Report Title:

Emergency Appropriation; Electricity

Description:

Appropriates $1.0 million in general funds to pay statewide increases in electricity payments for fiscal year 2007-2008.  (SB2960 SD1)

THE SENATE	S.B. NO.	2960
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

MAKING AN EMERGENCY APPROPRIATION FOR ELECTRICITY PAYMENTS STATEWIDE.

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

     SECTION 1.  This Act is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Constitution of the State of Hawaii.

     SECTION 2.  The purpose of this Act is to make an emergency appropriation to address a projected $1,000,000 deficit in electricity payments for the department of accounting and general services managed facilities statewide.  Since local utility companies are dependent upon oil as the primary source of fuel, the high world oil prices have directly contributed to this shortfall.  Although kilowatt per hour consumption has remained flat or decreased, increased worldwide demand, the threat of terrorism, geopolitical concerns, oil processing glitches, and natural disasters all contribute to keep oil prices high and can further increase oil prices in the near future.  Based upon a combination of actual bills paid and projected cost, the shortfall for fiscal year 2007-2008 is $1,000,000 for Oahu and the neighbor islands.  Without an emergency appropriation, the program must defer payment on its May and June 2008 bills.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $1,000,000 or so much thereof as may be necessary for fiscal year 2007-2008 for the purpose of paying electricity bills.

     The sum appropriated shall be expended by the department of accounting and general services.

     SECTION 4.  This Act shall take effect upon its approval.