STAND. COM. REP. NO. 437

Honolulu, Hawaii

RE:    S.B. No. 1015

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Transportation and Energy, to which was referred S.B. No. 1015 entitled:

"A BILL FOR AN ACT RELATING TO ENVIRONMENTAL RESPONSE, ENERGY, AND FOOD SECURITY TAX,"

begs leave to report as follows:

     The purpose and intent of this measure is to allow the Department of Transportation to deposit funds from the environmental response, energy, and food security tax fund into the state highway fund.

     Your Committee received testimony in support of this measure from the Department of Transportation.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from the Tax Foundation of Hawaii and one individual.

     Your Committee finds that a safe, efficient, and effective highway system is vital to the public's well-being.  The State's land transportation system is in constant need of repair and maintenance.  As the demand for travel increases, the State's roads will continue to deteriorate and require an even greater allocation of resources.  Currently, the bulk of the necessary resources are provided through fuel tax dollars that flow through the Federal Highway Trust Fund and the state highway fund.  However, the proliferation of more fuel-efficient vehicles and alternative fuel vehicles means that the amount of available funds for highway maintenance and repair is declining and will continue to decline in the future.  Therefore, it is essential that the State look to alternative sources of revenues.  Accordingly, this measure allows the Department of Transportation to deposit 60 cents of each barrel of petroleum product subject to the environmental response, energy, and food security tax into the state highway fund.

     As affirmed by the record of votes of the members of your Committee on Transportation and Energy that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1015 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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LORRAINE R. INOUYE, Chair