STAND. COM. REP. NO. 1001

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1807

       H.D. 1

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committees on Energy and Environment and Transportation, International and Intergovernmental Affairs, to which was referred H.B. No. 1807, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO WATER QUALITY,"

 

beg leave to report as follows:

 

     The purpose of this measure is to enable Hawaii to receive and use moneys under the federal American Recovery and Reinvestment Act of 2009 and any later federal laws for drinking water or wastewater infrastructure.

 

     Testimony in support of the measure was submitted by six county departments or boards and four private organizations.  Testimony in support of the measure, with suggested amendments, was submitted by the Department of Health.  Written testimony presented to your Committees may be reviewed on the Legislature's website.

 

     Your Committees find that there are two revolving fund programs, the Drinking Water Fund, established under chapter 340E, Hawaii Revised Statutes, and the Revolving Fund, established in chapter 342D, Hawaii Revised Statutes, that currently loan funds to counties for the construction of publicly owned drinking water and wastewater infrastructure projects.  These two revolving funds were established pursuant to federal law, and function like environmental infrastructure banks by distributing low interest rate loans for water quality projects.  Loan repayments are recycled back into individual fund programs.  Because Congress had intended for these funds to revolve in perpetuity, neither program allows for loan subsidies and grants to be made to the counties.

 

     The American Recovery and Reinvestment Act of 2009, P.L. 111-5 (American Recovery and Reinvestment Act) will provide significant funding for wastewater and drinking water system improvements, totaling approximately $49,800,000.  The amendments in this measure are required to allow for loans to the counties with forgiveness of principal, zero or negative interest, and grants in order to permit these revolving fund programs to make grants and loan subsidies of funds from the American Recovery and Reinvestment Act funds.

 

     The Department of Health has also raised a related issue in testimony.  According to the Department of Health, an additional Total Maximum Daily Load Coordinator is required so that the Department of Health can properly and fully comply with federal water pollution control requirements in section 303 of the Clean Water Act of 1072 (P.L. 92-500), as amended.  According to the Department of Health, the State needs highly qualified and experienced Total Maximum Daily Load Coordinators to protect the State from water pollution and to carefully repair the damages incurred to minimize impacts on Hawaii residents and the State's economic environment.  This position is to be federally funded.

 

     Your Committees have amended this measure by:

 

     (1)  Adding the phrase "and other applicable federal acts" to the end of Section 2(c) and Section 3(c) of the measure, for consistency and to ensure that the State can take advantage of similar federal laws in the future;

 

     (2)  Inserting as a new part Section 1 of S.B. No. 934, S.D. 1, authorizing the Department of Health to establish not more than two exempt positions for Total Maximum Daily Loan Coordinators; and

 

     (3)  Making technical, nonsubstantive changes for style and consistency.

 

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Transportation, International and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1807, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1807, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Transportation, International and Intergovernmental Affairs,

 

____________________________

J. KALANI ENGLISH, Chair

 

____________________________

MIKE GABBARD, Chair