Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 788, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the exemption from future liability and fee provisions of the voluntary response program to ensure proper investigation and clean up of contaminated property prior to selling or developing the property.

Committee members expressed significant concern that this legislation is proposing a major policy shift by changing the focus of voluntary response from clean up to mere containment of toxic substances and by amending the exemption from future liability provisions. Concern was also expressed regarding the need for adequate public notice of proposed voluntary response actions.

It should also be noted that, while the Department of Health is proposing that a policy shift to risk-based remediation of contaminated property would be both environmentally and economically preferable in many circumstances, environmental covenants to control environmental risks of residual contamination through land restrictions, mandated environmental monitoring, and engineering controls have not been clearly established.

Your Committee finds that the issue of exemption from future liability is within the purview of the Committee on Judiciary and should be further discussed.

Your Committee has amended the measure by:

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 788, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 788, S.D. 1, H.D. 1, and be referred to the Committee on Judiciary.