STAND. COM. REP. NO. 949

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1491

       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. 1491, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO ETHANOL FACILITY TAX CREDIT,"

 

begs leave to report as follows:

 

     The purpose of this measure is to reduce the aggregate annual amount of ethanol facility tax credit from $12,000,000 to $8,000,000 from July 1, 2011, through December 31, 2012.

 

     Comments were submitted by one private organization.  Testimony in opposition to the measure was submitted by one state department.  Testimony suggesting an amendment to the measure was submitted by one private organization.  One state department submitted a statement of no position.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that this measure temporarily reduces the total amount of ethanol facility tax credits that may be issued and helps to perpetuate the tax incentives for the construction and development of an ethanol production facility in the State.  Your Committee finds that, during these difficult economic times, it is important to balance budget realities with the imperatives of developing a renewable fuel industry in Hawaii.  This measure represents a good compromise of these competing interests, while preserving the tax credit for the future, when ethanol production facilities are in place to take advantage of the credit.

 

     Your Committee has amended this measure by changing its effective date 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. 1491, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1491, 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