HomeMy WebLinkAboutAct 185EXECUTIVE CHAMBERS
HONOLULU
DAVID Y. IGE
GOVERNOR
July 1, 2015
The Honorable Ronald D. Kouchi,
President
and Members of the Senate
Twenty-Eighth State Legislature
State Capitol, Room 409
Honolulu, Hawai'i 96813
The Honorable Joseph M. Souki,
Speaker and Members of the
House of Representatives
Twenty-Eighth State Legislature
State Capitol, Room 431
Honolulu, Hawai'i 96813
Dear President Kouchi, Speaker Souki, and Members of the Legislature:
This is to inform you that on July 1, 2015, the following bill was signed into law:
SB359 SDI HDI CDI RELATING TO THE ENVIRONMENTAL
RESPONSE, ENERGY, AND FOOD SECURITY
TAX
ACT 185 (1 5)
Sincerely,
-J% DAVID .
Governor. State of Hawai'i
RECEIVED SENATE OFFICE OF THE PRESIDENT
Approved by the Governor
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
JUL 1 2015 Om THE SENATE
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII
C.D. 1
A BILL FOR AN ACT
RELATING TO THE ENVIRONMENTAL RESPONSE, ENERGY, AND FOOD
SECURITY TAX.
BE IT ENACTED BY THE LEGISLATURE OF THF STATE OF HAWAII:
PART I
SECTION 1. The legislature finds that, due to Hawaii’s
reduced demand for fossil fuels, revenues from the barrel tax
have decreased over several years. Such decreases are expected
with the increased fuel efficiency of vehicles, use of hybrid
and electric vehicles, as well as renewable energy efforts in
other sectors of Hawaii’s economy. However, the need to respond
to environmental issues has not diminished. In recent years,
funding for the programs supported by the environmental response
revolving fund have proven to be a challenge, as the revenues it
receives from its share of the barrel tax have decreased. The
legislature finds that funding environmental protection
projects, emergency response cleanups, and other efforts which
provide for public health by mitigating environmental health
hazards are a critical public service.
The purpose of this part is to ensure ongoing funding for
environmental projects, in a transparent and stable manner, by
1
Page 2 359 S.B. NO s.D.~ H.D. 1
C.D. 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
imposing the environmental response, energy, and food security
tax on fossil fuel and allocating it to advance Hawaii's clean
energy, food security, and climate change policies.
SECTION 2. Section 243-1, Hawaii Revised Statutes, is
amended by amending the definition of "distributor" to read as
follows:
I' "Distributor" means :
Every person who refines, manufactures, produces, or
compounds liquid fuel or fossil fuel in the State and
sells or uses the same therein;
Every person who imports or causes to be imported into
the State any liquid fuel or fossil fuel and sells it
therein, whether in the original packages or
containers in which it is imported or otherwise than
in [skA=d the original packages or containers, or who
imports any [&I liquid fuel or fossil fuel for the
person's own use in the State;
Every person who acquires liquid fuel or fossil fuel
from a person not a licensed distributor and sells or
uses it, whether in the original package or container
2015-2748 SB359 CD1 SMA.doc 2
Page 3 359 S.B. NO ’ s.D.~ H.D. 1
C.D. 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
in which it was imported (if imported) or otherwise
than in [&I - the original package or container; and
(4) EveFy person who acquires liquid fuel or fossil fuel
from a licensed distributor as a wholesaler thereof
and sells or uses it.”
SECTION 3. Section 243-3.5, Hawaii Revised Statutes, is
amended to read as follows:
“S243-3.5 Environmental response, energy, and food
security tax; uses. (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;
3
Page 4 359 S.B.NO ' s.D.~ H.D. 1
C.D. 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
(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 [fl304A-2169.1 [+I ; 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.
(b) In addition to subsection (a), the tax shall also be
imposed on,each one million British thermal units of fossil fuel
sold by a distributor to any retail dealer or end user, other
than a refiner, of fossil fuel. The tax shall be 19 cents on
each one million British thermal units of fossil fuel; provided
that of the tax collected pursuant to this subsection:
~ (1) 4.8 per cent of the tax on each one million British
thermal units shall be deposited into the
environmental response revolving fund established
under section 128D-2;
4
Page 5 359 S.B. NO s.D.~ H.D. 1
C.D. 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
- (2) 14.3 per cent of the tax on each one million British
thermal units shall be deposited into the energy
security special fund established under section 201-
12.8;
(3) 9.5 per cent of the tax on each one million British __
thermal units shall be deposited into the energy
systems development special fund established under
section 304A-2169.1; and
(4) 14.3 per cent of the tax on each one million British -
thermal units 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 fossil fuel.
(c) The tax imposed under subsection (b) shall not apply
to coal used to fulfill a signed power purchase agreement
between an independent power producer and an electric utility
that is in effect as of June 30, 2015. An independent power
producer shall be permitted to pass the tax imposed under
subsection (b) on to an electric utility. In which case, the
electric utility may recover the cost of the tax through an
5
Page 6 359 S.B. NO s.D.~ H.D. 1
C.D. 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
appropriate surcharge to the end user that is approved by the
public utilities commission.
(d) A gas utility shall be allowed to recover the cost of
the tax imposed under subsection (b) as part of its fuel cost in
its fuel adjustment charge without further approval by the
public utilities commission.
[-&)-I (e) Each distributor subject to the tax imposed by
subsection (a) [?I or (b), on or before the last day of each
calendar month, shall file with the director, on forms
prescribed, prepared, and furnished by the director, a return
statement of the tax under this section for which the
distributor is liable for the preceding month. The form and
payment of the tax shall be transmitted to the department of
taxation in the appropriate district.
[+&I - (f) Notwithstanding section 248-8 to the contrary,
the environmental response, energy, and food security tax
collected under this section shall be paid over to the director
of finance for deposit as provided an subsection (a) or (b),
as the case may be.
[-cEKI 0- Every distributor shall keep in the State and
preserve for five years a record in [dl - a form as the
6
Page 7 359 S.B. NO. s.D.~ H.D. 1
C.D. 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
department of taxation shall prescribe showing the total number
of barrels, - and the fractional part of barrels, - of petroleum
product or the total number of one million British thermal units
of fossil fuel, as the case may be, sold by the distributor
during any calendar month. The record shall show [dl %
other data and figures relevant to the enforcement and
administration of this chapter as the department may require.
(h) For the purposes of this section:
"Barrel" may be converted to million British thermal units,
using the United States Department of Energy, Energy Information
Administration annual energy review or annual energy outlook.
"Fossil fuel" means a hydrocarbon deposit, such as coal,
natural gas, or liquefied natural gas, derived from the
accumulated remains of ancient plants or animals and used for
fuel; provided that the term specifically does not include
petroleum product. 'I
SECTION 4. Act 73, Session Laws of Hawaii 2010, as amended
by Act 107, Session Laws of Hawaii 2014, is amended as follows:
1. By amending section 14 to read:
"SECTION 14. This Act shall take effect on July 1, 2010[7
^L-.,l kr LALUL... Y..
7
Page 8 359 S.B.NO ' S.D. H.D.
C.D.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
1-a -- -, -,A? 71 0 -& *LU "1' --.", -
P.7 3 = E2waLL -.Lizcd Ctzt-.+cz, zkall be rccFectc2 4- the FCrm ..
._I
"k Char? %---.a T'- ,r? 1c-L ALL1 LA 1 LLUU Y -,le1 ."
2. By repealing section 10:
'I [--- =r .de--
.. 3?emckLmzi~ I2 thc p-%cArIty
k.? +I..:.- AI+ ..- ,.e 4-4- "7rr-n &
I" - Cr. +I ai+ -* tka
"I "AI L c1 CIA.. L ULL.
geLrzl E*&] "
PART I1
SECTION 5. The purpose of this part is to address the
environmental response revolving fund, the primary source of
revenues of which is the environmental response, energy, and
food security tax.
More specifically, this part:
(1) Authorizes the expenditure of moneys from the
environmental response revolving fund to be used for
specific purposes;
(2) Provides for the transfer of excess moneys in the
environmental response revolving fund under certain
conditions; and
8
Page 9 359 S.B. NO ‘ s.D.~ H.D. 1
C.D. 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
(3) Repeals the requirement that certain positions be
funded by the environmental response revolving fund.
The legislature intends that the positions be
authorized and funded in accordance with the general
appropriations act, as may be amended by the
supplemental appropriations act; and
(4) Requires the director of health to submit reports to
the legislature regarding the environmental response
revolving fund.
The legislature finds that this part is necessary to better
direct and focus the use of the environmental response revolving
fund in light of the projected reduction of revenues from the
environmental response, energy, and food security tax.
SECTION 6. Section 128D-2, Hawaii Revised Statutes, is
amended to read as follows:
“S128D-2 Environmental response revolving fund; uses. (a)
There is created within the state treasury an environmental
response revolving fund, which shall consist of moneys
appropriated to the fund by the legislature, moneys paid to the
fund as a result of departmental compliance proceedings, moneys
paid to the fund pursuant to court-ordered awards or judgments,
9
Page 10 359 S.B. NO. s.D.~ H.D. 1
C.D. 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
moneys paid to the fund in court-approved or out-of-court
settlements, all interest attributable to investment of money
deposited in the fund, moneys deposited in the fund from the
environmental response, energy, and food security tax pursuant
to section 243-3.5, and moneys allotted to the fund from other
2015-2748 SB359 CD1 SMA.dOC 10
Page 11 359 S.B. NO. s.D.~ H.D. 1
C.D. 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
cccrjy czc
,. -I --1- LrUu LLLLAtC-7 tz 2AF
T=='lltirl 5L-1 "."=fR;,3 r =l=--t=r, wllutcd r-
l<A -.& YY-L.LU ] Removal and remediation of hazardous
waste [[
--t - VLC f,r thc ,.+--.-..-- t-. VLCI-3- C
a - ULIU vr LA+
.,.
A Y -t Lzr: t- ,hL a:- ;-- -:t -,,tLVAL Y-LCC
aA f2clliFy-.1 and any other solid, liquid, or gaseous
substance that may harm the environment; and
The payment of costs listed under section 128D-4(c).
..
- (3)
(c) The unexpended and unencumbered moneys in the fund in
excess of $1,250,000 on June 30 of each fiscal year shall be
transferred by the director of finance into and become a
realization of the general fund on that date."
16 SECTION I. Section 128D-2.5, Hawaii Revised Statutes, is
17 amended to read as follows:
18 I' [f] S128D-2.5 14-1 Toxicologists. The department may
19 establish permanent exempt positions known as toxicologists for
20 the purpose of assessing human health risk. The positions shall
21 be appointed by the director without regard to chapter 76. [Tke
11
Page 12 359 S.B.NO ' s.D.~ H.D. 1
C.D. 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
+,.%- 4-L- ,. -c.t--n" "k-77 .. ULZL P-U-C-".." "LA-&& --",UL LL"SLB CALL -- F--m 4-1
- F..-a I--. :*a 4 1
IAlL ZL
SECTION 8. Section 128D-2.6, Hawaii Revised Statutes, is
i -ng L LU ,-kL u 2.2 "CCtL " *e= 2 .I "
amended to read as follows:
"[fl§l26D-2.6[3-1 Ecological risk assessor. The department
may establish a permanent exempt position for an ecological risk
assessor for the purpose of assessing ecological risks and
damages. The position shall be appointed by the director
without regard to chapter 76. [Tk f- thic pc-iticm ..
&;l? ==TIC frm tLL WtZl rcz- .
4- - a..t: ,h- U-C-LY =L t .F&
&- - --3+4---1 ..-.-w t- 4-1
AArn u CY CALL
-1 II
SECTION 9. (a) The director of health shall submit to the
legislature, by February 1, 2016, a report listing the following
for the environmental response revolving fund:
(1) The actual expenditures and encumbrances from July 1,
2015, to December 31, 2015;
(2) The planned expenditures from January 1, 2016, to
June 30, 2016; and
12
Page 13 359 S.B. NO s.D.~ H.D. 1
C.D. 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
(3) The contingency amount planned to be held in reserve
throughout the fiscal year for expenditure in the
event of a major release. For the purpose of this
paragraph, "release" means the same as defined under
section 128D-1, Hawaii Revised Statutes.
(b) The director of health shall also submit to the
legislature, at least twenty days prior to the convening of the
regular session of 2017, a report listing the following for the
environmental response revolving fund for fiscal year 2015-2016:
(1) Actual revenues;
(2) Actual expenditures;
(3) Unexpended encumbrances as of June 30, 2016, and the
dates of encumbrances of the unexpended amounts; and
(4) The amount, if any, transferred to the general fund on
June 30, 2016, pursuant to section 128D-2(c), Hawaii
Revised Statutes.
The report shall also specify whether, during fiscal year 2015-
2016, the governor increased the ceiling of the revolving fund
pursuant to the authority established under section 128D-4(e),
Hawaii Revised Statutes.
13
Page 14 359 S.B. NO. s.D.~ H.D. 1
C.D. 1
1 (c) The reports required under this section shall be in
2 addition to the annual report required under section 128D-13,
3 Hawaii Revised Statutes.
4 PART I11
5 SECTION 10. Statutory material to be repealed is bracketed
6 and stricken. New statutory material is underscored.
7 SECTION 11. This Act shall take effect on July 1, 2015.
APPROVED this 1 day of JUL ,2015