600.

202
HEALTH & SAFETY
SUBSTANCE ABUSE POLICY
AUGUST 2015

1.0 Policy and Purpose Statement

1.1 The Company has a strong commitment to the health, safety and well-being of all
employees. Substance abuse, while at work or otherwise, seriously endangers the
safety of employees as well as the general public, and creates a variety of workplace
problems including increased injuries on the job, increased absenteeism, increased
health care and benefit costs, possible fatalities and/or property damage.

1.2 The Company prohibits the use, possession, transfer, sale, manufacture, and
distribution of narcotics, drugs or controlled substances while on Company property
(including all company owned or leased property, vehicles, equipment and parking
areas) or on the job away from Company property. The Company also prohibits the
use and possession of alcohol on Company property or on the job away from
Company property.

1.3 This policy, along with the Company’s Substance Abuse procedures, provides the
standards, monitoring activities, personal and organizational responsibilities to detect
and control substance abuse by Company employees. In addition, it provides
information for disciplinary action, return to duty criteria and voluntary assistance
programs.

2.0 Scope and Coverage

This policy applies to all full-time, part-time, temporary or regular employees of the
Company. Employees in positions covered by the FMCSA or PHMSA will be held to
Department of Transportation standards and/or subject to additional requirements.

All agency temporary workers, contractors, consultants, and vendors working for the
Company shall also abide by the Substance Abuse Policy and procedures while on
Company premises and/or while performing work for the Company. Non-compliance
with the Substance Abuse Policy and procedures may result in immediate removal from
Company premises, bar from future re-entry onto Company premises, and/or termination
of the contract and future contractual agreements.

600.202 Page 1 of 7 (rev 8/15)

CONFIDENTIAL – FOR INTERNAL USE ONLY. Any unauthorized distribution is prohibited.

Exhibit 1
3.0 Definitions

Term Definition
3.1 The Company Hawaiian Electric Company, Inc., and its
subsidiaries Maui Electric Company, Ltd., and
Hawai`i Electric Light Company, Inc.
3.2 FMCSA Federal Motor Carrier Safety Administration
3.3 PHMSA Pipeline and Hazardous Materials Safety
Administration
3.4 DOT Department of Transportation
3.5 Alcohol Any beverage with an alcoholic content,
including any medication containing alcohol
3.6 Controlled Substances For the purpose of this Policy, marijuana, cocaine,
opiates, amphetamines (including crystal
methamphetamine), and phencyclidine (PCP), and
any other substance hereafter recognized by the
U.S. Department of Health and Human Services,
U.S. FMCSA or PHMSA as a controlled
substance.
3.7 Driver Any position which requires the operation of a
Company vehicle. Operation of commercial
motor vehicles requires a Commercial Driver’s
License (CDL), which is subject to DOT
regulations.
3.8 Drug Any substance (other than alcohol, but including
paint and glue), whether legal or illegal, that is
capable of altering the mood, perception, pain
level, physical dexterity or judgment of the
individual consuming or using it.
3.9 Prescription Drug Any substance prescribed by a licensed medical
practitioner for the individual consuming it.
3.10 Reasonable Suspicion A good faith Company belief that the actions,
appearance, or conduct of an employee are
indicative of the use of alcohol, drugs and/or
controlled substance(s).

3.11 Substance Abuse A licensed physician, licensed or certified

Professional (SAP) psychologist, social worker, employee assistance
professional, or certified addiction counselor with
knowledge of and clinical experience in the
diagnosis and treatment of alcohol and illegal
drug-related disorders.

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CONFIDENTIAL – FOR INTERNAL USE ONLY. Any unauthorized distribution is prohibited.

4.0 Procedures
The procedures provide general guidelines to a safe, drug-free and alcohol-free working
environment. All employees will be subject to drug testing in accordance with Federal
and State DOT laws and regulations as well as Company policies. Drug/alcohol testing
may be conducted for the following purpose(s):

4.1 Pre-Employment - All external and internal applicants will be subject to Pre-
Employment DOT or non-DOT drug testing. Internal applicants for positions
governed by FMCSA or PHMSA will be subject to DOT drug testing at the time
of transfer.

4.2 Reasonable Suspicion – An employee will be tested for the use of drugs,
controlled substances and/or alcohol if reasonable suspicion exists. Once a
determination has been made that there is reason to require an employee to submit
to a reasonable suspicion drug and alcohol test, the employee shall be relieved
from duty and placed on administrative leave without pay until otherwise notified.

4.3 Criteria for Drug and Alcohol Testing - Any employee involved in a vehicle or
non-vehicle accident shall submit to drug and alcohol testing based on (but not
limited to) the following:

Vehicle accident resulting in an injury and/or fatality of self or another

person, injury requiring immediate medical care away from the scene,
and/or at least one vehicle being towed from the scene.
Non-vehicle accident resulting in fatality, or serious injury and illness (in-
patient hospitalization, amputations or loss of an eye).
All electrical contact / flash incidents which result in injury.
Assessment of employee’s fitness for duty
Any situation required by DOT for drivers covered under FMCSA

4.3.1 Alcohol Testing – Any employee who is requested by the Company to

submit to post-accident alcohol testing shall provide specimen(s) to be
tested pursuant to this policy as soon as possible, but no later than eight (8)
hours after the accident. Any employee who is seriously injured and
incapable of providing a specimen within these guidelines shall provide the
necessary authorization for obtaining hospital reports and other documents
that would indicate whether there was any alcohol in their system.

4.3.2 Drug Testing – The employee must submit to post accident drug testing as
soon as possible, but no later than thirty-two (32) hours after the accident.
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CONFIDENTIAL – FOR INTERNAL USE ONLY. Any unauthorized distribution is prohibited.

 If the employee is seriously injured and incapable of providing a specimen,
the Company will accept within thirty-two (32) hours other reports or
documentation from the hospital that would indicate whether there were
any drugs or controlled substances in the employee’s system.

4.4 Return-To-Duty Testing – Any employee who returns to active employment

status in any capacity at the Company after receiving an alcohol test result
indicating an alcohol concentration of 0.02 grams/210L or greater, and/or who
successfully undergoes treatment as recommended by the Company’s SAP shall
undergo a return to duty alcohol test at their own expense. Any employee who
returns to active employment status in any capacity at the Company after testing
positive for drugs pursuant to this Policy and successfully completes a
rehabilitation program shall undergo a return to duty drug test at their own
expense.

4.5 Fitness-for-Duty or Follow Up Testing – Any employee who returns to active

employment status in any capacity at the Company after testing positive for drugs
or after receiving an alcohol test result indicating an alcohol concentration of 0.04
grams/210L or greater and successfully completes a rehabilitation program shall be
subject to unannounced drug and/or alcohol testing scheduled solely at the
discretion of the Company.

4.6 Random Testing - (DOT covered employees only) – Testing will be in

accordance with State and/or Federal laws and regulations. Random drug and
alcohol tests will be unannounced and the dates will be randomly spread
throughout the year with the schedule at the sole discretion of the Company. The
employee shall be subject to a minimum of six (6) drug and/or alcohol tests over
the following twelve (12) months and may be subject to further follow-up tests, as
determined by the Company’s SAP and/or a properly designated Company
official.

4.7 Refusal To Test – If an employee refuses to be tested, the employee should be

warned that the refusal is an act of insubordination. Such refusal shall subject the
employee to disciplinary action up to and including termination of employment. A
refusal to test will be presumed and counted as a positive test result. Refusal
to test includes, but is not limited to:

Refusal to undergo testing

Refusal to sign consent forms
Failure to provide an adequate breath or urine specimen within a reasonable
time or without a valid medical reason

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CONFIDENTIAL – FOR INTERNAL USE ONLY. Any unauthorized distribution is prohibited.

 Failure to report for a scheduled appointment to provide a specimen
Adulteration of the specimen
Substitution of the specimen
Failure to cooperate with collection site personnel
Failure to comply with the recommendation of the SAP

4.8 Return-to-Duty – Employees who are suspended for violating the Company’s
Substance Abuse Policy will be allowed to return to duty upon written agreement
and satisfactory completion of the stipulations provided in the Substance Abuse
procedures.

4.9 Employee Assistance Program – Under the Employee Assistance Program

(EAP), employees and their families with a substance abuse problem can call the
current EAP provider located on each of the islands for assistance. The program
is personal and confidential. Initial problem assessment and counseling services
are provided at no cost to the employee. If further assistance is necessary, the
counselor will make referrals to the most appropriate outside agency. The
Company is committed to continually review this program in an effort to
determine which methods, procedures, and policies will most effectively enhance
the employee’s chances for successful rehabilitation.

5.0 Use of Legal and Prescription Drugs – Employees who are undergoing medical
treatment taking prescribed medication with a controlled substance must report this
treatment to his/her supervisor prior to beginning work, so that the supervisor may
determine, after consultation with the Corporate Health & Wellness Director (Hawaiian
Electric), Manager of Administration (Hawai’i Electric Light), or Human Resources
Director (Maui Electric), whether the employee can perform his/her assigned duties in a
safe and efficient manner. If the employee is not able to perform his/her assigned duties
in a safe and efficient manner because of prescription medication, it may be necessary to
reassign or relieve the employee from duty while on that medication/treatment.

5.1 Any possession of marijuana in any form including synthetic forms of marijuana, or
its use or presence in an employee’s body while at work or while on Company
premises, either with or without medical prescription, is prohibited by Company
rules and policies. This applies regardless of Hawaii State laws regarding
medically-prescribed possession and use of marijuana or synthetic forms. This
applies to employees and to all individuals who are on Company premises.

5.2 Failure to report the use of medically prescribed controlled substances (including
medical marijuana) may result in administrative and disciplinary action up to and
including termination of employment.

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CONFIDENTIAL – FOR INTERNAL USE ONLY. Any unauthorized distribution is prohibited.

6.0 Testing Methodology

6.1 Alcohol Test– Non-DOT testing will be administered using a blood test in
accordance with State of Hawaii requirements. DOT testing will be administered
using an Evidential Breathalyzer (EBT) in accordance with DOT regulations.

6.2 Drug Test - All drug tests will be administered using a urine test in accordance with
DOT and State of Hawaii requirements. Employees will be tested for the presence
of controlled substances (marijuana, cocaine, opiates, amphetamines including
crystal methamphetamines and phencyclidine (PCP).

7.0 Record Retention

All investigation records, reports, disciplinary actions, appeals and decisions shall be
maintained in accordance with the provisions of the Code of Conduct, Section 3,
Information, Records, Security and Company Property - Record Retention, and other
applicable Information Technology policies.

8.0 Discipline

Violations of this Substance Abuse Policy may result in disciplinary action up to and
including termination. Different standards may apply for positions covered by FMCSA
and PHMSA.

9.0 Training

All employees of the Company shall receive initial training of this Substance Abuse
Policy within 12 months of its effective date and the policy will be provided to all new
employees as part of their on-boarding process. This policy shall also be made part of the
recurring training program and made available to all agency temporary workers,
contractors, consultants, and vendors.

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CONFIDENTIAL – FOR INTERNAL USE ONLY. Any unauthorized distribution is prohibited.

10.0 Reporting Policy Violations

All employees of the Company must immediately report known, suspected, or potential
violations of this policy in accordance with the Corporate Code of Conduct, Part 15,
Guidance and Reporting Potential or Suspected Violations.

11.0 Related Company Policies and Procedures

11.1 Corporate Code of Conduct, dated December 11, 2014
11.2 Substance Abuse Program (revised 08/2013)
11.3 Discipline and Appeals Policy dated February 2014

12.0 Revision History

12.1 Prior version(s) February 2015 - Original

13.0 Review and Approval List

13.1 Preparer Wanya Ogata – Director, Health & Wellness
13.2 Review and Steven Newell –Manager, Safety, Security &
Recommend for Approval Facilities

Rhea Lee –Manager, Administration, Hawai`i

Electric Light

Eileen Wachi –Manager, Administration, Maui

Electric
13.3 Legal Review Lester Goo, Senior Associate General Counsel,
Legal

13.4 Approver: Patricia U. Wong – Senior Vice President,

Corporate Services

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CONFIDENTIAL – FOR INTERNAL USE ONLY. Any unauthorized distribution is prohibited.

SUBSTANCE
ABUSE
Policies and
Procedures

Effective: December 1,1986

Revised: August 1, 2015

For Internal Use Only

Exhibit 2
 SECTION 4

DRUG AND ALCOHOL

VIOLATIONS DISCIPLINE

For Internal Use Only

1. PRE-EMPLOYMENT TESTING (Drugs only)
External applicants who test positive for illegal substances shall not be considered for
employment. Such applicants may re-apply with the Company after six (6) months provided
that steps have been taken to ensure their drug-free status to the satisfaction of the Company.

Internal applicants for DOT-covered positions who test positive for illegal substances shall
be disqualified for the position applied for and will be immediately placed on disciplinary
suspension without pay for a minimum of thirty (30) days. The employee will be allowed to
return-to-duty upon written agreement to the requirements stated under “Return-to-Duty” in
this section. The employee may bid for subsequent jobs after six (6) months provided that
steps have been taken to ensure their drug-free status to the satisfaction of the Company.

2. REASONABLE SUSPICION OR POST-ACCIDENT TESTING

Drugs and 0.04+ Alcohol
Employees who test positive for illegal substances and/or who receive an alcohol test result
indicating an alcohol concentration of 0.04 grams/210L or greater under reasonable suspicion
or post-accident testing shall be terminated and will be subject to the “Re-employment”
provisions as stated in this section.

3. RANDOM TESTING
Drugs and 0.04+ Alcohol
Employees who are in positions covered under DOT drug and alcohol testing regulations
(CDL drivers and Pipeline covered positions) and who test positive for illegal substances
and/or test with an alcohol concentration of 0.04 grams/210L or greater under random testing
will be subject to a minimum 30-day suspension without pay. The employee will be subject to
the “Return-to-Duty” provisions as stated in this section.

REASONABLE SUSPICION, POST-ACCIDENT OR RANDOM TESTING

0.02 – 0.039 Alcohol

Covered employees who receive an alcohol test result indicating an alcohol concentration of
0.02 – 0.039 grams/210L are subject to the following discipline:

• 1st occurrence:
o 1-day suspension without pay
o Provide a Return-to-Duty alcohol test result of less than 0.02 grams/210L alcohol
concentration prior to returning to work. Test shall be at the employee’s expense.
*NOTE: Failure to provide <0.02 will move employee to next occurrence.

• 2nd occurrence within 3 years:

o 15-day (calendar) suspension without pay
o Provide a Return-to-Duty alcohol test result of less than 0.02 grams/210L alcohol
concentration prior to returning to work. Test shall be at the employee’s expense.
*NOTE: Failure to provide <0.02 will move employee to next occurrence.

For Internal Use Only 27