STAND. COM. REP. NO. 893

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 855

       H.D. 1

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Energy and Environment, to which was referred H.B. No. 855, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST PACIFIC POWER AND WATER COMPANY, INC., IN THE DEVELOPMENT OF HYDROPOWER FACILITIES IN HAWAII,"

 

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 Pacific Power and Water Company, Inc. with the planning, permitting, designing, construction, equipping, and operating of hydropower facilities throughout the State.

 

     Your Committee received testimony in support of this measure from Patrick Sullivan, Pacific Power and Water Company, Inc.  Your Committee received comments on this measure from Kalbert K. Young, Department of Budget and Finance.

 

Your Committee finds that the hydropower projects for which assistance is requested will produce renewable energy, generate revenue for much needed dam maintenance and repair, generate jobs in the renewable energy sector, and reduce the State's overall dependence on fossil fuels.  Your Committee also finds, however, that Pacific Power and Water Company, Inc., needs to provide clarifying information to your Committees on Energy and Environment and Ways and Means by April 15, 2011, and that this information shall include statements, without rendering opinions, from the Department of Business, Economic Development, and Tourism and the Department of Budget and Finance stating that both agencies have reviewed the project's business plan and, in the statement from the Department of Budget and Finance, that the agency has reviewed the company's financial statements.  Your Committee also recognizes that under the Internal Revenue Code there is a limitation on the amount of tax-exempt financing for industrial projects but that Pacific Power and Water Company Inc., has indicated to the Department of Budget and Finance that they have consulted with bond counsel and believe that their project is eligible for $25,000,000 of special purpose revenue bond financing.

 

     Your Committee has amended this measure by:

 

     (1)  Changing the dates in sections 4 and 5 of the measure to June 30, 2016, in order to be consistent with the usual five-year authorization for the issuance of special purpose revenue bonds;

 

     (2)  Inserting an authorization amount of $25,000,000; and

 

     (3)  Changing the effective date to upon approval.

 

     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 H.B. No. 855, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 855, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

MIKE GABBARD, Chair