STAND. COM. REP. NO. 503

Honolulu, Hawaii

RE: S.B. No. 998

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 Commerce, Consumer Protection, and Health, to which was referred S.B. No. 998 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS FOR HAWAIIAN ELECTRIC COMPANY, INC.; MAUI ELECTRIC COMPANY, LIMITED; AND HAWAII ELECTRIC LIGHT COMPANY, INC."

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 Hawaiian Electric Company, Inc.; Maui Electric Company Limited; and Hawaii Electric Light Company, Inc., to fund multi-project capital improvement programs and assist utilities serving the general public in providing electric energy.

Your Committee received testimony in support of this measure from Ulupono Initiative, Land Use Research Foundation of Hawaii, and Hawaiian Electric Company, Inc. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that Hawaii's energy issues are becoming increasing complex and challenging. The electric utility companies for the city and county of Honolulu and the counties of Maui and Hawaii are slowly transforming their business operations toward more renewable energy production, energy storage, and clean transportation. For this transition to occur, they will require access to low-cost financing. Special purpose revenue bonds can provide lower cost capital, and the renewable and clean investments can save ratepayers money over the long run. This measure will help finance multi-project capital improvement construction programs for the local furnishing of electric energy to the city and county of Honolulu and the counties of Maui and Hawaii.

Your Committee has amended this measure by:

(1) Clarifying that the special purpose revenue bonds authorized by this measure are for multi-project capital improvement programs; and

(2) Clarifying that the capital improvement projects and programs of Hawaiian Electric Company, Inc., Maui Electric Company, Limited, and Hawaii Electric Light Company, Inc. constitute a project as defined in existing law.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 998, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 998, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

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ROSALYN H. BAKER, Chair