Requires a phased reduction of methyl tertiary-butyl ether in gasoline sold or imported in the State with levels no greater that .15 volume per cent by January 1, 2009,

A BILL FOR AN ACT

SECTION 1. The legislature finds that methyl tertiary-butyl ether is a chemical not regulated by environmental regulations in the State and is known to have contaminated extensive drinking water and groundwater resources nationally. In July 1999, an Environmental Protection Agency panel recommended that the use of methyl tertiary-butyl ether, also known as tert-butyl methyl ether, should be reduced substantially. Even prior to the Environmental Protection Agency panel's findings, California announced a phase-out of methyl tertiary-butyl ether in California gasoline by December 2002.

Although reformulated gasoline is not required in Hawaii, a 1998 survey by the department of health's underground storage tank section found that the presence of methyl tertiary-butyl ether in Hawaii gasoline could not be ruled out. Therefore, as of January 1, 1999, the department of health has required the testing for methyl tertiary-butyl ether at petroleum release sites involving gasoline. At this time, methyl tertiary-butyl ether has not been found as a contaminant in drinking water as a result of a release of gasoline at a regulated underground fuel storage facility.

While methyl tertiary-butyl ether's incidence in Hawaii's gasoline supply appears to be much less frequent than in other regions of the country, it still poses a significant groundwater contamination threat, especially in sensitive inland areas that are watershed areas for drinking water supply aquifers, such as Wahiawa and Mililani. The potential impact of contamination on Hawaii's drinking water supplies could be significant and costly.

Once methyl tertiary-butyl ether contaminates groundwater resources, its removal is more expensive than the treatment of other volatile organic compounds. The State potentially may incur significant costs as a result of environmental response actions to a release and the treatment of our drinking water supplies. Additional costs may be involved if alternative public drinking water supplies need to be provided.

The legislature finds that methyl tertiary-butyl ether has been listed as a probable animal carcinogen and possible human carcinogen. Relatively low levels of the chemical in drinking water can be tasted and smelled by susceptible individuals. The taste has been characterized as "bitter," "turpentine-like," and "nauseating." It is clear that people of Hawaii will not accept drinking water in which they can taste or smell methyl tertiary-butyl ether, and treatment of a drinking water source contaminated with the chemical will be very expensive. Moreover, the chemical presents a threat to Hawaii's groundwater, surface water, and drinking water systems.

The purpose of this Act is to require that levels of methyl tertiary-butyl ether in gasoline imported or sold in the State contain no more than .15 volume per cent of methyl tertiary-butyl ether by January 1, 2009.

SECTION 2. Chapter 486, Hawaii Revised Statutes, is amended by adding a new section to read as follows:

"§486- Gasoline containing methyl tertiary-butyl ether; reporting requirements; penalties. (a) No distributor shall sell or supply gasoline in the State that contains methyl tertiary-butyl ether in concentrations greater than:

(b) Starting on December 31, 2007, and every twelve months thereafter, each distributor shall file with the administrator, on forms prescribed by the administrator, a certified statement. The certified statement shall show the following:

(c) Any distributor who sells or supplies gasoline subject to this section and who fails to timely submit a certified statement required by subsection (b) shall be subject to a penalty of up to $25,000. Any distributor or any other person violating the requirements of this section shall be subject to a fine of not less than $2 per gallon of nonconforming gasoline, up to a maximum of $25,000 per violation."

SECTION 3. Section 486-1, Hawaii Revised Statutes, is amended by adding four new definitions to be appropriately inserted and to read as follows:

""Distributor" has the same meaning as defined in section 486J-1.

"Gasoline" has the same meaning as defined in section 486H-1.

"Methyl tertiary-butyl ether" or "tert-butyl methyl ether" means the substance the chemical composition of which is (CH3)3COCH3.

"Supply" means to provide or transfer a product to a physically separate facility."

SECTION 4. Section 342L-3, Hawaii Revised Statutes, is amended to read as follows:

"§342L-3 Powers; rulemaking; appointment of hearings officers. (a) The director may adopt, amend, and repeal [state] rules controlling and regulating underground storage tanks and tank systems. All rules shall be adopted pursuant to chapter 91.

(b) In addition to other specific powers provided in this chapter, the director may appoint without regard to chapters 76 and 77, hearings officers to conduct public participation activities including public hearings and public informational meetings.

(c) The director may regulate the methyl tertiary-butyl ether content in gasoline sold or supplied for use in the State."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2006.