THE SENATE

S.B. NO.

2369

TWENTY-EIGHTH LEGISLATURE, 2016

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

AUTHORIZING THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS FOR HAWAII RENEWABLE RESOURCES, LLC.

 

 

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

 


SECTION 1. The legislature finds that the development of local sustainable food production and the use and production of renewable energy systems continues to be in the best public interest. Hawaii Renewable Resources, LLC, is a Hawaii company offering sustainable solutions for the production of food and renewable energy from the conversion of recovered food and green agricultural crop resources.

Hawaii Renewable Resources, LLC, proposes to own, design, build, and operate a renewable natural gas production facility on Maui that will grow energy crops to produce renewable natural gas, carbon dioxide, recovered organic composts, and recovered irrigation water.

In support of the project of Hawaii Renewable Resources, LLC, the use of special purpose revenue bonds issued pursuant to this Act has been carefully considered and matches similar investments for infrastructure projects of this type. The issuance of special purpose revenue bonds will also provide critical financial flexibility to support the project initiatives and the deployment of internal capital. Through the utilization of special purpose revenue bonds as a means of funding, Hawaii Renewable Resources, LLC, will provide the public with benefits derived from utilization of alternative energy, without investment or operational risk to the State or counties.

The legislature finds and declares that the issuance of special purpose revenue bonds under this Act for Hawaii Renewable Resources, LLC, is in the public interest and for the public health, safety, and general welfare of the State.

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 Hawaii Renewable Resources, LLC, with the establishment and funding of energy crops, with renewable natural gas and electricity production and related facilities and projects on the island of Maui.

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, 2021, 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, 2021.

SECTION 6. This Act shall take effect on July 1, 2016.



Report Title:

Special Purpose Revenue Bonds; Natural Gas Production Facility; Renewable Energy; Hawaii Renewable Resources, LLC; Maui

 

 

Description:

Authorizes the issuance of special purpose revenue bonds to assist Hawaii Renewable Resources, LLC, with the development of a natural gas production facility on Maui that will establish and fund energy crops, with renewable natural gas and electricity production and related facilities and projects on the island of Maui. (SB2369 HD1)

 

 

 

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