Bill Text: HI SB2131 | 2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Naphtha Fuel; Fuel Tax; Power Generation; High Technology Special Fund

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-06-21 - Act 076, 06/20/2016 (Gov. Msg. No. 1177). [SB2131 Detail]

Download: Hawaii-2016-SB2131-Amended.html

THE SENATE

S.B. NO.

2131

TWENTY-EIGHTH LEGISLATURE, 2016

S.D. 2

STATE OF HAWAII

H.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO ENERGY.

 

 

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

 


PART I

     SECTION 1.  Section 243-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Power-generating facility" means any electricity-generating facility that requires a permit issued under the federal Clean Air Act (42 U.S.C. 7401 through 7671q), the Hawaii air pollution control law (chapter 342B), or both."

     SECTION 2.  Section 243-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Every distributor shall, in addition to any other taxes provided by law, pay a license tax to the department of taxation for each gallon of liquid fuel refined, manufactured, produced, or compounded by the distributor and sold or used by the distributor in the State or imported by the distributor, or acquired by the distributor from persons who are not licensed distributors, and sold or used by the distributor in the State.  Any person who sells or uses any liquid fuel, knowing that the distributor from whom it was originally purchased has not paid and is not paying the tax thereon, shall pay such tax as would have applied to such sale or use by the distributor.  The rates of tax [hereby] imposed are as follows:

     (1)  For each gallon of diesel oil, 1 cent;

     (2)  For each gallon of gasoline or other aviation fuel sold for use in or used for airplanes, 1 cent;

     (3)  For each gallon of naphtha sold for use in a power-generating facility, 2 cents;

    [(3)] (4)  For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1) [and], (2), and (3), and other than an alternative fuel, sold or used in the city and county of Honolulu, or sold in any county for ultimate use in the city and county of Honolulu, 16 cents state tax, and in addition thereto [such] an amount, to be known as the "city and county of Honolulu fuel tax", as shall be levied pursuant to section 243-5;

    [(4)] (5)  For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1) [and], (2), and (3), and other than an alternative fuel, sold or used in the county of Hawaii, or sold in any county for ultimate use in the county of Hawaii, 16 cents state tax, and in addition thereto [such] an amount, to be known as the "county of Hawaii fuel tax", as shall be levied pursuant to section 243-5;

    [(5)] (6)  For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1) [and], (2), and (3), and other than an alternative fuel, sold or used in the county of Maui, or sold in any county for ultimate use in the county of Maui, 16 cents state tax, and in addition thereto [such] an amount, to be known as the "county of Maui fuel tax", as shall be levied pursuant to section 243-5; and

    [(6)] (7)  For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1) [and], (2), and (3), and other than an alternative fuel, sold or used in the county of Kauai, or sold in any county for ultimate use in the county of Kauai, 16 cents state tax, and in addition thereto [such] an amount, to be known as the "county of Kauai fuel tax", as shall be levied pursuant to section 243-5.

     If it is shown to the satisfaction of the department, based upon proper records and from [such] any other evidence as the department may require, that liquid fuel, other than fuel mentioned in paragraphs (1) [and], (2), and (3), is used for agricultural equipment that does not operate upon the public highways of the State, the user thereof may obtain a refund of all taxes thereon imposed by this section in excess of 1 cent per gallon.  The department shall adopt rules to administer such refunds."

PART II

     SECTION 3.  Section 206M-15.5, Hawaii Revised Statutes, is amended to read as follows:

     "§206M-15.5  High technology special fund.  There is established in the state treasury a fund to be known as the high technology special fund, into which shall be deposited, except as otherwise provided by section 206M-17[, all]:

     (1)  Any appropriations or other funds required to be deposited by law; and

     (2)  All moneys, fees, and equity from tenants, qualified persons, or other users of the development corporation's industrial parks, projects, other leased facilities, and other services and publications;

provided that the total amount of moneys in the fund shall not exceed $3,000,000 at the end of any fiscal year.  All moneys in the fund are appropriated for the purposes of and shall be expended by the development corporation for the operation, maintenance, and management of its industrial parks, projects, facilities, services, and publications, and to pay the expenses in administering the special purpose revenue bonds of the development corporation or in carrying out its project agreements."

PART III

     SECTION 4.  The director of finance is authorized to issue general obligation bonds in the sum of $3,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2016-2017 for the development of an electrolysis process hydrogen production, storage, and dispensing facility.

     The sum appropriated shall be expended by the high technology development corporation for the purposes of this part.

     SECTION 5.  The appropriation made for the capital improvement project authorized by this part shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2018, shall lapse as of that date.

PART IV

     SECTION 6.  There is appropriated out of the general revenues of the State of Hawaii the sum of $1,800,000 or so much thereof as may be necessary for fiscal year 2016-2017 for deposit into the high technology special fund under section 206M-15.5, Hawaii Revised Statutes; provided that notwithstanding section 206M-15.5, Hawaii Revised Statutes, the total amount of moneys in the high technology special fund shall not exceed $4,800,000 at the end of fiscal year 2016-2017.

     SECTION 7.  There is appropriated out of the high technology special fund the sum of $1,800,000 or so much thereof as may be necessary for fiscal year 2016-2017 for operating costs for an electrolysis process hydrogen production, storage, and dispensing facility; provided that no funds shall be made available under this part unless private enterprises or private entities provide matching funds on a dollar-for-dollar basis.

     The sum appropriated shall be expended by the high technology development corporation for the purposes of this part.

PART V

     SECTION 8.  The high technology development corporation shall adopt rules in accordance with chapter 91, Hawaii Revised Statutes, to enable the establishment, collection, and deposit into the high technology special fund established under section 206M-15.5, Hawaii Revised Statutes, of fees imposed on the sale of hydrogen made commercially available at facilities that are funded in whole or in part by parts III and IV of this Act.

PART VI

     SECTION 9.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 10.  This Act shall take effect upon its approval; provided that section 2 shall be applied retroactively and shall be effective on and after January 1, 2016.


 


 

Report Title:

Electric Power Generation; Fuel Tax Rate; High Technology Special Fund; Electrolysis Process Hydrogen Production, Storage, and Dispensing Facilities

 

Description:

Restores the amendments made to sections 243-1 and 243-4(a), HRS, which sunset on 12/31/2015.  Clarifies that naphtha fuel, used in a power-generating facility, is subject to the fuel tax at a rate of 2 cents per gallon, retroactive to January 1, 2016.  Amends the requirements of the High Technology Special Fund.  Authorizes the issuance of $3,000,000 in general obligation bonds for the development of an electrolysis process hydrogen production, storage, and dispensing facility.  Appropriates $1,800,000 in general funds for an electrolysis process hydrogen production, storage, and dispensing facility.  (SB2131 HD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

 

 

 

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