STAND. COM. REP. NO. 256

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1718

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committee on Energy and Environment, to which was referred S.B. No. 1718 entitled:

 

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS FOR ELECTRICAL GENERATION ON THE ISLAND OF MAUI,"

 

begs leave to report as follows:

 

     The purpose of this measure is to support the development of renewable and efficient energy systems in the State.

 

     Specifically, this measure authorizes the Department of Budget and Finance to issue special purpose revenue bonds for the construction of a biodiesel refinery on Maui with primary production volumes designated as fuel for electrical generation in which BlueEarth Maui Biofuels, LLC is involved.

 

     Testimony in support of this measure was submitted by the Department of Business, Economic Development and Tourism, Hawaiian Electric Company, Maui Electric Company, Hawaii Electric Light Company, and BlueEarth Maui Biodiesel.  The Department of Budget and Finance submitted comments.

 

     Your Committee finds this measure will help meet the goals of the State's Renewable Portfolio Standard and Alternate Fuels Standard.  Your Committee further finds that by increasing the availability of locally grown biofuels, the state will not only increase its energy security and mitigate greenhouse gases, but will encourage a viable, local agricultural industry.  It will also result in the reduction of imported livestock feed since the by-products of biodiesel are an excellent alternative.

 

     Your Committee finds that the issuance of special purpose revenue bonds under this measure is in the public interest and for the public health, safety, and general welfare.

 

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1718 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

 

 

 

____________________________

RON MENOR, Chair