STAND. COM. REP. NO. 3932

Honolulu, Hawaii

RE: H.B. No. 2399

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2399, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WASTE MANAGEMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to fund assessments of the counties' need for resources to reduce the volume of packaging waste sent to landfills and waste-to-energy plants.

Specifically, the measure:

(1) Requires producers of certain non-durable consumer goods and packaging items to register with the Department of Health;

(2) Requires each registered producer to pay an annual fee based on the volume of packaging placed by the producer in the market in the State;

(3) Establishes an extended producer responsibility special fund, into which the foregoing fees and other funds shall be deposited, and from which moneys shall be expended to fund county needs assessments and related responsibilities; and

(4) Appropriates moneys for fiscal year 2022-2023 into and out of the extended producer responsibility special fund for the county needs assessments; and

(5) Appropriates moneys to the Department of Health for state activities regarding waste management.

Your Committee received written comments in support of this measure from the Department of Health, Hawaii State Energy Office, Department of Environmental Management, County of Hawaii; a member of the Hawaii County Council; Department of Environmental Management, County of Maui; Apollo Kauai; Zero Waste Kauai; Chamber of Sustainable Commerce; Recycle Hawaii; Clean the Pacific; Climate Protectors Hawaii; Hawaii Reef and Ocean Coalition; a group of forty local Hawaii small business owners; Hilo Downtown Improvement Association; Zero Waste Hawaii Island; Kauai Women's Caucus; Urban Ore, Inc.; Big Island Reef Keepers Hui; Hawaii Wildlife Fund; Energy & Climate Action Committee, Environmental Caucus of the Democratic Party of Hawaii; 350Hawaii; SHARKastics; Hawaii Alliance for Progressive Action; Sustainable Coastlines Hawaii; Zero Waste Oahu; Surfrider Foundation Hawaii Region; Protea Zero Waste Store; and numerous individuals.

Your Committee received written comments in opposition to this measure from the Hawaii Restaurant Association, American Cleaning Institute, The Wine Institute, American Beverage Association, Hawaii Food Industry Association, The Household & Commercial Products Association, American Chemistry Council, Retail Merchants of Hawaii, Hawaii Crop Improvement Association, Chamber of Commerce Hawaii, Hawaii Farm Bureau, Foodservice Packaging Institute, Dole Food Company Hawaii, Hawaiian Host Group, Glass Packaging Institute, CropLife America, AMERIPEN, and two individuals.

Your Committee received written comments on this measure from the Department of Budget and Finance.

Your Committee finds that as the State strives to fulfill its commitments to reduce waste and mitigate the impacts of climate change, the entities that produce consumer goods should contribute to the costs of managing the waste that is generated from the sale of those goods.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2399, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair