Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2238 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds to assist in establishing nonfossil fuel generating plants and related facilities in Hilo.

Your Committee finds that the Wailuku River Hydroelectric Power Company, Inc. is engaged in the development of renewable energy projects. It is planning to sell the electricity it generates to Hawaii Electric Light Co., Inc. (HELCO), which is the electric utility that serves the county of Hawaii.

Your Committee finds that Wailuku River Hydroelectic Power Company created a successful hydropower project in 1991 in the area near Hilo, which sells its electricity to HELCO, as this endeavor also will do. Your Committee finds that this type of progressive energy project is appropriate and will save significantly on imported fuel, which not only keeps Hawaii money in the local economy, but provides an alternate source of some electricity in case of shipping delays for oil products.

Your Committee has amended the bill by specifying the type of special purpose revenue bonds – to assist industrial enterprises – that is authorized to be issued for this project.

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. 2238, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2238, S.D. 1.