Report Title:

Special Purpose Revenue Bonds; Hawaii Wind Energy LLC

Description:

Authorizes issuance of $55 million in special purpose revenue bonds to Hawaii Wind Energy LLC for wind farms on Maui and on the Big Island.

THE SENATE

S.B. NO.

709

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the issuance of special purpose revenue bonds to assist projects on the islands of maui and hawaii.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that support for the development of alternative means of generation of energy in the State, which is geographically isolated from sources of oil, continues to be in the public interest. The legislature further finds that Hawaii Wind Energy LLC proposes to develop wind energy conversion systems facilities on the island of Maui and on the Big Island.

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 $55,000,000, in one or more series for the purpose of assisting Hawaii Wind Energy LLC, in the construction of up to three wind energy conversion systems facilities on Maui and on the Big Island. The entire output of these plants shall be made available for use by the general public by sale to the Maui Electric Company, Ltd. and the Hawaii Electric Light Company, Inc. respectively. The legislature hereby finds and determines that the activity and facilities of Hawaii Wind Energy 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.

SECTION 4. The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2008, 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, 2008.

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

INTRODUCED BY:

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