STAND. COM. REP. NO. 1423-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2166
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No.
2166, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO WIND FARMS,"

begs leave to report as follows:

     The purpose of this measure is to assist electricity
producing wind farms by:

     (1)  Allowing these farms to benefit from the state's
          enterprise zone program; and

     (2)  Exempting the sale of electric power produced from wind
          energy to a public utility for resale to the public
          from the general excise and use tax.

     Testimony in support of the measure was received by the
Department of Economic Development and Tourism and Apollo Energy
Corporation.  The Department of Taxation opposed this measure.

     Your Committee finds that there is a need for the promotion
of alternative, renewable energy resources.  However, the sale of
electric power produced by a wind farm to a public utility for
resale to the public already qualifies for a 0.5 percent general
excise tax rate.   

     Your Committee has amended this measure by deleting the
general excise and use tax exemption. 


 
 
                                 STAND. COM. REP. NO. 1423-00
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2166, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2166, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair