THE SENATE

S.B. NO.

358

TWENTY-EIGHTH LEGISLATURE, 2015

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO ENERGY.

 

 

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

 

     SECTION 1.  The purpose of this Act is to:

     (1)  Align the treatment of the environmental response, energy, and food security tax, also known as the barrel tax, with the original intention of the legislature in establishing the barrel tax, by reapportioning the amount of the barrel tax that is to be deposited into the environmental response revolving fund, energy security special fund, and agricultural development and food security special fund; and

     (2)  More fairly levy the barrel tax by ensuring that it applies to all fossil fuels, rather than providing favorable treatment to some fossil fuels and fossil fuel importers.

     SECTION 2.  Section 243-1, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition to be appropriately inserted and to read:

     ""Fossil fuel" means:

     (1)  Gaseous, liquid, or solid fuels, such as natural gas, petroleum, and coal, derived from the anaerobic decomposition of organic matter buried underground under millions of years; and

     (2)  Any fuel created from processing fuels listed in paragraph (1)."

     2.  By amending the definition of "distributor" to read:

     ""Distributor" means:

     (1)  Every person who refines, manufactures, produces, or compounds [liquid] fossil fuel in the State and sells or uses the same therein;

     (2)  Every person who imports or causes to be imported into the State any [liquid] fossil fuel and sells it therein, whether in the original packages or containers in which it is imported or otherwise than in such original packages or containers, or who imports any such fuel for the person's own use in the State;

     (3)  Every person who acquires [liquid] fossil fuel from a person not a licensed distributor and sells or uses it, whether in the original package or container in which it was imported (if imported) or otherwise than in such original package or container; [and]

     (4)  Every person who acquires [liquid] fossil fuel from a licensed distributor as a wholesaler thereof and sells or uses it[.]; and

     (5)  Every person who imports or causes to be imported into the State any fossil fuel and uses it to generate electricity to sell to an electric utility."

     SECTION 3.  Section 243-3.5, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(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] unit or fractional part of a [barrel] unit of [petroleum product] fossil fuel sold by a distributor to any retail dealer or end user of [petroleum product,] fossil fuel, other than a refiner.  The tax shall be $1.05 on each barrel or fractional part of a barrel of petroleum product or other liquid fossil fuel that is not aviation fuel[;], 17.5 cents per thousand cubic feet or fractional part of a thousand cubic feet of natural gas or other gaseous fossil fuel, and $3.40 per short ton or fractional part of a short ton of coal or other solid fossil fuel; provided that of the tax collected pursuant to this subsection:

     (1)  [5 cents] 14.3 per cent of the tax on each [barrel] unit of fossil fuel shall be deposited into the environmental response revolving fund established under section 128D-2;

     (2)  [15 cents] 38.1 per cent of the tax on each [barrel] unit of fossil fuel shall be deposited into the energy security special fund established under section 201‑12.8;

     (3)  [10 cents] 9.5 per cent of the tax on each [barrel] unit of fossil fuel shall be deposited into the energy systems development special fund established under section [[]304A-2169.1[]]; and

     (4)  [15 cents] 38.1 per cent of the tax on each [barrel] unit of fossil fuel 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.] fossil fuel and if fossil fuel is distributed and re-sold one or more times, the initial distributor of the fossil fuel shall pay the tax imposed by this subsection."

     2.  By amending subsection (d) to read:

     "(d)  Every distributor shall keep in the State and preserve for five years a record in such form as the department of taxation shall prescribe showing the total number of [barrels] units and the fractional part of [barrels] units of [petroleum product] fossil fuel sold by the distributor during any calendar month.  The record shall show such other data and figures relevant to the enforcement and administration of this chapter as the department may require."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2015.

 

 

Report Title:

Energy; Barrel Tax; Environmental Response, Energy, and Food Security Tax

 

Description:

Increases the amount of the environmental response, energy, and food security tax collections to be deposited into the environmental response revolving fund, energy security special fund, and agricultural development and food security special fund.  Ensures that the environmental response, energy, and food security tax applies to all fossil fuels.  (SD1)

 

 

 

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