STAND. COM. REP. NO. 2807

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 Ways and Means, 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 from 2018 to 2023 the authorization to issue special purpose revenue bonds to assist Kaiuli Energy, LLC, in financing or refinancing the costs relating to the planning, design, and construction of a seawater air conditioning district cooling facility and chilled water distribution system.

Your Committee received written comments in support of this measure from the Ulupono Initiative; Kaiuli Energy, LLC; 350 Hawaii; 350.org; and twenty-two individuals.

Your Committee received written comments in opposition to this measure from the Ilikai Hotel Condominium and two individuals.

Your Committee finds that seawater air conditioning projects can help replace energy-intensive central refrigeration systems. This can reduce fossil fuel consumption, electrical usage, harmful emissions, sewer production, and potable water usage. Kaiuli Energy, LLC, is working with major hotel operators and utilities in the Waikiki and Ala Moana areas to implement seawater air conditioning projects, which will both move the State towards its clean energy goals while supporting the tourism industry.

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. 2715 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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DONOVAN M. DELA CRUZ, Chair