STAND. COM. REP. NO. 360-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2312
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Energy and Environmental Protection, to
which was referred H.B. No. 2312 entitled: 

     "A BILL FOR AN ACT RELATING TO WASTE DISPOSAL FACILITIES,"

begs leave to report as follows:

     The purpose of this bill is to encourage the private
development of waste processing facilities that convert waste
materials into usable goods.  This bill exempts from the general
excise tax the cost of construction and materials of any zero
emission waste processing facility built over the next two years.

     An individual testified in general support of this measure.
The Department of Taxation opposed passage of this bill, and the
Tax Foundation of Hawaii offered comments.

     Discussion centered around the problems relating to the
disposal of medical wastes.  According to the Department of
Health (DOH), permits are currently being sought for two proposed
facilities that would be able to address this problem.

     Your Committee has amended this bill by:

     (1)  Clarifying that a qualified "waste processing facility"
          can produce minimal rather than zero emissions that do
          not require an air quality permit;


 
 
 
 
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     (2)  Specifying that in order to qualify for the exemption,
          the Director of Health must first certify that the
          facility meets DOH's pollution emission criteria; and

     (3)  Making technical, nonsubstantive amendments for the
          purpose of consistency.

     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. 2312, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2312, 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