STAND

STAND. COM. REP. NO. 251

Honolulu, Hawaii

, 2005

RE: H.B. No. 422

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 422 entitled:

"A BILL FOR AN ACT RELATING TO CRUISE SHIPS,"

begs leave to report as follows:

The purpose of this bill is to protect Hawaii's marine environment from pollution associated with discharge from cruise ships. Among other things this measure, which establishes a new part in chapter 342D, Hawaii Revised Statutes:

(1) Regulates discharges from commercial passenger vessels, specifically discharges of sewage, other wastewater, and air emissions;

(2) Requires owners or operators of commercial passenger vessels to:

(A) Maintain records of discharges of sewage and other wastewater into the marine waters of the State, and of the opacity of air emissions;

(B) Provide reports detailing discharges and air emissions to the Department of Health (DOH) upon request; and

(C) Submit to DOH copies of any reports of hazardous waste or hazardous substances, sewage or opacity of air emissions required by the federal government;

(3) Allows for the provision of financial assistance from the Water Pollution Control Revolving Fund (Fund) to eligible parties for projects or activities to regulate the discharge of sewage and air emissions from commercial passenger vessels;

(4) Imposes an environmental compliance fee on each commercial passenger vessel operating in the marine waters of the State;

(5) Allows for compliance fees collected from cruise ship companies to be deposited into the Fund;

(6) Allows for moneys received for violations of the part to be deposited into the Fund;

(7) Provides exemptions that include discharges to secure safety or save a life, and for commercial passenger vessels that operate in the marine waters of the State solely in innocent passage; and

(8) Provides DOH flexibility in establishing alternative terms and conditions for vessel discharges applicable to an owner or operator of a vessel who cannot practicably comply with established regulations.

A member of the Maui County Council and a member of the Kauai County Council testified in support of this measure. The Office of Hawaiian Affairs, Sierra Club-Hawaii Chapter, and Life of the Land testified in support of the intent of the bill. The Department of Health, North West Cruiseship Association, NCL America, and Conservation Council for Hawaii opposed this measure. Ka Hea Hawaiian Environmental Alliance, The Ocean Tourism Coalition, and a concerned individual commented on this measure.

Hawaii has a unique marine environment and ecosystem known throughout the world. Our coastal waters not only serve as a food source but also play a vital role in the economy of the State, drawing thousands of visitors to these islands each year. Maintaining the viability of our marine ecosystem through the regulation of the numerous activities along our shoreline, such as the cruise ship industry, is an important endeavor that will not only affect today's citizens, but future generations as well.

Your Committee understands that the issue of regulation of discharge into marine waters of this State is a complex one that involves numerous federal regulations. Your Committee also understands concerns raised by all interested parties. However, the protection of Hawaii's fragile environment is paramount and this topic is worthy of further discussion.

Accordingly, your Committee has amended this measure by:

(1) Requiring that if DOH collect additional samples of a vessel's treated sewage being discharged into the marine waters of the State or monitors the opacity of air emissions DOH shall do so through an independent contractor;

(2) Requiring that the owner or operator of a commercial passenger vessel pay for all sampling, routine or otherwise, and for testing of routine samples of discharges from a commercial passenger vessel;

(3) Deleting the environmental compliance fee that would have been imposed on each commercial passenger vessel operating in the marine waters of the State;

(4) Specifying that any person who fails to comply with any requirement for discharges from commercial passenger vessels shall be subject to a fine established by DOH through rules;

(5) Eliminating language allowing the provision of financial assistance from the Fund (Fund) to eligible parties for projects or activities to regulate the discharge of sewage and air emissions from commercial passenger vessels;

(6) Eliminating language allowing for moneys received for violations of the part to be deposited into the Fund; and

(7) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 422, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 422, H.D. 1, and be referred to the Committees on Energy & Environmental Protection and Water, Land, & Ocean Resources.

Respectfully submitted on behalf of the members of the Committee on Transportation,

		____________________________ JOSEPH M. SOUKI, Chair