Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Water, Land, Energy and Environment, to which was referred S.B. No. 2516 entitled:

begs leave to report as follows:

The purpose of this measure is to amend Act 263, Session Laws of Hawaii (SLH) l993, and Act 135, SLH 1998, to extend the authorization to issue special purpose revenue bonds from June 30, 2003, to June 30, 2007, and to provide more flexibility in structuring the proposed business venture for Hui `Enekinia Hawai`i.

Testimony in support of this measure was received from Hui `Enekinia Hawai`i. One individual testified in opposition. The Department of Budget and Finance submitted comments.

Your Committee finds that the project is anticipated to be a waste-to-energy facility that would generate energy by combustion of refuse and wastes collected from both residential and commercial establishments on the Island of Hawaii. In addition, the thermal fluid output from the cogeneration facility would be utilized by existing and planned businesses.

Your Committee is supportive of this project and the attendant economic benefits to the surrounding communities. Your Committee has amended the measure to authorize the issuance of refunding special purpose revenue bonds and to reflect this addition the purpose section.

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 S.B. No. 2516, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2516, S.D. 1, and be referred to the Committee on Ways and Means.