Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Water, Land, and Agriculture and Energy, Environment, and International Affairs, to which was referred S.B. No. 1006 entitled:

beg leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds to Honolulu Seawater Air Conditioning for the design and construction of a chilled water distribution system.

Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs and Honolulu Seawater Air Conditioning. Comments were also submitted by the Department of Budget and Finance and City and County of Honolulu Board of Water Supply.

Seawater air conditioning district cooling systems are a renewable energy technology that has the potential to provide a contribution to Hawaii's renewable portfolio standard requirements. Your Committees find that support for the development of renewable and efficient energy systems in the State is in the public's interest. Thus, this measure will authorize the issuance and refunding of special purpose revenue bonds to assist the seawater air conditioning projects in constructing more economically feasible systems.

As affirmed by the records of votes of the members of your Committees on Water, Land, and Agriculture and Energy, Environment, and International Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1006 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.