STAND. COM. REP. NO. 2317

Honolulu, Hawaii

RE:    S.B. No. 2970

       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 S.B. No. 2970 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 assist BioTork Hawaii, LLC (BioTork), with the planning, permitting, design, construction, equipping, and operation of a facility to convert agricultural crops and byproducts to biofuels and feed.

     Your Committees received testimony in support of this measure from the Department of Agriculture; Agribusiness Development Corporation; BioTork Hawaii, LLC; and one individual.  Your Committees received testimony in opposition to this measure from two individuals.

     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 economy.  Therefore, your Committees support this measure.

     Your Committees note that they are requesting BioTork to submit letters to your Committees that they received from the Department of Business, Economic Development, and Tourism and the Department of Budget and Finance confirming the receipt of and review of BioTork's business plan.  Your Committees are not requiring that these agencies provide approval or render a conclusion regarding the business plan in the letters; however, the letters must be received by your Committees by April 11, 2014, prior to the start of Conference hearings.

     Your Committees have amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

     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 S.B. No. 2970, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2970, 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