Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Energy and Environment, to which was referred S.B. No. 499 entitled:

begs leave to report as follows:

The purpose of this measure is to require the Department of Health (DOH) to implement a "Clean Power Act" and the Public Utilities Commission (PUC) to adopt rules to provide policies and incentives to increase energy efficiency of electricity and natural gas use and efficiency in electricity production.

Life of the Land and Sierra Club Hawaii Chapter submitted testimony supporting this measure. The DOH and PUC submitted testimony supporting the intent of this measure. Alexander & Baldwin submitted testimony opposing this measure, and the Department of Commerce and Consumer Affairs, Hawaiian Electric Company and its subsidiaries, and Covanta Energy Group provided comments on this measure.

In particular, this measure regulates the emissions of nitrogen oxides, sulfur dioxides, mercury, and carbon dioxide from power plants.

Your Committee finds that pollution from power plants can no longer go unregulated in the State. Emission limitations and ongoing planning and coordination should be instituted to help ensure a healthy, clean environment.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 499, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 499, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.