HI SB15

Establishes a biofuels task force within the Department of Business, Economic Development, and Tourism to examine replacing the existing 10% ethanol requirement in gasoline with a requirement that fuel distributors source at least 5% of their annual liquid fuel sales from locally-produced biofuels, with report due by 2015.

Creates a biofuels production tax credit allowing taxpayers to claim 30 cents per gallon (for biofuels with energy content at or above 114,000 BTU per gallon) or 20 cents per gallon (for lower energy content biofuels), limited to 5 taxable years and $3,000,000 annually, for biofuels produced and sold in Hawaii in quantities of at least 100,000 gallons per year.

Repeals the existing ethanol facility tax credit (Section 235-110.3) that had provided incentives for ethanol production facilities.

Requires biofuels producers to provide advance notice to tax and DBEDT directors, report annually on production volumes and types of biofuels, and allow public inspection of facility information under Hawaii's public records law.

Directs DBEDT to submit annual reports to the governor and legislature on the number of biofuels facilities, total gallons produced by type, and projected future production.