STAND. COM. REP. NO.  1593-12

Honolulu, Hawaii

                , 2012

RE:   S.B. No. 2785

      S.D. 2

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2785, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INTERISLAND ELECTRIC TRANSMISSION CABLE SYSTEMS,"

begs leave to report as follows:

The purpose of this measure is to establish a regulatory framework for the development, financing, and use of a high-voltage undersea electric transmission cable system that will permit the transmission of power generated on one or more islands of the State to an electric utility system located on another island of the State.  

The Governor; Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs; Department of Business, Economic Development and Tourism; Public Utilities Commission; ILWU Local 142; The Chamber of Commerce of Hawaii; General Contractors Association of Hawaii; Hawaiian Electric Company; Maui Electric Company; Hawaii Electric Light Company; Pacific Resource Partnership; Windward Ahupua'a Alliance; Hawaii Laborers-Employers Cooperation and Education Trust; Building Industry Association of Hawaii; Castle & Cooke Hawaii; NextEra Energy Transmission, LLC; Hawaii Interisland Cable, LLC; Blue Planet Foundation; First Wind; Land Use Research Foundation of Hawaii; and several concerned individuals testified in support of this measure. 

     The Kuli‘ou‘ou/Kalani Iki Neighborhood Board #2, Environmental Caucus of the Democratic Party of Hawaii, Conservation Council for Hawai‘i, Life of the Land, Hawaii's Thousand Friends, Friends of Lana‘i, Conservation Council for Hawai‘i, Hui Hoomalu i ka Aina, and a multitude of concerned individuals testified in opposition to this measure.  The City and County of Honolulu and two concerned individuals provided comments on this measure.

     As this measure moves forward, your Committee respectfully requests further consideration and discussion of the purpose of tax policy and related tax expenditures affected by this measure.  

     Your Committee has amended this measure by:

     (1)  Changing the effective date of this measure to July 1, 2012; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2785, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2785, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair