STAND. COM. REP. NO. 3380

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2183
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 2183, H.D. 1, entitled:

     "A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL
     PURPOSE REVENUE BONDS TO ASSIST INDUSTRIAL ENTERPRISES,"

begs leave to report as follows:

     The purpose of this bill is to authorize the issuance of
special purpose revenue bonds to assist the Worldwide Energy
Group, Inc., in the planning, design, construction and operation
of the Hawaii Sugar Ethanol Project.

     Your Committee finds that ethanol is a clean, economical
additive to gasoline that can help reduce the State's dependence
of imported fuel oil.  Agricultural residue, green waste, and
municipal solid waste can be processed into fuel grade ethanol,
not only decreasing dependence on oil, but keeping the moneys in
the State that otherwise would have gone out of state for the
additional oil.  The Hawaii Sugar Ethanol Project will provide
the facilities necessary to produce the ethanol needed by the
State.

     Your Committee has amended the bill by adding a due
diligence requirement that requires the Department of Budget and
Finance to process the application for the bonds in accordance

 
a                                                     HB2183 SD1
 
 
 
                                   STAND. COM. REP. NO. 3380
                                   Page 2


with specified requirements and report to the Legislature before
the 2001 and 2002 regular sessions.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2183, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 2183, H.D.
1, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     HB2183 SD1