STAND. COM. REP. NO. 1291-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 2865

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 2865, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds to assist DIBSHawaii LLC in the construction of a net-zero carbon capture storage utilization platform that will recover vented carbon dioxide emissions and scrub them into food-grade liquid carbon dioxide.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office; DIBSHawaii LLC; Craft 8 Ventures, Inc.; and three individuals. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that while there are many commercial uses for carbon dioxide, Hawaii, like much of the country, is experiencing a carbon dioxide shortage for commercial activity. This measure supports the construction of a net-zero carbon capture storage utilization platform in the State that would provide a variety of benefits, including capturing carbon dioxide that would otherwise be released into the atmosphere, reducing reliance on out-of-state materials for local application, and promoting import substitution and economic diversification.

Your Committee has amended this measure by changing the effective date to July 1, 2100, to encourage further discussion.

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. 2865, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2865, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

NICOLE E. LOWEN, Chair