STAND. COM. REP. NO. 2645

Honolulu, Hawaii

RE:    S.B. No. 2196

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2196, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

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

Specifically, the measure:

(1)  Re-establishes the energy systems development special fund;

(2)  Increases the amount of the environmental response, energy, and food security tax to be deposited into the environmental response revolving fund, energy security special fund, and agricultural development and food security special fund; and

(3)  Extends various allocations of the environmental response, energy, and food security tax to June 30, 2030.

     Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism, Department of Agriculture, Hawaii Natural Energy Institute, Renewable Energy Action Coalition of Hawaii, Blue Planet Foundation, The Nature Conservancy, and two individuals.  Your Committee received written comments in opposition to this measure from one individual.  The Department of Taxation, Department of Budget and Finance, Department of Health, and the Public Utilities Commission submitted written comments on the measure.

     Your Committee finds that this measure will ensure dedicated funding for the State to meet its long-term clean energy goals and support efforts to develop food self-sufficiency and prepare for an environmental response.

     Your Committee has amended this measure by:

(1)  Changing the amounts of the environmental response, energy, and food security tax on each barrel to be deposited into the environmental response revolving fund, energy security special fund, and agricultural development and food security special fund, respectively, to unspecified amounts;

(2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(3)  Making nonsubstantive technical amendments for the

purpose of clarity, consistency, and style.

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

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair