STAND. COM. REP. NO.  439

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 870

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 870 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,"

begs leave to report as follows:

     The purpose of this bill is to support the development of renewable energy and energy efficient systems through a seawater air conditioning district cooling system on the island of Oahu.

More specifically, this measure authorizes the issuance of special purpose revenue bonds to Honolulu Seawater Air Conditioning, LLC for the design and construction of a cooling facility and chilled water distribution system in downtown Honolulu using cold, deep seawater as the primary cooling source.

     Honolulu Seawater Air Conditioning, LLC and World Business Academy submitted testimony in support of the measure.

     Your Committee finds that a chilled water distribution system using seawater is economically feasible and would provide numerous operating, maintenance, financial, and environmental benefits to our island State.  A seawater air conditioning district cooling system would reduce the State's dependence on imported oil.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 870 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 Energy & Environmental Protection,

____________________________

HERMINA MORITA, Chair