STAND. COM. REP. NO. 945

Honolulu, Hawaii

RE:    H.B. No. 426

       H.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. 426, H.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this measure is to promote renewable energy development in Hawaii by authorizing the issuance of up to $30,000,000 in special purpose revenue bonds to assist Honolulu Seawater Air Conditioning, LLC, in designing and constructing a district cooling project.

     Testimony in support of this measure was submitted by two private organizations.  Written testimony presented to your Committee may be reviewed on the Legislature's website.

     Your Committee finds that the Legislature previously authorized a total of $100,000,000 in special purpose revenue bonds for this project.  This measure authorizes an additional sum, due to cost increases for various systems' components, findings made during the final design, and general inflation since 2003.  Notwithstanding these cost increases, your Committee finds that assisting this project continues to be worthwhile both economically and environmentally.

     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. 426, H.D. 1, and recommends that it pass Second Reading 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