Establishes a preference in state contracts for the use of biofuels.

A BILL FOR AN ACT

SECTION 1. Biofuel is an alternative energy source derived from plant material that is comparable in quality to conventional petroleum fuels and can be used for transportation, heating, and air-conditioning. Biodiesel, a type of biofuel, is promising as it burns more cleanly than its petroleum-based counterpart, produces much less air pollution, and diverts used cooking oil from landfills. One facility on Maui diverts three hundred and fifty tons of cooking oil out of the landfill and into a biodiesel product every month. Biodiesel can be used by itself or in a blend with petroleum-based diesel oils. It does not require costly engine modifications before use. Biodiesel is simple to use, renewable, locally produced, and readily available.

The purpose of this Act is to provide an incentive for the State and counties to use alternative fuels that promote important state energy and environmental objectives.

SECTION 2. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§103D- Biofuel preference. (a) To encourage the use of nonpetroleum fuel, contracts for the purchase of fuel shall be awarded to the lowest responsible and responsive bidders, with preference being given to bidders using or selling biodiesel. The preference shall be ___ cents per gallon of fuel for pure biodiesel products. The policy board shall adopt rules in accordance with chapter 91 establishing lesser preferences for mixed biofuel products.

(b) When purchasing diesel fuel for transportation, state purchasing agencies shall, and county purchasing agencies are urged to, purchase only biodiesel or biodiesel mixes to assist in the diversion of cooking oil wastes from the waste stream.

(c) When purchasing low-grade fuel for power generation state purchasing agencies shall, and county purchasing agencies are urged to, give preference to bidders using biofuel to assist in the diversion of grease trap waste from the waste stream.

(d) As used in this section, "biofuel" means:

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.