Authorizes issuance of up to $25,000,000 in special purpose revenue bonds to assist Hilo Coast Power Company, a division of Brewer Environmental Industries, LLC, an industrial enterprise for the construction of a waste-to-energy facility at Pepeekeo on the Big Island. (SB484 HD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that the county of Hawaii is in the process of studying the most effective way to dispose of their solid wastes and has hired a consultant to do this study and make recommendations. This study is expected to be complete by September 2001, and at that time the county will issue a request for proposals based on these recommendations.

The legislature further finds that a waste-to-energy facility, capable of handling three hundred tons per day of acceptable solid waste at Pepeekeo on the island of Hawaii, is being proposed by Hilo Coast Power Company, a division of Brewer Environmental Industries, LLC.

The legislature further finds that this project may assist in meeting the State's solid wastes and energy objectives and policies as stated in sections 226-15 and 226-18, Hawaii Revised Statutes.

The legislature finds and declares 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.

SECTION 2. Pursuant to part V of 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 $25,000,000 in one or more series for the purpose of assisting Hilo Coast Power Company, a Hawaii corporation, for the planning, design, and construction of a waste-to-energy facility at Pepeekeo on the island of Hawaii. The legislature hereby finds and determines that a waste-to-energy facility constitutes a "project" as defined in part V, chapter 39A, Hawaii Revised Statutes, and that the financing thereof is assistance to an industrial enterprise.

SECTION 3. The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to chapter 39A, part V, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist industrial enterprises.

SECTION 4. The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2004, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2 and any refunding of special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 2. In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

SECTION 5. No special purpose revenue bonds authorized under this Act shall be issued until the county of Hawaii awards and approves a contract to Hilo Coast Power Company for the project described in section 2 of this Act.

SECTION 6. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2004.

SECTION 7. This Act shall take effect upon its approval.