The "voluntary response program," to be administered by the Department of Health, would allow landowners, developers, and lenders to proceed with projects quickly if they agree to clean up contaminated sites. Administration officials hope the measure will speed both the cleanup of tainted land and redevelopment of idle sites.

Currently it can take years to assess contamination problems and get health department clearances in the cleanup of oil, gasoline, paint, or toxic chemicals often found at former industrial sites. Lenders are reluctant to finance projects on contaminated land because, under state law, they become "owner or operator" of the property and liable for the cleanup.

The bill, heard today in the House Energy & Environmental Protection Committee, and scheduled tomorrow in the Senate Health & Environment Committee, would waive the liability in exchange for a negotiated agreement to clean up the property.

"We see this as a way of expediting the cleanup of properties where it would not occur otherwise," said Bruce Anderson, deputy state health director for environmental health. "Right now there are a lot of commercial and industrial properties sitting vacant because of the reluctance of potential developers to incur liability in the development of those sites."

David Frankel, testifying for the Sierra Club, said the bill allows no public comment and could result in poor cleanup of contaminated sites. He called for public notice and possible public hearings for waiver applications. "There are numerous and glaring deficiencies that will weaken protection of Hawaii's residents from toxic contamination," he said.

David Young, speaking for Chevron Products Company, supported the bill's intent but said the waiver might not go far enough to protect all parties.

One area that could benefit from the program, Anderson said, is the Honolulu waterfront from Aloha Tower Marketplace to Keehi Lagoon, an industrial area heavily contaminated by leaking underground oil lines. The state has long-range plans to redevelop the area with parks, promenades and new businesses.

Other areas facing cleanup problems are Kakaako and the Mapunapuna business district.

Not all waiver applicants would qualify, Anderson noted, including "superfund" toxic cleanup sites, properties under government penalties, and sites that pose a serious threat to human health or the environment.

While polluted sites would still have to meet state and federal environmental standards, the waiver would ease investment worries.

Testifying in favor of the bill was Cindy Thompson, senior vice president at the Myers Corp. "The bill will provide greater certainty about the extent of liability that prospective purchasers, including developers and their lenders, will take on when they develop property," she said.

The Myers Corp., like other major developers in the Kakaako area, has had to deal with costly and time-consuming cleanups before proceeding with plans. Among its projects is Symphony Park on Ward Avenue and One Archer Lane on King Street.

One key provision of the bill, a $1,000 fee to be paid by applicants, would go into a revolving fund to pay for the program. Without adequate staffing, Anderson said, applications could become backlogged and defeat the purpose of the program.