Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1405, H.D. 1, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish a preference in public contracts for the use of biofuels.

Your Committee finds that biofuel, an alternative energy source derived from plant material, is comparable in quality to conventional petroleum fuels and can be used for transportation, heating, and air-conditioning. Your Committee further finds that biodiesel, which is a type of biofuel, is a renewable energy source that has great potential, since it burns cleaner than its petroleum-based counterpart, produces much less air pollution, and diverts used cooking oil from landfills.

Your Committee finds that establishing a preference in public contracts for the use of biofuels, as provided in this measure, will provide an incentive for the State and counties to use alternative fuels that promote important state energy and environmental objectives and will further help the State to meet its goals of reducing its dependence on imported fossil fuels.

Your Committee has amended this measure by changing the effective date to make the bill defective in order to promote continuing discussion.

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 H.B. No. 1405, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1405, H.D. 1, S.D. 2.