Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Water, Land, Energy and Environment and Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2238 entitled:

beg leave to report as follows:

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

Testimony in support of this measure was received from the Wailuku River Hydroelectric Power Company, Inc. (Wailuku Hydro) and the Hawaii Renewable Energy Alliance.

The proceeds of the SPRBS would be used by the Power Company, or a partnership in which Wailuku Hydro is a general partner, to establish nonfossil fuel generating plants and related facilities. The electric output of these facilities would be required to make power available to the general public by sale to the Hawaii Electric Light Company, Inc. (HELCO).

Wailuku Hydro is a Hawaii corporation engaged in the development, ownership, and operation of renewable energy facilities in the State of Hawaii. Wailuku Hydro was previously successful with a 1991 project, involving a 12MW Wailuku River Hydropower Project (Project) near Hilo, which is an economic boon to Hilo. The sale of electricity to HELCO has avoided to date the importation of nearly 600,000 barrels of oil. In addition, the Project has saved thousands of tons of air pollutants and greenhouse gas emissions.

As affirmed by the records of votes of the members of your Committees on Water, Land, Energy and Environment and Commerce, Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2238 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.