STAND. COM. REP. NO.509

Honolulu, Hawaii

, 2001

RE: H.B. No. 1553

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Energy and Environmental Protection, to which was referred H.B. No. 1553 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST INDUSTRIAL ENTERPRISES,"

begs leave to report as follows:

The purpose of this bill is to reduce the dependence on imported fossil fuel and reduce the environmental impact associated with burning fossil fuel by authorizing the issuance of special purpose revenue bonds of up to $7,000,000 to assist Ocean Engineering and Energy Systems Inc. (OEESI), in the planning, design, construction, and operation of a Kalina cycle OTEC (ocean thermal energy conversion) plant at the National Energy Laboratory of Hawaii Authority (NELHA).

OEESI testified in support of this measure.

Your Committee finds that this measure will enhance the likelihood of constructing the first commercially viable OTEC plant in the world at NELHA. It will also significantly reduce NELHA's costs for electric power to operate its seawater supply system.

Your Committee has amended this measure by revising the lapse date of the bonds to June 30, 2004, to conform to the State's bond issuance practice.

As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1553, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1553, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy and Environmental Protection,

____________________________

HERMINA M. MORITA, Chair