STAND. COM. REP. NO.  1496

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 1943

      S.D. 2

      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 Committees on Water, Land, Ocean Resources & Hawaiian Affairs and Energy & Environmental Protection, to which was referred S.B. No. 1943, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

beg leave to report as follows:

     The purpose of this bill is to encourage the production and use of biofuels and energy feedstock in Hawaii by:

     (1)  Adding biofuels processing facilities to the list of permitted uses for agricultural lands; and

     (2)  Establishing an energy feedstock program in the Department of Agriculture. 

     The Department of Business, Economic Development, and Tourism, University of Hawaii, Department of Agriculture and Hawaii BioEnergy supported this bill.  Hawaiian Electric Company, Maui Electric Company, and Hawaii Electric Light Company supported the intent of this measure.  Enterprise Honolulu opposed this bill.  The Department of Planning and Permitting of the City and County of Honolulu, Maui County Farm Bureau, and Imperium Renewables Hawaii, LLC, submitted comments.

     Your Committees have amended this measure by:

     (1)  Deleting provisions that:

          (A)  Establish a non-renewable, three-year period where importation of feedstock and fuels is allowed; and

          (B)  Require, after the expiration of the three-year period, that a majority of the feedstock from biomass and oil crops be grown within the state;

          and

     (2)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the records of votes of the members of your Committees on Water, Land, Ocean Resources & Hawaiian Affairs and Energy & Environmental Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1943, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1943, S.D. 2, H.D. 1, and be referred to the Committee on Agriculture.

Respectfully submitted on behalf of the members of the Committees on Water, Land, Ocean Resources & Hawaiian Affairs and Energy & Environmental Protection,

____________________________ HERMINA MORITA, Chair

____________________________ KEN ITO, Chair