STAND. COM. REP. NO.  1702

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 1260

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1260, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AIR POLLUTION FEES,"

begs leave to report as follows:

The purpose of this bill is to protect Hawaii's environment by eliminating a loophole that exempts covered source permit holders from paying fees to the Department of Health (DOH) for emissions of a regulated air pollutant in excess of 4,000 tons per year.

DOH opposed this bill.  The Blue Planet Foundation and the Sierra Club, Hawaii Chapter provided comments on this measure.

     Your Committee finds that although the elimination of the exemption for the payment of fees by a covered source permit holder for emissions of a regulated air pollutant in excess of 4,000 tons per year will result in increased costs for the permit holder, it is not the intent of your Committee that the ratepayer or consumer bear the expense of this increased fee.

     Your Committee has amended this bill by changing its effective date to upon approval.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1260, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1260, S.D. 1, H.D. 1.

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

____________________________

MARCUS R. OSHIRO, Chair