STAND. COM. REP. NO. 1444

Honolulu, Hawaii

RE:    H.B. No. 506

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 506, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ETHANOL,"

begs leave to report as follows:

     The purpose of this measure is to minimize Hawaii's dependence on fossil fuels by extending the existing ethanol production facilities tax credit an additional five years to allow more market participants to construct qualifying facilities.

     Your Committee received written testimony in support of this measure from the Department of Business, Economic Development, and Tourism; the Department of Taxation; and Alexander & Baldwin, Inc.  The Tax Foundation of Hawaii submitted written comments on this measure.

     Your Committee finds that this measure will encourage the continued development of alternative energy sources, and contribute to the State's goal of reducing dependence on expensive imported fuels.

     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 H.B. No. 506, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

ROSALYN H. BAKER, Chair