STAND. COM. REP. NO. 2232

Honolulu, Hawaii

RE: S.B. No. 2715

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 S.B. No. 2715 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 of special purpose revenue bonds to assist Kaiuli Energy, LLC, with the financing of a seawater air conditioning district cooling facility and chilled water distribution system.

Your Committee received testimony in support of this measure from Ulupono Initiative and Kaiuli Energy, LLC.

Your Committee finds that saltwater air conditioning projects are basic infrastructure improvements that reduce fossil fuel consumption, electrical usage, harmful emissions, sewer production, and potable water usage. Your Committee also finds that Kaiuli Energy, LLC, is working with major hotel operators and utilities in Waikiki to implement this technology, emphasizing that this technology will help the State move closer to its clean energy goals and support the State's tourism industry.

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. 2715 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