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. 2516, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to extend the authorization deadline for issuing special purpose revenue bonds for projects on the Big Island from June 30, 2003 to June 30, 2007.

Furthermore, this measure authorizes the Department of Budget and Finance to issue refunding special purpose revenue bonds to refund the special purpose revenue bonds for those projects. Also, this measure eliminates related water production facilities from the scope of the projects for which the bonds are issued, leaving just cogeneration facilities.

Your Committee finds that the cogeneration facilities will produce electric energy that can be sold to electric utilities, which will make that energy available to the general public as well as manufacturing and processing enterprises.

Your Committee has amended this measure by changing the effective date from June 29, 2002 to "upon approval".

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. 2516, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2516, S.D. 2.