STAND. COM. REP. NO. 908

Honolulu, Hawaii

RE:    S.B. No. 993

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 993 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST SEAWATER AIR CONDITIONING PROJECTS ON THE ISLAND OF OAHU,"

begs leave to report as follows:

     The purpose of this measure is to authorize the issuance of special purpose revenue bonds in a total amount not to exceed $20,000,000 to assist Honolulu Seawater Air Conditioning, LLC, in the design and development of a seawater air conditioning project on the island of Oahu.

     Your Committee received comments from the Hawaii Renewable Energy Alliance, Hawaii Energy Policy Forum, Honolulu Seawater Air Conditioning, LLC, and KUD International, LLC in support of this measure.

     Your Committee finds that the development of a deep seawater air conditioning facility and distribution system in downtown Honolulu is a major step in the development of a renewable energy system using the limitless resource of our deep state waters.  Such a project could eliminate the need for up to 0.63 kilowatts of electricity generating capacity for each ton of cooling capacity.  Further, this system will provide reduced and stable cooling costs and reduce the consumption of potable water and the use of toxic chemicals.  Your Committee finds that this project is in the public interest and for the public health, safety, and general welfare.

     Your Committee has amended this measure by making technical nonsubstantive changes for purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 993, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 993, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair