STAND. COM. REP. NO. 2055

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2281
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred S.B. No. 2281 entitled: 

     "A BILL FOR AN ACT RELATING TO ENVIRONMENTAL IMPACT
     STATEMENTS,"

begs leave to report as follows:

     The purpose of this bill is to require regulated public
utilities to prepare environmental impact statements (EIS) by a
qualified environmental consultant retained under contract by the
office of environmental quality control in accordance with the
state procurement code.

     Testimony in favor of the measure was received from Na Leo
Pohai, Life of the Land, and one individual.  Testimony in
opposition to the measure was received from the Public Utilities
Commission, Hawaiian Electric Company, Inc., GTE, Wilson Okamoto
& Associates, Inc., R.M. Towill Corporation, and Kauai Electric
and the Gas Company.  Oral testimony in opposition was received
from the Environmental Center and one individual.  Comments were
received from the Office of Environmental Quality Control.

     Currently, a regulated utility may utilize any consultant to
prepare an environmental impact statement (EIS) including those
affiliated with the company.  Requiring a regulated utility to
procure the services of an independent consultant through the
State to prepare an EIS eliminates the appearance of any bias or
conflict of interest.  Your Committee is in agreement that this

 
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                                   STAND. COM. REP. NO. 2055
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measure provides a greater perception of integrity in the EIS
process.

     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2281 and recommends that it pass Second Reading and
be referred to the Committee on Commerce and Consumer Protection.

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



                                   ______________________________
                                   BOB NAKATA, Chair

 
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