STAND. COM. REP. NO. 2484

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2221
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred
S.B. No. 2221 entitled:

     "A BILL FOR AN ACT RELATING TO ETHANOL,"

begs leave to report as follows:

     The purpose of this measure is to create an ethanol
producers income tax credit to encourage private sector
investment in Hawaii based ethanol production facilities.

     Currently, the development of new infrastructure to produce
ethanol from agricultural crops or byproducts and municipal solid
waste is costly.  Incentives are needed to stimulate the private
sector investments required to develop this type of business
opportunity in Hawaii.  This measure provides that incentive in
the form of an ethanol producer income tax credit.  Your
Committee is in agreement that job creation, environmental public
benefits, and economic opportunities resulting from this tax
incentive will far outweigh the costs.

     Your Committee has made technical, nonsubstantive amendments
for drafting style and grammar.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of
S.B. No. 2221, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2221,
S.D. 1.

 
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                                   STAND. COM. REP. NO. 2484
                                   Page 2



                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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