Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 750 entitled:

begs leave to report as follows:

The purpose of this measure is to allow the Department of Transportation to negotiate a lease for the existing fuel storage facility at Nawiliwili Harbor.

Your Committee heard testimony in support of the measure from the Department of Transportation. Comments were provided by the Board of Land and Natural Resources.

Your Committee finds that the economy of Kauai will be greatly affected if the supply of jet fuel to Lihue Airport is disrupted. The issuance of a new thirty-five year lease direct to Equilon will allow Equilon to continue storage of Tesoro's jet fuel.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 750 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.