Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Energy, Environment, and International Affairs, to which was referred H.B. No. 1705, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to provide more flexibility in the administration of the wholesale gasoline law.

Specifically, the measure allows the Governor to:

Your Committee received testimony in support of this measure from Mid Pac Petroleum and testimony in opposition to this measure from Western States Petroleum Association and Citizens Against Gasoline Price Gouging. Your Committee also received comments on this measure from the Department of Business, Economic Development, and Tourism.

Your Committee finds that this measure will amend existing law to give the Governor flexibility in implementing or rendering inoperative the provisions of section 486H-13, Hawaii Revised Statutes. Your Committee believes that the present law adequately addresses environmental protection and energy concerns regarding the implementation of a gasoline cap. Your Committee further finds that the amendments proposed by this measure may impact the protections afforded to gasoline consumers and, therefore, those provisions are more properly considered by the Committee on Commerce, Consumer Protection, and Housing.

As affirmed by the record of votes of the members of your Committee on Energy, Environment, and International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1705, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection, and Housing.