STAND. COM. REP. NO. 790

Honolulu, Hawaii

RE:    S.B. No. 1260

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1260 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to eliminate a disincentive to air pollution reduction by removing the cap on fees for air pollution emissions.

     Your Committee received one written comment on this measure.  The written comment may be reviewed on the Legislature's website.

     Your Committee finds that covered source permit holders must pay fees per ton of regulated air pollutant emitted annually.  These fees fund the Clean Air Branch of the Department of Health and other programs.  Covered source permit holders, however, are not assessed fees for emissions in excess of four thousand tons per year.  Your Committee believes that this is inequitable for covered source permit holders that emit fewer than four thousand tons per year, while allowing polluters who exceed the cap no additional fines or penalties.

     Your Committee has amended the measure by changing the effective date to January 1, 2099, to facilitate further discussion.

     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 S.B. No. 1260, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1260, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONNA MERCADO KIM, Chair