STAND. COM. REP. NO. 1308

Honolulu, Hawaii

RE:    H.B. No. 200

       H.D. 1

       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 Economic Development and Taxation and Energy and Environment, to which was referred H.B. No. 200, H.D. 1, 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:

     (1)  Direct the Auditor to conduct a financial and management audit of the Natural Energy Laboratory of Hawaii Authority's (NELHA) deep seawater pumping system and establish a reasonable rate structure that includes consideration of NELHA's effect on the economy; and

     (2)  Freeze rates until the audit is complete.

     Testimony in support of this measure was received from the Natural Energy Laboratory of Hawaii Authority and the Hawaii Aquaculture Association.

     Your Committees previously heard and approved S.B. No. 853, which is a substantially similar measure.

     Your Committees have amended this measure to reflect the language in S.B. No. 853, by deleting the requirement that the Auditor consider the effect of NELHA on the local and state economy.

     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 H.B. No. 200, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 200, H.D. 1, S.D. 1, 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