Report Title:
Energy; SPRBS; BioEnergy Hawaii, LLC
Description:
Authorizes issuance of SPRBs for BioEnergy Hawaii, LLC. (SD1)
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THE SENATE |
S.B. NO. |
486 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST INDUSTRIAL ENTERPRISES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is in the public interest to encourage the development of cogeneration facilities that make electric energy available to members of the general public by the sale of electric energy to an electric utility serving the area. The legislature further finds that BioEnergy Hawaii, LLC is engaged in the development of a cogeneration facility project that will sell the electric energy it produces to electric utilities serving the public. BioEnergy Hawaii, LLC processes nonfossil fuel feedstock to produce electricity, and utilizes the process exhaust in related bio-energy production facilities to convert micro-algae.
The legislature further finds that BioEnergy Hawaii, LLC may be assisted through the issuance of special purpose revenue bonds because it is an industrial enterprise pursuant to part V, chapter 39A, 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 of the State.
SECTION 2. Pursuant to part V, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue in one or more series special purpose revenue bonds in a total amount not to exceed $100,000,000, for the purpose of assisting BioEnergy Hawaii, LLC, or a partnership in which BioEnergy Hawaii, LLC is a general partner, in the construction and operation of a cogeneration facility and related energy production facilities. The electrical output of this plant and facilities shall be made available for use by members of the general public by sale to Hawaiian Electric Company, Inc. Thermal fluid output of this plant and related energy production facilities shall also be made available for use by members of the general public by sale to existing and planned manufacturing processing entrepreneurs in the area. The legislature finds and determines that the activity and facilities of BioEnergy Hawaii, LLC constitute a project as defined in part V, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to an industrial enterprise.
SECTION 3. Pursuant to part V, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue from time to time, including times subsequent to June 30, 2014, refunding special purpose revenue bonds in whatever principal amounts as 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 4. The special purpose revenue bonds issued under this Act shall be issued pursuant to part V, chapter 39A, Hawaii Revised Statutes, relating to the authority to issue special purpose revenue bonds to assist industrial enterprises.
SECTION 5. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2014.
SECTION 6. This Act shall take effect upon its approval.