STAND. COM. REP. NO. 947

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 371

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Energy and Environment, to which was referred H.B. No. 371, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to repeal the sunset provision on the law imposing a one cent per gallon tax on naphtha when sold for use in a power-generating facility.

 

     Testimony in support of this measure was submitted by one state department and two private organizations.  Testimony in opposition to the revenue loss resulting from this measure was submitted by one state department.  Comments were submitted by one private organization.  One state department submitted a statement of no position regarding this measure.  Written testimony presented to your Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that this measure removes the sunset provision of Act 103, Session Laws of Hawaii 2007.  This measure will allow naphtha to continue to be taxed at the same rate of one cent per gallon as applies to diesel oil, gasoline, and aviation fuel.  Your Committee also finds that use of naphtha for power generation should be encouraged, as it has a lower sulfur content than other liquid fossil fuels typically used in power generation.  In addition, the burning of naphtha emits lower levels of carbon dioxide as compared to distillate or residual fuel oil.

 

     Your Committee has amended this measure by changing the effective date of the measure from July 1, 2020, to July 1, 2009.

 

     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 H.B. No. 371, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 371, H.D. 2, 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,

 

 

 

____________________________

MIKE GABBARD, Chair