STAND. COM. REP. NO. 3413

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2312

       H.D. 2

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 2312, H.D. 2, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE ENVIRONMENTAL RESPONSE, ENERGY, AND FOOD SECURITY TAX,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to provide resources to protect the environment and to promote renewable energy technology and its use in the State.

 

Specifically, the measure:

 

     (1)  Reestablishes the energy systems development special fund, which was repealed on July 30, 2013;

 

     (2)  Increases the amount of the environmental response, energy, and food security tax, also known as the barrel tax, to be deposited into the environmental response revolving fund; and

 

     (3)  Extends the repeal of the various allocations of the environmental response, energy, and food security tax from June 30, 2015, to June 30, 2030.

 

     Your Committee received written comments in support of this measure from the Public Utilities Commission, the Department of Budget and Finance, the Department of Business, Economic Development, and Tourism, Hawaii Natural Energy Institute of the University of Hawaii at Manoa, Hawaii Green Growth, Renewable Energy Action Coalition of Hawaii, The Nature Conservancy, Hawaii Energy Policy Forum, and Big Island Invasive Species Committee.  The Department of Health and the Tax Foundation of Hawaii submitted written comments on the measure.

 

     Your Committee finds that reestablishing the energy systems development special fund will provide a mechanism to fund renewable energy priorities of the State, thus helping the State accomplish its goal of increased energy self-sufficiency and diversified renewable energy production.

 

     Your Committee also finds that a portion of revenues collected from the environmental response, energy, and food security tax, levied on each barrel of crude oil imported into the State, is deposited into the environmental response revolving fund, which supports oil spill responses and environmental remediation.  Your Committee further finds that the fund balance is now dangerously low due to reduced consumption of crude oil, while the demand for hazard evaluations and responses has increased in recent years due to events such as the Honolulu Harbor molasses spill. 

 

Accordingly, your Committee believes that increasing the amount of the environmental response, energy, and food security tax to be deposited into the environmental response revolving fund is necessary to protect the State and its residents and visitors from oil pollution and similar hazards.

 

     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 H.B. No. 2312, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

 

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

 

 

 

____________________________

DAVID Y. IGE, Chair