STAND. COM. REP. NO. 142

Honolulu, Hawaii

RE: S.B. No. 1545

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 1545 entitled:

"A BILL FOR AN ACT RELATING TO AN APPROPRIATION FOR THE ESTABLISHMENT OF A BIOFUEL AND ANIMAL FEED FACILITY,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the issuance of general obligation bonds and appropriate funds for a biofuel and animal feed facility in Keaau, Hawaii.

Your Committee received testimony in support of this measure from the Department of Agriculture, Agribusiness Development Corporation, Pacific Biodiesel, and Hawai‘i Farm Bureau. Your Committee received testimony in opposition to this measure from one individual.

Your Committee finds that this measure proposes funding for a biofuel and animal feed facility that is the product of a partnership between the Daniel K. Inouye U.S. Pacific Basin Agriculture Research Center and the Agribusiness Development Corporation to research and commercialize zero-waste processes. The focus of the partnership is to identify and transform agricultural waste streams into commercially viable products by processing papaya culls and using the resultant material to ultimately grow algae for biofuel and animal feed. Your Committee finds that this capital improvement project will reduce the impact of the agricultural industry on the environment and create new commercial opportunities for the industry.

As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1545 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 Agriculture and Environment,

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MIKE GABBARD, Chair