LIHU‘E — A proposed tax of $1.05 on each barrel of oil sold in Hawai‘i, which would inevitably be passed on to drivers at the pump, would go to fund energy and food self-sufficiency in the state. The proposal, House
LIHU‘E — A proposed tax of $1.05 on each barrel of oil sold in Hawai‘i, which would inevitably be passed on to drivers at the pump, would go to fund energy and food self-sufficiency in the state.
The proposal, House Bill 1271, House Draft 3, Senate Draft 2, Conference Draft 1, was sent to Gov. Linda Lingle for her disposition on Monday.
State Rep. Mina Morita, D-Kapa‘a-Hanalei, is one of the main sponsors of the legislation, referred to as the “barrel tax.”
If signed into law (Lingle has until sometime in July to sign or veto the bill, or to allow it to become law without her signature), it would take effect that day if approved, and would establish several new programs under the state Department of Business, Economic Development and Tourism.
“It will help to accelerate energy and agriculture development,” said Morita in a phone interview Wednesday.
The bill, if it becomes law, “gives us the opportunity to create an economic stimulus for Hawai‘i,” to encourage energy and food sustainability, she said.
The legislation’s purpose, among other things, is to “ensure Hawai‘i is energy and food self-sufficient and sustainable to the maximum extent feasible,” and to “promote economic development for local food and energy businesses by establishing necessary funding, guidance and infrastructure,” according to the bill.
“I think the larger question in the future is the role of refineries in the state,” Morita said, in light of a state mandate to use 70 percent clean energy by 2030, with 40 percent of that from renewable sources and 30 percent through more efficient use of energy.
Morita is chair of the House Committee on Energy and Environmental Protection.
For each $1.05 collected on the barrel tax — known in the legislation as the environmental response, energy and food security tax — 55 cents would go into a new energy security special fund; 35 cents into a new agricultural development and food security special fund; 10 cents into a new energy systems development fund; and 5 cents into an environmental response revolving fund.
Among other provisions, the bill proposes establishment of:
• An environmental response revolving fund, which DBEDT would spend in response to and prevention of oil spills, county used-oil recycling programs, and other forms of environmental and natural-resource protection programs;
• An energy security special fund, for use on the Hawai‘i clean energy initiative, to fund a renewable-energy facilitator position and greenhouse gas emissions reduction task force;
• The Hawai‘i economic development task force, to facilitate the accelerated adoption and completion of renewable-energy projects, energy-efficiency programs, agricultural infrastructure and development;
• An agricultural development and food security special fund, to acquire land for farming, make grants to farmers for production and processing equipment, improve land to promote agricultural production, conduct research on agricultural products and markets, and promote and market home-grown agricultural products;
• The Hawai‘i clean energy initiative program, which, among other things, is to plan, implement and transition the state and counties to “clean-energy” economies;
• A renewable-energy branch in DBEDT, to strengthen laws supporting energy diversification and provide resources to support the state’s renewable-energy industry;
• A greenhouse gas emissions reduction task force.
By the numbers
1.05 – Proposed dollar amount of tax on each barrel of oil
10 – Days supply of fresh produce in Hawai‘i
30 – Percent of Hawai‘i homes with solar water heaters
65 – Percent of fresh fruit consumed that is imported
67 – Percent of fresh vegetables consumed that is imported
70 – Percent of fresh milk consumed that is imported
85 – Percent of food consumed in Hawai‘i that is imported
90 – Percent of beef consumed in Hawai‘i that is imported
95 – Percent of energy consumed in Hawai‘i that is imported
787,036 – Dollar amount for 14 new jobs supporting Hawai‘i Clean Energy Initiative and Renewable Energy Initiative
8,600,000,000 – Estimated dollar figure exported from Hawai‘i for food and oil in 2008
Source: State Legislature
• Paul C. Curtis, staff writer, can be reached at 245-3681 (ext. 224) or pcurtis@kauaipubco.com
