Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2455, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish a brownfields cleanup revolving loan fund.

The fund will provide low interest loans or other authorized financial assistance to eligible public, private, and nonprofit borrowers for cleanup activities of contaminated sites, and site monitoring activities necessary to determine the effectiveness of a cleanup. In addition, this measure appropriates $1,000,000 out of the brownfields cleanup revolving loan fund for the purposes of providing low interest loans for cleanup and site monitoring activities.

Your Committee finds that "brownfields" are abandoned, idled, or underused industrial and commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination. Your Committee also finds that the Department of Business, Economic Development, and Tourism has applied to the U.S. Environmental Protection Agency for up to $3,000,000 in seed money to capitalize and administer the revolving loan fund program.

The financial risks and potential liability associated with reusing brownfields is a barrier to redevelopment throughout the United States. The revolving loan fund would make low interest loans available to project developers in order to expand resources and reduce the risks and liability of brownfield projects. The revolving loan fund would also allow worthy projects that are not a priority to state agencies, but are a priority to communities, an avenue for potential cleanup financing.

Your Committee finds that developable land is becoming a scarce resource in Hawaii, and that contaminated land must be rehabilitated and reused whenever and wherever possible.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2455, S.D. 1, and recommends that it pass Third Reading.