STAND. COM. REP. NO. 828-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 2278

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2278, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Amend the Environmental Response, Energy, and Food Security Tax to tax carbon emissions; and

(2) Establish a refundable income tax credit to mitigate the effect of the carbon emissions tax.

Your Committee received testimony in support of this measure from the Citizens' Climate Lobby – Hawaii Island Chapter, Citizens' Climate Lobby – Honolulu Chapter, Climate Protectors Hawai‘i, Faith Action for Community Equity, Kauai Climate Action Coalition, The Nature Conservancy, Sustainable Energy Hawai‘i, KauaiEV, First Unitarian Church, and nineteen individuals. Your Committee received testimony in opposition to this measure from Hawaii Logistic Service, Hawaii Transportation Association, Practical Policy Institute of Hawaii, and one individual. Your Committee received comments on this measure from the Department of Taxation, Department of Budget and Finance, Hawaii State Energy Office, Citizens' Climate Lobby Hawaii, Ulupono Initiative, Imua Alliance, Par Hawaii, Grassroot Institute of Hawaii, Tax Foundation of Hawaii, Airlines for America, and two individuals.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2278, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair