STAND. COM. REP. NO. 399

Honolulu, Hawaii

RE:    S.B. No. 485

       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. 485 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to authorize the issuance of special purpose revenue bonds for the purpose of assisting Carbon Diversion Inc., or a partnership in which Carbon Diversion Inc. is a general partner, for the establishment of a cogeneration facility and related energy production facilities.

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

     Your Committee finds that Carbon Diversion Inc., is a local company that was incorporated in Hawaii in 2004.  The company 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 fuel) into carbon products and synthetic gas that complies with the Environmental Protection Agency's air emission standards.

Your Committee has amended this measure by incorporating the recommendations of Carbon Diversion Inc., to clarify the description of the process by which the company produces electric energy from nonfossil fuel feedstock.

     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. 485, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 485, 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