STAND. COM. REP. NO.  393-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2401

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2401 entitled:

"A BILL FOR AN ACT AUTHORIZING THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST OCEANLINX HAWAII LLC,"

begs leave to report as follows:

     The purpose of this bill is to support innovative alternatives to fossil fuels in electric power generation by authorizing the issuance of up to $20,000,000 in special purpose revenue bonds (SPRBs) to assist Oceanlinx Hawaii LLC, with the planning, design, and construction of the hydrokinetic power generation facility off-shore of Maui.

     Oceanlinx Hawaii LLC, Hawaiian Electric Company, Inc., Maui Electric Company, Ltd., and Hawaii Electric Light Company, Inc., supported this bill.  The Department of Budget and Finance submitted comments.

     Upon further consideration and in light of testimony received for this measure, your Committee has amended this measure by:

     (1)  Inserting provisions allowing for the consolidation of small bond issues into a single large issuance of SPRBs; and

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

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2401, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2401, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

HERMINA MORITA, Chair