STAND. COM. REP. NO.  1458-08

Honolulu, Hawaii

                , 2008

RE:   H.C.R. No. 167

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Economic Development & Business Concerns, to which was referred H.C.R. No. 167 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A FINANCIAL AND MANAGEMENT AUDIT OF THE NATURAL ENERGY LABORATORY OF HAWAII AUTHORITY,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to instruct the Auditor to conduct a financial audit of the Natural Energy Laboratory of Hawaii Authority (NELHA).

     The Hawaii Aquaculture Association, Keahole Point Association, Royal Hawaiian Sea Farms, Inc., Pacific Planktonics, and a concerned individual testified in support of this measure.

     Your Committee finds that tenants of NELHA have been paying less than the actual cost to NELHA, of delivering deep sea water to its tenants.  In addition, there seems to be a conflict between NELHA and its tenants over the actual cost of pumping deep sea water to the surface.  By conducting an audit of NELHA, the real costs of NELHA's operations can be determined, and a reasonable rate structure, developed and charged.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 167 and recommends that it be referred to the Committee on Legislative Management.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

____________________________

KYLE T. YAMASHITA, Chair