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 S.B. No. 3168 entitled:

begs leave to report as follows:

The purpose of this measure is to allow the counties to grant, sell, or otherwise dispose of easements for chilled water and seawater distribution systems for renewable energy seawater air conditioning district cooling systems by negotiation without public auction.

Your Committee understands that currently, easements required for chilled water and seawater distribution systems for seawater air conditioning district cooling systems can only be obtained by public auction. As a consequence, seawater air conditioning developers must conduct extensive and costly preliminary work to identify, evaluate, and obtain easements. It would be beneficial for these developers to have a more expeditious and cost-effective way to obtain necessary easements, particularly in light of the energy sustainability and pollution reduction benefits that these systems offer.

Your Committee has amended this measure by:

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 S.B. No. 3168, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3168, S.D. 1.