STAND. COM. REP. NO. 528

Honolulu, Hawaii

RE:    S.B. No. 853

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committees on Economic Development and Taxation and Energy and Environment, to which was referred S.B. No. 853 entitled:

"A BILL FOR AN ACT RELATING TO THE NATURAL ENERGY LABORATORY OF HAWAII AUTHORITY,"

beg leave to report as follows:

     The purpose of this measure is to direct the:

     (1)  Auditor to conduct a financial and management audit of the Natural Energy Laboratory of Hawaii Authority's (NELHA) deep sea water pumping system, and consider the establishment of a reasonable rate structure; and

     (2)  NELHA to freeze the rates for pumped seawater until the audit is complete.

     Testimony in support of this measure, with amendments, was received from the Office of Hawaiian Affairs.  The Natural Energy Laboratory of Hawaii Authority submitted comments.

     Your Committees understand that this audit would address concerns raised by NELHA tenants.  As such, it would provide an important gauge in verifying and confirming costs, which would benefit both NELHA and its tenants.

     It is the intent of your Committees to support this audit as a means of assisting NELHA in moving beyond divisive issues with tenants, and moving forward with its important work.

     As affirmed by the records of votes of the members of your Committees on Economic Development and Taxation and Energy and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 853 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development and Taxation and Energy and Environment,

____________________________ RON MENOR, Chair

____________________________ CAROL FUKUNAGA, Chair