Bill Text: HI HB2669 | 2012 | Regular Session | Amended

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Bill Title: Biofuel Production Facility; Tax Credit

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced - Dead) 2012-02-17 - (H) Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Herkes, Kawakami, M. Lee, Mizuno, Morikawa excused (5). [HB2669 Detail]

Download: Hawaii-2012-HB2669-Amended.html

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STAND. COM. REP. NO.  591-12

 

Honolulu, Hawaii

                , 2012

 

RE:   H.B. No. 2669

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2669 entitled:

 

"A BILL FOR AN ACT RELATING TO ENERGY,"

 

begs leave to report as follows:

 

     The purpose of this measure is to:

 

     (1)  Encourage the development and construction of biofuel production facilities in Hawaii by creating an income tax credit for investments in the development and construction of qualified biofuel production facilities in the State; and

 

     (2)  Clarify the circumstances under which an environmental assessment is required for an action proposing an oil refinery.

 

     Aina Koa Pono; Hawaiian Electric Company and its subsidiaries, Maui Electric Company and Hawaii Electric Light Company; Hawaii BioEnergy; and International Longshore and Warehouse Union, Local 142 submitted testimony in support of this measure.  The Department of Business, Economic Development, and Tourism; Pacific Biodiesel; and Hawaii Renewable Energy Alliance submitted testimony in support of the intent of this measure.  The Office of Environmental Quality Control submitted testimony in

support of this measure with amendments.  The Department of Taxation and Tax Foundation of Hawaii submitted comments on this measure.

 

     Your Committee has amended this measure by:

 

     (1)  Deleting the new definition of "oil refinery" that was to be added to section 343-2, Hawaii Revised Statutes;

 

     (2)  Deleting language that environmental impact statements are required for any action that proposes an oil refinery; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

 

     Your Committee notes that a similar measure that discusses larger facilities, H.B. 2262, is with your Committee on Finance and requests your Committee on Finance to consider consolidating these measures to the extent possible.  Your Committee notes that special purpose revenue bonds may be a more appropriate way to finance the biofuel production facilities, rather than requiring tax payers that receive the tax credit to repay the full amount of the credit in ten years.

 

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2669, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2669, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

 

 

____________________________ DENNY COFFMAN, Chair