Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 1345, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to encourage the use of transportation fuels, other than fossil fuel, by:

1. Lowering the fuel tax on alternative fuels by calculating the tax on the basis of the energy content of the alternative fuel, as compared to diesel fuel; and
2. Authorizing the county fuel tax to be proportional to the energy contents of the fuel, as determined by their lower heating value, times one-half.

Testimony in support of this bill was received from The Gas Company and Pacific Biodiesel, Inc. Comments were received from Department of Business, Economic Development, and Tourism, the Department of Taxation, and the Tax Foundation of Hawaii.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1345, H.D. 1, and recommends that be referred to the Committee on Finance.