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.

HOUSE OF REPRESENTATIVES

H.B. NO.

215

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 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 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 Hawaii 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 is urgently needed on the east side of the island of Hawaii.

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 Hawaii to assist in the county's municipal solid waste management at its near-capacity Hilo landfill which could provide a new renewable energy source providing electricity for sale to Hawaii Electric Light Company, Inc. ("HELCO"), under a long-term power purchase agreement. If selected by the county of Hawaii, 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 two hundred tons per day with ninety per cent efficiency and could produce three to four megawatts (approximately thirty million kWh) of firm electrical energy for delivery to the HELCO 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.

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, for 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 Hawaii on the island of Hawaii, including the county's current landfill in Hilo. 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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