CONFERENCE COMMITTEE REP. NO. 183-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 3077

S.D. 2

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 3077, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO BIOFUELS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to further the State's efforts in achieving its clean energy goals by enhancing the renewable fuel capacity of the State. This measure encourages the development of renewable fuel in the State by:

(1) Expanding the existing renewable fuels production tax credit by:

(A) Temporarily expanding the definition of "renewable feedstocks" that qualify for the tax credit;

(B) Temporarily reducing the minimum production requirement to qualify for the tax credit;

(C) Temporarily changing the tax credit cap; and

(D) Making the original tax credit permanent; and

(2) Establishing a renewable fuel facilitator position within the Department of Business, Economic Development, and Tourism.

Your Committee on Conference finds that achieving the State's clean energy goals will require investment in and development of renewable energy and renewable fuels. While investment in renewable energy has been incentivized with tax credits and low-interest loans, your Committee on Conference notes that the existing tax credits for renewable fuel production is limited in scope. Your Committee on Conference believes the renewable fuels production tax credit should be expanded, to encourage renewable fuel production, but concludes that the measure as currently written could impose a high cost to the State.

Accordingly, your Committee on Conference has amended this measure by:

(1) Reverting to the existing statutory tax credit cap of $3,00,000;

(2) Deleting section 3, which removed the sunset date for the existing tax credit;

(3) Deleting section 4, which created a renewable fuel facilitator position;

(4) Making it effective upon approval and deleting the sunset date; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 3077, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 3077, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ CHRIS LEE Co-Chair	____________________________ LORRAINE R. INOUYE Chair
____________________________ TY J.K. CULLEN Co-Chair	____________________________ JILL N. TOKUDA Co-Chair
	____________________________ WILL ESPERO Co-Chair
	____________________________ MICHELLE N. KIDANI Co-Chair