Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Energy and Environment, to which was referred H.B. No. 2578, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds for Honolulu Seawater Air Conditioning LLC for the design and construction of a seawater air conditioning/thermal energy storage district cooling system in downtown Honolulu.

Testimony in support of the measure was submitted by Honolulu Seawater Air Conditioning LLC, Ocean Engineering & Energy Systems International, Inc., and Makai Ocean Engineering. The Manager and Chief Engineer of the Board of Water Supply submitted comments regarding the measure.

Your Committee finds that support for the development of renewable and efficient energy systems in the State is in the public interest. Such support is particularly warranted because Hawaii is geographically isolated from sources of oil and continues to be dependent on fossil fuels.

Your Committee amended the measure by correcting the defective effective date from July 1, 2010 to July 1, 2004.

As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2578, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2578, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.