STAND. COM. REP. NO. 3299

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 3021
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 3021, H.D. 1, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO GASOLINE,"

begs leave to report as follows:

     The purpose of this bill is to prohibit the sale of gasoline
containing methyl tertiary-butyl ether (MTBE) beginning July 1,
2000.

     In addition, this bill establishes fines for violations of
not more than $25,000 for each separate occurrence, or in an
amount equal to three times the cost of cleaning up the
contamination, whichever is greater, and provides for these fines
to be deposited into the emergency response revolving fund.

     Your Committee finds that this bill is necessary to protect
Hawaii's ground water and drinking water from contamination by
MTBE.  While MTBE has been added to gasoline to boost octane
level and provide cleaner burning fuels, the legislature finds
that MTBE, which has been reported to cause cancer in laboratory
animals, has appeared in ground water in some states.
Accordingly, your Committee finds that the sale of gasoline
containing MTBE should be prohibited until the Environmental
Protection Agency has evaluated the available information to

 
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                                   STAND. COM. REP. NO. 3299
                                   Page 2


estimate the potential cancer risk to humans whose drinking water
may contain traces of MTBE.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
3021, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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