Bill Text: HI SB391 | 2010 | Regular Session | Amended
Bill Title: Special Purpose Revenue Bonds; Honolulu Seawater Air Conditioning, LLC
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Engrossed - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB391 Detail]
Download: Hawaii-2010-SB391-Amended.html
STAND. COM. REP. NO. 262
Honolulu, Hawaii
RE: S.B. No. 391
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fifth State Legislature
Regular Session of 2009
State of Hawaii
Madam:
Your Committee on Energy and Environment, to which was referred S.B. No. 391 entitled:
"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST SEAWATER AIR CONDITIONING PROJECTS ON OAHU,"
begs leave to report as follows:
The purpose of this measure is to authorize the issuance of special purpose revenue bonds to Honolulu Seawater Air Conditioning, LLC, for the purpose of design and construction of a seawater air conditioning district cooling system in downtown Honolulu.
Testimony in support of this measure was submitted by four organizations. Written testimony presented to your Committee may be reviewed on the Legislature's website.
Your Committee finds that especially in light of Hawaii's geographic isolation, the development and utilization of renewable, sustainable, and efficient energy systems continues to be in the public interest.
Your Committee further finds that Honolulu Seawater Air Conditioning, LLC proposes to build seawater air conditioning district cooling systems on the island of Oahu. Honolulu Seawater Air Conditioning, LLC is engaged in the planning, design, and construction of a seawater air conditioning district cooling facility and chilled water distribution system in downtown Honolulu using cold, deep seawater as the primary cooling source.
Your Committee finds and declares that the issuance of special purpose revenue bonds under this measure is in the public interest and promotes the public health, safety, and general welfare. Your Committee further finds that the issuance of special purpose revenue bonds and refunding special purpose revenue bonds under this measure will make the development of a seawater air conditioning system more economically feasible and provide numerous benefits, including the following:
(1) Providing customers with reduced and stable cooling costs;
(2) Using an abundant, infinite, sustainable energy resource – cold, deep seawater – to provide more than ninety per cent of the cooling load;
(3) Eliminating the need for cooling towers and, as a result, reducing potable water use, toxic chemical use, and the production of sewage;
(4) Greatly reducing the use of harmful refrigerants used in conventional cooling systems;
(5) Potentially providing energy savings of seventy per cent, or more, compared to conventional air conditioning systems;
(6) Having lower operating and maintenance costs than individual building air conditioning systems;
(7) Eliminating the need for up to 0.63 kilowatts of electricity generation capacity for each ton of cooling capacity;
(8) Potentially generating millions of dollars in construction project spending. In addition to construction jobs, a significant number of long-term, well-paid jobs will also be created;
(9) Reducing the export of Hawaii moneys for oil and retaining that money in the Hawaii economy. Other local economic development benefits will accrue from money that stays in Hawaii and is not used to purchase oil; and
(10) Helping the State of Hawaii, the City and County of Honolulu, and the federal government to meet goals and mandates for energy efficiency and renewable energy use.
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 S.B. No. 391 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Energy and Environment,
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____________________________ MIKE GABBARD, Chair |
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