STAND. COM. REP. NO.  66

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 371

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 371 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to make permanent the one cent per gallon tax on naphtha sold for use in a power-generating facility.

     The Kauai Island Utility Cooperative and Hamakua Energy Partners, L.P., testified in support of this bill.  The Department of Taxation and Tax Foundation of Hawaii provided comments.

     Your Committee has amended this bill by adding language providing background on the initial implementation of the tax in 2007.

     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. 371, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 371, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

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

____________________________

HERMINA MORITA, Chair