STAND. COM. REP. NO.  1044

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 871

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 871 entitled:

"A BILL FOR AN ACT RELATING TO SEAWATER AIR CONDITIONING DISTRICT COOLING SYSTEMS,"

begs leave to report as follows:

     The purpose of this bill is to reduce Hawaii's dependence on foreign oil and encourage the growth of the alternative-energy industry by including seawater air conditioning district cooling systems as a business qualified to receive benefits under the state enterprise zone law.

     The Department of Business, Economic Development, and Tourism; Honolulu Seawater Air Conditioning, LLC.; Hawaii Renewable Energy Alliance; Hawaii Energy Policy Forum; and Hawaii Science and Technology Council supported this bill.  The Department of Taxation and Tax Foundation of Hawaii submitted comments.

     Your Committee has amended this bill by changing the effective date to July 1, 2020, to facilitate further discussion.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 871, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 871, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair