STAND. COM. REP. NO. 2682

Honolulu, Hawaii

RE: S.B. No. 2658

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Health and Water and Land, to which was referred S.B. No. 2658 entitled:

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION TO FUND A GRANT TO THE BOARD OF WATER SUPPLY FOR EMERGENCY OPERATIONS, FUTURE PLANNING, AND GROUND WATER REMEDIATION,"

beg leave to report as follows:

The purpose and intent of this measure is to make an emergency appropriation from the leaking underground storage tank fund to the City and County of Honolulu Board of Water Supply for emergency operations, future planning, and remediation resulting from the contamination of the Southern Oahu Basal Aquifer; provided that the Department of Health seeks to enter into a memorandum of understanding with the United States Navy to reimburse the Department of Health for the full amount of the appropriation.

Your Committees received testimony in support of this measure from the City and County of Honolulu Board of Water Supply, League of Women Voters of Hawaii, and three individuals. Your Committees received comments on this measure from the Department of Health, Department of Land and Natural Resources, and Department of Budget and Finance.

Your Committees find that in November of 2021, petroleum was detected in the drinking water supply on Oahu resulting from a petroleum leak from the U.S. Navy's Red Hill Bulk Fuel Storage Facility. Since the contaminated drinking water was discovered, the City and County of Honolulu Board of Water Supply (BWS) and Department of Health have worked to address the consequences of the contamination, including water testing, remediation, and studying sites for future wells. This action has included closing the Halawa Shaft and both Halawa and Aiea wells, limiting BWS' ability to provide sufficient fresh water to its customers. BWS has expended a significant amount of funds on these efforts but lacks sufficient funding for emergency operations, future planning, and remediation. This measure makes an emergency appropriation to the City and County of Honolulu Board of Water Supply as a grant-in-aid for these operations.

Your Committees acknowledge the testimony of the Department of Health, which testified that its leaking underground storage tank fund has a $400,000 ceiling, $300,000 of which has already been encumbered.

Therefore, your Committees have amended this measure by:

(1) Changing the appropriation source from the leaking underground storage tank fund to the general fund;

(2) Inserting an effective date of January 1, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Health and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2658, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2658, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Water and Land,

________________________________ LORRAINE R. INOUYE, Chair

________________________________ JARRETT KEOHOKALOLE, Chair