STAND. COM. REP. NO.  366

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 1627

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1627 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS,"

begs leave to report as follows:

     The purpose of this measure is to authorize the issuance of special purpose revenue bonds to assist Carbon Diversion, Incorporated in the development of cogeneration facilities for the production of electricity using non-fossil fuel feedstock.

     Officials from Carbon Diversion, Incorporated, the Waimea Hawaiian Homesteaders' Association, Inc., and two individuals supported this measure.  The Department of Budget and Finance provided comments.

     Your Committee finds that fossil fuels, the source for most of the State's electricity production, remains a scarce and volatile commodity.  Finding alternative energy sources, such as non-fossil fuel feedstocks, is vital to reducing Hawaii's dependence on fossil fuel consumption.  Providing special purpose revenue bonds to generate energy from non-fossil fuel feedstock will encourage growth in the renewable energy sector.

     Your Committee has amended the measure for clarity by amending language in section 1 of the measure to more accurately reflect the electricity producing processes that Carbon Diversion, Incorporated will employ in the cogeneration facilities.

     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. 1627, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1627, 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