HOUSE OF REPRESENTATIVES

H.B. NO.

892

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE ENVIRONMENTAL RESPONSE, ENERGY, AND FOOD SECURITY TAX.

 

 

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

 


     SECTION 1.  The legislature finds that the State needs to direct new revenues toward new priorities and move immediately to drive the clean energy and food sustainability agenda in Hawaii.  The State of Hawaii relies on imports for approximately ninety per cent of its energy and food needs.  This dependency is economically and environmentally unsustainable, and achieving the important task of energy and food security requires a long-term commitment and investment of substantial financial resources.

     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".  Specifically, Act 73 increased the per-barrel tax on petroleum products under the environmental response, energy, and food security tax, formerly known as the environmental response tax.

     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 to reduce the State's dependence on imported fossil fuels and food products.  As currently apportioned, only a total of 30 cents of the $1.05-per-barrel tax is being allocated to the energy security special fund and the agricultural development and food security special fund, with just 15 cents going to each fund, while the majority of the funds, 60 cents per barrel, is deposited to the general fund.  The legislature finds that this was clearly not the intent of Act 73.

     The purpose of this Act is to increase the allocated amount of the environmental response, energy, and food security tax for the agricultural development and food security special fund, in order to support the intended purposes of Act 73.

     SECTION 2.  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 a 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 that of 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 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-2169.1[]]; and

     (4)  [15] 25 cents of the tax on each barrel shall be deposited into 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 3.  There are appropriated out of the agricultural development and food security special fund the sum of $6,100,000, or so much thereof as may be necessary, for fiscal year 2015-2016 and the same sum, or so much thereof as may be necessary, for fiscal year 2016-2017 to carry out the purposes of this Act.  The sums appropriated shall be expended by the department of agriculture.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act, upon its approval, shall take effect on July 1, 2015.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST


 


 

Report Title:

Environmental Response, Energy, and Food Security Tax

 

Description:

Increases the current 15-cent allocation to the Agricultural Development and Food Security Special Fund and the 15-cent allocation to the Energy Security Special Fund to 40 cents of the Environmental Response, Energy, and Food Security Tax on each barrel of petroleum product that is not aviation fuel.  Also increases the current 5-cent allocation to the Environmental Response Revolving Fund to 15 cents.

 

 

 

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