Report Title:

Alternative fuel; GE tax exemption.

Description:

Reinstates an exemption from the general excise tax for the sale of alternative fuels.

THE SENATE	S.B. NO.	1502
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO GENERAL EXCISE TAX EXEMPTION ON THE SALE OF ALTERNATIVE FUEL.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§237-  Exemption on sale of biofuels. (a)  There shall be exempted from and excluded from the measure of the taxes imposed by this chapter all of the gross proceeds arising from the sale of biofuels for consumption or use by the purchaser and not for resale.

(b)  As used in this section, "biofuels" means:

(1) Neat biomass-derived alcohol liquid fuel or a petroleum-derived fuel and alcohol liquid fuel mixture consisting of at least ten volume per cent denatured biomass-derived alcohol; or

(2) A vegetable oil based fuel, which meets American Society for Testing and Materials International Standard D6751, "Specification for Biodiesel Fuel Blend Stock (B100) for Distillate Fuels," as amended, or a mixture consisting of fuel meeting American Society for Testing and Materials International Standard  D6751 with petroleum-based diesel fuel, designated B5, where 5 represents the volume percentage of biodiesel fuel in the blend; or

(3) Any other fuel produced from non-petroleum sources, including natural vegetable oil, plant or other natural resource byproduct, waste cooking oils, fats, greases, or grease trap waste, that can be used for the generation of power;

that is commercially usable as a fuel to power aircraft, seacraft, spacecraft, automobiles, trucks, or other motorized vehicles."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________
	BY REQUEST