HI HB335

Establishes the Hawaii Biofuel Production Facility Loan Guarantee Program administered by the Department of Business, Economic Development, and Tourism to provide loan guarantees for construction and development of biofuel production facilities in Hawaii.

Limits guaranteed loans to applicants with unconditional offtake agreements from buyers with Standard & Poor's rating of BBB- or higher (or Moody's Baa3 or higher), and requires applicants to pay 1% annually on the loan guarantee value.

Requires biofuel facilities to use feedstock grown or sourced from within Hawaii for at least 75% of production output and mandates applicant earnings (before interest, taxes, depreciation, and amortization) equal to at least 1.5 times the total loan interest and amortization payments.

Caps total loans guaranteed under the program at $1,000,000,000 and provides that facility ownership transfers to the State upon loan default.

Takes effect July 1, 2011, with the department authorized to adopt rules establishing applicant eligibility requirements, qualified development costs, facility inspection provisions, and reporting requirements.