PREPARING FOR EMERGENCIES

Hawaii’s remote geographic location makes it extremely important for the State to be prepared for disasters and emergencies.  As a result, the Lingle-Aiona Administration is building on last year’s emergency preparedness projects with additional proposals that will increase preparedness incentives and expedite recovery from natural and man-made disasters.

Enhancing Disaster Preparedness and Recovery

Hawaii’s disaster loan program helps businesses and homeowners get back on their feet after declared disasters by lending funds for necessary repair and recovery needs.  In an effort to increase Hawaii’s overall disaster readiness, the Lingle-Aiona Administration is proposing a bill that will extend the State disaster loan program to include loans for improvements that help minimize future property damage.  In addition to current loans available for equipment purchases and building repairs, this proposal will also make loans available for elevating flood-prone structures and installing wind resistive devices.  This bill also increases the maximum loan amount available to Hawaii homeowners from $35,000 to $50,000 and to Hawaii businesses from $75,000 to $100,000, to recognize rising recovery costs.

Under current law, each public utility must report to the PUC before it can lend or sell parts and equipment to utility users as a means of ensuring that services will not be disrupted.  However, in cases where quick action is needed, the approval process can hamper the restoration of operations and services, leading to possible public safety or economic consequences.  Aware of the toll emergencies and disasters can have on Hawaii’s residents and businesses, the Lingle-Aiona Administration is introducing a bill that will enhance the utility’s ability to quickly respond to disruptions in operations.

This proposal allows public utility companies to rapidly provide parts and equipment to others in an emergency without having to first seek approval from the Public Utility Commission (PUC), as long as the public utility’s own services will not be compromised and a report is filed with the PUC within thirty days showing good cause.  For example, during the floods of 2004 Hawaiian Electric Company wanted to loan University of Hawaii several generators but had to get PUC permission first.  This bill would allow them to loan the equipment and subsequently notify the PUC.

Protecting Property 

In order to provide a bigger incentive for homeowners to retrofit their homes against hurricanes and wind damage, the Lingle-Aiona Administration is proposing a tax credit to replace the existing Loss Mitigation Grant Program.  The grant program, which provides 35 percent of the costs up to a maximum of $2,100 for the use of wind resistive devices, will be replaced by a tax credit amounting to 35 percent of total costs for all wind resistive retrofits in a home.  Homeowners installing roof ties, foundation uplift restraint connections, or building residential safe rooms can claim the tax credit.  Moreover, if all of the credit is not claimed in one filing period, the balance can be claimed in subsequent years. 

The Administration is also proposing a bill that increases the coverage limit for hurricane property insurance from $750,000 to $1,000,000 for residential homes and from $500,000 to $750,000 for commercial properties.  The coverage limit has not been changed since 1993.  Since then, property values and construction costs have changed dramatically and this increase in coverage limits will better cover potential losses.

Price Gouging

Additionally, the Lingle-Aiona Administration proposes to prevent contractors and service providers from price-gouging when providing disaster recovery equipment and services to the State.  During the Kaloko Dam recovery period, some contractors were charging considerably higher prices for leasing equipment or providing labor.

Because disasters can cut the State’s available resources and capabilities, price-gouging will cause unnecessary challenges for disaster recovery efforts.  Accordingly, any charge greater than 20 percent of normal or usual federal equipment and services rates will be considered price-gouging and constitutes unfair business practices.  This initiative will help the State to recover from disasters without wasting taxpayers’ money.

Shelter In Place

Finally, because sheltering-in-place is a priority for the State, the Administration is proposing a bill that will provide incentives for care homes and schools to shelter their patients and students rather than send them home.  By exempting care homes and schools from reasonable civil liability for any accidental injury or death resulting from a disaster, more of Hawaii’s residents will be able to seek shelter where they are without causing congestion on the roads or overcrowding at officially designated shelters.  This initiative is an addition to existing law that already exempts hotels from civil liability when they provide visitors and customers shelter during emergencies and disasters.  The Civil Defense Office would work with schools and care homes to ensure their accommodations are satisfactory.