HB 335 - Biofuel Loan Guarantee Program

• Establishes a loan guarantee program administered by the Department of Business, Economic Development, and Tourism to support construction and development of biofuel production facilities in Hawaii.

• Sets a maximum total loan guarantee amount of $1,000,000,000 and requires applicants to pay 1% annually of the guaranteed loan value.

• Requires biofuel production facilities to use feedstock grown or sourced from within the State for at least 75% of production output and obtain an unconditional offtake agreement with a buyer rated BBB- or higher by Standard & Poor's or Baa3 or higher by Moody's.

• Mandates that loan default results in transfer of facility ownership to the State and requires applicants to maintain earnings before interest, taxes, depreciation, and amortization at least 1.5 times the annual loan interest and amortization payments.

• Takes effect July 1, 2011.