Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1657, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to support the production of Hoku Scientific.

Specifically, this measure authorizes the issuance of special purpose revenue bonds to assist the company with planning, designing, constructing, and equipping facilities for its production of the company's core products.

Your Committee finds that Hoku Scientific is an early stage developer of fuel cell membrane technology and is committed to developing technologies that provide clean and efficient energy. This measure will allow the company to have access to capital for its highly specialized production processes.

To facilitate further discussion on this matter, your Committee amended this measure by changing the total amount of special purpose revenue bonds to be issued from $10,000,000 to an unspecified amount.

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. 1657, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1657, H.D. 1, S.D. 1.