THE SENATE

S.B. NO.

1246

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO SUSTAINABILITY.

 

 

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

 


     SECTION 1.  The Legislature finds that the State needs to direct new revenues towards new priorities and move immediately to drive the clean energy and food sustainability agenda in Hawaii.  Through Act 73, Session Laws of Hawaii 2010, the legislature recognized that it is in the best interest of Hawaii's people to build the capacity needed to become self-sufficient in our energy and food needs as stated in the "Hawaii 2050 Sustainability Plan" and the "Hawaii Clean Energy Initiative".

     The State of Hawaii relies on imports for approximately ninety per cent of our energy and food needs.  This dependency is economically and environmentally unsustainable, and undertaking the important task of energy and food security requires a long-term commitment and investment of substantial financial resources.  Act 73 was therefore enacted to increase the per-barrel tax on petroleum products under the environmental response, energy, and food security tax, formerly known as the environmental response tax. 

     SECTION 2.  The legislature further finds and declares that the environmental response, energy, and food security tax was intended to support critical investments in clean energy and local agricultural production in order to reduce the State's dependence on imported fossil fuels and food products.  As currently apportioned, only a combined $0.30 of the $1.05 per-barrel tax is being allocated to the energy security fund and the agricultural development and food security special fund, with just $0.15 is going to each fund; while the majority of the funds, $0.60 per barrel, is going directly to the General Fund.  This was clearly not the intent of the aforementioned Act.  Increasing the allocated amount from $0.15 to $0.45 to the energy security fund and the agricultural development and food security special fund, respectively, will support the intended purposes of Act 73 of 2010 and is a clear public benefit.

     SECTION 3.  Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed as state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner.  The tax shall be $1.05 on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided of that the tax collected pursuant to this subsection:

     (1)  5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2;

     (2)  [15] 45 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;

     (3)  10 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169; and

     (4)  [15] 45 cents of the tax on each barrel shall be deposited in to the agricultural development and food security special fund established under section 141-10.  The tax imposed by this subsection shall be paid by the distributor of the petroleum product."

     SECTION 4.  This Act does not affect the rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2011.

 

INTRODUCED BY:

_____________________________

 

BY REQUEST


 


 

Report Title:

Act 73 of 2010; Environmental Response, Energy, and Food Security Tax; Energy Security Special Fund; Agricultural Development Special Fund ($)

 

Description:

Authorizes the revision of allocation from the Environmental Response, Energy, and Food Security Tax. Effective 07/01/11.

 

 

 

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