STAND. COM. REP. NO. 950

Honolulu, Hawaii

RE:    H.B. No. 1627

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Energy and Environment, to which was referred H.B. No. 1627, H.D. 2, 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 encourage development of cogeneration facilities by authorizing the issuance of up to $40,000,000 in special purpose revenue bonds for Carbon Diversion Inc., or a partnership in which Carbon Diversion Inc. is a general partner, to establish cogeneration and related energy production facilities at various locations in the State.

     Testimony in support of this measure was submitted by three private organizations.  Comments were submitted by one state department.  Written testimony presented to your Committee may be reviewed on the Legislature's website.

     Your Committee finds that Carbon Diversion Inc. has developed a full-scale hybrid gasification carbonization process at Campbell Industrial park in Kapolei, which can reduce various organic feedstock and tires (non-fossil fuels) into carbon products and synthetic gas.  Carbon Diversion Inc. anticipates expanding into other sites, including to the Big Island, allowing it to process, among other things, a range of organic streams from biomass green-wastes, including the invasive species "gorse", which will help to clear thousands of acres of infested pasture lands in Humuula on Mauna Kea.  Your Committee finds that Carbon Diversion Inc.'s proposed facilities will result in a decrease in dependency on fossil fuels, landfills, transportation, and disposal costs, and can indirectly provide lower priced electrical energy, among other environmental and economic benefits.

     Your Committee has amended this measure by making nonsubstantive, technical amendments for the purpose of accuracy.

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1627, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1627, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

____________________________

MIKE GABBARD, Chair