Report Title:
Special Purpose Revenue Bonds; Honolulu Seawater Air Conditioning, LLC
Description:
Authorizes the issuance of special purpose revenue bonds for Honolulu Seawater Air Conditioning, LLC, for the purpose of design and construction of a seawater air conditioning district cooling system in downtown Honolulu. (SD1)
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THE SENATE |
S.B. NO. |
391 |
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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 SEAWATER AIR CONDITIONING PROJECTS ON OAHU.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that support for the development of renewable and efficient energy systems and utilization of sustainable energy in the State, which is geographically isolated from sources of oil, continues to be in the public interest.
The legislature 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 its primary cooling source.
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. The legislature further finds that the issuance of special purpose revenue bonds and refunding special purpose revenue bonds under this Act to assist Honolulu Seawater Air Conditioning, LLC, in constructing the portion of this district cooling project consisting of its chilled water distribution system and balance-of-system components and structures, 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 chemicals (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 and creating construction jobs and a significant number of long-term, well-paid jobs;
(9) Reducing the export of Hawaii money for oil and retaining that money in the local economy to support local economic development; and
(10) Helping the State, the city and county of Honolulu, and the federal government to meet goals and mandates for energy efficiency and renewable energy use.
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 special purpose revenue bonds in a total amount not to exceed $ , in one or more series, for the purpose of assisting Honolulu Seawater Air Conditioning, LLC, a Hawaii company, in designing and constructing the district cooling project. The legislature hereby finds and determines that the design and construction of this district cooling project 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. The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part V, chapter 39A, 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, 2014, 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 to refund 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. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2014.
SECTION 6. This Act shall take effect on July 1, 2070.