Authorized issuance of $5,000,000 in special purpose revenue bonds for Central Kauai Sanitary Landfill, LLC.

A BILL FOR AN ACT

SECTION 1. The legislature finds that the island of Kauai has a landfill, located at Kekaha on the western-most tip of the island, which is nearing the end of its capacity. No other landfill or disposal facility exists, and all refuse collected from the island must be transported to the Kekaha landfill on a daily basis. The county of Kauai has been searching for more than five years for a facility to take the place of the Kekaha landfill when it reaches capacity.

The legislature further finds that a facility proposed by Central Kauai Sanitary Landfill, LLC, is the best potential site for various reasons, including its proximity to Lihue, where most refuse is generated, and it offers the least impact on surrounding residential areas, annual rainfall, and geological conditions. The subject site was in sugar cane production for more than forty years and currently sits as abandoned land, which has no plans for development within the next 100 years. Current federal Environmental Protection Agency guidelines for the design, construction, and operation of landfills require strict compliance with all federal, state, and local requirements, and environmental assessments for this site will demonstrate that any impacts will be well below the minimum acceptable levels for landfill operations. All non-hazardous waste on Kauai, including the county-collected waste, will be accepted at this new landfill, and residents will be allowed to dispose of their solid waste at no charge. The site proposal also features a full recycling center whereby island residents may drop off their recyclables.

The legislature further finds that the county's Kekaha landfill has less than two years remaining capacity, and bringing a new landfill into operation will take approximately three years. The county of Kauai has sought numerous proposals for a high-tech form of solid waste disposal, but results have shown that all forms have either been untested or would be too costly. Central Kauai Sanitary Landfill, LLC, proposes a privately operated landfill in partnership with Grove Farm Company, Ltd., at a site that is expected to last approximately seventy-five years, making this a cost-affordable, long-term solution to Kauai's solid waste refuse disposal challenges.

For the foregoing reasons the legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and is beneficial to the public health, safety, and general welfare.

The legislature further finds that part IV, chapter 39A, Hawaii Revised Statutes, permits the State to financially assist processing enterprises through the issuance of special purpose revenue bonds and that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare of the State. The special purpose revenue bonds authorized under this Act will provide low interest rate bond financing for the development of a private landfill in central Kauai, on approximately two hundred fifty acres located at tax map key 3-3-02-001 and

3-4-06-012, bounded by Kaumualii Highway, Kipu Road, County Road, and Primary Cane Haul Road.

SECTION 2. Pursuant to part IV, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $5,000,000, in one or more series, for the purpose of assisting Central Kauai Sanitary Landfill, LLC, in developing a private landfill on the island of Kauai.

The legislature finds and declares that the issuance of special purpose revenue bonds under this Act constitutes a processing enterprise project as defined in part IV, chapter 39A, Hawaii Revised Statutes, and is in the public interest and general welfare of the State.

SECTION 3. The special purpose revenue bonds issued under section 2 of this Act shall be issued pursuant to part IV, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist processing enterprises.

SECTION 4. The department of budget and finance is authorized to issue from time to time, refunding special purpose revenue bonds authorized in such principal amounts as the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2.

SECTION 5. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2004.

SECTION 6. This Act shall take effect upon its approval.