HI SB359

Extends the environmental response, energy, and food security tax beyond its June 30, 2030 sunset date by removing the repeal provision from Act 73, Session Laws of Hawaii 2010.

Expands the tax to apply to fossil fuels (coal, natural gas, liquefied natural gas) in addition to petroleum products, measured at 19 cents per one million British thermal units.

Distributes fossil fuel tax revenues proportionally among four funds: environmental response revolving fund (4.8%), energy security special fund (14.3%), energy systems development special fund (9.5%), and agricultural development and food security special fund (14.3%).

Allows coal power purchase agreements in effect as of June 30, 2015 to be exempt from the fossil fuel tax, and permits independent power producers and gas utilities to pass through tax costs via approved surcharges or fuel adjustment charges.

Limits environmental response revolving fund balance to $1,250,000, with excess amounts transferred to the general fund, and requires the Director of Health to report to the Legislature on fund revenues, expenditures, and reserves.