STAND. COM. REP. NO. 1055-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2990
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Energy and Environmental Protection, to
which was referred S.B. No. 2990, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO THE RECYCLING OF BATTERIES,"

begs leave to report as follows:

     The purpose of this bill is to encourage proper disposal of
lead acid batteries by imposing, at the point of sale, a $10
surcharge which shall be waived only by presenting for disposal
an old battery for each new battery purchased.  All surcharges
would be deposited into the Environmental Management Special
Fund.

     The Sierra Club, Hawaii Chapter, testified in support of
this bill.  The Department of Health (DOH) and the University of
Hawaii's Environmental Center supported the intent of this
measure.  The Hawaii Automotive Repair and Gas Dealers
Association (HARGD) and the Legislative Information Services of
Hawaii opposed passage of the bill.

     Your Committee was concerned about difficulties in enforcing
the provisions of this bill as well as in tracking the funds.
Additionally, HARGD testified that there is a 94 percent
compliance rate with the battery exchange requirement at the
retail level.  The real problem, therefore, lies not with the
batteries currently being sold but rather with the batteries that
have been previously discarded into the environment.


 
 
                                 STAND. COM. REP. NO. 1055-00
                                 Page 2

 
     Accordingly, your Committee has amended this bill by
deleting its substance and inserting provisions found in H.B. No.
2012, H.D. 1, which was reported out earlier by your Committee.
These provisions establish a Used Battery Bounty Program
(Program) to address the problem of disposing of the current
supply of discarded batteries.

     Your Committee has further amended this bill by:

     (1)  Authorizing rather than requiring the DOH to establish
          the Program and deleting the requirement that DOH adopt
          rules;

     (2)  Allowing not more than $250,000 to be spent from the
          Environmental Response Revolving Fund to pay used
          battery collectors;

     (3)  Requiring battery importers or manufacturers to accept,
          at no additional cost, used batteries in the same
          number as those sold at any wholesale transaction, and
          requiring them to maintain appropriate records;

     (4)  Repealing the provisions of this bill in two years; and

     (5)  Making technical, nonsubstantive amendments for the
          purpose of consistency.

     It is the intent of your Committee to authorize the DOH to
operate the Program for a two-year period or until it has paid
out $250,000 to used battery collectors.

     As affirmed by the record of votes of the members of your
Committee on Energy and Environmental Protection that is attached
to this report, your Committee is in accord with the intent and
purpose of S.B. No. 2990, S.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 2990, S.D. 2, H.D. 1, and be referred to the
Committee on Finance.

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



                                   ______________________________
                                   HERMINA M. MORITA, Chair