STAND. COM. REP. NO. 262-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1928

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1928 entitled:

"A BILL FOR AN ACT RELATING TO DEPOSIT BEVERAGE CONTAINER RECYCLING,"

begs leave to report as follows:

The purpose of this measure is to repeal the Deposit Beverage Container Program and replace it with the Recycling Refund Producer Responsibility Organization Program.

Your Committee received testimony in support of this measure from the Chamber of Commerce Hawaii; Upstream; and two individuals. Your Committee received testimony in opposition to this measure from the American Beverage Association; Hawaii Liquor Wholesales Association; Hanada & Son Inc dba Aloha Shell Service; and one individual. Your Committee received comments on this measure from the Department of Health; Solid Waste Reduction Task Force of Hawaii Environmental Change Agents; Zero Waste Hawaiʻi Island; Hawaiʻi Reef and Ocean Coalition; Hawaii Food Industry Association; Container Recycling Institute; The Story of Stuff Project; Down to Earth; Mr. K's Recycle & Redemption Center Inc.; Cares; and two individuals.

Your Committee finds that over time the performance and convenience of the Deposit Beverage Container Program have declined. Your Committee recognizes that it is necessary to update this program to improve efficiency and performance, reduce burdens on retailers, and expand redemption opportunities for deposit beverage containers. Accordingly, this measure replaces the existing Deposit Beverage Container Program with a Recycling Refund Producer Responsibility Organization Program, which places certain responsibilities on producers to register with a producer responsibility organization that will develop and implement a plan for the recycling and redemption of deposit beverage containers.

Your Committee has amended this measure by:

(1) Amending the definitions of "dealer", "de minimus producer", and "producer" and inserting a definition for "redemption rate";

(2) Requiring producers to register with the Department of Health and implement producer responsibility plans individually;

(3) Amending the required contents of the producer responsibility program plan;

(4) Requiring the Department of Health, when deciding whether to approve a program plan, to consider whether the plan adequately addresses internal procedures and actions to prevent noncompliance;

(5) Expanding reporting requirements for producers that register with a producer responsibility organization, including de minimus producers, to include the manufacture of deposit beverages in deposit beverage containers and the importation and exportation of deposit beverage containers;

(6) Adding third party audit requirements;

(7) Adding requirements for the establishment of redemption centers and redemption rate goals;

(8) Subjecting violators to penalties and authorizing the Department of Health to conduct investigations and take enforcement actions;

(9) Adding a provision that requires certain percentages of the remaining balance of the Deposit Beverage Container Deposit Special Fund to be transferred to producers and producer responsibility organizations and to the general fund upon request of the fund;

(10) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

Your Committee notes that additional amendments will be needed to address the transition to the Recycling Refund Producer Responsibility Program.

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1928, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1928, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair