Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2996, S.D. 2, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to encourage the use and production of locally produced alternative fuels used for motor vehicles by suspending all state fuel taxes on ethanol, methanol, biodiesel, liquefied petroleum gas, and other alternative fuels for a five-year period from July 1, 2004, to June 30, 2009.

The Department of Business, Economic Development, and Tourism, Department of Taxation, Department of Transportation, The Gas Company, and Pacific Biodiesel, Inc., testified in support of this measure. The Tax Foundation of Hawaii offered comments.

Your Committee has amended this bill by:

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. 2996, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2996, S.D. 2, H.D. 2.