STAND. COM. REP. NO. 2398

Honolulu, Hawaii

RE:    S.B. No. 3008

       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 S.B. No. 3008 entitled:

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

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 Anaergia Inc. with the development of facilities for renewable non-fossil fuel energy production in Maui.

     Your Committee received testimony in support of this measure from the Maui County Department of Environmental Management, Ulupono Initiative, and Anaergia Services, LLC.  Your Committee received comments on this measure from the Department of Budget and Finance.

     Your Committee finds that support for the development of renewable and efficient energy systems in the State, which is geographically isolated from sources of oil, continues to be in the public interest.  Anaergia Inc. is a global leader in offering sustainable solutions for the generation of renewable energy and the conversion of waste to resources.

     Your Committee further finds that Anaergia Inc. proposes to build, own, and operate a material recovery facility to recover recyclable materials like plastic, paper, and glass; an anaerobic digester to convert organics like municipal sludge and food waste to renewable natural gas and compost; and a facility to convert energy crops into renewable natural gas or renewable electricity.

     Your Committee requests that the applicant of the special purpose revenue bonds submit to your Committee by April 11, 2014, copies of letters from the Department of Business, Economic Development, and Tourism and Department of Budget and Finance stating that the agencies have received and reviewed the applicant's business plan; provided that the agencies are not required to give approval or render a conclusion in the letter.

     Your Committee has amended this measure by inserting an effective date of July 1, 2050, 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 S.B. No. 3008, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3008, 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