STAND. COM. REP. NO.  1894

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 992

      S.D. 1

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 992, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

     The purpose of this bill is to clarify that naphtha sold for use in a power-generating facility will be assessed a 1 cent per gallon fuel tax.

     The Department of Health, Department of Taxation, Kauai Island Utility Cooperative, and Hamakua Energy Partners testified in support of this bill.  The Tax Foundation of Hawaii provided comments.

     Your Committee has amended this bill by:

     (1)  Changing the effective date to July 1, 2020, to encourage further discussion, and repealing the measure on December 31, 2009; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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. 992, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 992, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair