STAND. COM. REP. NO.  276

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 786

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 786 entitled:

"A BILL FOR AN ACT RELATING TO SOLID WASTE,"

begs leave to report as follows:

     The purpose of this bill is to protect Hawaii's environment and public health and provide the Department of Health (DOH) with revenues for the administration and operation of its solid waste regulatory program by:

     (1)  Increasing the solid waste management surcharge from 35 cents to 55 cents per ton of solid waste; and

     (2)  Extending the solid waste management surcharge to solid waste shipped out-of-state by a solid waste shipping facility.

     DOH testified in support of this bill.  The Department of Environmental Services of the City and County of Honolulu provided comments.

     Currently, the disposition of solid waste is regulated by DOH through its solid waste regulatory program.  To cover the costs of this program, a surcharge was initiated in 1993 at a rate of 25 cents per ton, which was later increased to 35 cents per ton in 1997, the last time it was increased.  This surcharge is the main source of funding for the solid waste regulatory program. 

     At present, annual revenue from the surcharge is approximately $525,000 while program expenses exceed $600,000 and are only projected to increase.  The proposed increase in the surcharge in this measure is expected to allow DOH to maintain current services if the practice of "borrowing" personnel from other programs continues.  DOH projects a necessary revenue stream of approximately $900,000 annually to enable the program to fully fund current positions and maintain services for the long term.  This would equate to an increase of the surcharge to 65 cents per ton.

     Your Committee finds that while increasing the solid waste management surcharge would allow DOH's solid waste regulatory program to maintain their services, the program should be fully funded through this surcharge and reduce the general fund subsidy for this program.  Your Committee has amended this bill by:

     (1)  Deleting the definition of "solid waste shipping facility";

     (2)  Changing the increase in the solid waste management surcharge from 55 cents per ton to 65 cents per ton; and

     (3)  Deleting the extension of the surcharge to all solid waste shipped out-of-state by solid waste shipping facilities.

     Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

     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 H.B. No. 786, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 786, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

HERMINA MORITA, Chair