HB226 HD2 SD2 CD1
Report Title: Environmental Quality; Greenhouse Gas Emissions
Description: Establishes as state policy statewide greenhouse gas
emissions limits at or below the statewide greenhouse gas emissions
levels in 1990 to be achieved by January 1, 2020. Establishes
greenhouse gas emissions reduction task force to prepare a work plan
and regulatory scheme to achieve the statewide greenhouse gas emissions
limits.
A BILL FOR AN ACT RELATING TO GREENHOUSE GAS EMISSIONS. BE IT ENACTED
BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. (a) The legislature finds that the earth's
atmosphere is now warming at the fastest rate in recorded history, a
trend that is projected to cause extensive damage to forests, marine
ecosystems, and agriculture. Human communities are also
threatened by climate change as seas rise, storms become more intense,
and episodes of drought and flooding increase. The scientific
evidence is now compelling that recent climate change is caused at
least in part by human activities, especially the burning of fossil
fuels, which has driven atmospheric carbon dioxide concentrations to
their highest levels in four hundred twenty thousand years.
The legislature further finds that climate change poses a serious
threat to the economic well-being, public health, natural resources,
and the environment of Hawaii. The potential adverse effects of
global warming include a rise in sea levels resulting in the
displacement of businesses and residences and the inundation of
Hawaii’s freshwater aquifers, damage to marine ecosystems and the
natural environment, extended drought and loss of soil moisture, an
increase in the spread of infectious diseases, and an increase in the
severity of storms and extreme weather events.
On February 2, 2007, the Intergovernmental Panel on Climate Change, a
body established by the United Nations, released its fourth assessment
of the predicted impacts of global climate change. The panel
predicted temperature rises of up to eleven and a half degrees
fahrenheit by 2100 and a sea level rise of up to twenty-three inches,
with an additional 7.8 inches possible if current melting of the ice
sheets in Greenland and Antarctica continues.
Climate change will have detrimental effects on some of Hawaii's
largest industries, including tourism, agriculture, recreational,
commercial fishing, and forestry. It will also increase the
strain on electricity supplies necessary to meet the demand for air
conditioning during the hottest times of the year.
The State has long been a leader in environmental stewardship and is
endeavoring to lead the way in alternative renewable energy development
and use. It is the intent of the legislature that an air
pollution reduction program will continue the State's tradition of
environmental leadership by placing Hawaii among the nation's leaders
in efforts to effect a climate change policy. By reducing
emissions in Hawaii, this framework of action will serve as an example
to other states, the federal government, and other countries to protect
our fragile global environment. By investigating and pioneering
technologies that would best meet the unique needs of our island State
in achieving a 2020 statewide framework of action, Hawaii will also
position its economy, technology centers, financial institutions, and
businesses to benefit from national and international efforts to meet
this important policy.
Therefore, the legislature has outlined a plan of action of first:
(1) Declaring a policy, updating an existing statewide inventory
of emission; and then (2) Establishing a regulatory scenario
based on an analysis of approaches developed through the work plan of a
task force.
(b) Accordingly, the purpose of this Act is to: (1) Reduce,
by January 1, 2020, greenhouse gas emissions in the State to levels at
or below the best estimations and updates of the inventory of
greenhouse gas emissions estimates for 1990; and (2) Establish a
greenhouse gas emissions reduction task force to prepare a work plan
and regulatory scheme for implementing the maximum practically and
technically feasible and cost-effective reductions in greenhouse gas
emissions from sources or categories of sources of greenhouse gases to
achieve the statewide greenhouse gas emissions limits by 2020.
SECTION 2. Declaration of policy. By January 1, 2020, the
State of Hawaii shall reduce statewide greenhouse gas emissions to
levels at or below the best estimations and updates of the inventory of
greenhouse gas emissions estimates for 1990.
SECTION 3. By December 31, 2008, the department of business,
economic development, and tourism and the department of health shall
complete an updated inventory of emission sources or categories of
sources from the past report prepared by the department of business,
economic development, and tourism and the department of health,
entitled "Inventory of Hawaii Greenhouse Gas Emissions Estimates for
1990", dated July 1997; provided that at least one public hearing shall
be held prior to the completion of the updated inventory.
SECTION 4. Greenhouse gas emissions reduction task force.
There is established the greenhouse gas emissions reduction task force
within the department of business, economic development, and tourism
for administrative purposes only. The task force shall be
comprised of the following:
(1) Two members appointed by the
president of the senate from affected business sectors;
(2) Two members appointed by the speaker
of the house of representatives from affected business sectors;
(3) The deputy director of the
department of health's environmental health administration or the
deputy director's designee, who shall co-chair the task force;
(4) The director of business, economic
development, and tourism or the director's designee, who shall co-chair
the task force;
(5) Two members from the University of
Hawaii at Manoa climate change commission, selected by members of the
Commission;
(6) A member from an environmental
organization appointed by the speaker of the house of representatives;
and
(7) A member from an environmental
organization appointed by the president of the senate.
For the purposes of this section "affected business sector" refers to
the following business sectors: electrical utilities, refinery
operations, ground transportation industry, or maritime industry.
SECTION 5. Objective of the task force. (a) Before
December 1, 2009, the greenhouse gas emission reduction task force
shall prepare a work plan and regulatory scheme for implementing the
maximum practically and technically feasible and cost-effective
reductions in greenhouse gas emissions from sources or categories of
sources of greenhouse gases to achieve the statewide greenhouse gas
emissions limit as adopted in section 2 of this Act. For the
purposes of this Act, "cost-effective" is defined as being the cost per
unit of reduction. (b) Each member of the task force is
encouraged to commit as much time, expertise, and information as is
available to the individual member. (c) Confidential information
provided to the task force that is exempt from public disclosure under
section 92F-13(4), Hawaii Revised Statutes, shall be held in confidence
by the task force or aggregated to the extent necessary to ensure
confidentiality as required by chapter 92F, Hawaii Revised Statutes.
SECTION 6. Work plan. The work plan shall include but is
not limited to the following objectives:
(1) Consultation with all state agencies having jurisdiction over
sources of greenhouse gases, including the public utilities commission,
on all elements of its plan that pertain to energy-related matters,
including but not limited to: (A) Electrical generation;
(B) The provision of reliable and affordable electrical
service; (C) Petroleum refining; and (D) Statewide
fuel supplies, to ensure the greenhouse gas emissions reduction
activities to be adopted and implemented are complementary, minimize
duplication, and can be implemented in an efficient and cost-effective
manner.
(2) Identification and recommendations on: (A) Direct
emission reduction measures; (B) Alternative compliance
mechanisms; (C) Market-based compliance mechanisms; and
(D) Potential monetary and non-monetary incentives, for
sources and categories of sources that are necessary or desirable to
facilitate the achievement of the maximum feasible and cost-effective
reductions of greenhouse gas emissions by 2020;
(3) Consideration of relevant information pertaining to
greenhouse gas emissions reduction programs to ascertain progressive
efforts from other locations to postulate control mechanisms most
applicable to Hawaii. The task force may consult with other
states, the federal government, nongovernmental organizations, and, if
applicable, other nations to identify effective strategies and methods
to reduce greenhouse gases, manage greenhouse gas control programs, and
to facilitate the development of integrated and cost-effective
regional, national, and international greenhouse gas emission reduction
programs;
(4) Investigation and development of analytical tools, economic
models, or other scientific methods to evaluate the total potential
costs and total potential economic and non-economic benefits of the
plan for reducing greenhouse gases to the State's economy, environment,
and public health;
(5) Consideration of the relative contribution of each source or
source category to statewide greenhouse gas emissions and the potential
for adverse effects on small businesses, and recommendation of a
minimum threshold of greenhouse gas emissions below which emission
reductions requirements shall not apply;
(6) Identification of opportunities for emission reductions
measures from all verifiable and enforceable voluntary actions,
including but not limited to carbon sequestration projects and best
management practices;
(7) Examination and use of market-based compliance mechanisms to
achieve emission reductions and: (A) Consideration of the
potential for direct, indirect, and cumulative emission impacts from
these mechanisms, including localized impacts in communities that are
already adversely impacted by air pollution; (B) Design of any
market-based compliance mechanism to prevent any increase in the
emissions of toxic air contaminants or criteria air pollutants
identified by the Environmental Protection Agency; and (C)
Recommendations to maximize additional environmental and economic
benefits for Hawaii, as appropriate;
(8) Suggested rules governing how market-based compliance
mechanisms may be used by regulated entities subject to greenhouse gas
emission limits and mandatory emission reporting requirements to
achieve compliance with their greenhouse gas emissions limits;
(9) Suggested regulation to control mobile sources of greenhouse
gas emissions to achieve reductions in statewide greenhouse gas
emissions;
(10) Recommendations to minimize "leakage" or a reduction in
emissions of greenhouse gases within the State that is offset by an
increase in emissions of greenhouse gases outside the State;
(11) Review and recommendations of a schedule of fees to be paid
by the sources of greenhouse gas emissions regulated pursuant to this
Act;
(12) Implementation of a series of public workshops to give
interested parties an opportunity to comment on the work plan.
The task force shall conduct at least one of these workshops in each
county; and
(13) Review and revision of the work plan to achieve the maximum
technologically feasible and cost-effective reductions of greenhouse
gas emissions at least once every five years.
SECTION 7. Not less than twenty days prior to the convening of
the regular session of 2010 and every fifth regular session following
the regular session of 2010, the greenhouse gas emission reduction task
force shall submit to the legislature a copy of its work plan and
proposed regulatory scheme, along with any proposed legislation, and
any five year update to the work plan and proposed regulatory scheme,
for achieving the maximum practically and technically feasible and
cost-effective reductions in greenhouse gas emissions from sources or
categories of sources of greenhouse gases.
SECTION 8. Chapter 342B, Hawaii Revised Statutes, is amended by
adding a new part to be appropriately designated and to read as follows:
"PART . GREENHOUSE GAS EMISSIONS
§342B-A Statewide greenhouse gas emissions limit,
adoption. A statewide greenhouse gas emissions limit to be
achieved by 2020 is hereby established that is equal to or below the
level of the statewide greenhouse gas emissions in 1990, as determined
by section 3 of Act , Session Laws of Hawaii 2007; provided
that for the purposes of this Act greenhouse gas emissions from
airplanes shall not be included.
§342B-B Greenhouse gas emissions limits; rules.
(a) Before December 31, 2011, the director shall adopt rules
pursuant to chapter 91, Hawaii Revised Statutes:
(1) Establishing greenhouse gas emission limits applicable to
sources or categories of sources, to be achieved by January 1, 2020,
and establishing emission reduction measures to achieve the maximum
practically and technically feasible and cost-effective reductions in
greenhouse gas emissions in furtherance of achieving the statewide
greenhouse gas emissions limit; and
(2) Requiring the reporting and verification of statewide
greenhouse gas emissions and to monitor and enforce compliance with
this part, to become operative beginning on January 1, 2012.
(b) The director, to the extent feasible to achieve the statewide
greenhouse gas emissions limit, shall adopt rules pursuant to chapter
91, Hawaii Revised Statutes, and this section based upon the
recommendations and findings of the work plan created pursuant to
section 6 of Act , Session Laws of Hawaii 2007.
(c) Any rule adopted by the director pursuant to this section
shall ensure all of the following: (1) The greenhouse gas
emission reductions achieved are real, permanent, quantifiable,
verifiable, and enforceable by the director; and (2) If
applicable, the greenhouse gas emission reduction occurs over the same
time period and is equivalent in amount to any direct emission
reduction required pursuant to this part.
(d) The director shall periodically review and update state
emission reporting requirements and endeavor to make the requirements
consistent with the requirements of international, federal, and other
states' greenhouse gas emission reporting programs, as necessary.
(e) After January 1, 2012, the director may revise rules adopted
pursuant to this section and adopt additional rules to further this
part.
§342B-C Schedule of fees; establishment. The director
may adopt rules pursuant to chapter 91, Hawaii Revised Statutes, that
specify a schedule of fees to be paid by the sources of greenhouse gas
emissions regulated pursuant to this part. The revenues collected
pursuant to this section shall be deposited into the clean air special
fund established under section 342B-32, Hawaii Revised Statutes, to be
used for the purposes thereof."
SECTION 9. There is appropriated out of the general revenues of
the State of Hawaii the sum of $500,000 or so much thereof as may be
necessary for fiscal year 2007-2008 and the same sum or so much thereof
as may be necessary for fiscal year 2008-2009 for carrying out the
purposes of this Act, including the hiring of necessary staff. The sums
appropriated shall be expended by the department of business, economic
development, and tourism for the purposes of this Act.
SECTION 10. This Act does not affect rights and duties that
matured, penalties that were incurred, and proceedings that were begun,
before its effective date.
SECTION 11. If any provision of this Act, or the application
thereof to any person or circumstance is held invalid, the invalidity
does not affect other provisions or applications of the Act, which can
be given effect without the invalid provision or application, and to
this end the provisions of this Act are severable.
SECTION 12. In codifying the new sections added by section 8 of
this Act, the revisor of statutes shall substitute appropriate section
numbers for the letters used in designating the new sections in this
Act.
SECTION 13. In printing this Act, the revisor of statutes shall
substitute in sections 342B-A, 342B-B, and 342B-C, Hawaii Revised
Statutes, of section 8, the corresponding act number of this Act.
SECTION 14. This Act shall take effect on July 1, 2007.