STAND. COM. REP. NO.  1645-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2196

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2196, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this measure is to facilitate alternative energy research and production in the State by:

     (1)  Re-establishing the Energy Systems Development Special Fund;

     (2)  Amending the amount of the Environmental Response, Energy, and Food Security Tax to be deposited into the existing various funds and extending the repeal of various funds from 2015 to 2030;

     (3)  Appropriating a one-time unspecified amount from the revenues of the Environmental Response, Energy, and Food Security Tax to be deposited into the Hydrogen Investment Capital Special Fund; and

     (4)  Amending the purpose of the Hydrogen Investment Capital Special Fund to be for the development of hydrogen production, storage, and dispensing infrastructure.

The Department of Health; County of Kauai Office of Economic Development; Renewable Energy Action Coalition of Hawaii; Hawaii Energy Policy Forum; Ulupono Initiative; Hawaii Green Growth; the Nature Conservancy; and an individual supported this measure.  The Public Utilities Commission; Department of Taxation; Department of Business, Economic Development, and Tourism; Department of Agriculture; Department of Budget and Finance; Tax Foundation of Hawaii; and the Hawaii Natural Energy Institute at the University of Hawaii Manoa commented on this measure.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2196, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair