HB 376: Hawaii State Association of Counties Package; Upgrade, Conversion, or Connection of Cesspools; Accelerated Deadlines; Inventory Report; Legislature

A BILL FOR AN ACT

RELATING TO CESSPOOLS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the health of Hawaii's people and quality of Hawaii's waters are being harmed by pollution from cesspools.  Hawaii has more than eighty thousand cesspools that discharge approximately fifty million gallons of wastewater into the State's groundwater every day.  Cesspools are antiquated, substandard systems that damage public health; pollute drinking water; and lower water quality in streams, groundwaters, nearshore marine areas, and the ocean.  Cesspool pollution also harms public recreation and the precious coral reefs on which Hawaii's economy, shoreline, fisheries, and native species depend.

     Therefore, the purpose of this Act is to:

     (1)  Accelerate the deadlines for required upgrades, conversions, or connections of:

          (A)  The 13,821 priority level 1 cesspools in the State to 2035, with certain exceptions; and

          (B)  The 12,367 priority level 2 cesspools in the State to 2040; and

     (2)  Repeal the January 1, 2050, deadline for the upgrade, conversion, or connection of all remaining cesspools and instead require the director of health to prepare and submit to the legislature an inventory of every remaining cesspool in the State as of January 1, 2045, including cesspools that were granted exemptions by the director of health, recommending whether or not and by what date the cesspool should be upgraded, converted, or connected.

     SECTION 2.  Chapter 342D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§342D-     Cesspools; mandatory upgrade, conversion, or connection; priority level 1; priority level 2.  (a)  Every cesspool in the State designated as priority level 1 according to the university of Hawaii's Hawaii cesspool prioritization tool shall be:

     (1)  Upgraded or converted to a director-approved wastewater system; or

     (2)  Connected to a sewerage system,

before January 1, 2035; provided that priority level 1 cesspools on recreational residence leases within Kokee state park and Waimea canyon state park on the island of Kauai shall be upgraded, converted, or connected before January 1, 2040.

     (b)  Every cesspool in the State designated as priority level 2 according to the university of Hawaii's Hawaii cesspool prioritization tool shall be:

     (1)  Upgraded or converted to a director-approved wastewater system; or

     (2)  Connected to a sewerage system,

before January 1, 2040.

     (c)  The director may grant an exemption from the requirements of subsections (a) and (b) to the property owner of a cesspool who applies for an exemption and presents documentation showing a legitimate reason that makes it infeasible to upgrade, convert, or connect the cesspool.  For the purposes of this subsection, a legitimate reason shall include but not be limited to:

     (1)  Small lot size;

     (2)  Steep topography;

     (3)  Poor soils;

     (4)  Accessibility issues; or

     (5)  A planned development of sewerage upgrades to an area.

     (d)  The department may grant extensions of up to five years at a time from the requirements of subsections (a) and (b) based on demonstration of financial inability to pay for or finance a cesspool upgrade, conversion, or connection; provided that the department of health may adopt rules pursuant to chapter 91 necessary to implement this subsection.

     (e)  Notwithstanding any law to the contrary, no penalty or other assessment for any violation of this section shall constitute a lien on the real property.  Notwithstanding any law to the contrary, no seizure of real property shall be authorized for any violation of this section.

     (f)  As used in this section, "cesspool" has the same meaning as in section 342D-72."

     SECTION 3.  Section 342D-72, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  [Before] Except as otherwise provided in section 342D-   , before January 1, 2050, [every cesspool in the State, excluding cesspools granted exemptions by the director of health pursuant to subsection (b), shall] the director of health shall prepare and submit to the legislature an inventory of every remaining cesspool in the State as of January 1, 2045, including cesspools that were granted exemptions by the director of health pursuant to subsection (b), recommending whether or not and by what date the cesspool should be:

     (1)  Upgraded or converted to a director-approved wastewater system; or

     (2)  Connected to a sewerage system."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Hawaii State Association of Counties Package; Upgrade, Conversion, or Connection of Cesspools; Accelerated Deadlines; Inventory Report; Legislature

Description:

Accelerates the deadlines for the required upgrades, conversions, or connections of priority level 1 and priority level 2 cesspools to 2035 and 2040, respectively, and repeals the 1/1/2050 deadline for the upgrade, conversion, or connection of all remaining cesspools.  Before 1/1/2050, requires the Director of Health to prepare and submit to the Legislature an inventory of every remaining cesspool in the State as of 1/1/2045, including cesspools that were granted exemptions by the Director of Health, recommending whether or not and by what date the cesspool should be:  (1) Upgraded or converted to a Director-approved wastewater system; or (2) Connected to a sewerage system.  Effective 7/1/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO CESSPOOLS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the health of Hawaii's people and quality of Hawaii's waters are being harmed by pollution from cesspools.  Hawaii has more than eighty thousand cesspools that discharge approximately fifty million gallons of wastewater into the State's groundwater every day.  Cesspools are antiquated, substandard systems that damage public health; pollute drinking water; and lower water quality in streams, groundwaters, nearshore marine areas, and the ocean.  Cesspool pollution also harms public recreation and the precious coral reefs on which Hawaii's economy, shoreline, fisheries, and native species depend.

     The purpose of this Act is to accelerate the deadlines for required upgrades, conversions, or connections of:

     (1)  The 13,821 priority level 1 cesspools in the State to 2035, with certain exceptions; and

     (2)  The 12,367 priority level 2 cesspools in the State to 2040.

     SECTION 2.  Chapter 342D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§342D-     Cesspools; mandatory upgrade, conversion, or connection; priority level 1; priority level 2.  (a)  Every cesspool in the State designated as priority level 1 according to the university of Hawaii's Hawaii cesspool prioritization tool shall be:

     (1)  Upgraded or converted to a director-approved wastewater system; or

     (2)  Connected to a sewerage system,

before January 1, 2035; provided that priority level 1 cesspools on recreational residence leases within Kokee state park and Waimea canyon state park on the island of Kauai shall be upgraded, converted, or connected before January 1, 2040.

     (b)  Every cesspool in the State designated as priority level 2 according to the university of Hawaii's Hawaii cesspool prioritization tool shall be:

     (1)  Upgraded or converted to a director-approved wastewater system; or

     (2)  Connected to a sewerage system,

before January 1, 2040.

     (c)  The director may grant an exemption from the requirements of subsections (a) and (b) to the property owner of a cesspool who applies for an exemption and presents documentation showing a legitimate reason that makes it infeasible to upgrade, convert, or connect the cesspool.  For the purposes of this subsection, a legitimate reason shall include but not be limited to:

     (1)  Small lot size;

     (2)  Steep topography;

     (3)  Poor soils;

     (4)  Accessibility issues; or

     (5)  A planned development of sewerage upgrades to an area.

     (d)  The department may grant extensions of up to five years at a time from the requirements of subsections (a) and (b) based on demonstration of financial inability to pay for or finance a cesspool upgrade, conversion, or connection; provided that the department of health may adopt rules pursuant to chapter 91 necessary to effectuate the purposes of this subsection.

     (e)  Notwithstanding any law to the contrary, no penalty or other assessment for any violation of this section shall constitute a lien on the real property.  Notwithstanding any law to the contrary, no seizure of real property shall be authorized for any violation of this section.

     (f)  As used in this section, "cesspool" has the same meaning as in section 342D-72."

     SECTION 3.  Section 342D-72, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  [Before] Except as otherwise provided in section 342D-   , before January 1, 2050, every cesspool in the State, excluding cesspools granted exemptions by the director of health pursuant to subsection (b), shall be:

     (1)  Upgraded or converted to a director-approved wastewater system; or

     (2)  Connected to a sewerage system."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Hawaii State Association of Counties Package; Upgrade, Conversion, or Connection of Cesspools; Accelerated Deadlines

Description:

Accelerates the deadlines for the required upgrades, conversions, or connections of priority level 1 and priority level 2 cesspools to 2035 and 2040, respectively.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO CESSPOOLS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

     SECTION 1.  The legislature finds that the health of Hawaii's people and quality of Hawaii's waters are being harmed by pollution from cesspools.  Hawaii has more than eighty thousand cesspools that discharge approximately fifty million gallons of wastewater into the State's groundwater every day.  Cesspools are antiquated, substandard systems that damage public health; pollute drinking water; and lower water quality in streams, groundwaters, nearshore marine areas, and the ocean.  Cesspool pollution also harms public recreation and the precious coral reefs on which Hawaii's economy, shoreline, fisheries, and native species depend.

     The purpose of this Act is to implement various recommendations of the working group established by Act 132, Session Laws of Hawaii 2018, including:

     (1)  Accelerating the dates for required upgrades, conversions, or connections of:

          (A)  The 13,821 priority level 1 cesspools in the State to 2035, with certain exceptions; and

          (B)  The 12,367 priority level 2 cesspools in the State to 2040;

     (2)  Appropriating moneys to provide financing assistance via the cesspool compliance pilot grant project established pursuant to Act 153, Session Laws of Hawaii 2022; and

     (3)  Establishing a cesspool upgrade, conversion, or connection income tax credit.

PART II

     SECTION 2.  Chapter 342D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§342D-     Cesspools; mandatory upgrade, conversion, or connection; priority level 1; priority level 2.  (a)  Every cesspool in the State designated as priority level 1 according to the university of Hawaii's Hawaii cesspool prioritization tool shall be:

     (1)  Upgraded or converted to a director-approved wastewater system; or

     (2)  Connected to a sewerage system,

before January 1, 2035; provided that priority level 1 cesspools on recreational residence leases within the Kokee state park and Waimea canyon state park on the island of Kauai shall be upgraded, converted, or connected before January 1, 2040.

     (b)  Every cesspool in the State designated as priority level 2 according to the university of Hawaii's Hawaii cesspool prioritization tool shall be:

     (1)  Upgraded or converted to a director-approved wastewater system; or

     (2)  Connected to a sewerage system,

before January 1, 2040.

     (c)  The director may grant an exemption from the requirements of subsections (a) and (b) to the property owner of a cesspool who applies for an exemption and presents documentation showing a legitimate reason that makes it infeasible to upgrade, convert, or connect the cesspool.  For the purposes of this subsection, a legitimate reason shall include but not be limited to:

     (1)  Small lot size;

     (2)  Steep topography;

     (3)  Poor soils;

     (4)  Accessibility issues; or

     (5)  A planned development of sewerage upgrades to an area.

     (d)  The department may grant extensions of up to five years at a time from the requirements of subsections (a) and (b) based on demonstration of financial inability to pay for or finance a cesspool upgrade, conversion, or connection; provided that the department of health may adopt rules pursuant to chapter 91 necessary to effectuate the purposes of this subsection.

     (e)  Notwithstanding any law to the contrary, no penalty or other assessment for any violation of this section shall constitute a lien on the real property.  Notwithstanding any law to the contrary, no seizure of real property shall be authorized for any violation of this section.

     (f)  As used in this section, "cesspool" has the same meaning as in section 342D-72."

     SECTION 3.  Section 342D-72, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  [Before] Except as otherwise provided in section 342D-   , before January 1, 2050, every cesspool in the State, excluding cesspools granted exemptions by the director of health pursuant to subsection (b), shall be:

     (1)  Upgraded or converted to a director-approved wastewater system; or

     (2)  Connected to a sewerage system."

PART III

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $          or so much thereof as may be necessary for fiscal year 2025-2026 to implement the cesspool compliance pilot grant program established pursuant to Act 153, Session Laws of Hawaii 2022.

     The sum appropriated shall be expended by the department of health for the purposes of this part.

PART IV

     SECTION 5.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§235-     Cesspool upgrade, conversion, or connection; income tax credit.  (a)  There shall be allowed to each taxpayer subject to the tax imposed under this chapter a cesspool upgrade, conversion, or connection income tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

     (b)  In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for qualified expenses incurred by the entity for the taxable year.  The expenses upon which the tax credit is computed shall be determined at the entity level.  Distribution and share of credit shall be determined by rule.

     (c)  The cesspool upgrade, conversion, or connection income tax credit shall be equal to the qualified expenses of the taxpayer, up to a maximum of $10,000; provided that, in the case of a qualified cesspool that is a residential large capacity cesspool, the amount of the credit shall be equal to the qualified expenses of the taxpayer, up to a maximum of $10,000 per residential dwelling connected to the cesspool, as certified by the department of health pursuant to subsection (e).  There shall be allowed a maximum of one cesspool upgrade, conversion, or connection income tax credit per qualified cesspool.  The cesspool upgrade, conversion, or connection income tax credit shall be available only for the taxable year in which the taxpayer's qualified expenses are certified by the department of health.

     (d)  The total amount of tax credits allowed under this section shall not exceed $          for all taxpayers in any taxable year; provided that any taxpayer who is not eligible to claim the credit in a taxable year due to the $          cap being reached for that taxable year shall be eligible to claim the credit in the subsequent taxable year.

     (e)  The department of health shall:

     (1)  Certify all qualified cesspools for the purposes of this section;

     (2)  Collect and maintain a record of all qualified expenses certified by the department of health for the taxable year; and

     (3)  Certify to each taxpayer the amount of credit the taxpayer may claim; provided that if, in any year, the annual amount of certified credits reaches $           in the aggregate, the department of health shall immediately discontinue certifying credits and notify the department of taxation.

The director of health may adopt rules under chapter 91 as necessary to implement the certification requirements under this section.

     (f)  The director of taxation:

     (1)  Shall prepare any forms that may be necessary to claim a tax credit under this section;

     (2)  May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and

     (3)  May adopt rules under chapter 91 necessary to effectuate the purposes of this section.

     (g)  If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.  All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed.  Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

     (h)  As used in this section:

     "Cesspool" has the same meaning as in section 342D-72.

     "Qualified cesspool" means a cesspool that is:

     (1)  Certified by the department of health to be:

          (A)  Located within a priority level 1 or 2 area according to the university of Hawaii's 2022 Hawaii cesspool hazard assessment and prioritization tool; or

          (B)  A residential large capacity cesspool; or

     (2)  Certified by a county or private sewer company to be appropriate for connection to its existing sewerage system.

     "Qualified expenses" means costs that are necessary and directly incurred by the taxpayer for upgrading or converting a qualified cesspool to a director of health-approved wastewater system, or connecting a qualified cesspool to a sewerage system, and that are certified as such by the department of health.

     "Residential large capacity cesspool" means a cesspool that is connected to more than one residential dwelling.

     "Sewerage system" has the same meaning as in section 342D‑1.

     "Wastewater" has the same meaning as in section 342D-1."    SECTION 6.  Section 23-92, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  This section shall apply to the following:

     (1)  Sections 235-12.5 and 241-4.6--Credit for renewable energy technology system installed and placed in service in the State.  For the purpose of section 23‑91(b)(5), this credit shall be deemed to have been enacted for an economic benefit; [and]

     (2)  Section 235-17--Credit for qualified production costs incurred for a qualified motion picture, digital media, or film production[.]; and

     (3)  Section 235-   --Credit for cesspool upgrade, conversion, or connection."

     SECTION 7.  Section 23-94, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  This section shall apply to the following:

     (1)  Section 235-4.5(a)--Exclusion of intangible income earned by a trust sited in this State;

     (2)  Section 235-4.5(b)--Exclusion of intangible income of a foreign corporation owned by a trust sited in this State;

     (3)  Section 235-4.5(c)--Credit to a resident beneficiary of a trust for income taxes paid by the trust to another state;

     (4)  Sections 235-55 and 235-129--Credit for income taxes paid by a resident taxpayer to another jurisdiction;

     (5)  Section 235-71(c)--Credit for a regulated investment company shareholder for the capital gains tax paid by the company;

     (6)  Section 235-110.6--Credit for fuel taxes paid by a commercial fisher;

     (7)  Section 235-110.93--Credit for important agricultural land qualified agricultural cost;

    [(8)  Section 235-110.94--Credit for organically produced agricultural products;

     (9)] (8)  Section 235-129(b)--Credit to a shareholder of an S corporation for the shareholder's pro rata share of the tax credit earned by the S corporation in this State; and

   [(10)] (9)  Section 209E-10--Credit for a qualified business in an enterprise zone; provided that the review of this credit pursuant to this part shall be limited in scope to income tax credits."

     SECTION 8.  Section 23-95, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  This section shall apply to the following:

     (1)  Section 235-5.5--Deduction for individual housing account deposit;

     (2)  Section 235-7(f)--Deduction of property loss due to a natural disaster;

    [(3)  Section 235-16.5--Credit for cesspool upgrade, conversion, or connection;

     (4)] (3)  Section 235-19--Deduction for maintenance of an exceptional tree;

    [(5)] (4)  Section 235-55.91--Credit for the employment of a vocational rehabilitation referral;

    [(6)] (5)  Section 235-110.2--Credit for in-kind services contribution for public school repair and maintenance; and

    [(7)] (6)  Sections 235-110.8 and 241-4.7--Credit for ownership of a qualified low-income housing building."

PART V

     SECTION 9.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 10.  This Act shall take effect upon its approval; provided that:

     (1)  Section 4 shall take effect on July 1, 2025; and

     (2)  Part IV shall apply to taxable years beginning after December 31, 2024.

Report Title:

Hawaii State Association of Counties Package; Upgrade, Conversion, or Connection of Cesspools; Tax Credit; Appropriation

Description:

Accelerates the dates for the required upgrades, conversions, or connections of priority level 1 and priority level 2 cesspools to 2035 and 2040, respectively.  Appropriates funds to implement the cesspool compliance pilot grant program.  Re-establishes a cesspool upgrade, conversion, or connection tax credit.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  453-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 376

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Water & Land, to which was referred H.B. No. 376, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CESSPOOLS,"

begs leave to report as follows:

     The purpose of this measure is to accelerate the deadlines for the required upgrades, conversions, or connections of priority level 1 and priority level 2 cesspools to 2035 and 2040, respectively.

     Your Committee received testimony in support of this measure from the University of Hawaiʻi Sea Grant College Program and Water Resources Research Center; one member of the Hawaiʻi County Council; Hawaiʻi Reef and Ocean Coalition; CARES | Community Advocacy Research Education Services; and one individual.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from the Department of Health and Hawaiʻi Association of REALTORS.

     Your Committee finds that the conversion of cesspools forms a pivotal component of the State's broader strategy to address water-quality issues, promote a cleaner and healthier environment for current and future generations, and avoid the compounding effects that climate change will have on Hawaii's already-strained resources.  Your Committee further finds that this measure would accelerate the deadline of cesspool conversion, regardless of their priority level, and therefore strengthen the protection of human and environmental health as well as reduce the potential for increased challenges associated with the use of cesspools.

     Your Committee has amended this measure by:

     (1)  Instead of requiring that before January 1, 2050, every cesspool in the State, excluding cesspools granted exemptions by the Director of Health for certain reasons, be upgraded, converted, or connected, requiring the Director of Health to prepare and submit to the Legislature an inventory of every remaining cesspool in the State as of January 1, 2045, including exempted cesspools, recommending whether or not and by what date the cesspool should be upgraded or converted to a Director-approved wastewater system or connected to a sewerage system; and

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

     As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 376, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 376, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

STAND. COM. REP. NO.  106

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 376

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 376 entitled:

"A BILL FOR AN ACT RELATING TO CESSPOOLS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Accelerate the deadlines for required upgrades, conversions, or connections of:

          (A)  The 13,821 priority level 1 cesspools in the State to 2035, with certain exceptions; and

          (B)  The 12,367 priority level 2 cesspools in the State to 2040;

     (2)  Appropriate funds for the Cesspool Compliance Pilot Grant Program; and

     (3)  Re-establish a Cesspool Upgrade, Conversion, or Connection Income Tax Credit.

     Your Committee received testimony in support of this measure from Department of Hawaiian Home Lands; Hawaii Green Infrastructure Authority; one member of the Kauaʻi County Council; one member of the Hawaiʻi County Council; Hawaiʻi Reef and Ocean Coalition; Hawaiʻi State Association of Counties; The Nature Conservancy Hawaiʻi and Palmyra; Hawaiʻi Wai Ola; WAI:  Wastewater Alternatives & Innovations; and one individual.  Your Committee received comments on this measure from the Department of the Attorney General; Department of Health; Hawaiʻi Association of REALTORS; and Tax Foundation of Hawaii.

     Your Committee finds that cesspools are antiquated, substandard systems that pollute Hawaii's waters and contribute to environmental harm across the State.  Your Committee further finds that the State must expedite its efforts to upgrade, convert, or connect certain cesspools.  This measure addresses this need by accelerating the deadlines for the required upgrades, conversions, or connections of priority level 1 and priority level 2 cesspools to 2035 and 2040, respectively.

     Your Committee has amended this measure by:

     (1)  Removing the appropriation for the Cesspool Compliance Pilot Grant Program;

     (2)  Removing the Cesspool Upgrade, Conversion, or Connection Income Tax Credit;

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

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

     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. 376, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 376, H.D. 1, and be referred to your Committee on Water & Land.

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