STAND. COM. REP. NO.  315

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1931

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 1931 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS FOR PROJECTS ON THE ISLAND OF HAWAII,"

begs leave to report as follows:

     The purpose of this bill is to continue to provide support to decentralize and increase reliability in the production of electric energy on the Big Island by extending the authorization to issue special purpose revenue bonds (SPRBs) to assist Hui Enekinia Hawaii to establish a cogeneration facility.  The electricity generated by the facility will be sold to Hawaii Electric Light Company, Inc., and the thermal output, to manufacturing and processing businesses in the area.

     Hui Enekinia Hawaii and a concerned individual supported this bill.

     Your Committee finds that the SPRBs authorized in this bill were initially for the generation of electricity and the pumping and storage of water on the Big Island.  However, this project failed due to changes in ownership.  The project currently envisioned involves a steam generating unit fired by biomass, and the energy not used for milling forest products will be used to generate electricity.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1931 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

____________________________

KYLE T. YAMASHITA, Chair