HONOLULU -- State lawmakers have advanced a bill that will hike the tax of every barrel of oil shipped into the state from 5 cents to $1.05 to start a special fund to promote energy independence and locally grown foods.

Supporters said it will raise the cost of living for Hawaii families by at least $100 a year. Opponents say it will cost more.

The state Tax Department said that the 2,100 percent hike is a huge increase.

Even though the tax is on oil, it would be passed on to drivers at the pump and on their electricity bills. That would trickle through businesses charging higher prices for goods and services.

"The cost of everything will go up," Tax Foundation Executive Director Lowell Kalapa said. "It's very sneaky. It's very underhanded, its not being honest with the taxpayer and that's what we always should do. 'This is what you are paying for. This is what we are charging you for it. Do you agree with us.'"

"We think it is a small price to pay to start on the path of getting us towards energy security off fossil fuels in this state, starting to get us towards food security in this state, figuring out how we can grow more of our own food supply," said Mark Fox, of the Nature Conservancy.

House Environment Committee Chairwoman Rep. Mina Morita said Hawaii families could offset the tax increase by being more sparing in their gas and electricity use.

With regular gas above $3 a gallon nobody likes to hear about paying more at the pump.

Construction worker Mike Sunico said even if tax increase is to help the environment, it is a bad time.

"I think it is wrong for them to be doing that because our economy is so down," he said.

Last year, the governor vetoed a similar oil barrel tax hike. This year lawmakers have the votes to over-ride a veto by the governor, Morita said.

The oil barrel tax hike goes next to the House Finance Committee.