STAND. COM. REP. NO.  1076

 

Honolulu, Hawaii

                , 2009

 

RE:   S.B. No. 242

      S.D. 2

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 242, S.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO SEAWATER AIR CONDITIONING,"

 

begs leave to report as follows:

 

     The purpose of this measure is to assist businesses engaged in producing air conditioning from seawater air conditioning district cooling systems by including them within the definition of "qualified business" for the purposes of state enterprise zone laws.

 

     This measure also exempts businesses engaged in producing air conditioning from seawater air conditioning district cooling systems from the payment of general excise taxes to the same extent of other qualified businesses under the enterprise zone law.

 

     Honolulu Seawater Air Conditioning, LLC and the Hawaii Renewable Energy Alliance testified in support of the measure.  The Department of Business, Economic Development, and Tourism and the Department of Taxation testified in opposition to the measure.  The Tax Foundation of Hawaii submitted comments on the measure.

 

     Your Committee finds that this measure could reduce our dependence on imported oil and generate construction spending and jobs.  However, your Committee also notes the Department of Business, Economic Development, and Tourism's concerns that seawater air conditioning cooling systems do not fit within the traditional model of a business in an enterprise zone, and that these systems are site specific and thus not all of their installations may be located within one of the enterprise zones across the State.  However, your Committee finds that these concerns and issues are within the purview of the subsequent committees.

 

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 242, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Economic Revitalization, Business, & Military Affairs.

 

 

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

 

 

 

 

____________________________

HERMINA MORITA, Chair