To allow the Director of Health to assess fees on air pollution
sources to mitigate the impact of their emissions. (HB2540 HD1)

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that current fees for air
 2 pollution control cover only the cost of administering the
 3 permits and ensuring that pollution sources do not exceed agreed-
 4 upon amounts.  There is no money dedicated to mitigate the actual
 5 release of dangerous greenhouse gases or other air pollutants.
 6 Fees imposed for this purpose could be used to improve the air
 7 quality in Hawaii through such measures as forestation projects
 8 and establishing a system to trade carbon credits, which would
 9 attract utilities outside Hawaii looking for those credits.
10      Additionally, wildland fires release large amounts of
11 pollutants into the air that can threaten people's health in the
12 affected areas.  An effective wildland fire protection program
13 can also help mitigate current carbon dioxide emissions by
14 maintaining and expanding the carbon bank that is sequestered in
15 Hawaii's forests rather than being destroyed by wildfires.
16      The purpose of this Act is to allow the director of health
17 to set and collect fees for the actual mitigation of greenhouse
18 gases released by covered sources, which can be used for such
19 purposes as creating carbon sinks through carbon off-set forestry
20 projects; establishing a system to trade carbon credits; wildland

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                                     H.B. NO.           H.D. 1

 1 fire prevention and suppression; and other air pollution control
 2 measures.
 3      SECTION 2.  Chapter 342B, Hawaii Revised Statutes, is
 4 amended by adding a new section to be appropriately designated
 5 and to read as follows:
 6      "342B-    Climate change special fund.  There is created a
 7 climate change special fund account into which shall be deposited
 8 all moneys collected pursuant to section 342B-12(11).  Moneys in
 9 this account may be used for the purpose of:
10      (1)  Reducing air pollution;
11      (2)  Addressing issues related to global climate change;
12      (3)  Reforestation and wildland fire prevention and
13           suppression;
14      (4)  Creating, managing, and accounting of carbon sinks
15           established through carbon-offset forestry projects;
16           and
17      (5)  Establishing carbon banks or other financial
18           instruments to expedite the trading of carbon credits
19           in Hawaii."
20      SECTION 3.  Section 342B-12, Hawaii Revised Statutes, is
21 amended by adding a new paragraph to read as follows:
22      "342B-12 Specific powers of the director.  The director
23 may:

Page 3                                                     2540
                                     H.B. NO.           H.D. 1

 1      (1)  Establish ambient air quality standards for the State
 2           as a whole or for any part thereof;
 3      (2)  Establish and administer any permit program;
 4      (3)  Establish by rule the control of open burning, fugitive
 5           dust, and visible emissions;
 6      (4)  Establish by rule the control of vehicular smoke
 7           emission and require the installation, use, and proper
 8           operation and maintenance of air pollution control
 9           equipment for motor vehicles;
10      (5)  Establish and administer a program of inspection and
11           testing of all modes of transportation except aircraft,
12           to enforce compliance with applicable emission
13           limitations when necessary and practicable, and to
14           control or limit the operation of motor vehicular and
15           other modes of transportation when the director finds
16           pursuant to standards established by rules such modes
17           of transportation are producing or pose an immediate
18           danger of producing unacceptable levels of air
19           pollution or when such control is necessary to meet
20           applicable ambient air quality standards;
21      (6)  Establish by rule other specific areas for control of
22           air pollution, thereby allowing for varying conditions;

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                                     H.B. NO.           H.D. 1

 1      (7)  Establish standards of performance or rules for
 2           existing, new, or modified stationary sources or adopt
 3           standards of performance for existing, new, or modified
 4           stationary sources as promulgated by the administrator;
 5      (8)  Establish maximum achievable control technology
 6           standards or rules for the control of hazardous air
 7           pollutants from existing, new, or modified sources or
 8           adopt maximum achievable control technology as
 9           promulgated by the administrator;
10      (9)  Establish rules for the prevention of significant
11           deterioration of air quality or adopt prevention of
12           significant deterioration regulations as promulgated by
13           the administrator;[and]
14      (10) Establish rules allowing for environmental permit
15           shields[.]; and
16      (11) Establish by rule, climate change fees for covered
17           sources to mitigate the impacts of global greenhouse
18           gas emissions, including but not limited to the
19           reasonable costs of:
20           (A)  Reducing air pollution;
21           (B)  Addressing issues related to global climate
22                change;

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                                     H.B. NO.           H.D. 1

 1           (C)  Reforestation and wildland fire prevention and
 2                suppression;
 3           (D)  Creating, managing, and accounting of carbon sinks
 4                established through carbon-offset forestry
 5                projects; and
 6           (E)  Establishing carbon banks or other financial
 7                instruments to expedite the trading of carbon
 8                credits in Hawaii."
 9      SECTION 4.  Statutory material to be repealed is bracketed.
10 New statutory material is underscored.
11      SECTION 5.  This Act shall take effect upon its approval.