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

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
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 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

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                                     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.