Honolulu Mayor Kirk Caldwell is offering a compromise to a bill he vetoed earlier this month.

We were the first to tell you about Bill 50, which gives a six-figure discount to recyclers, including local companies.

But a large portion of it would go to Schnitzer Steel, a company the mayor says does not need a subsidy.

His proposal would give the subsidy to any company that brings the first 1,250 tons of recyclable material to H-Power.

“The bottom line for me is we do believe in recycling and we want to encourage those smaller companies that would be questioning whether they should be getting in the business that perhaps we would subsidize their business,” he said.

The mayor wants the savings from this bill to be used to fund other initiatives, like tackling Honolulu’s homeless situation and creating more affordable housing.