STAND. COM. REP. NO.  1132-16

Honolulu, Hawaii

                , 2016

RE:   S.B. No. 2367

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Agriculture, to which was referred S.B. No. 2367 entitled:

"A BILL FOR AN ACT AUTHORIZING THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS FOR HAWAII RENEWABLE RESOURCES, LLC,"

begs leave to report as follows:

The purpose of this measure is to support sustainable food production and the development and use of renewable energy by authorizing the issuance of special purpose revenue bonds to assist Hawaii Renewable Resources, LLC, in establishing and funding food, animal feed, energy production, waste recovery, and related facilities on the island of Oahu.

The Department of Agriculture, Agribusiness Development Corporation, Hawaii Farm Bureau, Renewable Energy Action Coalition of Hawaii, Hawaii Renewable Resources, LLC, and a concerned individual supported this measure.  The Department of Budget and Finance submitted comments on this measure.

Your Committee has amended this measure by:

(1)  Specifying that the Legislature finds that the project proposed by Hawaii Renewable Resources, LLC, qualifies as a project assisting an industrial enterprise pursuant to part II of chapter 39A, Hawaii Revised Statutes;

(2)  Deleting the amount specified for the special purpose revenue bonds;

(3)  Changing its effective date to July 1, 2050, to encourage further discussion; and

(4)  Making technical, nonsubstantive amendments for consistency, clarity, and style.

     Should the Committee on Finance deliberate on this measure further, your Committee on Agriculture respectfully requests that it consider authorizing the issuance of special purpose revenue bonds in an amount not to exceed $30,000,000.

     As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2367, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2367, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Agriculture,

____________________________

CLIFT TSUJI, Chair