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SB585
THE SENATE
S.B. NO.
585
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating
to THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST Bana Pacific Inc
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The
legislature finds that the State faces critical challenges in energy security,
waste management, and climate change mitigation.
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As the most isolated population center in the
world, the State is highly dependent on imported fossil fuels, which makes its
energy system vulnerable to supply chain disruptions and price volatility.
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Additionally, the State generates significant
amounts of organic waste, much of which is directed to landfills, contributing
to methane emissions and reducing landfill capacity.
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The legislature further finds that the
proposed project by Bana Pacific Inc., a Hawaii corporation, to construct and
operate a biogas production facility addresses these pressing challenges.
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Specifically, the proposed facility will:
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(1)
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Convert
locally sourced biomass, agricultural byproducts, and organic waste into biogas
and renewable natural gas;
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(2)
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Incorporate
advanced technologies to produce green hydrogen using renewable energy sources;
and
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(3)
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Provide
a sustainable and renewable source of energy for power generation,
transportation, and industrial applications.
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The legislature recognizes that the project
will not only reduce the State's dependence on imported fossil fuels but also
advance its climate and sustainability goals, including the reduction of
greenhouse gas emissions and the transition to one‑hundred‑per cent
renewable energy by 2045.
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Furthermore, the legislature acknowledges
the wide-ranging benefits of the project.
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For energy and fuel security, the proposed biogas production facility
will produce reliable and renewable energy sources, reducing the State's
vulnerability to global energy markets.
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By diverting organic waste from landfills and
producing renewable fuels, the project will substantially reduce methane
emissions and the State's overall carbon footprint.
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The project supports waste mitigation by providing
an environmentally responsible solution to manage organic waste and residual
biomass, alleviating pressure on the State's limited landfill capacity.
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By converting agricultural byproducts into
valuable energy resources, the facility will support local farmers and fosters
sustainable agricultural practices.
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In
addition, the use of underutilized lands for biomass collection will reduce
wildfire risks while improving land management practices.
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Finally, the construction and operation of
the facility will create significant job opportunities, stimulate local
economic growth, and generate tax revenue for the State.
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Accordingly, the purpose of this Act is to
authorize the issuance of special purpose revenue bonds to assist Bana Pacific Inc.
in the construction of a biogas production facility that will convert local
biomass and organic material into biogas, a clean, renewable source of fuel for
power generation.
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SECTION 2.
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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.
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SECTION 3.
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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 $180,000,000,
in one or more series, for the purpose of assisting Bana Pacific Inc., a
Hawaii corporation, in the construction of a biogas production facility that
will convert local biomass and organic material into biogas, a clean, renewable
source of fuel for power generation.
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The
legislature hereby finds and determines that the construction of a biogas production
facility to convert local biomass and organic material into biogas constitutes
a project as defined in part V, chapter 39A, Hawaii Revised Statutes, and the
financing thereof constitutes assistance to an industrial enterprise.
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SECTION 4.
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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 industrial enterprises.
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SECTION 5.
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The department of budget and finance is authorized, from time to time,
including times subsequent to June 30, 2030, 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.
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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.
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SECTION 6.
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The authorization to issue special purpose revenue bonds under this Act
shall lapse on June 30, 2030.
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SECTION 7.
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This Act shall take effect on July 1, 2025.
INTRODUCED BY:
_____________________________
Report Title:
SPRB; Bana
Pacific Inc.; Biogas Production Facility
Description:
Authorizes
the issuance of special purpose revenue bonds to assist Bana Pacific Inc. in constructing
a biogas production facility.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.