THE SENATE	S.B. NO.	2512
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

Relating to Sustainability.

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

     SECTION 1.  The legislature finds and declares that the environmental response, energy, and food security tax supports critical investments in clean energy and local agricultural production to reduce the State's dependence on imported fossil fuels and food products.  As currently apportioned, however, only a total of 30 cents of the $1.05 per barrel tax is being allocated to the energy security special fund and the agricultural development and food security special fund, with just 15 cents going to each fund.  The majority of the funds, 60 cents per barrel, is deposited into the general fund.  The legislature finds that this allocation of the barrel tax is inconsistent with the intent of Act 73, Session Laws of Hawaii 2010, which established most of the existing uses of the environmental response, energy, and food security tax revenue, as it was originally envisioned.

     The purpose of this Act is to:

     (1)  Increase the amount of the allocation to each of the environmental response, energy, and food security tax to the energy security special fund and the agricultural development and food security special fund from 15 cents of the tax on each barrel to 45 cents of the tax on each barrel;

     (2)  Continue to provide oversight and analysis of the distribution of the environmental response, energy, and food security tax by extending the sunset date of the Hawaii economic development task force, and renaming it as the Hawaii food and energy security council;

     (3)  Make permanent the amendments to the environmental response, energy, and food security tax enacted by Act 73, Session Laws of Hawaii 2010; and

     (4)  Appropriate funds from the energy security special fund and the agricultural development and food security special fund to carry out the purposes of each fund.

     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 a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner.  The tax shall be [$1.05]  on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided that of the tax collected pursuant to this subsection:

     (1)  5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2;

(2)  [15] 45 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;

(3)  10 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169; and

(4)  [15] 45 cents of the tax on each barrel shall be deposited into the agricultural development and food security special fund established under section 141-10.

     The tax imposed by this subsection shall be paid by the distributor of the petroleum product."

     SECTION 3.  Act 73, Session Laws of Hawaii 2010, is amended as follows:

     1.  By amending section 6 to read:

     "SECTION 6.  (a)  There is established the Hawaii [economic development task force] food and energy security council within the department of business, economic development, and tourism for administrative purposes.  The purpose of the [Hawaii economic development task force] council shall be to facilitate the accelerated adoption and completion of renewable-energy projects, energy-efficiency programs, agricultural infrastructure and development, and other measures to meet the purposes of this Act.  The [Hawaii economic development task force] council shall develop and maintain a broad overview of energy and food security issues that apply an interdisciplinary approach to ensure that Hawaii's energy and food policy and program development is integrated within the overall economic, social, environmental, and cultural aspects of society.  The [Hawaii economic development task force] council shall, with the assistance of the department of business, economic development, and tourism:

    [(1) Identify and review each state and county agency's policy objectives, mandates, organizational structure, and resources to address energy and food security issues;

(2)] (1)  Identify all federal and private funds available to the State and counties to address energy and food security issues;

    [(3)] (2)  Identify effective measures for interagency cooperation, coordinate efforts with the counties, and promote public- and private-sector partnerships to achieve the objective of energy and food security;

    [(4)] (3)  Identify existing programs and agreements addressing energy and food security that may be enhanced through legislation;

    [(5)] (4)  Investigate alternative institutional mechanisms to promote the efficient execution and implementation of a multi-year strategy to achieve energy and food security;

    [(6)] (5)  Investigate the streamlining of administrative processes to accelerate and achieve energy and food security;

    [(7)] (6)  Provide an appropriate forum for all affected or interested parties to address energy and food security issues;

    [(8)] (7)  Recommend appropriate legislation resulting from its findings to improve, accelerate, and achieve the objective of energy and food security;

    [(9)] (8)  Review whether:

(A)  The apportionment of the environmental response, energy, and food security tax among the funds listed under section 243-3.5, Hawaii Revised Statutes, is appropriate;

(B)  The apportionment should be changed; and

(C)  Any additional special, trust, or revolving fund should receive a share of the tax; and

   [(10)] (9)  Perform any other function necessary to effectuate the purposes of this part.

(b)  The Hawaii [economic development task force] food and energy security council shall consist of the following members:

(1)  The director of business, economic development, and tourism or the director's designee, who shall chair the Hawaii [economic development task force;] food and energy security council;

(2)  The chairperson of the board of agriculture or the chairperson's designee;

(3)  The director of the office of planning or the director's designee;

(4)  The chairperson of the board of land and natural resources or the chairperson's designee;

(5)  The dean of the University of Hawaii college of tropical agriculture and human resources or the dean's designee;

(6)  Three members to be designated by the speaker of the house of representatives;

(7)  Three members to be designated by the president of the senate; and

(8)  A representative from each county's private economic development board.

(c)  The Hawaii [economic development task force's] food and energy security council's members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(d)  In the performance of its duties, the Hawaii [economic development task force] food and energy security council shall consult with appropriate private, nonprofit, community, and government stakeholders.

(e)  The department of business, economic development, and tourism may contract with the University of Hawaii for any services to support the work of the Hawaii [economic development task force.] food and energy security council.

(f)  The Hawaii [economic development task force] food and energy security council shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2011.

The [task force] council shall also submit [a] annual follow-up [report] reports to the legislature no later than twenty days prior to the convening of the regular [session] sessions of 2012[.], 2013, and 2014.  [The] Each report shall include a description of the activities funded by the environmental response, energy, and food security tax, progress made toward energy and food self-sufficiency, and any additional action necessary to achieve energy and food self-sufficiency.

(g)  The Hawaii [economic development task force] food and energy security council shall cease to exist on June 30, [2012.] 2014."

     2.  By amending section 14 to read:

     "SECTION 14.  This Act shall take effect on July 1, 2010[; provided that sections 2, 3, 4, and 7 of this Act shall be repealed on June 30, 2015, and sections 128D-2, 201-12.8, and 243-3.5, Hawaii Revised Statutes, shall be reenacted in the form in which they read on June 30, 2010]."

     SECTION 4.  There is appropriated out of the energy security special fund the sum of $8,000,000 or so much thereof as may be necessary for fiscal year 2012-2013 for the purposes of the energy security special fund.

     The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 5.  There is appropriated out of the agricultural development and food security special fund of the State of Hawaii the sum of $8,000,000 or so much thereof as may be necessary for fiscal year 2012-2013 for the purposes of the agricultural development and food security special fund.

     The sum appropriated shall be expended by the department of agriculture for the purposes of this Act.

     SECTION 6.  Any unexpended or unencumbered balance of the moneys appropriated to the energy security special fund and the agricultural development and food security special fund by sections 4 and 5 of this Act, respectively, as of the close of business on June 30, 2013, shall not lapse to the credit of the general fund and shall remain in each respective special fund.

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 2012; provided that section 3 shall take effect on June 29, 2012.

INTRODUCED BY:

_____________________________

Report Title:

Barrel Tax; Energy and Food Security; Task Force; Appropriations

Description:

Increases the amount of the per-barrel allocation of the barrel tax to the energy security special fund and the agricultural development and food security special fund from 15 cents to 45 cents.  Renames the Hawaii economic development task force the Hawaii food and energy security council and extends the sunset date of the council to June 30, 2014.  Makes permanent certain amendments to the barrel tax enacted by Act 73, Session Laws of Hawaii 2010.  Appropriates funds from the energy security special fund and the agricultural development and food security special fund to DBEDT and DOA, respectively.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.