STAND. COM. REP. NO. 799

Honolulu, Hawaii

RE:    S.B. No. 987

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committees on Energy and Environment and Water, Land, Agriculture, and Hawaiian Affairs and Intergovernmental and Military Affairs, to which was referred S.B. No. 987 entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY,"

beg leave to report as follows:

     The purpose of this measure is to encourage the development of renewable energy projects and to reduce the State's dependency on fossil fuels.

     The measure accomplishes this purpose by:

     (1)  Amending the definition of "renewable energy producer" to include producers of thermal energy from renewable energy resources, including those who produce cooling from seawater air conditioning district cooling systems, so that they will be eligible for leases of public land; and

     (2)  Allowing each county to grant, sell, or otherwise dispose of easements for chilled water and seawater distribution systems for renewable energy seawater air conditioning district cooling systems by negotiation without public auction.

     Your Committees received testimony in support of this measure from Honolulu Seawater Air Conditioning, LLC. and Hawaii Science and Technology Council.  The Department of Land and Natural

Resources and the Hawaii Renewable Energy Alliance submitted testimony in support of the intent of this measure with comments.

     Your Committees find that seawater air conditioning district cooling systems are just as important and beneficial as electricity generation from renewable resources.  While this renewable energy technology does not generate electricity, it does provide substantial savings through the displacement of the electricity used to perform the same tasks.

     In addition, seawater air conditioning district cooling systems require extensive easements.  Obtaining these state and county easements are time-consuming and costly.  Providing an expeditious and cost-effective means to obtain these necessary easements will further promote the use of renewable energy technologies.

     Your Committees further find that, if a seawater air conditioning company ceases operations, then the control of the leased land shall revert back to the State or county.

     Your Committees amended this measure by making technical, nonsubstantive changes for the purposes of clarity, consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Water, Land, Agriculture, and Hawaiian Affairs and Intergovernmental and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 987, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 987, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Water, Land, Agriculture, and Hawaiian Affairs and Intergovernmental and Military Affairs,

____________________________ RUSSELL S. KOKUBUN, Chair	____________________________ RON MENOR, Chair
	____________________________ LORRAINE R. INOUYE, Chair