STAND. COM. REP. NO. 491

Honolulu, Hawaii

RE:    S.B. No. 706

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committees on Energy and Environment and Economic Development and Technology, to which was referred S.B. No. 706 entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE HYDROGEN,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Authorize the Director of Finance to issue general obligation bonds for the development of an electrolysis process hydrogen production, storage, and dispensing facility; and

     (2)  Appropriate funds for the operation of the facility.

     Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Strategic Development Corporation; Hawaii Energy Policy Forum; Hawaii Automobile Dealers Association; and Servco Pacific Inc.

     Your Committees find that hydrogen fuel cell vehicles provide zero vehicle emissions and require very little compromise or lifestyle change.  Increasing the use of hydrogen fuel for transportation will reduce the State's importation of fossil fuels and generate hydrogen production and distribution job opportunities.  Implementation of this measure encourages the renewable production of hydrogen and is a critical step toward achieving a clean energy future.

     Your Committees have amended this measure by:

     (1)  Changing the expending agency for all monies from the Hawaii Strategic Development Corporation to the High Technology Development Corporation; and

     (2)  Replacing the hydrogen investment capital special fund with the high technology special fund throughout the measure.

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Economic Development and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 706, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 706, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Economic Development and Technology,

____________________________ GLENN WAKAI, Chair

____________________________ MIKE GABBARD, Chair