Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, 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 (SPRBs) to Honolulu Seawater Air Conditioning LLC (Honolulu Seawater) for plans, design, and construction of a seawater air conditioning (SWAC) district cooling system on Oahu.

Honolulu Seawater and the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs testified in support of this bill. 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. SWAC systems can also reduce the use of potable water and toxic chemicals. Your Committee believes issuing SPRBs to Honolulu Seawater can help to meet Hawaii's energy self-sufficiency goals.

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection 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 pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.