STAND. COM. REP. NO. 205

Honolulu, Hawaii

RE:    S.B. No. 1260

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Energy and Environment, 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 pollution reduction by removing the cap on fees for air pollutant emissions.

     Testimony in support of this measure was submitted by two private organizations.  Comments were submitted by one state department.  Copies of written testimony are available for review on the Legislature's website.

     Your Committee finds that as presently enacted Hawaii's Clean Air Act allows large sources of air pollution to pay less per ton of air emissions than smaller sources of air pollution.  Your Committee finds that, while closing this loophole may result in increased costs that are passed onto consumers, the existing provision is inequitable for smaller sources of air pollution and a disincentive for very large sources of air pollution to reduce emissions.

     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. 1260 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

____________________________

MIKE GABBARD, Chair