STAND. COM. REP. NO. 131

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 722

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committees on Energy and Environment and Agriculture, to which was referred S.B. No. 722 entitled:

 

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

 

beg leave to report as follows:

 

     The purpose of this measure is to redistribute the portion of the State Environmental Response, Energy, and Food Security Tax that is currently going to the General Fund to the Energy Security Special Fund and the Agricultural Development and Food Security Special Fund.  The intent of this measure is to align the use of that tax revenue with the original intended use of that revenue for energy self-sufficiency and sustainable agriculture, thereby increasing Hawaii's energy and food security.

 

     Your Committees received testimony in support of this measure from Richard Lim, Department of Business, Economic Development, and Tourism; Richard Rocheleau, University of Hawaii System; Mark Fox, The Nature Conservancy; Robert D. Harris, Sierra Club, Hawaii Chapter; Warren Bollmeier, Hawaii Renewable Energy Alliance; Christy Imata, Hawaii Solar Energy Association; Hawaii Farm Bureau Federation; Shannon Wood, Windward Ahupuaa Alliance; Blue Planet Foundation; Kekoa Kaluhiwa, First Wind; Alexander Tiller, Elemental Energy, LLC dba Sunetric; Mary & David Barter; David Atkin; and Amy K. Brinker.  Your Committees received comments on this measure from Russell S. Kokubun, Department of Agriculture; and Tax Foundation of Hawaii.

 

Your Committees believe that the original intention of using the barrel tax revenues for energy self-sufficiency and sustainable agriculture should be effectuated and that doing so will increase Hawaii's energy and food security.  Your Committees also believe that climate change is a factor that will eventually affect the State's energy and food security.

 

     Accordingly, your Committees have amended this measure by:

 

     (1)  Changing the amount to be deposited into the Energy Security Special Fund from 45 cents to 44 cents;

 

     (2)  Changing the amount to be deposited into the Agricultural Development and Food Security Special Fund from 45 cents to 44 cents; and

 

     (3)  Requiring that 2 cents of the Environmental Response, Energy, and Food Security Tax on each barrel be deposited into a special account of the General Fund to be expended by the Office of Planning for the operations of the Climate Change Task Force established by Act 20, Special Session Laws of Hawaii 2009.

 

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 722, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 722, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Agriculture,

 

____________________________

CLARENCE K. NISHIHARA, Chair

 

____________________________

MIKE GABBARD, Chair