STAND. COM. REP. 2351

Honolulu, Hawaii

, 2004

RE: S.B. No. 2996

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Energy and Environment, to which was referred S.B. No. 2996 entitled:

"A BILL FOR AN ACT RELATING TAXATION OF ALTERNATIVE FUELS,"

begs leave to report as follows:

The purpose of this measure is to suspend the imposition of the state fuel tax on alternative fuels for a five-year period.

Testimony in support of this measure was received from the Department of Business, Economic Development, and Tourism, Department of Transportation, Department of Taxation, The Gas Company, and Pacific Biodiesel, Inc.

This measure eliminates the state portion of the fuel tax on alternative fuels for a period of five years in order to encourage the development of alternative fuels, specifically non-fossil transportation fuels. These fuels include ethanol, methanol, and biodiesel fuels. Your Committee finds that the increased use of alternative fuels will lead to a reduction in the importation of foreign oil and advance the objectives of the federal Clean Air Act by reducing fuel emissions, which in turn protect the environment and improve public health. Your Committee further finds that increases in locally produced alternative fuels will create economic benefits for the State.

Your Committee has amended this measure to provide for a reduction in the tax to an unspecified amount, in deference to the Committee on Ways and Means.

As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2996, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2996, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

J. KALANI ENGLISH, Chair