STAND. COM. REP. NO. 2149

Honolulu, Hawaii

RE: S.B. No. 2865

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 2865 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 and intent 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; AKVO LLC; Cement and Concrete Products Industry of Hawaii; Hawaii Federated Industries; and nine individuals. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that although carbon dioxide has many commercial uses, there is only one carbon dioxide production facility in Hawaii. Your Committee further finds that the construction of a net-zero carbon capture storage utilization platform in the State would have numerous benefits, including but not limited to import substitution, economic diversification, and long-term carbon sequestration.

Accordingly, your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2865, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2865, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

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GLENN WAKAI, Chair