Authorizes the issuance of special purpose revenue bonds to
assist an industrial enterprise.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that although production
 2 of fuel grade ethanol from agricultural or municipal solid waste
 3 by-products has demonstrated its value as a clean, economical
 4 additive to gasoline, a component of bio-diesel fuel and a
 5 gasoline substitute in flexible fuel vehicles, Hawaii continues
 6 to almost entirely depend 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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 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, including
 4 the world's premier ethanol plant design and engineering firm,
 5 local landowners, sugar mills, and scientists with access to
 6 demonstrated state of the art conversion technology, have, in the
 7 Hawaii Sugar Ethanol Project developed a coherent, prudent, and
 8 viable program for the production of ethanol in Hawaii.
 9      For the foregoing reasons the legislature finds and declares
10 that the issuance of special purpose revenue bonds under this Act
11 is in the public interest and is beneficial to the public health,
12 safety, and general welfare.
13      The legislature further finds that part V, chapter 39A,
14 Hawaii Revised Statutes, permits the State to financially assist
15 industrial enterprises through the issuance of special purpose
16 revenue bonds and that the issuance of special purpose revenue
17 bonds under this Act is in the public interest and for the public
18 health, safety, and general welfare of the State.  The
19 legislature finds that Worldwide Energy Group, a Hawaii
20 corporation, is an industrial enterprise meeting the
21 qualifications for special purpose revenue bond assistance under
22 chapter 39A, part V, Hawaii Revised Statutes.  The special
23 purpose revenue bonds authorized under this Act will provide low

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                                     H.B. NO.           

 1 interest rate bond financing for the construction of a fuel grade
 2 ethanol production plant on the island of Kauai and other
 3 appropriate locations in the State.
 4      SECTION 2.  Pursuant to part V, chapter 39A, Hawaii Revised
 5 Statutes, the department of budget and finance, with the approval
 6 of the governor, is authorized to issue in one or more series
 7 special purpose revenue bonds in a total amount not to exceed
 8 $80,000,000 for the purpose of assisting Worldwide Energy Group,
 9 a Hawaii corporation, in the planning, design, construction, and
10 operation of any and all elements of the Hawaii Sugar Ethanol
11 Project, including a multi-million gallon per year fuel grade
12 ethanol facility on the island of Kauai and other appropriate
13 locations in the State.  The legislature finds and determines
14 that the activities and facilities of Worldwide Energy Group,
15 Inc., constitute a project as defined in part V, chapter 39A,
16 Hawaii Revised Statutes, and that the financing thereof is
17 assistance to an industrial enterprise.
18      SECTION 3.  The special purpose revenue bonds issued under
19 this Act shall be issued pursuant to part V, chapter 39A, Hawaii
20 Revised Statutes, relating to the power to issue special purpose
21 revenue bonds to assist industrial enterprises serving the
22 general public.
23      SECTION 4.  The authorization to issue special purpose

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                                     H.B. NO.           

 1 revenue bonds under this Act shall lapse on June 30, 2004.
 2      SECTION 5.  This Act shall take effect upon its approval.
 4                           INTRODUCED BY:  _______________________