STAND. COM. REP. NO. 2908

Honolulu, Hawaii

RE:    H.B. No. 2543

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Agriculture and Energy and Environment, to which was referred H.B. No. 2543 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST BIOTORK HAWAII LLC,"

beg leave to report as follows:

     The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to BioTork Hawaii LLC (BioTork) for the development and operation of a facility to convert agricultural crops and by-products to biofuels and high-protein feed.

     Your Committees received testimony in support of this measure from the Department of Agriculture; Agribusiness Development Corporation; Hawaii Farm Bureau Federation; and BioTork Hawaii, LLC.  Your Committees received comments on this measure from the Department of Budget and Finance.

     The high cost of energy and livestock feed are significant barriers to food security and sustainability in Hawaii.  BioTork's proposal to convert agricultural crops and byproducts such as albizia, sweet potatoes, papaya, and molasses to biofuels and high-protein feed would be a boon to Hawaii's agricultural sustainability and economy.

     Your Committees request that BioTork submit to your Committees by April 11, 2014, copies of letters from the Department of Business, Economic Development, and Tourism and the Department of Budget and Finance affirming that these agencies have received and reviewed the applicant's business plan.  Your Committees do not require that these letters contain approval for, or render a conclusion regarding, the applicant's business plan.

     Your Committees have amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Agriculture and Energy and Environment that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2543, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2543, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Energy and Environment,

____________________________ MIKE GABBARD, Chair

____________________________ CLARENCE K. NISHIHARA, Chair