The governor has until July 10 to act, and her office reported Monday that she has about 200 bills yet to evaluate, including Senate Bill 1718, the BlueEarth authorization measure.

It passed the Senate with one nay and the House with five nays, including that of Rep. Cynthia Thielen, who has campaigned in favor of alternative and renewable fuels.

Landis Maez, managing partner of the BlueEarth venture, says three bond-underwriting companies have inquired about managing the bond placement. So he anticipates no difficulty in selling the bonds.

The $59 million represents almost all the capital investment required for the plant, estimated at around $61 million.

A special-purpose bond authorization does not tap taxpayer money, nor does it obligate the state to repay the bonds if the enterprise defaults.

That never happens anyway, according to Scott Kami, administrator of the Department of Budget and Finance.

Each issue is different, but typically the indentures require default insurance, Kami told The Maui News.

The state authorizes special-purpose revenue bonds for many reasons. On Monday, Lingle signed authorizations for four private schools to sell a total of $95 million in bonds.

By piggybacking on the state's credit rating, sellers of special bonds can realize a significant savings on interest, even though the full faith and credit of the government are not pledged to redeem them.

Maez says he expects to save from 1.5 to 2 percentage points in interest.

The savings, he says, will be passed eventually on to consumers of electricity, and not kept by the owners.

He notes that the bonds are taxable by the state.

Investors looking for a long-term (20- to 30-year) revenue stream might be interested.

BlueEarth is a joint venture with Hawaiian Electric Co. and has a long-term contract to supply biodiesel to Maui Electric Co.

The plant is to be built at Waena near the Central Maui landfill.

The somewhat surprising opposition by Thielen, a Republican from Oahu, is because of her concern about the sustainability of the biodiesel feedstock.

BlueEarth originally proposed palm oil, although Maez now says other sources, such as soybeans, are under consideration.

Initially, the oil would be imported, but HECO's half-share of the profits would go to a nonprofit agricultural research foundation to encourage production of biofuel crops in Hawaii.

Thielen says she "feels strongly that agriculture needs to provide food."

She is concerned that the land and water needed to supply biofuel plants would not leave enough for food producers.

BlueEarth plans an initial annual production of 40 million barrels, but ramping up to as much as 120 million by 2011.

"It isn't the way to go," says Thielen. "There are many other sources of renewable power in our islands."

She is interested in wave energy from the ocean.

Maez says the sustainability issue will be met. BlueEarth has committed that it will adhere to a sustainability standard being developed by the Natural Resources Defense Council, "whatever it is."

This, he says, will apply to imported or homegrown feedstocks.

HECO and BlueEarth on Monday announced a series of meetings around the state to explain the sustainability strategy. NRDC will participate.

The Maui meeting will be held from 6:30 to 8:30 p.m. July 2 at Maui Community College's Ka Lama Building, Room 103.

Although growing row crops for fuel will take many acres, biodiesel proponents eagerly are awaiting an experimental process that would grow algae in ponds, yielding much more biomass per acre.

Biodiesel in Hawaii, made by Pacific Biodiesel from waste oil, is used in both vehicles (including boats) and stationary engines.

As a vehicle fuel, it has a potential competitor in ethanol, which is promoted by a state law requiring 10 percent ethanol in gasoline.

Tests show sugar cane is probably the most productive field crop for making ethanol.