Environmental response

Increases the environmental response tax on petroleum from five
to twenty-five cents per barrel to generate revenues to support a
broad spectrum of environmental protection programs.  (HB2539

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that the environmental
 2 response revolving fund was originally created to serve as a
 3 dedicated source of revenue which the State could utilize to
 4 respond to catastrophic hazardous substance spills.  In the past
 5 several years, the legislature has expanded the use of this fund
 6 to support certain environmental protection programs that address
 7 environmental contamination that may have resulted from petroleum
 8 or petroleum-based products.
 9      In the current austere fiscal climate, it is essential that
10 resources be identified to support environmental protection
11 efforts.  Since state revenues have been less available for these
12 purposes, it is appropriate to assess an increase in the state
13 environmental response tax to support certain environmental
14 protection programs.
15      The legislature finds, therefore, that the state
16 environmental response tax assessed in section 243-3.5, Hawaii
17 Revised Statutes,  would serve as a useful conduit for this
18 purpose.  Although not all environmental concerns are directly
19 traceable to petroleum-based products, it is a plentiful

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                                     H.B. NO.           H.D. 1

 1 commodity found in sufficient degree in enough products that it
 2 is reasonable to assess distributors of petroleum products to
 3 support the State's effort to protect its environment and natural
 4 resources.
 5      The purpose of this Act, therefore, is to increase the state
 6 environmental response tax levied upon petroleum products and to
 7 expand the uses of the environmental response revolving fund to
 8 provide financial support to a greater variety of environmental
 9 protection programs.
10      SECTION 2.  Section 128D-2, Hawaii Revised Statutes, is
11 amended by amending subsection (b) to read as follows:
12      "(b)  Moneys from the fund shall be expended by the
13 department for response actions and preparedness, including
14 removal and remedial actions, consistent with this chapter;
15 provided that the revenues generated by the "environmental
16 response tax" and deposited into the environmental response
17 revolving fund:
18      (1)  Shall also be used:
19           (A)  For oil spill planning, prevention, preparedness,
20                education, research, training, removal, and
21                remediation; and
22           (B)  For direct support for county used oil recycling
23                programs; and

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                                     H.B. NO.           H.D. 1

 1      (2)  May also be used to support environmental protection
 2           and natural resource protection programs, including
 3           energy conservation and alternative energy development,
 4           and to address concerns related to air quality, global
 5           warming, clean water, polluted runoff, solid and
 6           hazardous waste, drinking water, and underground
 7           storage tanks, including support for the underground
 8           storage tank program of the department and funding for
 9           the acquisition by the State of a soil remediation site
10           and facility."
11      SECTION 3.  Section 243-3.5, Hawaii Revised Statutes, is
12 amended by amending subsection (a) to read as follows:
13      "(a)  In addition to any other taxes provided by law,
14 subject to the exemptions set forth in section 243-7, there is
15 hereby imposed at times provided in section 128D-2 a state
16 environmental response tax of [5] 25 cents on each barrel or
17 fractional part of a barrel of petroleum product sold by a
18 distributor to any retail dealer or end user, other than a
19 refiner, of petroleum product[; provided that     cents of the
20 tax on each barrel shall be used pursuant to section 128D-2 to
21 address concerns relating to drinking water].  The tax imposed by
22 this subsection shall be paid by the distributor of the petroleum
23 product."

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                                     H.B. NO.           H.D. 1

 1      SECTION 4.  Statutory material to be repealed is bracketed.
 2 New statutory material is underscored.
 3      SECTION 5.  This Act shall take effect upon its approval.