STAND. COM. REP. NO. 2268

Honolulu, Hawaii

, 2006

RE: S.B. No. 3188

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Energy, Environment, and International Affairs and Water, Land, and Agriculture, to which was referred S.B. No. 3188 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY MARKET COMPETITION AND CONSUMERS,"

beg leave to report as follows:

The purpose of this measure is to:

(1) Provide a tax credit for an investment in the development of qualified fuel handling infrastructure facilities in any county except the City and County of Honolulu, if the investment is made in the twelve year period from January 1, 2007, through December 31, 2018; and

(2) Provide each qualified fuel handling infrastructure facility a temporary waiver of all state wharfage rates and charges for petroleum fuels passing through pipelines, tanks, loading, unloading, or dispensing facilities, not to exceed thirty-six months from the start of actual fuel handling operations.

Your Committees received testimony from the Department of Business, Economic Development, and Tourism, Mid Pac Petroleum, and Aloha Petroleum, Ltd. in support of the intent of this measure. The Department of Transportation submitted testimony in support of the measure but, however, could not support the waiver of wharfage fees for qualified fuel handling infrastructure facilities. The Department of Taxation, the Tax Foundation of Hawaii, and one individual provided comments. One individual submitted testimony in opposition to this measure.

Your Committees amended this measure by making technical nonsubstantive changes for style, consistency, and clarity.

As affirmed by the records of votes of the members of your Committees on Energy, Environment, and International Affairs and Water, Land, and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3188, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3188, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Environment, and International Affairs and Water, Land, and Agriculture,

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RUSSELL S. KOKUBUN, Chair

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J. KALANI ENGLISH, Chair