STAND. COM. REP. NO. 256

Honolulu, Hawaii

RE:    S.B. No. 393

       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 S.B. No. 393 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST ONE PLANET PACIFIC ENERGY, LLC, A PROCESSING ENTERPRISE,"

begs leave to report as follows:

     The purpose of this measure is to issue special purpose revenue bonds in the amount of $35,000,000 to assist One Planet Pacific Energy, LLC (One Planet), which proposes to construct a five-hundred-ton-per-day gasification facility to convert solid waste into synthetic gas to utilize material solid waste from the construction and demolition solid waste landfill in Nanakuli, Oahu, Hawaii.

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

     One Planet requested that the amount of the bond be amended to $40,000,000, to reflect an increase in the estimated cost of the project.

     Your Committee finds that One Planet's proposed gasification project will bring significant benefits to Hawaii, by taking materials that are currently taking up valuable landfill space and converting them into a source of renewable energy through its synthetic gas production.

     Your Committee has amended this measure by:

     (1)  Revising the amount of the special purpose revenue bond to $40,000,000; and

     (2)  Changing the date of the authorization from June 30, 2015, to June 30, 2014, in order to be consistent with section 39A-117, Hawaii Revised Statutes, as recommended by the Department of Budget and Finance.

     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 S.B. No. 393, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 393, 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