STAND. COM. REP. NO. 410-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2540
                                     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. 2540 entitled: 

     "A BILL FOR AN ACT RELATING TO CLEAN AIR,"

begs leave to report as follows:

     The purpose of this bill is to mitigate the impacts of
global greenhouse emissions by:

     (1)  Authorizing the Director of Health to assess fees on
          air pollution sources;

     (2)  Establishing a Climate Change Special Fund Account for
          the deposit of these fees; and

     (3)  Allowing these funds to be used for the purpose of,
          among other things:

          (A)  Reducing air pollution;

          (B)  Reforestation and wildlife fire prevention and
               suppression; and

          (C)  Establishing carbon banks and other financial
               instruments to expedite the trading of carbon
               credits.


 
 
 
 
                                 STAND. COM. REP. NO. 410-00
                                 Page 2

 
     The Hawaii Chapter of the Sierra Club, the Department of
Health, the Department of Land and Natural Resources, the Fire
Chief of Honolulu, the Honolulu Fire Department, the Fire Chief
of the County of Hawaii, the Hawaii County Fire Department, the
Fire Chief of the County of Kauai, the Kauai County Fire
Department, the State Fire Council, and a concerned individual
submitted testimony in support of this bill.  The Western State
Petroleum Association, and three concerned individuals offered
comment on this bill.  The Hawaii Agricultural Research Center,
Hawaiian Commercial and Sugar Company, Kalaeloa Partners, Tesoro
Hawaii, Hawaiian Electric Company, and Kauai Electric submitted
testimony in opposition to this bill.

     Your Committee has made technical, nonsubstantive amendments
for purposes of style, clarity, and 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. 2540, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2540, 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