SB2238

Report Title:

Special Purpose Revenue Bond (SPRB); Wailuku River Hydroelectric

 

Description:

Authorizes the issuance of $50,000,000 in SBRBs for Wailuku River Hydroelectric Power Company, Inc.

THE SENATE	S.B. NO.	2238
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

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:

SECTION 1. The legislature finds that it is in the public interest to encourage the development of nonfossil fuel projects that make electric energy available to members of the general public by their sale to an electric utility serving the public. The State of Hawaii has rich renewable energy resources and expansion of the renewable energy industry would contribute significantly to Hawaii's energy self-sufficiency and to a transition from oil-based systems to alternate sources of electric energy.

The legislature further finds that the Wailuku River Hydroelectric Power Company, Inc., a Hawaii corporation, is engaged in the development of renewable energy projects and will sell the electric energy it produces to the Hawaii Electric Light Company, Inc., which is an electric utility serving the public.

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 V, 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 $50,000,000, in one or more series, for the purpose of assisting Wailuku River Hydroelectric Power Company, Inc., or a partnership in which Wailuku River Hydroelectric Power Company, Inc., is a general partner, for the establishment of nonfossil fuel generating plants and related facilities. The electrical output of these facilities shall be made available for use by members of the general public by sale to the Hawaii Electric Light Company, Inc. The legislature hereby finds and determines that activities and facilities of the Wailuku River Hydroelectric Power Company, Inc., constitute a project as defined in part V, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to an industrial enterprise.

SECTION 3. The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part V, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist Wailuku River Hydroelectric Power Company, Inc., in the establishment of nonfossil fuel generating plants and related facilities enterprises.

SECTION 4. The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2005, 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 project 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, 2005.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________