STAND. COM. REP. NO. 2454

Honolulu, Hawaii

RE: S.B. No. 2856

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 2856 entitled:

"A BILL FOR AN ACT RELATING TO THE BROWNFIELDS CLEANUP REVOLVING LOAN FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to enable funds in the brownfields cleanup revolving loan fund to be used for sub-grants to eligible entities for brownfields site assessments, cleanup, and monitoring activities.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Health; Office of Planning; and one individual.

Your Committee finds that the Hawaii brownfields cleanup revolving loan fund was capitalized with funds from a United States Environmental Protection Agency brownfields revolving loan fund grant. In 2012, the grant was closed when all grant funds had been expended for cleanup loans, and a closeout agreement was executed between the United States Environmental Protection Agency and the Department of Business, Economic Development, and Tourism. Under the closeout agreement, revolving loan funds may be used for loans and sub-grants to eligible entities for brownfields site assessment activities, sampling, and related activities in addition to cleanup activities.

Your Committee further finds that under the existing loan fund statutory authority strictly limits use of revolving loan funds to loans and cleanup activities. Expansion of the loan fund authority to enable sub-grants for cleanups, environmental site assessments, and related activities, in conformance with the closeout agreement, will allow for greater use of the grant funds for eligible brownfields projects and facilitate redevelopment of lands that are underutilized due to perceived or real contamination. Accordingly, this measure expands activities for which sub-grants may be awarded to eligible entities for brownfields site assessments, cleanup, and monitoring activities.

As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2856 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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MIKE GABBARD, Chair