CONFERENCE COMMITTEE REP. NO. 135

Honolulu, Hawaii

                 , 2013

RE:    S.B. No. 1280

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1280, S.D. 2, H.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to encourage the development of efficient energy systems in Hawaii by authorizing the issuance of special purpose revenue bonds to assist Kona SWAC, LLC, in constructing a portion of a seawater air conditioning district cooling system.

     Your Committee on Conference finds that Kona SWAC, LLC, seeks to develop a seawater air conditioning solution for Kona that precludes the need to cool water with electricity and instead uses seawater for cooling.  Your Committee on Conference believes that finding and developing new and innovative technologies that decrease the State's dependence on oil continue to be in the public interest.  Accordingly, your Committee on Conference finds that assisting in the financing for the construction of a portion of the seawater air conditioning district cooling system to serve Kona and nearby areas on the island of Hawaii furthers the State's interest in developing new and efficient energy systems.

     Your Committee on Conference has amended this measure by:

     (1)  Specifying that the Department of Budget and Finance is authorized to issue special purpose revenue bonds in a total amount not to exceed $40,000,000; and

     (2)  Changing the effective date from July 1, 2050, to July 1, 2013.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1280, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1280, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ CLIFT TSUJI, Co-Chair	____________________________ MIKE GABBARD, Chair
____________________________ JAMES KUNANE TOKIOKA, Co-Chair	____________________________ RONALD D. KOUCHI, Co-Chair