Bill Text: HI SB17 | 2013 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Environmental Response, Energy, and Food Security Tax; Energy Systems Development Special Fund ($)

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed - Dead) 2013-03-22 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with Representative(s) Cullen, Fale, Fukumoto, Har voting aye with reservations; Representative(s) McDermott voting no (1) and Representative(s) Hanohano, McKelvey, Takumi, Woodson excused (4). [SB17 Detail]

Download: Hawaii-2013-SB17-Amended.html

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STAND. COM. REP. NO. 695

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 17

       S.D. 2

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 17, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO FOSSIL FUELS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to levy the environmental response, energy, and food security tax on liquid, gaseous, and solid fossil fuels.

 

     More specifically, this measure:

 

     (1)  Defines "fossil fuel" and amends the definition of "distributor" in section 243-1, Hawaii Revised Statutes;

 

     (2)  Amends section 243-3.5, Hawaii Revised Statutes, to levy the environmental response, energy, and food security tax on liquid, gaseous, and fossil fuels;

 

     (3)  Amends the allocations of the environmental response, energy, and food tax collected to the environmental response revolving fund, energy security special fund, energy systems development special fund, and agricultural development and food security special fund;

 

     (4)  Deletes the repeal date of the portion of Act 253, Session Laws of Hawaii 2007, as amended, that established chapter 304A, part IV, subpart N, Hawaii Revised Statutes, relating to the Hawaii Natural Energy Institute, and section 304A-2169, Hawaii Revised Statutes, relating to the energy systems development special fund; and

 

     (5)  Makes appropriations out of the:

 

          (A)  Energy security special fund;

 

          (B)  Agricultural development and food security special fund; and

 

          (C)  Environmental response special fund.

 

     Your Committee received written comments in support of this measure from the Department of Agriculture; Department of Business, Economic Development, and Tourism; Hawaii Natural Energy Institute at the University of Hawaii at Manoa; The Nature Conservancy; and one concerned individual.

 

     Your Committee received written comments in opposition to this measure from AES Hawaii and Hawai'iGas.

 

     Your Committee received written comments on this measure from the Department of Taxation, the Tax Foundation of Hawaii, and Alexander & Baldwin, Inc.

 

     Your Committee finds that this measure will ensure that all fossil fuels are appropriately taxed and assist in improving the energy and food security of the State.

 

     Your Committee has amended this measure by:

 

     (1)  Amending the definition of "fossil fuels" to include fuels created from processing the substances listed in the current definition;

 

     (2)  Providing that the tax shall apply to coal used to fulfill any power purchase agreement extended, modified, or renewed after September 1, 2016, rather than June 30, 2013;

 

     (3)  Providing that the tax shall not apply to a public utility until the conclusion of the public utility's next rate case;

 

     (4)  Providing that the tax shall not apply to coal utilized by an independent power producer that provides firm capacity power to a public utility whereby the annual heat input from non-fossil fuels of the firm capacity power generated by the independent power producer exceeds the annual heat input from fossil fuels;

 

     (5)  Changing the amounts of the allocations to the environmental response revolving fund, energy security special fund, energy systems development special fund, and agricultural development and food security special fund to unspecified amounts;

 

     (6)  Deleting all appropriations;

 

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

 

     (8)  Making technical nonsubstantive amendments for the purposes of consistency, clarity, 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. 17, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 17, S.D. 2.

 

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

 

		____________________________ DAVID Y. IGE, Chair