As she had foreshadowed in June, Hawaii Gov. Linda Lingle Tuesday vetoed a bill authorizing $40 million in special-purpose revenue bonds for a firm that wants to use the proceeds to finance projects to convert organic waste into fuel.

Carbon Bio-Engineers Inc. sought the private-activity bonds to establish cogeneration facilities that would use a range of organic streams, including “invasive species, biomass green-wastes, macadamia nut shells, and tires, among other wastes” to create biofuels, according to the company’s written testimony in favor of the bill.

“This bill is objectionable because the firm in question and members of its management have not satisfactorily resolved issues associated with the patent and licensing of a process developed by the University of Hawaii,” Lingle wrote in her veto letter. “After resolving these issues, Carbon Bio-Engineers Inc. may approach the Legislature to request authorization of special-purpose revenue bonds.”

The bill was one of 32 that the Republican Lingle vetoed Tuesday, the last day she had to act on bills passed by the Legislature this year. It had been on a list of 39 potential vetoes that her office released in June.

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