Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Energy, Environment, and International Affairs and Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 3182 entitled:

beg leave to report as follows:

The purpose of this measure is to require a phased reduction of methyl tertiary-butyl ether in gasoline sold or imported in the State to achieve levels no greater than 0.15 volume per cent by January 1, 2009.

Your Committees received testimony in support of this measure from the Department of Health and Aloha Petroleum, Ltd. Comments were received from the Board of Agriculture.

Your Committees find that this measure protects the people of Hawaii, Hawaii's environment, and Hawaii's drinking water from a known hazardous material, methyl tertiary-butyl ether. This measure establishes allowable percentages of the substance by volume, and requires distributors to report annually the amount of gasoline sold in Hawaii that contain the substance.

The intent of your Committees is to substantially reduce or eliminate the presence or threat of a chemical in Hawaii that is a known to have extensively contaminated drinking water and ground water resources nationally.

Your Committees have amended this measure by making it effective upon approval, and making technical, nonsubstantive amendments for style and clarity.

As affirmed by the records of votes of the members of your Committees on Energy, Environment, and International Affairs and Commerce, Consumer Protection, and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3182, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3182, S.D. 1, and be referred to the Committee on Ways and Means.