REPORT TITLE:
SPRB


DESCRIPTION:
Authorizes the issuance of special purpose revenue bonds to
assist an industrial enterprise.  (HB2183 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2183
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   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:

 1      SECTION 1.  The legislature finds that although production
 
 2 of fuel grade ethanol from agricultural or municipal solid waste
 
 3 byproducts has demonstrated its value as a clean, economical
 
 4 additive to gasoline, a component of biodiesel fuel, and a
 
 5 gasoline substitute in flexible fuel vehicles, Hawaii continues
 
 6 to depend almost entirely upon imported petroleum to meet its
 
 7 transportation and energy needs.  The legislature finds that the
 
 8 integration of ethanol production with the operation of sugar
 
 9 mills can make a positive contribution to the operating profits
 
10 in the sugar industry and the long-term viability of sugar in
 
11 Hawaii.  The legislature finds that the agricultural,
 
12 environmental, energy, and economic policies of the State would
 
13 be substantially forwarded by the effective utilization of
 
14 technology to convert agricultural residues, green waste, and
 
15 municipal solid waste into fuel grade ethanol for use as a fuel
 
16 blend or additive.  Financial assistance is essential to
 
17 stimulate investment of the capital required to construct ethanol
 
18 production plants that will provide the State with an alternative
 
19 energy product that would reduce Hawaii's dependence on imported
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 petroleum, as well as assist in the revival of the State's
 
 2 agricultural economy.  The legislature further finds that the
 
 3 project development team of the Worldwide Energy Group, Inc.,
 
 4 including the world's premier ethanol plant design and
 
 5 engineering firm, local landowners, sugar mills, and scientists
 
 6 with access to demonstrated state of the art conversion
 
 7 technology, has developed, as part of the Hawaii Sugar Ethanol
 
 8 Project, a coherent, prudent, and viable program for the
 
 9 production of ethanol in Hawaii.
 
10      For the foregoing reasons, the legislature finds and
 
11 declares that the issuance of special purpose revenue bonds under
 
12 this Act is in the public interest and is beneficial to the
 
13 public health, safety, and general welfare.
 
14      The legislature further finds that part V, chapter 39A,
 
15 Hawaii Revised Statutes, permits the State to financially assist
 
16 industrial enterprises through the issuance of special purpose
 
17 revenue bonds and that the issuance of special purpose revenue
 
18 bonds under this Act is in the public interest and for the public
 
19 health, safety, and general welfare of the State.  The
 
20 legislature finds that Worldwide Energy Group, Inc., a Hawaii
 
21 corporation, is an industrial enterprise meeting the
 
22 qualifications for special purpose revenue bond assistance under
 
23 chapter 39A, part V, Hawaii Revised Statutes.  The special
 

 
Page 3                                                     2183
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 purpose revenue bonds authorized under this Act will provide low
 
 2 interest rate bond financing for the construction of a fuel grade
 
 3 ethanol production plant on the island of Kauai and other
 
 4 appropriate locations in the State.
 
 5      SECTION 2.  Pursuant to part V, chapter 39A, Hawaii Revised
 
 6 Statutes, the department of budget and finance, with the approval
 
 7 of the governor, is authorized to issue in one or more series
 
 8 special purpose revenue bonds in a total amount not to exceed
 
 9 $50,000,000 for the purpose of assisting Worldwide Energy Group,
 
10 Inc., a Hawaii corporation, in the planning, design,
 
11 construction, and operation of any and all elements of the Hawaii
 
12 Sugar Ethanol Project, including a multi-million gallon per year
 
13 fuel grade ethanol facility on the island of Kauai and other
 
14 appropriate locations in the State.  The legislature finds and
 
15 determines that the activities and facilities of Worldwide Energy
 
16 Group, Inc., constitute a project as defined in part V, chapter
 
17 39A, Hawaii Revised Statutes, and that the financing thereof is
 
18 assistance to an industrial enterprise.
 
19      SECTION 3.  The special purpose revenue bonds issued under
 
20 this Act shall be issued pursuant to part V, chapter 39A, Hawaii
 
21 Revised Statutes, relating to the power to issue special purpose
 
22 revenue bonds to assist industrial enterprises serving the
 
23 general public.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      SECTION 4.  The authorization to issue special purpose
 
 2 revenue bonds under this Act shall lapse on June 30, 2004.
 
 3      SECTION 5.  This Act shall take effect upon its approval.