Report Title:

Special Purpose Revenue Bonds; Hilo Coast Power Company

 

Description:

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. (SD1)

 

THE SENATE

S.B. NO.

484

TWENTY-FIRST LEGISLATURE, 2001

S.D. 1

STATE OF HAWAII

 


 

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 efforts to improve economic conditions on the island of Hawaii will depend in part on more efficient and effective uses of the island's resources. As the region continues to evolve from an agricultural to a more diversified economy, new sources of energy will need to be developed to accommodate a changing business and residential structure. Growth will also result in the increased generation of waste, and adequate solid waste disposal is a critical component for the island's future.

The legislature finds that the environmental, energy, and economic policies of the State would be substantially advanced by the effective utilization of technology to convert solid waste into energy. Financial assistance is essential to stimulate the investment of the capital required to construct a waste-to-energy facility that would provide the island of Hawaii with adequate electrical energy and would reduce the island's dependence on imported petroleum.

The legislature further finds that Hilo Coast Power Company, a division of Brewer Environmental Industries, LLC, is an independent power producer and the successor to the Hilo Coast Processing Company, a sugar cooperative that was owned jointly by Mauna Kea Agribusiness, Co., Inc., and the United Cane Planters Cooperative. Hilo Coast Processing Company shut down its sugar operations in September 1994, however, it continued to generate electricity for sale to Hawaii Electric Light Company, Inc., under a long-term power purchase agreement. In 1997, Hilo Coast Processing Company was merged into Brewer Environmental Industries, LLC, and the name Hilo Coast Power Company was registered as a trade name in order to better identify the on-going power generation business of the firm. The proposed waste-to-energy facility will use incineration and air pollution control technology that has been in successful operation for over twelve years.

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 V, chapter 39A, Hawaii Revised Statutes, permits the State to financially assist industrial 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 legislature finds that Hilo Coast Power Company, a Hawaii corporation, is an industrial enterprise meeting the qualifications for special purpose revenue bond assistance under chapter 39A, part V, Hawaii Revised Statutes. The special purpose revenue bonds authorized under this Act will provide low interest rate bond financing for the construction of a waste-to-energy facility capable of handling three hundred tons per day of acceptable solid waste at Pepeekeo on the island of Hawaii.

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 $25,000,000 for the purpose of assisting Hilo Coast Power Company, a Hawaii corporation, in the planning, design, construction, and operation of any and all elements of a waste-to-energy facility at Pepeekeo on the island of Hawaii. The legislature finds and determines that the activities and facilities of Hilo Coast Power Company constitute 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 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 serving the general public.

SECTION 4. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2004.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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