STAND. COM. REP. NO. 3162

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.C.R. No. 183
                                        




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

Sir:

     Your Committee on Economic Development, to which was
referred S.C.R. No. 183 entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF
     BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM TO CONDUCT A
     STUDY OF THE USE OF HYDROGEN AS A FUEL FOR TRANSPORTATION
     AND POWER GENERATION,"

begs leave to report as follows:

     The purpose of this measure is to request the Department of
Business, Economic Development, and Tourism (DBEDT) to study the
use of hydrogen as a fuel for transportation and power
generation.

     Your Committee received testimony in support of this measure
from DBEDT, Hawaiian Electric Company, and two private
individuals.

     Specifically this measure requests DBEDT to:

     (1)  Study incorporating hydrogen use in Hawaii's energy
          economy, including transportation and power generation;

     (2)  Examine the potential economic and environmental impact
          of hydrogen use in Hawaii;

     (3)  Assess the feasibility of incorporating existing and
          new technologies for hydrogen use and hydrogen
          infrastructure development in Hawaii;

 
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     (4)  Analyze the costs and benefits of incorporating large-
          scale hydrogen use into the State's energy economy; 

     (5)  Develop a preliminary feasibility assessment on the
          large scale use of hydrogen as a transportation fuel
          and for power generation; and

     (6)  Develop an estimate of the cost of conducting a
          comprehensive hydrogen study.

      The impetus to convert from oil to hydrogen as a fuel is
the potential of replacing imported oil for transportation and
energy purposes.  Because hydrogen is produced from water, it
represents a significant improvement over oil for use as fuel in
an island state such as Hawaii that must be cautious about an
over dependence on oil imports.

     Your Committee notes that there is currently a multi-phased
project being planned by the Hawaii Natural Energy Institute,
with the support of DBEDT, that will address the same issues that
are addressed in this measure.  Therefore, the study would not be
onerous for DBEDT.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee concurs with the intent and purpose of
S.C.R. No. 183, and recommends that it be referred to the
Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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