STAND. COM. REP. NO. 258

Honolulu, Hawaii

RE:    S.B. No. 486

       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. 486 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST INDUSTRIAL ENTERPRISES,"

begs leave to report as follows:

     The purpose of this measure is to authorize the issuance of special purpose revenue bonds for BioEnergy Hawaii, LLC.

     Testimony in support of this measure was submitted by one state agency, two organizations, and one individual.  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 BioEnergy Hawaii, LLC proposes to build a waste-to-energy facility that will produce as much as ten megawatts of electricity without the use of fossil fuels.

     Your Committee finds that the benefits of the proposed waste-to-energy facility include significantly reducing solid waste, which has created a problem with landfill space; reducing the State's dependence on imported fossil fuels; reducing the State's carbon footprint by recycling carbon dioxide through the gasification of waste into energy; and producing leftover biomass that may be used in animal feed.

     Your Committee believes that the issuance of special purpose revenue bonds for the proposed waste-to-energy facility is in the public interest, as it could provide electricity for up to eight thousand typical homes in addition to the additional benefits described above.

     Your Committee has amended this measure by making technical, nonsubstantive amendments to correct a typographical error.

     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. 486, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 486, 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