Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Energy and Environmental Protection, to which was referred S.B. No. 1561, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to authorize the issuance of $5,000,000 in special purpose revenue bonds for Central Kauai Sanitary Landfill, LLC.

Your Committee received testimony in support of this measure from Bob Awana, Managing Partner of Central Kauai Sanitary Landfill, LLC.

The Department of Budget and Finance, and the Attorney General's office, expressed concern over whether this project qualifies as a "processing" enterprise under state and federal law. Your Committee agrees that this issue must be addressed, and requests that in subsequent deliberations the Finance Committee obtain from Central Kauai Sanitary Landfill, LLC, proper assurance that it meets this statutory requirement.

Your Committee has amended the bill by:

(1) Deleting extraneous language in section 1, and

(2) Making technical, non-substantive amendments for purposes of clarity, consistency, and style.

Your Committee would like to note that by recommending that this measure pass Second Reading it is not conveying to the county any preference in the county's decision making process, including requests for proposals, permitting, or approval.

As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1561, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1561, S.D. 1, H.D. 1, and be referred to the Committee on Finance.