Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1238 entitled:

begs leave to report as follows:

The purpose of this bill is to authorize the issuance of special purpose revenue bonds in a total amount not to exceed $48,000,000, for Honolulu Seawater Air Conditioning, LLC (Honolulu Seawater), for plans, design, and construction of a seawater air conditioning (SWAC) district cooling system on Oahu.

Testimony in support of this bill was received from the Department of Commerce and Consumer Affairs, Division of Consumer Advocacy and Honolulu Seawater. The Department of Budget and Finance provided comments.

Your Committee finds that SWAC systems' use of cold, deep seawater could provide more than 70 percent of the cooling load in air conditioning systems in Honolulu, and energy savings of 70 percent, or more, compared to conventional air conditioning systems. SWAC systems can also reduce the use of potable water and toxic chemicals for air conditioning.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1238 and recommends that it be referred to the Committee on Finance.