2021-08-25 EMC agenda item 5-b(1) - HB1316_TESTIMONY_EEP_02-09-21_

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February 9, 2021 The Honorable Nicole E. Lowen, Chair The Honorable Lisa Marten, Vice-Chair House Committee on Energy & Environmental Protection Hawaii State Capitol 415 South Beretania Street Honolulu, Hawaii 96813 Re: Statement in Opposition to House Bill 1316 Dear Representatives Lowen, Marten and Members of the Committee: On behalf of Hawaiian manufacturer Pacific Allied and the entire North American expanded polystyrene industry, please consider the following concerns we have with the current language of House Bill 1316. The Bill Will Hurt Hawaiian Non-Tourist Businesses. At a time when we are trying to diversify our economy to include more manufacturing in response to the Devastation from COVID-19, it does not make sense to further burden an industry that has been a good steward of our island and is deeply committed to protecting the health and environmental of Hawaii with fees, taxes and regulations that will not further protect the environment. Pacific Allied Recycles EPS and Makes Recycled Content Products. Recycling and recycled content is a critical part of our operations. The current bill will likely disrupt that by putting a layer of bureaucracy in between us and the people and companies who provide us material for recycling. Pacific Allied recycled about 215,000 pounds of EPS in 2019 (about 21% of our annual production). People can drop-off EPS material with us free-of-charge. We have also partnered with 9 Hawaiian companies to accept and process their EPS material. Pacific Allied Never Misled the Public About Recycling. The bill states that, “the plastic industry has misled the public,” about recycling. We have never misled the public about recycling. If you would like to learn about the recycling that is occurring right now and without a law, we would be glad to show you what we are doing in Kapolei. Pacific Allied Provides Stable, Good Paying Manufacturing Jobs. We have been in business in Kapolei since 1965 and currently employ 70 full-time workers. Pacific Allied manufactures and recycles expanded polystyrene (EPS) protective packaging and energy-efficient building materials. Our packaging is used by Hawaiian industries to ship products all over the world. Before going forward with this legislation in its present form, please consider the negative impact this will have on Hawaiian businesses all without improving the protection of our environment. Please contact me if you would like to learn more about our plant and our products. Respectfully submitted, PACIFIC ALLIED Fred Sylva General Manager Vice-President of Operations ISO 9001 & FSSC 22000 Certified Company Pacific Allied Products, Ltd. 91-118 Kaomi Loop Kapolei, HI 96707 Phone (808) 682-2038 Fax (808) 792-8535