STAND. COM. REP. NO. 690

Honolulu, Hawaii

RE: S.B. No. 1440

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1440 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS FOR TREVI SYSTEMS, INC., OR ITS RELATED ENTITY, KONA COAST WATER LLC,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to assist Trevi Systems, Inc., or its related entity, Kona Coast Water LLC, to fund the plans, designs, construction, equipping, land leases, and other assets for two or more water desalination plants that use one hundred percent renewable solar energy for its customers on Hawaii island and potentially on other islands in the State.

Your Committee received written comments in support of this measure from Trevi Systems, Inc. and Kona Coast Water LLC, and from the Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii.

Your Committee received written comments on this measure from the Department of Budget and Finance.

Your Committee finds that this measure supports the development of the first forward osmosis seawater desalination plants in Hawaii using one hundred percent renewable energy.

Your Committee has amended this measure by:

(1) Changing the amount of special purpose revenue bonds authorized to be issued to an unspecified amount; and

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

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. 1440, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1440, S.D. 1, and be placed on the calendar for 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