HOUSE OF REPRESENTATIVES

H.B. NO.

634

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS FOR THE NUUANU HYDROELECTRICITY PROJECT.

 

 

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

 


     SECTION 1.  Nuuanu reservoir #1 is an essential component in the Nuuanu hydroelectricity project, which will connect existing reservoirs in Nuuanu valley to generate renewable hydroelectric energy, provide energy storage of off-peak solar or wind energy supplies, and supplement usable groundwater supplies through the increase of groundwater recharge of captured stormwater.  The legislature finds that part VI, chapter 39A, Hawaii Revised Statutes, permits the State to assist utilities serving the public in providing electricity.

     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 VI, 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 $4,800,000, in one or more series, for the purpose of assisting the Honolulu Board of Water Supply, a municipal water utility, and Hawaiian Electric Company, Inc., a Hawaii corporation and electric utility, to upgrade Nuuanu reservoir #1 to meet state dam safety standards as part of the Nuuanu hydroelectricity project.  The legislature hereby finds and determines that the Nuuanu hydroelectricity project constitutes a project as defined in part VI, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to utilities serving the general public in providing electric energy, gas, or telecommunications.

     SECTION 3.  The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part VI, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist utilities serving the general public in providing electric energy, gas, or telecommunications.

     SECTION 4.  The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2022, 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, 2022.

     SECTION 6.  This Act shall take effect on July 1, 2017.

 

INTRODUCED BY:

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Report Title:

Special Purpose Revenue Bonds; Nuuanu Managed Aquifer Recharge and Pumped Storage Hydroelectricity Project

 

Description:

Authorizes the issuance of special purpose revenue bonds to the Board of Water Supply and the Hawaiian Electric Company, Inc. to upgrade Nuuanu Reservoir #1 to meet State Dam Safety Standards, as a component of the Nuuanu Hydroelectricity Project.

 

 

 

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