STAND. COM. REP. NO. 2877

Honolulu, Hawaii

RE:    H.B. No. 1942

       H.D. 1

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Energy and Environment, to which was referred H.B. No. 1942, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST WITH THE PLANNING, DESIGN, CONSTRUCTION, EQUIPPING, LAND LEASES, AND OTHER TANGIBLE ASSETS FOR A RENEWABLE ENERGY PROJECT WITH ENERGY STORAGE TECHNOLOGY ON THE ISLAND OF MOLOKAI,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to assist Princeton Energy Group or a related special purpose entity with the financing and refinancing costs relating to the planning, design, and construction of a renewable energy project with energy storage technology on the island of Molokai.

     Your Committee received testimony in support of this measure from the Ulupono Initiative, Life of the Land, The Chamber of Commerce of Hawaii, Sustainable Molokai, EnerVault, Molokai Ranch, Princeton Energy Group, and one hundred thirty-four individuals.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from the Department of Budget and Finance and one individual.

     Your Committee finds that support for the development of renewable energy projects in Hawaii, which is geographically isolated from sources of oil, continues to be in the public interest.  This is especially true given the high cost of electricity in Hawaii, particularly on the island of Molokai.

     Your Committee further finds that Princeton Energy Group is engaged in the planning, design, and construction process to develop a multi-megawatt renewable energy project with energy storage technology near Kaunakakai to exclusively serve the island of Molokai.  The issuance of special purpose revenue bonds and refunding special revenue bonds under this measure to assist Princeton Energy Group in the planning, design, and construction of its renewable energy project will make the development of such a project more economically feasible and provide numerous benefits.

     Your Committee requests that the applicant submit to your Committee by April 11, 2014, a copy of the letter from the Department of Business, Economic Development, and Tourism stating that the agency has received and reviewed the applicant's business plan; provided that the agency is not required to give approval or render a conclusion in the letter.  Furthermore, your Committee urges the applicant to do further outreach with the community to share its plans.

     Your Committee has amended this measure by inserting an effective date of July 1, 2222, to encourage further discussion.

     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 H.B. No. 1942, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1942, H.D. 1, 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