Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Water, Land, Energy and Environment, to which was referred H.B. No. 369, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of up to $2,500,000 in special purpose revenue bonds to assist Environmental Recycling Technologies, Inc., in planning, design, construction, and operation of a used oil and petroleum waste-to-energy facility at Kapolei, Oahu.

Testimony in support of this measure was received from the Department of Health, Environmental Recycling Technologies, Inc., Hawaii Automotive Repair & Gasoline Dealers Association, and Hawaii Automobile Dealers' Association. The Department of Budget and Finance (B&F) submitted comments.

Your Committee finds that an estimated 750,000 gallons of used fuel oil is currently being shipped out of State because Hawaii lacks the technology to convert the used oil into a more serviceable diesel fuel product. The recycling facility proposed in this measure would convert those wasted resources into a useful commodity, and provide both economic and environmental benefits for the State.

Your Committee is supportive of this measure, but believes that B&F should issues these bonds only if proper environmental permits are in place for the project.

Your Committee has amended this measure to give B&F the authority to issue refunding special purpose revenue bonds at any time economically appropriate, including after the lapse date of this measure.

As affirmed by the record of votes of the members of your Committee on Water, Land, Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 369, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 369, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.