Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2578, H.D. 1, S.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, to build a seawater air conditioning/thermal energy storage district cooling system on Oahu.

Your Committee finds that utilizing deep cold seawater as an efficient, renewable, and environmentally-sound source is an accepted means of cooling large buildings. This technology has been successfully utilized at Cornell University and provides air conditioning for the entire Cornell University campus.

This bill would provide the means to develop district cooling systems that would utilize large offshore pipelines to tap Hawaii's offshore cold water to cool entire city districts, such as downtown Honolulu, Kakaako, or Waikiki.

Your Committee has amended the bill by providing an effective date of February 29, 2010, for the purpose of promoting continuing discussion on the bill and by making technical, nonsubstantive changes for purposes of clarity and style.

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. 2578, 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. 2578, H.D. 1, S.D. 2.