STAND. COM. REP. NO. 2710

Honolulu, Hawaii

RE:    S.B. No. 2526

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committees on Energy and Environment and Health, to which was referred S.B. No. 2526 entitled:

"A BILL FOR AN ACT RELATING TO AIR POLLUTION CONTROL,"

beg leave to report as follows:

     The purpose of this measure is to prohibit cruise ships from burning bunker fuel within five miles of Nawiliwili Harbor, in order to reduce air pollution affecting the Niumalu community.

     Testimony in support of this measure was submitted by the Office of Hawaiian Affairs; Sierra Club, Kaua‘i Group of the Hawaii Chapter; Malama Kaua‘i; and twenty-five private citizens.  Comments were submitted by the Director of Health; Department of Transportation; Princess Cruises and Holland America Line; Royal Caribbean International and Celebrity Cruises; and NCL America Inc., Hawaii Operations.

     Your Committees find that it is important to acknowledge the air pollution complaints of the Niumalu community, and to take meaningful action to address the situation.  However, to better understand the source of the pollutants and identify the most effective solutions available, the gathering of information is necessary before permanent legislative action is taken.

     The testimony of several cruise ship companies has suggested to your Committees that a switch to .5 per cent sulfur fuel may be effective in reducing odor and soot; and thus, in reducing the amount of air pollution caused by cruise ships affecting the Niumalu community.

     Accordingly, your Committees have amended this measure by:

     (1)  Replacing the content of the measure with a three-year pilot program to be established and implemented by the Department of Health, with results to be reported to the Legislature.  The program is designed to determine the current level of and health and environmental impact on the Niumalu community of air pollution caused by bunker fuel-burning cruise vessels docked or moored in Nawiliwili Harbor, and the effect of requiring cruise ships to switch to .5 per cent or lower sulfur fuels while docked or moored;

     (2)  Changing the effective date to July 1, 2050, to ensure further discussion and consideration; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2526, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2526, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Health,

____________________________ DAVID Y. IGE, Chair

____________________________ RON MENOR, Chair