STAND. COM. REP. NO. 2701

Honolulu, Hawaii

RE: S.B. No. 585

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 585, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST BANA PACIFIC INC,"

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 Bana Pacific Inc. in the construction of a biogas production facility.

Your Committee received written comments in support of this measure from the Hawaii Department of Agriculture and Biosecurity; The Maritime Group; Aloun Farm, Inc.; Hawaii Gas; Sustainable Solutions LLC; and two individuals.

Your Committee received written comments on this measure from the Department of Budget and Finance.

Your Committee finds that the in-state production of biogas fuel could help ensure energy security, diversify the fuel supply, and provide economic opportunities in rural areas. Your Committee also finds that the issuance of special purpose revenue bonds to assist the construction of a biogas production facility in the State could help attract private sector capital and investment without imposing an economic burden on the State or its taxpayers.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 585, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 585, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair