STAND. COM. REP. NO. 3140

Honolulu, Hawaii

RE: H.B. No. 2108

H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Transportation and Energy, to which was referred H.B. No. 2108, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST A SEAWATER AIR CONDITIONING PROJECT IN HAWAII,"

begs leave to report as follows:

The purpose and intent of this measure is to extend the authorization to issue special purpose revenue bonds to assist Kaiuli Energy, LLC, with the financing of the planning, design, and construction of a seawater air conditioning district cooling facility and chilled water distribution system.

Your Committee received testimony in support of this measure from the Oahu County Committee on Legislative Priorities for the Democratic Party of Hawaii; Organizing for Action; 350Hawaii.org; 350.org; Kaiuli Energy, LLC; Ulupono Initiative; Maikai Ocean Engineering; and fifteen individuals. Your Committee received testimony in opposition to this measure from the Ilikai Association of Apartment Owners and eleven individuals.

Your Committee finds that seawater air conditioning systems are better for the environment than the central refrigeration systems that are commonly used. Seawater air conditioning systems use less fossil fuel, electricity, and potable water, and produces less harmful emissions and sewer waste. Kaiuli Energy, LLC, is working with major hotel operators and utilities in Waikiki to implement this technology, which will help the State reach its clean energy goals and support the tourism industry in a more sustainable manner.

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 H.B. No. 2108, H.D. 1, 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