STAND. COM. REP. NO. 259

Honolulu, Hawaii

RE:    S.B. No. 512

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Energy and Environment, to which was referred S.B. No. 512 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to modify the current ethanol production facilities tax credit to provide a tax credit for biofuel production facilities.

     Testimony in support of the measure was submitted by a county department and three private organizations.  Testimony in support, with suggested amendments, was submitted by two private organizations.  Testimony in support of the intent of the measure, with suggested amendments, was submitted by one state department.  Testimony in opposition to the measure was submitted by one private organization.  Comments were submitted by one state department.  Copies of written testimony are available for review on the Legislature's website.

     Your Committee finds that the use of biofuels can reduce the State's dependence on imported oil and increase the amount of renewable energy from sustainable resources.  Amending the as yet unused ethanol facility tax credit will encourage local companies to put this dormant credit to use.

     Your Committee has amended this measure to make technical, nonsubstantive stylistic changes.

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 512, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 512, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

____________________________

MIKE GABBARD, Chair