I remember seeing a Federal Reserve note that was printed in Honolulu.
It was the only time that I have ever seen one.

? Is currency printed anywhere but the Bureau of Engraving and
Printing in Washington, DC?

It's all printed in DC, using paper from Dalton MA.

In WW II, the bills circulating in Hawaii were overprinted, so they
could be recognized and voided if Hawaii were captured. This
Wikipedia article has a picture of an overprinted note. Perhaps that's
what he was thinking of.

http://en.wikipedia.org/wiki/Hawaii_overprint_note

R's,
John