Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred S.B. No. 1903, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to help reduce the state's dependence on fossil fuels by promoting the use of seawater air conditioning (SWAC) systems. Specifically, this bill exempts any person who owns, controls, operates, or manages, any SWAC district cooling project from Public Utilities Commission (PUC) regulations provided that at least 50 percent of the energy required to operate the SWAC district cooling system is provided by a renewable energy resource.

The Department of Commerce and Consumer Affairs and Honolulu Seawater Air Conditioning LLC testified in support of this bill. The Chairman of the PUC commented on this measure.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1903, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Energy & Environmental Protection.