Report Title:

SPRB; Barlow

Description:

Authorizes issuance of up to $25,000,000 in special purpose revenue bonds to assist Barlow Projects Hawaii LLC, a subsidiary of Barlow Projects, Inc., an individual enterprise for a project on Maui.

HOUSE OF REPRESENTATIVES

H.B. NO.

206

TWENTY-SECOND LEGISLATURE, 2003

 

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 Maui 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 in the island's future.

The legislature finds that the environmental, energy, and economic policies of the State would be substantially forwarded by the effective utilization of technology to convert solid waste into energy using proven technology. 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 Maui with electrical energy that would help to reduce the island's dependence on imported petroleum. The project would also provide a solution for municipal solid waste disposal that will extend the life of the county's current landfill in central Maui and will provide the county of Maui with greater flexibility in managing its solid waste in the future.

The legislature further finds that Barlow Projects Hawaii LLC, a Hawaii industrial enterprise and a subsidiary of Barlow Projects, Inc., which develops and operates waste-to-energy facilities on the United States mainland, is proposing a waste reduction project to the county of Maui to assist in its municipal solid waste management at its central Maui landfill which could provide a new renewable energy source providing electricity for sale to Maui Electric Company, Inc. ("MECO"), under a long-term power purchase agreement. The proposed waste-to-energy facility or facilities will use incineration and air pollution control technology that has been in successful commercial operation at other locations on the United States mainland. The project will be capable of processing up to four hundred tons per day with ninety per cent efficiency and produce about eight megawatts (approximately sixty-five million kWh) of firm electrical energy for delivery to the MECO power grid.

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 for 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 Barlow Projects Hawaii LLC, a Hawaii limited liability company, 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 or facilities capable of handling four hundred tons per day of acceptable solid waste at a project site or sites selected by the county of Maui on the island of Maui, including the current county landfill in central Maui.

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 $25,000,000, in one or more series, for the purpose of assisting Barlow Projects Hawaii LLC, a Hawaii limited liability corporation, in the planning, design, construction, and operation of any and all elements of one or more waste reduction facilities at a project site or sites selected by the county of Maui on the island of Maui, including the county's current landfill in central Maui. The legislature hereby finds and determines that activities and facilities of Barlow Projects 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. 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 serving the general public.

SECTION 4. The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2007, 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, 2007.

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

INTRODUCED BY:

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