Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1595
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Energy and Environmental Protection, to
which was referred H.B. No. 1595 entitled: 


begs leave to report as follows:

     The purpose of this bill is to help resolve some of the
State's waste disposal problems.  This bill seeks to assist
Plasma Environmental Technologies (PET) in establishing one or
more waste processing facilities by authorizing the issuance of
$60,000,000 in special purpose revenue bonds.  Sites under
discussion include a $5,000,000 prototype facility on Oahu.  If
the prototype proves successful, it would be followed by a
$56,000,000 facility on Kauai.

     PET, Kauai Electric, and a Kauai County Council member
testified in support of this measure.

     It is your Committee's understanding that PET has a patent
for the thermal decomposition of waste through a plasma arc
system.  Through the use of extremely high heat, a variety of
wastes including tires, white goods, as well as household, toxic,
and medical wastes is melted in an environmentally sound manner.
By-products of this system include electricity, glass bricks, and
tiles.  Accordingly, Kauai Electric has a contract to purchase up
to 10 megawatts of energy from PET's proposed Kauai facility.

                                 STAND. COM. REP. NO. 465
                                 Page 2

     Your Committee finds that this proposed facility has the
potential to address a variety of serious disposal problems
facing the State, especially rapidly filling landfills and
medical waste disposal.  At the same time, assurances are needed
that the public, especially those residing close to the proposed
sites, has adequate opportunity to express its concerns regarding
the project.

     In the event that the proposed facility does not require the
preparation of an environmental impact statement (EIS) pursuant
to chapter 343, Hawaii Revised Statutes, your Committee has
amended this bill to require an EIS before special purpose
revenue bonds may be issued.

     Your Committee also had concerns about the eventual size of
the waste processing facility on Kauai as well as the temporary
storage and transporting of wastes.  Accordingly, your Committee
has specified that the waste processing facility on that island
only handle wastes generated within the County of Kauai.

     Finally, the Committee on Finance may want to stagger the
financing so that funding for the Kauai facility is contingent on
the success of the Oahu prototype facility.

     As affirmed by the record of votes of the members of your
Committee on Energy and Environmental Protection that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 1595, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
1595, H.D. 1, and be referred to the Committee on Finance.

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

                                   HERMINA M. MORITA, Chair