STAND. COM. REP. NO. 952

Honolulu, Hawaii

RE:    H.B. No. 1678

       H.D. 1

       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. 1678, H.D. 1, 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 protect Hawaii's environment and work towards decreasing its dependence on imported fossil fuels by authorizing the issuance of special purpose revenue bonds of up to $80,000,000 to assist LifeGrid Solutions, LLC (LifeGrid), with the planning, design, and construction of a biofuel refinery and research facility on Oahu.

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

     Your Committee finds that LifeGrid's proposed facilities will be a major asset in solving the unique environmental and sustainability issues currently challenging our State.  For example, the locally owned and operated ethanol/biodiesel production facility will allow LifeGrid to meet the local demand for ethanol, all of which is currently imported.  Additionally, the proposed facility can use a variety of feedstock available for biodiesel and ethanol production, including municipal solid waste and sludge generated by wastewater treatment plants, addressing solid waste and landfill concerns.

     Your Committee has amended this measure by making technical, nonsubstantive changes for style and consistency.

     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. 1678, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1678, H.D. 1, 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