STAND. COM. REP. NO. 805

Honolulu, Hawaii

RE:    S.B. No. 486

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 486, S.D. 1, 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 revenue bonds for BioEnergy Hawaii, LLC.

     Your Committee finds BioEnergy Hawaii, LLC, processes nonfossil fuel feedstock to produce electricity and uses the process exhaust in related bio-energy production facilities to convert micro-algae.  Your Committee also finds that BioEnergy Hawaii, LLC, is engaged in the development of a cogeneration facility project that will sell the electricity it produces to an electric facility that serves the public. Your Committee further finds that it is in the public interest to encourage the development of facilities that reduces the State's reliance on fossil fuels.

     Your Committee has amended this measure by:

(1)  Changing the amount of special purpose revenue bonds authorized to an unspecified amount; and

(2)  Changing the effective date to July 1, 2070, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 486, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 486, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONNA MERCADO KIM, Chair