CONFERENCE COMMITTEE REP. NO. 69

Honolulu, Hawaii

                 , 2007

RE:    H.B. No. 791

       H.D. 1

       S.D. 1

       C.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 791, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GASOLINE,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this bill is to establish a requirement for ethanol content for each grade of gasoline produced, imported, or sold in the State.  Specifically, this measure requires that premium gasoline produced, imported, or sold in the State for use in motor vehicles contain no ethanol.

     Your Committee finds that there are small niche markets, especially to fill a non-automobile demand, for gasoline that contains no ethanol.  Your Committee believes, however, that an attempt to allow the free market to meet this demand should be explored.

     Accordingly, your Committee has amended this bill by:

     (1)  Deleting the amendments to chapter 486H, Hawaii Revised Statutes, that refer to ethanol content requirement, and deleting the repeal of section 486J-10, Hawaii Revised Statutes;

     (2)  Requiring fuel distributors to report to the Department of Business, Economic Development, and Tourism on the distribution and availability of gasoline that does not contain ethanol, and requiring the Department to report its findings prior to the 2008 Regular Session of the Legislature for the purpose of assisting the Legislature in determining future policy to ensure the availability of non-blended gasoline for certain watercraft, small engine, and light aircraft markets; and

     (3)  Changing the effective date to be upon approval.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 791, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 791, H.D. 1, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ RON MENOR, Chair	____________________________ HERMINA MORITA, Co-Chair
____________________________ BRIAN T. TANIGUCHI, Co-Chair	____________________________ ROBERT N. HERKES, Co-Chair