Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Energy and Environment and Economic Development, to which was referred S.C.R. No. 168 entitled:

beg leave to report as follows:

The purpose of this measure is to request the Department of Business, Economic Development, and Tourism to review the feasibility of the State of Hawaii becoming a member of the Chicago Climate Exchange.

Your Committees received testimony in support of the measure from the Hawaii Renewable Energy Alliance. Your Committees received comments on the measure from the Department of Business, Economic Development, and Tourism.

Your Committees find that participation in the Chicago Climate Exchange could be a means of reducing carbon dioxide emissions and a source of economic development by trading credits in renewable electricity. Nevertheless, it may be preferable to focus limited state resources on those types of policies that will have a more direct impact on increasing the use of renewable energy in Hawaii.

Your Committees have amended the measure by removing its contents and replacing them with a measure calling for the Board of Land and Natural Resources to report to the Legislature on the progress of the Division of Boating and Ocean Recreation in addressing the Auditor's concerns in the 1998 and 2001 audits of the management of state boating facilities.

As affirmed by the records of votes of the members of your Committees on Energy and Environment and Economic Development that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 168, as amended herein, and recommend its adoption in the form attached hereto as S.C.R. No. 168, S.D. 1.