Wednesday, November 13, 2019
Hawai'i Free Press

Current Articles | Archives

Sunday, February 22, 2015
SB358: Green Energy Scammers Push Legislators to Tax Natural Gas
By Andrew Walden @ 9:04 PM :: 3223 Views :: Energy, Taxes

by Andrew Walden

Natural gas and coal don't come in barrels, and they don't cause oil spills, but that's not stopping competing energy producers in the solar and wind industry from pushing legislators to impose the barrel tax on natural gas and coal imported into Hawaii.  SB358 is a bald-faced move to raise the price of energy for Hawaii consumers.

Under SB358, gas and coal will be taxed more heavily than oil.  Testimony from Hawaiian Electric points out: "a $0.21 per 1,000 cubic foot tax on natural gas is approximately 19.2% higher than the British thermal unit (BTU) equivalent tax rate for low sulfur fuel oil (LSFO). Similarly, the tax rate on coal is approximately 15% higher than the BTU equivalent tax rate for LSFO."

Just in case you haven't figured out that this tax is designed to save over-priced 'green' electricity producers from cheaper competitors, HEI also points out: "SB 358 does not propose to change any portion of the definition of 'Distributor' except to add a provision that selectively targets persons who use fossil fuels for the purpose of generating electricity to sell to an electric utility. As a result, others who may acquire, import or cause to import fossil fuels can avoid paying this tax in a number of ways, including if such persons use the fossil fuel to generate electricity for their own use, or if they sell or use the fossil fuel for any purpose other than to generate electricity to sell to an electric utility.... Hawaiian Electric proposes to have SB 358 make clear that any tax imposed on a unit of fuel under Chapter 243 only be charged once, and not on each person in the chain of custody."

And who will be paying?  Testimony from Hawaii Gas urges: "Hawaii Gas...be allowed to recover the tax from its utility gas customers in its Fuel Adjustment Charge (FAC) effective on the same date this bill becomes law."  A&B wheedles: "...the purchase power agreement between HC&S and MECO does not provide for the pass through of any new taxes imposed upon our renewable energy.... We respectfully request your consideration to incorporate provisions into this bill to exclude from the State environmental response, energy, and food security tax, solid fossil fuels used by renewable energy production facilities in providing to a public utility, firm power renewable energy that primarily utilizes non-fossil fuels to generate its firm power renewable energy."

SB358 would also loot General Fund Barrel Tax revenues and divert them to special funds designed to 'create positions.'  The Hawaii Department of Health complains: "the Department's Environmental Response Revolving Fund Barrel Tax allocation is insufficient to sustain the 41 positions (31 filled positions) that depend on the ERRF for funding."

The Tax Foundation explains: "Initially, the 5 cents per barrel environmental response tax was established to address oil spills in state waters. It was temporarily increased to $1.05, much of which was earmarked to numerous special funds, and was scheduled to sunset on 6/30/30. This measure redistributes the tax collections among the special funds. It also subjects gaseous and solid fossil fuels to the tax, which is a tax increase. The tax has taken on a life of its own and lacks transparency, and the special funds it feeds do not come under close scrutiny by either lawmakers or the public. The barrel tax should be repealed and all programs funded out of the environmental response tax should be funded through the general fund."

Support for SB358 comes from the usual suspects behind the push to keep Hawaii energy costs high, including: Ulupono Initiative, Nature Conservancy and Blue Planet Foundation. 

SB3581 has passed the Senate ENE and AGL Committees amended as SD1, passed Second Reading and now awaits a hearing before the Senate Ways and Means Committee.

---30---

SB358SD1 (Text, Status)

 

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

Conservative Forum for Hawaii

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Families for Educational Choice

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

Judgepedia Hawaii

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Salvage The Rail

Save the Plastic Bag

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT