Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2878, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to encourage diversification of Hawaii's economy by authorizing the issuance of special purpose revenue bonds to assist Tradewinds Forest Products, LLC, to process eucalyptus timber on the Big Island by constructing a veneer mill and cogeneration facility.

Your Committee finds that a new veneer mill and cogeneration facility would benefit Hawaii's economy and help the State to meet its renewable energy goals.

Your Committee has amended this measure by changing the effective date of the measure to July 1, 2050, to facilitate further discussion.

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. 2878, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2878, H.D. 1, S.D. 1.