Bill Text: HI SB2815 | 2010 | Regular Session | Amended
Bill Title: Hawaii Clean Energy Bond Loan Program
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2010-02-12 - (S) Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2815 Detail]
Download: Hawaii-2010-SB2815-Amended.html
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THE SENATE |
S.B. NO. |
2815 |
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TWENTY-FIFTH LEGISLATURE, 2010 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CLEAN ENERGY BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. This Act establishes a Hawaii clean energy bond that is a federal taxable, state tax-exempt, reimbursable general obligation bond. The bond proceeds will be deposited into the clean energy bond loan revolving fund and the department of business, economic development, and tourism, shall be authorized to make loans therefrom to commercial and residential property owners for energy efficiency improvements and small renewable energy systems. The loans will be repaid through a special assessment on the property of the borrower by the participating counties and remitted to the department under cooperative agreements. The liability to repay the bonds will be attached to the borrower's property, rather than to the borrower.
The Hawaii clean energy bond loan program established by this Act:
(1) Supports energy efficiency and renewable energy projects for residential and commercial structures;
(2) Provides another source of financing energy projects;
(3) Fosters energy savings;
(4) Stimulates job growth; and
(5) Is in the public interest and for the public health, safety, and general welfare of the State.
The purpose of this Act is to create a Hawaii clean energy bond loan program.
SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"CHAPTER
HAWAII CLEAN ENERGY BOND LOAN PROGRAM
§ -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.
"Energy efficiency improvements" means installation or physical modifications to property designed to reduce energy consumption. For the purposes of this chapter, energy efficiency improvements do not include appliances such as, washing machines, dryers, dishwashers, and similar appliances. Energy efficiency improvements shall include, but not be limited to the following list of measures:
(1) Air sealing and ventilation;
(2) Insulation;
(3) Space heating and cooling;
(4) Water heating;
(5) Hardwired lighting;
(6) Daylighting;
(7) Windows;
(8) Doors and skylights;
(9) Reflective roofs; and
(10) Energy efficiency improvements to pool equipment and landscaping.
"Loan program" means the Hawaii clean energy bond loan program.
"Renewable energy system" means a system that produces thermal or electrical energy from renewable sources, including units with an electrical back-up component, intended for use within the residential or commercial property on which it is located. The following systems qualify for inclusion as renewable energy systems:
(1) Solar photovoltaic systems;
(2) Small wind systems; and
(3) Biogas systems.
§ -2 Hawaii clean energy bond loan program. There is established the Hawaii clean energy bond loan program, which shall be administered by the director of business, economic development, and tourism.
§ -3 Hawaii clean energy bond loan revolving fund. (a) There is established in the state treasury the Hawaii clean energy bond loan revolving fund, into which shall be deposited:
(1) Proceeds from the issuance of general obligation bonds that are deposited into the fund;
(2) Repayments of moneys loaned from the fund and interest earned on those moneys;
(3) Moneys received from the operation of the loan program;
(4) Appropriations made by the legislature to the fund; and
(5) Interest earned from the investment of moneys in the fund.
(b) Moneys in the Hawaii clean energy bond loan revolving fund shall be used for the following purposes:
(1) To make loans to residential and commercial property owners for energy efficiency improvements and renewable energy systems;
(2) To repay the general fund for debt service on the general obligation bonds deposited into the fund; and
(3) For administrative expenses relating to the operation of the fund and the loan program.
§ -4 Powers. The director may:
(1) Prescribe rules to carry out this chapter;
(2) Enter into contracts relating to the operation of the loan program including, but not limited to, administering the loan program; and
(3) Perform all functions necessary to effectuate the purposes of this chapter.
§ -5 Rules. (a) The department shall adopt rules including but not limited to rules that:
(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;
(4) Provide for inspection at reasonable hours, of the facilities, equipment, books, and records of the entity that has applied for or has been granted a loan, and to require the submission of reports as may be requested by the department; and
(5) Establish rates and charges for the operation of the loan program.
(b) The department shall adopt rules pursuant to chapter 91 to effectuate this section.
§ -6 Loans. (a) The department may make loans to qualifying commercial and residential property owners for energy efficiency improvements and small renewable energy systems in a participating county. A participating county is a county within the State that has agreed to take part in the loan program by taking legal action as is necessary to levy a special assessment on the property benefited by a loan of an amount necessary to repay each loan financed under the loan program. The participating county shall remit such moneys to the Hawaii clean energy bond loan revolving fund, and shall receive reasonable compensation for its services.
(b) The loan repayment charge may include but is not limited to the amount of the loan, interest on the loan, and the costs incurred by the department to implement and administer the loan program.
(c) The loans shall be subject to the terms and conditions specified in rules adopted by the department.
(d) The department shall record a lien on the property benefited by the loan. This lien attaches to the property.
(e) Notwithstanding any law to the contrary, if the director determines that the department is unable to issue a sufficient number of loans to offset the reasonable cost to the department of operating the loan program, the director may delay or suspend the loan program in one or more participating counties or may delay or suspend any feature of the loan program."
SECTION 3. The director of finance is authorized to issue general obligation bonds in the sum of $50,000,000, 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 2010-2011, for deposit into the Hawaii clean energy bond loan revolving fund.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 4. This Act does not limit or prevent the counties from instituting similar financing programs for energy efficiency improvements and renewable energy systems.
SECTION 5. This Act shall take effect on July 1, 2010.
Report Title:
Hawaii Clean Energy Bond Loan Program
Description:
Establishes a Hawaii clean energy bond loan program to make loans to qualifying commercial and residential property owners for energy efficiency improvements and small renewable energy systems; authorizes the issuance of general obligation bonds to finance the program. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
