Report Title:

Environmental Response Tax; Petroleum Products

Description:

Increases the state environmental response tax on petroleum in order to increase funding available for energy conservation, alternative energy development, global warming initiatives, and other programs pursuant to chapter 128D, HRS. (SB2932 SD3)

THE SENATE	S.B. NO.	2932
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 3
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO ENVIRONMENTAL RESPONSE TAX.

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

     SECTION 1.  The legislature finds that resources are needed to help reduce imported fossil fuel use and to transition the State to clean energy and indigenous energy sources.  Funding is needed to support research to further the requirements of Hawaii's new greenhouse gas emissions limit adopted in Act 234, Session Laws of Hawaii 2007, codified in section 342B-71, Hawaii Revised Statutes.  The department of health also requires additional funding for greenhouse gas emissions planning and environmental enforcement.

     The legislature further finds that there is a clear nexus between oil consumption and the environmental impact of greenhouse gas emissions.  Currently, a five-cent fee is charged for every barrel of oil sold in the State.  This fee is deposited into the environmental response revolving fund, a fund that was set up to provide emergency funding for rapid response in the event of a large oil spill.  The fund was later amended to allow it to be used for other environmental and energy purposes, including addressing concerns relating to global warming.

     The purpose of this Act is to increase the environmental response tax to provide needed funding for energy conservation and alternative energy development, global warming initiatives, and other programs pursuant to chapter 128D, Hawaii Revised Statutes.

     SECTION 2.  Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed at times provided in section 128D-2 a state environmental response tax of [5]  cents on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user, other than a refiner, of petroleum product; provided that       cents of the tax on each barrel shall be used pursuant to section 128D-2 to address concerns relating to drinking water.  The tax imposed by this subsection shall be paid by the distributor of the petroleum product."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.