Report Title:

Hawaii Residential Solar Hot Water Heater Loan Revolving Fund

Description:

Creates the Hawaii residential solar hot water heater loan revolving fund to make low interest loans to homeowners to finance the acquisition and installation of residential solar hot water heaters.

HOUSE OF REPRESENTATIVES

H.B. NO.

2186

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to RENEWABLE energy.

 

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

SECTION 1. (a) The legislature finds and declares that:

(1) The issuance of general obligation bonds under this Act is in the public interest and for the public health, safety, and general welfare of the State; and

(2) This Act is consistent with the State's objectives and policies for energy, as specified in section 226-18, Hawaii Revised Statutes.

(b) It is the intent of the legislature to capitalize the Hawaii residential solar hot water heater loan revolving fund created in section 2 of this Act over a period of         fiscal years. This approach will allow the legislature to:

(1) Gauge public demand for these loans and respond to the exact requirements of the revolving fund; and

(2) Ensure the tax exempt status of the general obligation bonds used to capitalize the revolving fund.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

HAWAII RESIDENTIAL SOLAR HOT WATER HEATER LOAN

REVOLVING FUND

§ -1 Definitions. As used in this chapter:

"Department" means the department of business, economic development, and tourism.

"Director" means the director of business, economic development, and tourism.

"Financial institution" means any organization authorized to do business under state or federal laws relating to financial institutions, including banks, savings banks, savings and loan companies or associations, financial services loan companies, and credit unions.

"Revolving fund" means the Hawaii residential solar hot water heater loan revolving fund.

§ -2 Hawaii residential solar hot water heater loan program. There is created a Hawaii residential solar hot water heater loan program that shall be administered by the director.

§ -3 Hawaii residential solar hot water heater loan revolving fund. There is established the Hawaii residential solar hot water heater loan revolving fund into which shall be deposited all moneys appropriated by the legislature pursuant to law and all moneys received as repayment of loans and interest payments as provided in this chapter. The department may utilize a portion of the moneys contained in the revolving fund for programs associated with administering the revolving fund and its mandated purpose.

§ -4 Functions, powers, and duties of director. In the performance of, and with respect to, the functions, powers, and duties vested in the director by this chapter, the director may:

(1) Adopt rules under chapter 91 to carry out this chapter; and

(2) Perform all functions necessary to effectuate the purposes of this chapter.

§ -5 Rules. The rules shall:

(1) Prescribe the qualifications for eligibility of applicants for loans;

(2) Establish preferences and priorities in determining eligibility for loans;

(3) Establish the conditions, consistent with the purposes of this chapter, for the granting or for the continuance of a grant of a loan; and

(4) Provide for inspection, at reasonable hours, of the premises of the homeowner who has applied for or has been granted a loan, and to require the submission of periodic reports.

§ -6 Direct loans, terms, and restrictions. (a) The department may make loans to homeowners to finance the acquisition and installation of residential solar hot water heaters. The loans may be made in conjunction with loans made by other financial institutions. Where the loans made by the department are secured, the security may be subordinated to the loans made by other financial institutions, when the subordination is required to obtain loans from these institutions. The director shall determine the necessity for and the extent of security required in any loan.

(b) The interest on loans made under this subsection shall bear simple interest at the rate of          per cent below the prime rate or at a rate of          per cent a year, whichever is lower. For purposes of this subsection, the prime rate shall be determined on January 1 and July 1 of each year, and shall be the rate charged by the two largest banks in the State of Hawaii identified by the department of commerce and consumer affairs. If there is a difference in rate charged by the institutions, the lower of the two rates shall be used. Payments required under loans made under this subsection may be deferred, but no loans made under this subsection shall be forgiven.

(c) Except as may be expressly provided otherwise for loans made under subsection (b), the foregoing powers shall be subject to the following restrictions and limitations:

(1) The amount of the loan or loans to any one applicant at any one time shall in no case exceed a total of $      ;

(2) No loan shall be made for a term exceeding         years;

(3) The commencement date for the repayment of the first installment on the principal of each loan may be deferred by the director, but in no event shall such initial payment be deferred in excess of        years; and

(4) The payment of interest on the principal of a loan may be deferred by the director, but in no event shall interest payments be deferred in excess of         years from the date of issuance of the loan.

(d) The department may contract with any financial institution for services including servicing or administering loans pursuant to this section.

§ -7 Reports. The department of business, economic development, and tourism shall make a report as of December 31 of each year of operations under this chapter to the governor, the president of the senate, and the speaker of the house of representatives, on the progress made under this chapter. These reports shall be submitted not later than February 1 immediately following the period covered by the report."

SECTION 3. The director of finance is authorized to issue general obligation bonds in the sum of $5,000,000, or so much thereof as may be necessary, and the same sum, or so much thereof as may be necessary, is appropriated for fiscal year 2002-2003 to be paid into the Hawaii residential solar hot water heater loan revolving fund created in section 2 of this Act. The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of the Hawaii residential solar hot water heater loan revolving fund.

SECTION 4. This Act shall take effect on July 1, 2002.

INTRODUCED BY:

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