STAND

STAND. COM. REP. NO. 2137

Honolulu, Hawaii

, 2006

RE: S.B. No. 3169

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Water, Land, and Agriculture and Energy, Environment, and International Affairs, to which was referred S.B. No. 3169 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST SEAWATER AIR CONDITIONING PROJECTS ON THE ISLAND OF OAHU,"

beg leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds to assist Honolulu Seawater Air Conditioning LLC with the planning, design, and construction of a seawater air conditioning district cooling system in Waikiki.

Testimony in support of this measure was submitted by the Hawaii Renewable Energy Alliance and Honolulu Seawater Air Conditioning LLC. Comments were submitted by the Department of Budget and Finance.

Your Committees find that this seawater air conditioning system project will assist the State in meeting its renewable resource, energy efficiency, and environmental sustainability objectives by:

(1) Using an abundant, indigenous renewable resource, i.e., cold, deep seawater, to provide more than seventy per cent of the cooling load;

(2) Providing energy savings of seventy per cent or more, when compared to conventional air conditioning systems; and

(3) Eliminating the need for cooling towers, thus reducing potable water and toxic chemical use and the production of sewage.

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. 3169 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Water, Land, and Agriculture and Energy, Environment, and International Affairs,

____________________________ J. KALANI ENGLISH, Chair		____________________________ RUSSELL S. KOKUBUN, Chair