STAND. COM. REP. NO. 159

Honolulu, Hawaii

RE: S.B. No. 1002

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 1002 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF 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 authorization to issue special purpose revenue bonds to assist Honolulu Seawater Air Conditioning, LLC, under Act 113, Session Laws of Hawaii 2009, as amended by Act 150, Session Laws of Hawaii 2014, until June 30, 2024.

Your Committee received testimony in support of this measure from 350Hawaii; Honolulu Seawater Air Conditioning, LLC; and O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i.

Your Committee finds that under existing law, the authorization to issue special purpose revenue bonds for Honolulu Seawater Air Conditioning, LLC will expire on June 28, 2019. Due to delays in permitting and regulatory reviews and closings of key customer agreements, Honolulu Seawater Air conditioning, LLC, postponed its earlier sale of special purpose revenue bonds. With construction slated to begin in early 2020, Honolulu Seawater Air conditioning, LLC, expects to use all of its authorized bonds within the next two years. The extended authorization to issue bonds, proposed by this measure, is an important element in securing economically feasible project financing.

Your Committee further finds that upon completion Honolulu Seawater Air conditioning, LLC's, downtown Honolulu project is anticipated to service approximately 14 million square feet of building space, create numerous construction-related jobs, establish the State as a leading authority on the development of seawater air conditioning systems, and have positive environmental benefits.

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1002 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 Energy, Economic Development, and Tourism,

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GLENN WAKAI, Chair