacrificing environmental quality.
 
 4      SECTION 2.  The Hawaii Revised Statutes is amended by adding
 
 5 a new chapter to be appropriately designated and to read as
 
 6 follows:
 
 7                             "CHAPTER
 
 8              WAIKIKI ENVIRONMENTAL PERMIT ASSISTANCE
 
 9      § -1 Waikiki environmental permit assistance pilot
 
10 program; established.  The Waikiki environmental permit
 
11 assistance pilot program is established within the department of
 
12 health to:
 
13      (1)  Institute new, efficient procedures for proposed
 
14           developments in Waikiki that will assist businesses and
 
15           public agencies in complying with the environmental
 
16           quality laws in an expedited fashion, without reducing
 
17           protection of public health and safety and the
 
18           environment;
 
19      (2)  Promote effective dialogue and ensure ease in the
 
20           transfer and clarification of technical information,
 
21           while preventing duplication.  It is necessary that the
 
22           program establish a process for preliminary and ongoing
 
23           meetings between the applicant, the coordinating permit
 

 
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 1           agency, and the participating permit agencies, but do
 
 2           not preclude the applicant or participating permit
 
 3           agencies from individually coordinating with each
 
 4           other;
 
 5      (3)  Ensure, to the maximum extent practicable, that the
 
 6           coordinated permit agency process and applicable permit
 
 7           requirements and criteria are integrated and run
 
 8           concurrently, rather than consecutively;
 
 9      (4)  Provide a reliable and consolidated source of
 
10           information concerning federal, state, and city and
 
11           county environmental and land use laws and procedures
 
12           that apply to any given proposal;
 
13      (5)  Provide an optional process by which a project
 
14           proponent may obtain active coordination of all
 
15           applicable regulatory and land use permitting
 
16           procedures.  This program is not to replace individual
 
17           laws, or diminish the substantive decision-making role
 
18           of individual jurisdictions.  Rather, it is to provide
 
19           predictability, administrative consolidation, and,
 
20           where possible, consolidation of appeal processes; and
 
21      (6)  Provide consolidated, effective, and easier
 
22           opportunities for members of the public to receive
 
23           information and present their views about proposed
 

 
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 1           projects.
 
 2      §   -2  Definitions.  As used in this chapter, unless the
 
 3 context clearly requires otherwise:
 
 4      "Center" means the Waikiki permit assistance center
 
 5 established in the department.
 
 6      "City and county" means the city and county of Honolulu.
 
 7      "Coordinating permit agency" means the permit agency that
 
 8 has the greatest overall jurisdiction over a project.
 
 9      "Department" means the department of health.
 
10      "Participating permit agency" means a permit agency, other
 
11 than the coordinating permit agency, that is responsible for the
 
12 issuance of a permit for a project.
 
13      "Permit" means any license, certificate, registration,
 
14 permit, or other form of authorization required by a permit
 
15 agency to engage in a particular activity in Waikiki.
 
16      "Permit agency" means:
 
17      (1)  The department of health and the department of land and
 
18           natural resources;
 
19      (2)  Any other city and county, state, or federal agency
 
20           that participates at the request of the permit
 
21           applicant and upon the agency's agreement to be subject
 
22           to this chapter.
 
23      "Project" means a proposed use, development, or activity in
 

 
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 1 Waikiki, the conduct of which requires permits from one or more
 
 2 permit agencies.
 
 3      "Waikiki" means the area of Oahu whose boundaries are
 
 4 delineated in the city and county of Honolulu land use ordinance
 
 5 establishing the Waikiki Special District.
 
 6      §   -3 Waikiki permit assistance center; duties.  The
 
 7 Waikiki permit assistance center is established within the
 
 8 department to:
 
 9      (1)  Publish and keep current one or more handbooks
 
10           containing lists and explanations of all permit laws
 
11           that apply to proposed developments in Waikiki.  The
 
12           center shall coordinate with the office of planning in
 
13           providing and maintaining this information to
 
14           applicants and others.  To the extent possible, the
 
15           handbook shall include relevant federal and city and
 
16           county laws.  A state or city and county agency shall
 
17           provide a reasonable number of copies of application
 
18           forms, statutes, ordinances, rules, handbooks, and
 
19           other informational material requested by the center
 
20           and shall otherwise fully cooperate with the center.
 
21           The center shall seek the cooperation of relevant
 
22           federal and city and counties agencies;
 
23      (2)  Establish, and make known, a point of contact for
 

 
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 1           distribution of the handbook and advice to the public
 
 2           as to its interpretation in any given case;
 
 3      (3)  Work closely and cooperatively with the office of
 
 4           planning in providing efficient and nonduplicative
 
 5           service to the public;
 
 6      (4)  Seek the assignment of employees from permit agencies
 
 7           to serve on a rotating basis in staffing the center;
 
 8           and
 
 9      (5)  Provide an annual report to the legislature on
 
10           potential conflicts and perceived inconsistencies among
 
11           existing statutes.  The first report shall be submitted
 
12           to the appropriate standing committees of the house of
 
13           representatives and senate by December 1, 2000.
 
14      §   -4 Designation of coordinating permit agency; process.
 
15 (a)  Not later than January 1, 2000, the department shall
 
16 establish an administrative process for the designation of a
 
17 coordinating permit agency for a project.
 
18      (b)  The administrative process shall consist of the
 
19 establishment of guidelines for designating the coordinating
 
20 permit agency for a project.  The guidelines shall require that
 
21 at least the following factors be considered in determining which
 
22 permit agency has the greatest overall jurisdiction over the
 
23 project:
 

 
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 1      (1)  The types of facilities or activities that make up the
 
 2           project;
 
 3      (2)  The types of public health and safety and environmental
 
 4           concerns that should be considered in issuing permits
 
 5           for the project;
 
 6      (3)  The environmental medium that may be affected by the
 
 7           project, the extent of those potential effects, and the
 
 8           environmental protection measures that may be taken to
 
 9           prevent the occurrence of, or to mitigate, those
 
10           potential effects;
 
11      (4)  The regulatory activity that is of greatest importance
 
12           in preventing or mitigating the effects that the
 
13           project may have on public health and safety or the
 
14           environment; and
 
15      (5)  The statutory and regulatory requirements that apply to
 
16           the project and the complexity of those requirements.
 
17      §   -5 Project facilitator.  Upon the request of a project
 
18 applicant, the center shall appoint a project facilitator to
 
19 assist the applicant in determining which regulatory
 
20 requirements, processes, and permits may be required for
 
21 development and operation of the proposed project.  The project
 
22 facilitator shall provide the information to the applicant and
 
23 explain the options available to the applicant in obtaining the
 

 
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 1 required permits.  If the applicant requests, the center shall
 
 2 designate a coordinating permit agency as provided in section
 
 3    -6.
 
 4      §   -6 Coordinating permit agency; designation; duties.
 
 5 (a)  A permit applicant who requests the designation of a
 
 6 coordinating permit agency shall provide the center with a
 
 7 description of the project, a preliminary list of the permits
 
 8 that the project may require, and the identity of the
 
 9 participating permit agencies.  The center may request any
 
10 information from the permit applicant that is necessary to make
 
11 the designation under this section, and may convene a scoping
 
12 meeting of the likely coordinating permit agency and
 
13 participating permit agencies in order to make that designation.
 
14      (b)  The coordinating permit agency shall serve as the main
 
15 point of contact for the permit applicant with regard to the
 
16 coordinated permit process for the project and shall manage the
 
17 procedural aspects of that processing consistent with existing
 
18 laws governing the coordinating permit agency and participating
 
19 permit agencies, and with the procedures agreed to by those
 
20 agencies in accordance with section    -7.  In carrying out these
 
21 responsibilities, the coordinating permit agency shall ensure
 
22 that the permit applicant has all the information needed to apply
 
23 for all the component permits that are incorporated in the
 

 
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 1 coordinated permit process for the project, coordinate the review
 
 2 of those permits by the respective participating permit agencies,
 
 3 ensure that timely permit decisions are made by the participating
 
 4 permit agencies, and assist in resolving any conflict or
 
 5 inconsistency among the permit requirements and conditions that
 
 6 are to be imposed by the participating permit agencies with
 
 7 regard to the project.  The coordinating permit agency shall keep
 
 8 in contact with the applicant as well as other permit agencies in
 
 9 order to assure that the process is progressing as scheduled.
 
10 The coordinating permit agency shall also make contact, at least
 
11 once, with the city and county if the city and county has not
 
12 agreed to be a participating permit agency.
 
13      (c)  This chapter shall not be construed to limit or abridge
 
14 the powers and duties granted to a participating permit agency
 
15 under the law that authorizes or requires the agency to issue a
 
16 permit for a project.  Each participating permit agency shall
 
17 retain its authority to make all decisions on all nonprocedural
 
18 matters with regard to the respective component permit that is
 
19 within the scope of its responsibility, including the
 
20 determination of permit application completeness, permit approval
 
21 or approval with conditions, or permit denial.  The coordinating
 
22 permit agency may not substitute its judgment for that of a
 
23 participating permit agency on any such nonprocedural matters.
 

 
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 1      §   -7 Coordinating permit agency; meeting with permit
 
 2 applicant and participating permit agencies.(a)  Within twenty-
 
 3 one days of the date that the coordinating permit agency is
 
 4 designated, it shall convene a meeting with the permit applicant
 
 5 for the project and the participating permit agencies.  The
 
 6 meeting agenda shall include at least all of the following
 
 7 matters:
 
 8      (1)  A determination of the permits that are required for
 
 9           the project;
 
10      (2)  A review of the permit application forms and other
 
11           application requirements of the agencies that are
 
12           participating in the coordinated permit process;
 
13      (3)  (A)  A determination of the timelines that will be used
 
14                by the coordinating permit agency and each
 
15                participating permit agency to make permit
 
16                decisions, including the time periods required to
 
17                determine if the permit applications are complete,
 
18                to review the application or applications, and to
 
19                process the component permits.  In the development
 
20                of this timeline, full attention shall be given to
 
21                achieving the maximum efficiencies possible
 
22                through concurrent studies, consolidated
 
23                applications, hearings, and comment periods.
 

 
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 1                Except as provided in subparagraph (B), the
 
 2                timelines established under this subsection, with
 
 3                the assent of the coordinating permit agency and
 
 4                each participating permit agency, shall commit the
 
 5                coordinating permit agency and each participating
 
 6                permit agency to act on the component permit
 
 7                within time periods that are different than those
 
 8                required by other applicable provisions of law.
 
 9           (B)  An accelerated time period for the consideration
 
10                of a permit application may not be set if that
 
11                accelerated time period would be inconsistent
 
12                with, or in conflict with, any time period or
 
13                series of time periods set by statute for that
 
14                consideration, or with any statute, rule, or
 
15                regulation, or adopted state policy, standard, or
 
16                guideline that requires any of the following:
 
17                (i)  Other agencies, interested persons, or the
 
18                     public to be given adequate notice of the
 
19                     application;
 
20               (ii)  Other agencies to be given in a role in, or
 
21                     be allowed to participating in, the decision
 
22                     to approve or disapprove the application; or
 
23              (iii)  Interested persons or the public to be
 

 
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 1                     provided the opportunity to challenge,
 
 2                     comment on, or otherwise voice their concerns
 
 3                     regarding the application;
 
 4      (4)  The scheduling of any public hearings that are required
 
 5           to issue permits for the project and a determination of
 
 6           the feasibility of coordinating or consolidating any of
 
 7           those required public hearings; and
 
 8      (5)  A discussion of fee arrangements for the coordinated
 
 9           permit process, including an estimate of the costs
 
10           allowed under section    -10 and the billing schedule.
 
11      (b)  Each agency shall send at least one representative
 
12 qualified to make decisions concerning the applicability and
 
13 timeline associated with all permits administered by that
 
14 jurisdiction.  At the request of the applicant, the coordinating
 
15 permit agency shall notify any relevant federal agency of the
 
16 date of the meeting and invite that agency's participation in the
 
17 process.
 
18      (c)  If a permit agency or the applicant foresees, at any
 
19 time, that it will be unable to meet its obligations under the
 
20 agreement, it shall notify the coordinating permit agency of the
 
21 problem.  The coordinating permit agency shall notify the
 
22 participating permit agencies and the applicant and, upon
 
23 agreement of all parties, adjust the schedule, or, if necessary,
 

 
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 1 schedule another work plan meeting.
 
 2      (d)  The coordinating permit agency may request any
 
 3 information from the applicant that is necessary to comply with
 
 4 its obligations under this section, consistent with the timelines
 
 5 set pursuant to this section.
 
 6      (e)  A summary of the decisions made under this section
 
 7 shall be made available for public review upon the filing of the
 
 8 coordinated permit process application or permit applications.
 
 9      §   -8 Withdrawal from coordinating permit process.(a)
 
10 The permit applicant may withdraw from the coordinated permit
 
11 process by submitting the coordinating permit agency a written
 
12 request that the process be terminated.  Upon receipt of the
 
13 request, the coordinating permit agency shall notify the center
 
14 and each participating permit agency that a coordinated permit
 
15 process is no longer applicable to the project.
 
16      (b)  The permit applicant may submit a written request to
 
17 the coordinating permit agency that the permit applicant wishes a
 
18 participating permit agency to withdraw from participation on the
 
19 basis of a reasonable belief that the issuance of the coordinated
 
20 permit process would be accelerated if the participating permit
 
21 agency withdraws.  In that event, the participating permit agency
 
22 shall withdraw from participation if the coordinating permit
 
23 agency approves the request.
 

 
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 1      §   -9 Coordinating permit agency to oversee participating
 
 2 permit agencies.  The coordinating permit agency shall ensure
 
 3 that the participating permit agencies make all the permit
 
 4 decisions that are necessary for the incorporation of the permits
 
 5 into the coordinated permit process and act on the component
 
 6 permits within the time periods established pursuant to section
 
 7    -7.
 
 8      §   -10  Recovery of costs by coordinating permit agency.
 
 9 (a)  The coordinating permit agency may enter into a written
 
10 agreement with the applicant to recover from the applicant the
 
11 reasonable costs incurred by the coordinating permit agency in
 
12 carrying out the requirements of this chapter.
 
13      (b)  The coordinating permit agency may recover only the
 
14 costs of performing those coordinated permit services and shall
 
15 be negotiated with the permit applicant in the meeting required
 
16 pursuant to section    -7.  The billing process shall provide for
 
17 accurate time and cost accounting and may include a billing cycle
 
18 that provides for progress payments.
 
19      §   -11  Review of agency action; petition.  A petition by
 
20 the permit applicant for review of an agency action in issuing,
 
21 denying, or amending a permit, or any portion of a coordinating
 
22 permit agency permit shall be submitted by the permit applicant
 
23 to the coordinating permit agency or the participating permit
 

 
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 1 agency having jurisdiction over that permit and shall be
 
 2 processed in accordance with the procedures of that permit
 
 3 agency.  Within thirty days of receiving the petition, the
 
 4 coordinating permit agency shall notify the other environmental
 
 5 agencies participating in the original coordinated permit
 
 6 process.
 
 7      §   -12  Amendments or modifications; procedure.  If an
 
 8 applicant petitions for a significant amendment or modification
 
 9 to a coordinated permit process application or any of its
 
10 component permit applications, the coordinating permit agency
 
11 shall reconvene a meeting of the participating permit agencies,
 
12 conducted in accordance with section    -7.
 
13      §   -13  Failure to provide information; effect.  If an
 
14 applicant fails to provide information required for the
 
15 processing of the component permit applications for a coordinated
 
16 permit process or for the designation of a coordinated permit
 
17 agency, the time requirements of this chapter shall be held in
 
18 abeyance until such time as the information is provided.
 
19      §   -14  Appeals.(a)  The department, by rule, shall
 
20 establish an expedited appeals process by which a petitioner or
 
21 applicant may appeal any failure by a permit agency to take
 
22 timely action on the issuance or denial of a permit in accordance
 
23 with the time limits established under this chapter.
 

 
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 1      (b)  If the department finds that the time limits under
 
 2 appeal have been violated without good cause, it shall establish
 
 3 a date certain by which the permit agency shall act on the permit
 
 4 application with adequate provision for the requirements of
 
 5 section    -7(a)(3), and provide for the full reimbursement of
 
 6 any filing or permit processing fees paid by the applicant to the
 
 7 permit agency for the permit application under appeal.
 
 8      (c)  Any person aggrieved by a final decision issued by an
 
 9 agency with respect to a permit under this chapter shall be
 
10 entitled to administrative and judicial review in accordance with
 
11 chapter 91.
 
12      §   -15  Final permit decision; notice forwarded.  A state
 
13 permit agency shall forward to the appropriate city and county
 
14 agencies a notice of the agency's final decision with respect to
 
15 a permit sought from the agency.
 
16      §   -16  Rules.  The department may adopt rules pursuant to
 
17 chapter 91 as it deems necessary to implement this chapter."
 
18      SECTION 3.  The department of health shall study the
 
19 effectiveness of the pilot program established by this Act and
 
20 report its findings and recommendations, including any proposed
 
21 legislation, to the governor and legislature no later than twenty
 
22 days before the convening of the regular sessions of 2001, 2002,
 
23 2003, and 2004.  The department's final report shall include:
 

 
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 1      (1)  The number of instances in which a coordinating permit
 
 2           agency has been requested and used, and the disposition
 
 3           of those cases;
 
 4      (2)  The amount of time elapsed between an initial request
 
 5           by a permit applicant for a coordinated permit process
 
 6           and the ultimate approval or disapproval of the permits
 
 7           included in the process;
 
 8      (3)  The number of instances in which the expedited appeals
 
 9           process was requested, and the disposition of those
 
10           cases; and
 
11      (4)  A recommendation as to whether or not the pilot program
 
12           should be extended to other areas of the State or to
 
13           the entire State."
 
14      SECTION 4.  It is the intent of this Act not to jeopardize
 
15 the receipt of any federal aid nor to impair the obligation of
 
16 the State or any agency thereof to the holders of any bond issued
 
17 by the State or by any such agency, and to the extent, and only
 
18 to the extent, necessary to effectuate this intent, the governor
 
19 may modify the strict provisions of this Act, but shall promptly
 
20 report any such modification with reasons therefor to the
 
21 legislature at its next session thereafter for review by the
 
22 legislature.
 
23      SECTION 5.  There is appropriated out of the general
 

 
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 1 revenues of the State of Hawaii the sum of $          , or so
 
 2 much thereof as may be necessary for fiscal year 1999-2000, to
 
 3 implement the pilot program established by this Act.  The sum
 
 4 appropriated shall be expended by the department of health for
 
 5 the purposes of this Act.
 
 6      SECTION 6.  This Act shall take effect on July 1, 1999, and
 
 7 shall be repealed on July 1, 2004.
 
 8 
 
 9                              INTRODUCED BY:______________________