Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Energy, Environment, and International Affairs and Water, Land, and Agriculture, to which was referred S.B. No. 3170 entitled:

beg leave to report as follows:

The purpose of this measure is to expand the definition of "renewable energy producer" to include thermal energy that is sold to customers of district cooling systems, for purposes of leasing public lands.

Honolulu Seawater Air Conditioning LLC and the Hawaii Renewable Energy Alliance submitted testimony in support of this measure.

Your Committees find that thermal applications of renewable energy technologies do not generate electricity, but they do provide electricity savings by displacing the electricity used to perform certain tasks. This measure will encourage the development of renewable energy projects that will help reduce the State's dependence on fossil fuels.

Your Committees amended this measure by making technical, non-substantive amendments for clarity and style.

As affirmed by the records of votes of the members of your Committees on Energy, Environment, and International Affairs and Water, Land, and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3170, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3170, S.D. 1, and be placed on the calendar for Third Reading.