STAND. COM. REP. NO. 2606

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2166
                                        




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 S.B.
No. 2166 entitled: 

     "A BILL FOR AN ACT RELATING TO WIND FARMS,"

begs leave to report as follows:

     The purpose of this bill is to assist electricity producing
wind farms by allowing those farms to benefit from the State's
enterprise zone program.

     In addition, this bill provides an exemption from the
general excise tax for the sale of electric power to a public
utility for resale to the public.

     Your Committee finds that wind farms that produce
electricity provide a number of benefits to the State, including
reducing Hawaii's dependence on imported oil, reducing pollution,
and creating new jobs in the energy industry.  For example,
Kamao'a Wind Farm on the Big Island has the potential to reduce
the Hilo and Kona regions' dependency on oil by forty thousand
barrels annually, will pump $2,500,000 into the local economy,
and will provide a solid industrial base by providing invaluable
training and long-term employment to residents.

     Your Committee agrees with the intent of this bill, and
supports assistance to wind farms that produce electricity as a

 
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valuable and cost-effective renewable energy resource that will
help to invigorate Hawaii's economy.

     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 S.B. No.
2166 and recommends that it pass Third Reading.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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