STAND. COM. REP. NO.  1852

 

Honolulu, Hawaii

                , 2007

 

RE:   S.B. No. 1943

      S.D. 2

      H.D. 2

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Sir:

 

     Your Committee on Agriculture, to which was referred S.B. No. 1943, S.D. 2, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO ENERGY,"

 

begs leave to report as follows:

 

     The purpose of this bill is to encourage the production and use of biofuels and energy feedstock in Hawaii by:

 

     (1)  Adding biofuel processing facilities to the list of permitted uses for agricultural lands; and

 

     (2)  Establishing an energy feedstock program (Program) in the Department of Agriculture (DOA).

 

     Imperium Renewables Hawaii LLC, Hawaii BioEnergy, and Enterprise Honolulu supported this bill.  DOA and the Department of Business, Economic Development, and Tourism supported this bill with amendments.  The Department of Planning and Permitting of the City and County of Honolulu (Honolulu DPP), Hawaiian Electric Company, Maui Electric Company, and Hawaii Electric Light Company submitted comments.

 

     Several issues were raised at the public hearing.  The Honolulu DPP indicated that certain provisions relating to the addition of biofuel processing facilities to the list of permitted uses on agricultural land resemble criteria for approval of a particular proposal, rather than parameters for a permitted use.  Honolulu DPP suggested that biofuel processing facilities be allowed on agricultural land through the special permit process.

 

     In addition, concerns were expressed regarding potential negative impacts on existing bona fide farms of establishing biofuel processing facilities on agricultural lands.  Concerns were also raised regarding whether this measure assists local farming operations.

 

     Furthermore, DOA submitted recommended amendments to this bill that would impose additional requirements for biofuel processing facilities on agricultural land and for the Program.  The proposed requirements are intended to ensure that a majority of the energy feedstock are grown in the state.  Your Committee respectfully requests the Attorney General study the proposed amendments to determine the constitutionality of requiring the use of locally grown products as proposed by DOA, and provide a written opinion on this matter prior to the House and Senate conference period on this bill.

 

     Your Committee has amended this measure by:

 

     (1)  Deleting the provision requiring the Chairperson of the Board of Agriculture (Chairperson) and the Energy Resources Coordinator (Coordinator) to establish a baseline percentage of energy feedstock to be grown in the state;

 

     (2)  Clarifying that the Chairperson consult and coordinate with the Coordinator to establish milestones and objectives for the production of energy feedstock that is grown in the state;

 

     (3)  Requiring the Chairperson and the Coordinator to report on an annual basis the State's progress towards achieving the milestones and objectives;

 

     (4)  Including the cultivation of crops for bioenergy in the list of permitted uses on class A or B agricultural land; and

 

     (5)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

 

     Your Committee recognizes that additional study needs to be done to determine the most appropriate way to establish specific milestones and objectives for energy feedstock grown in the state.

 

     As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1943, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1943, S.D. 2, H.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Agriculture,

 

 

 

 

____________________________

CLIFT TSUJI, Chair