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 Transportation and Government Operations, to which was referred S.B. No. 3187 entitled:

beg leave to report as follows:

The purpose of this measure is to authorize the issuance of $25,000,000 in general obligation bonds to finance the acquisition, construction, rehabilitation, installation, and improvement of renewable energy and energy efficient technologies in state facilities.

Hawaiian Electric Company, Hawaii Renewable Energy Alliance, Honolulu Seawater Air Conditioning LLC, and PowerLight Corporation submitted testimony in support of this measure. The Department of Accounting and General Services and the Department of Commerce and Consumer Affairs submitted comments.

Your Committees find that this measure supports the State's commitment to increase energy self-sufficiency and decrease the vulnerability of state facilities from rolling blackouts, other failures of the electric grid, and the volatility of the energy market. The potential savings realized by the State through the installation of renewable energy and energy efficient technologies in state facilities could pay for all or a substantial portion of the costs associated with issuing general obligation bonds to finance the projects.

As affirmed by the records of votes of the members of your Committees on Energy, Environment, and International Affairs and Transportation and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3187 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.