SB 1109: RELATING TO THE ENVIRONMENTAL REVIEW PROCESS.

A BILL FOR AN ACT

relating to the environmental review process.

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

     SECTION 1.  Section 343-2, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition to be appropriately inserted and to read:

     ""Finding of completion of environmental disclosure process" means a determination based on the accepting agency's assessment that a final environmental assessment meets the technical standards for completeness pursuant to section 343-5 and rules adopted by the office under chapter 91, and therefore, the subject action shall not require the preparation of an environmental impact statement."

     2.  By repealing the definition of "finding of no significant impact".

     [""Finding of no significant impact" means a determination based on an environmental assessment that the subject action will not have a significant effect and, therefore, will not require the preparation of an environmental impact statement."]

     SECTION 2.  Section 343-5, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (c) to read:

     "(c)  For environmental assessments for which a finding of [no significant impact] completion of environmental disclosure process is anticipated:

     (1)  A draft environmental assessment shall be made available for public review and comment for a period of thirty days;

     (2)  The office shall inform the public of the availability of the draft environmental assessment for public review and comment pursuant to section 343-3;

     (3)  The agency shall respond in writing to comments received during the review and prepare a final environmental assessment to determine whether an environmental impact statement shall be required;

     (4)  A statement shall be required if the agency finds that the proposed action may have a significant effect on the environment; and

     (5)  The agency shall file notice of the determination with the office.  When a conflict of interest may exist because the proposing agency and the agency making the determination are the same, the office may review the agency's determination, consult the agency, and advise the agency of potential conflicts, to comply with this section.  The office shall publish the final determination for the public's information pursuant to section 343-3.

     The draft and final statements, if required, shall be prepared by the agency and submitted to the office.  The draft statement shall be made available for public review and comment through the office for a period of forty-five days.  The office shall inform the public of the availability of the draft statement for public review and comment pursuant to section 343‑3.  The agency shall respond in writing to comments received during the review and prepare a final statement.

     The office, when requested by the agency, may make a recommendation as to the acceptability of the final statement."

     2.  By amending subsection (e) to read:

     "(e)  Whenever an applicant proposes an action specified by subsection (a) that requires approval of an agency and that is not a specific type of action declared exempt under section 343‑6, the agency initially receiving and agreeing to process the request for approval shall require the applicant to prepare an environmental assessment of the proposed action at the earliest practicable time to determine whether an environmental impact statement shall be required; provided that if the agency determines, through its judgment and experience, that an environmental impact statement is likely to be required, the agency may authorize the applicant to choose not to prepare an environmental assessment and instead prepare an environmental impact statement that begins with the preparation of an environmental impact statement preparation notice as provided by rules.  The final approving agency for the request for approval is not required to be the accepting authority.

     For environmental assessments for which a finding of [no significant impact] completion of environmental disclosure process is anticipated:

     (1)  A draft environmental assessment shall be made available for public review and comment for a period of thirty days;

     (2)  The office shall inform the public of the availability of the draft environmental assessment for public review and comment pursuant to section 343-3; and

     (3)  The applicant shall respond in writing to comments received during the review and the applicant shall prepare a final environmental assessment to determine whether an environmental impact statement shall be required.  A statement shall be required if the agency finds that the proposed action may have a significant effect on the environment.  The agency shall file notice of the agency's determination with the office, which, in turn, shall publish the agency's determination for the public's information pursuant to section 343-3.

     The draft and final statements, if required, shall be prepared by the applicant, who shall file these statements with the office.

     The draft statement shall be made available for public review and comment through the office for a period of forty-five days.  The office shall inform the public of the availability of the draft statement for public review and comment pursuant to section 343-3.

     The applicant shall respond in writing to comments received during the review and prepare a final statement.  The office, when requested by the applicant or agency, may make a recommendation as to the acceptability of the final statement.

     The authority to accept a final statement shall rest with the agency initially receiving and agreeing to process the request for approval.  The final decision-making body or approving agency for the request for approval is not required to be the accepting authority.  The planning department for the county in which the proposed action will occur shall be a permissible accepting authority for the final statement.

     Acceptance of a required final statement shall be a condition precedent to approval of the request and commencement of the proposed action.  Upon acceptance or nonacceptance of the final statement, the agency shall file notice of the determination with the office.  The office, in turn, shall publish the determination of acceptance or nonacceptance of the final statement pursuant to section 343-3.

     The agency receiving the request, within thirty days of receipt of the final statement, shall notify the applicant and the office of the acceptance or nonacceptance of the final statement.  The final statement shall be deemed to be accepted if the agency fails to accept or not accept the final statement within thirty days after receipt of the final statement; provided that the thirty-day period may be extended at the request of the applicant for a period not to exceed fifteen days.

     In any acceptance or nonacceptance, the agency shall provide the applicant with the specific findings and reasons for its determination."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Environmental Review Process; Environmental Assessment; Environmental Impact Statement

Description:

Repeals the definition of "finding of no significant impact".  Defines "finding of completion of environmental disclosure process".  Makes conforming amendments.

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. 405

Honolulu, Hawaii

RE:    S.B. No. 1109

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Agriculture and Environment, to which was referred S.B. No. 1109 entitled:

"A BILL FOR AN ACT RELATING TO THE ENVIRONMENTAL REVIEW PROCESS,"

begs leave to report as follows:

     The purpose and intent of this measure is to repeal the definition of "finding of no significant impact", for purposes of environmental impact statements, and replace it with "finding of completion of environmental disclosure process".

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources and the Department of Planning and Permitting of the City and County of Honolulu.

     Your Committee received testimony in opposition to this measure from the Hawaii Regional Council of Carpenters.

     Your Committee received comments on this measure from the Office of Planning and Sustainable Development.

     Your Committee finds that the purpose of environmental assessments and environmental impact statements are to disclose information to the public.  Your Committee further finds that the role of an agency accepting a proposed project is to determine whether an environmental assessment of the project meets the technical standards for completeness under Hawaii's environmental impact statements law and related administrative rules, and, should the assessment meet those technical standards, process the document by issuing a finding of no significant impact to the Office of Planning and Sustainable Development, so that a more detailed and comprehensive environmental impact statement is not required.  Therefore, the issuance of a finding of no significant impact does not accurately reflect an agency's position of whether a proposed project would have a significant effect on the environment.  This measure therefore seeks to provide clarity to the environmental review process.

     As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1109 and recommends that it pass Second Reading and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,