STAND. COM. REP. NO. 2790

Honolulu, Hawaii

RE: S.B. No. 3077

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3077, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO BIOFUELS,"

begs leave to report as follows:

The purpose and intent of this measure is to advance the use of clean energy.

More specifically, the measure:

(1) Expands the renewable fuels production tax credit by increasing the total amount of tax credits that can be claimed;

(2) Makes the tax credit permanent; and

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

Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Bioeconomy Trade Organization; Hawaii Energy Policy Forum; Hawaii Gas; Hawaii Island Economic Development Board; Hawaii Martin Luther King, Jr. Coalition; Honua Ola Bioenergy LLC; ILWU Local 142; Kupu; Pacific Biodiesel Technologies; and ten individuals.

Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee believes that expanding and making permanent the tax credit for the production of renewable fuels will help encourage investment in renewable fuel production and create jobs. Your Committee also believes that the creation of the renewable fuel facilitator position has the potential to significantly advance the State's clean energy goals.

Your Committee has amended this measure by:

(1) Reducing the minimum annual renewable fuels production threshold that a taxpayer must meet as a requirement to be eligible for the renewable fuels production tax credit to 2,500,000,000 British thermal units;

(2) Providing that the measure shall be repealed on an unspecified date; and

(3) Making technical nonsubstantive changes for purposes 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. 3077, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3077, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair