Bill Text: HI HB1850 | 2020 | Regular Session | Amended

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Bill Title: Relating To The Energy Security Special Fund.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed - Dead) 2020-03-16 - The hearing on this measure has been cancelled until further notice. [HB1850 Detail]

Download: Hawaii-2020-HB1850-Amended.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	1850
THIRTIETH LEGISLATURE, 2020		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO THE ENERGY SECURITY SPECIAL FUND.

 

 

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

 

     SECTION 1.  The legislature finds that the development and utilization of innovative technologies will aid in Hawaii's ability to achieve its clean energy and sustainability goals within the aggressive timelines established.

     The legislature also finds that a recent report, "Troubled Waters:  Charting a New Fiscal Course for Hawaii", authored by the Committee on Government and Civic Engagement for the Hawai‘i Executive Conference, finds that "future natural disaster and climate changes improvements over the next thirty years will likely surpass our current $15.3 billion estimate."  Indeed, the State will meet its zero emissions clean economy target set forth in section 225P-5, Hawaii Revised Statutes, only through thoughtful interconnectivity and coordination of innovative technologies in the areas of energy, transportation, agriculture, and water.

     The legislature further finds that public-private partnerships are necessary to encourage and support the development and commercialization of such technologies.  The State has resources available through the energy security special fund that can be directed, in part, to provide funds to facilitate technology development ripe for project deployment and commercialization.  This type of targeted and strategic support is critical for companies facing the so-called "commercialization valley of death", a widely recognized funding gap that exists between early-stage support offered by angel investors and institutional investors and growth capital support historically provided by venture capital and strategic investors.

     The purpose of this Act is to:

     (1)  Amend the uses of the energy security special fund to allow the Hawaii state energy office to enter into public-private partnerships with certain not-for-profit entities to support the commercialization of technologies that will further Hawaii's clean energy and sustainability goals and benefit Hawaii's economy; and

     (2)  Increase the allocation of funding to the energy security special fund that is deposited from the state environmental response, energy, and food security tax from 5 cents to 15 cents per barrel, to ensure sufficient funding levels for these public-private partnerships.

     SECTION 2.  Section 201-12.8, Hawaii Revised Statutes, is amended to read as follows:

     "§201-12.8  Energy security special fund; uses.  (a)  There is created within the state treasury an energy security special fund, which shall consist of:

     (1)  The portion of the environmental response, energy, and food security tax specified under section 243-3.5;

     (2)  Moneys appropriated to the fund by the legislature;

     (3)  All interest attributable to investment of money deposited in the fund; and

     (4)  Moneys allotted to the fund from other sources, including under section 196-6.5.

     (b)  Subject to legislative appropriation, moneys from the fund may be expended by the Hawaii state energy office for the following purposes and used for no other purposes, except for those set forth in this section:

     (1)  To support the Hawaii clean energy initiative program and projects that promote and advance dependable and affordable energy, renewable energy, energy efficiency, energy self-sufficiency, and greater energy security and resiliency for the State and public facilities;

     (2)  To fund, to the extent possible, the climate change mitigation and adaptation commission and the greenhouse gas sequestration task force;

     (3)  To support achieving the zero emissions clean economy target set forth in section 225P-5;

     (4)  To fund the building energy efficiency revolving loan fund established in section 201-20;

     (5)  To fund projects and incentives to promote the adoption of clean transportation technologies, develop clean vehicle charging infrastructure, and upgrade infrastructure to support the development of clean vehicle charging infrastructure; and

     (6)  To fund, to the extent possible, the duties of the state building code council in section 107-24, as they relate to the development of energy conservation codes.

     (c)  Pursuant to the duties prescribed to the chief energy officer, subject to the approval of the governor, under section 196‑72(d)(5), the chief energy officer may enter into public-private partnerships with certain not-for-profit entities to create a plan and administer expenditures from the energy security special fund in accordance with subsection (b) and chapter 103D.  The not-for-profit entities with which the chief energy officer may enter into public-private partnerships shall:

     (1)  Have an established office and experience in Hawaii; and

     (2)  Support the commercialization of technologies that will further Hawaii's clean energy and sustainability goals and benefit Hawaii's economy.

     [(c)] (d)  The department of business, economic development, and tourism shall submit a report to the legislature, no later than twenty days prior to the convening of each regular session, on the status and progress of existing programs and activities and the status of new programs and activities funded by the energy security special fund.  The report shall also include:

     (1)  The spending plan for the energy security special fund;

     (2)  All expenditures of energy security special fund moneys; and

     (3)  The targeted markets of the expenditures, including the reason for selecting those markets, the persons to be served, the specific objectives of the expenditures, and measurable outcomes."

     SECTION 3.  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)  [5] 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 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 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

Energy Security Special Fund; Energy Technology Innovation; Public-private Partnerships

 

Description:

Allows the chief energy officer to contract with Hawaii not-for-profit entities to administer expenditures from the energy security special fund for the purposes set forth in section 201-12.8, HRS.  Increases the allocation from the state environmental response, energy, and food security tax for deposit to the energy security special fund from 5 cents to 15 cents per barrel or fractional part of a barrel of petroleum product.  Effective 7/1/2050. (HD1)

 

 

 

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