STAND. COM. REP. NO. 2008

Honolulu, Hawaii

RE:    S.B. No. 2021

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Transportation and Energy, to which was referred S.B. No. 2021 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST BIOENERGY HAWAII, LLC,"

begs leave to report as follows:

     The purpose and intent of this measure is to extend the special purpose revenue bond authorization under Act 89, Session Laws of Hawaii 2011, to BioEnergy Hawaii, LLC, for the purpose of establishing a cogeneration facility and related energy production facilities to June 30, 2021.

     Your Committee received testimony in support of this measure from the Department Of Transportation; BioEnergy Hawaii, LLC; Ulupono Initiative; and Pacific Waste, Inc.  Your Committee received testimony in opposition to this measure from one individual.

     Your Committee finds that it is in the public interest to encourage the development of cogeneration facilities that make energy available to members of the general public by the sale of electric energy or biofuels, or both, to an electric utility or refinery, or both, serving the area.

     Your Committee further finds that the benefits of the development of cogeneration facilities include:

     (1)  Reduced greenhouse gas emissions;

     (2)  Reduced landfill waste streams;

     (3)  Reduced transportation and disposal costs;

     (4)  Creation of local technical and semi-technical jobs;

     (5)  Renewable energy for local communities through distributed generations; and

     (6)  Reduced dependence on imported fossil fuels for local transportation and energy needs.

     As affirmed by the record of votes of the members of your Committee on Transportation and Energy that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2021 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation and Energy,

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LORRAINE R. INOUYE, Chair