STAND. COM. REP. NO.  747

 

Honolulu, Hawaii

                , 2023

 

RE:   H.B. No. 389

      H.D. 2

 

 

 

 

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

 

Sir:

 

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 389, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to establish a carbon sequestration income tax credit for the capture and disposal of qualified carbon oxides.

 

     Your Committee received testimony in support of this measure from the Hawai‘i Climate Change Mitigation and Adaptation Commission and one individual.  Your Committee received testimony in opposition to this measure from two individuals.  Your Committee received comments on this measure from the Department of Health and Department of Taxation.

 

     Your Committee finds that the State has declared there to be a climate emergency.  The State has established several goals in order to mitigate the effects of climate change, including the establishment of a renewable portfolio standard, zero emissions clean economy target, and clean ground transportation goal.  However, additional efforts are needed to incentivize projects that will further mitigate the effects of climate change.  This measure incentivizes the development of projects that will sequester carbon oxides from the atmosphere.

 

     Your Committee notes that if this measure is enacted by the Legislature, the Department of Health will need to adopt administrative rules to certify the metric tons.  Furthermore, the Department of Health should adopt rules that will allow the operations of these projects while protecting the State's water sources.

 

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 389, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 389, H.D. 2.

 

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

 

 

 

 

____________________________

MARK M. NAKASHIMA, Chair