STAND. COM. REP. NO. 340-10
Honolulu, Hawaii
, 2010
RE: H.B. No. 2421
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Fifth State Legislature
Regular Session of 2010
State of Hawaii
Sir:
Your Committees on Energy & Environmental Protection and Agriculture, to which was referred H.B. No. 2421 entitled:
"A BILL FOR AN ACT RELATING TO GOVERNMENT,"
beg leave to report as follows:
The purpose of this measure is to establish initiatives and appropriate funds to increase Hawaii's environmental security and food and energy self-sufficiency. Specifically, this measure:
(1) Removes the cap on the environmental response revolving fund;
(2) Renames the "environmental response tax" the "environmental response, energy, and food security tax" and increases the tax to $1.05 per barrel of petroleum product, except for aviation fuel, which will be taxed at 5 cents per barrel;
(3) Allocates moneys collected by the environmental response, energy, and food security tax to the energy security special fund, energy systems development special fund, and the agricultural development and food security special fund;
(4) Authorizes expenditures from the energy security special fund for various purposes to meet the objectives of the Hawaii clean energy initiative program and requires annual reporting on use of the funds;
(5) Exempts from the State's fuel tax sales of petroleum product used by a provider of commercial air transportation to transport persons or property;
(6) Establishes the Hawaii economic development task force;
(7) Creates the agricultural development and food security special fund, makes unspecified appropriations from the fund for various agricultural projects and requires annual reporting on the use of the funds;
(8) Establishes the Hawaii clean energy initiative program to plan the transition to a clean energy economy;
(9) Appropriates an unspecified amount from the energy security special fund to fund seven positions within the Hawaii clean energy initiative program;
(10) Establishes the renewable energy branch within the Department of Business, Economic Development, and Tourism;
(11) Changes the existing position of the renewable energy facilitator to a permanent position and appropriates an unspecified amount from the energy security special fund to fund the position;
(12) Creates the position of the energy program administrator as a full-time, exempt position within the Department of Business, Economic Development, and Tourism and appropriates an unspecified amount from the energy security special fund to fund the position;
(13) Establishes seven full-time temporary, exempt positions within the Department of Business, Economic Development, and Tourism to support various planning and renewable projects and appropriates an unspecified amount from the energy security special fund to fund the positions;
(14) Authorizes the Governor to establish positions necessary to manage renewable energy projects funded by federal grants;
(15) Appropriates an unspecified amount from the energy security special fund to fund the greenhouse gas emissions reduction task force; and
(16) Takes effect on July 1, 2010.
Testimony in support of this measure was submitted by Chamber of Commerce of Hawaii, Hawaiian Airlines, Airlines Committee of Hawaii, Blue Planet Foundation, Life of the Land, The Nature Conservancy, Sierra Club - Hawaii Chapter, Conservation Council for Hawaii, Hawaii Solar Energy Association, Enterprise Honolulu, and Hawaii Farm Bureau. Testimony in opposition to this measure was submitted by the Department of Health, Department of Taxation, and Department of Budget and Finance. Comments were submitted by the Tax Foundation of Hawaii.
Your Committee finds that it is in the best interests of Hawaii's people to develop the capacity to become energy and food self-sufficient and protect human health and the function of Hawaii's natural environment. Your Committee recognizes the frequently expressed concern that the application of the environmental response, energy, and food security tax to aviation fuel may be prohibited by federal law if the revenue from the tax is not used for airport-related purposes. Your Committee requests that future Committees hearing this measure address this concern and consider whether the entire amount of the tax would be a legitimate assessment on aviation fuel if that revenue were then separated and used exclusively to fund agricultural inspection programs at the State's airports.
Your Committee has amended this measure by:
(1) Clarifying that the environmental response, energy, and food security tax is:
(A) $1.05 with respect to petroleum product that is not aviation fuel; and
(B) 5 cents with respect to petroleum product that is aviation fuel; and
(2) Making technical non-substantive amendments for the purposes of conformity, clarity, and style.
As affirmed by the records of votes of the members of your Committees on Energy & Environmental Protection and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2421, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2421, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committees on Energy & Environmental Protection and Agriculture,
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____________________________ CLIFT TSUJI, Chair |
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____________________________ HERMINA MORITA, Chair |
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