STAND. COM. REP. NO. 726

Honolulu, Hawaii

RE:    S.B. No. 619

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 619 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST SEAWATER AIR CONDITIONING PROJECTS ON OAHU,"

begs leave to report as follows:

     The purpose and intent of this measure is to extend the Department of Budget and Finance's authorization to issue special purpose revenue bonds to Honolulu Seawater Air Conditioning, LLC, from June 28, 2015, to June 30, 2020.

     Your Committee received written comments in support of this measure from Honolulu Seawater Air Conditioning, Ulupono Initiative, Blue Planet Foundation, and one individual.

     Your Committee finds that due to the geographic isolation of the State, the development and support of efficient energy systems is of public interest.  Traditional electric air conditioning is not an efficient means of cooling structures as it consumes a large amount of energy.  In 2005, the Legislature authorized the issuance of special purpose revenue bonds to Honolulu Seawater Air Conditioning for the development of seawater air conditioning systems on Oahu.  Disruptions in financial markets and regulatory delays have postponed the earlier sale of special purpose revenue bonds, and the authorization is set to expire on June 28, 2015.  Extending the authorization for the issuance of special purpose revenue bonds to Honolulu Seawater Air Conditioning, LLC, will allow the company to complete the design and construction of a seawater air conditioning cooling system project on Oahu.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 619 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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JILL N. TOKUDA, Chair