Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Water, Land, Energy and Environment, to which was referred S.B. No. 1132 entitled:

begs leave to report as follows:

The purpose of this measure is to set the glass advance disposal fee (ADF), beginning September 1, 2001, at 2 cents per glass container imported into or manufactured in the State.

Your Committee received testimony in support of this measure from the Department of Health, University of Hawaii at Manoa Environmental Center, Hawaii Food Industry Association, and one individual. Anheuser Busch Companies submitted testimony in opposition.

Your Committee finds that the ADF, which is currently 1.5 cents, is collected by the State for distribution to the counties for implementation of glass recovery programs. The program has been successful in developing programs in every county, and has provided an incentive to recover approximately thirty-three per cent of glass in the State, which would exceed the national average of twenty-four per cent.

Your Committee further finds that the added funds generated by this increase would increase or help to maintain the incentives paid to recyclers to cover collection and processing fees.

Your Committee is in support of this measure and has amended the measure to provide more flexibility to the counties in their demonstration projects using recycled glass.

Your Committee is concerned, however, that of the revenues deposited in the environmental management special fund, no more than ten per cent may be used for administrative and educational purposes, and believes this warrants further discussion by the Legislature.

As affirmed by the record of votes of the members of your Committee on Water, Land, Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1132, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1132, S.D. 1, and be referred to the Committee on Ways and Means.