STAND. COM. REP. NO.  374

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 791

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 791 entitled:

"A BILL FOR AN ACT RELATING TO GASOLINE,"

begs leave to report as follows:

     The purpose of this measure is to require gasoline dealers to make non-ethanol gasoline available to purchasers for use in marine vessels and small engines.

     The County of Hawaii submitted comments on the measure.  Six individuals submitted testimony in support of this measure.

     Your Committee finds that section 486J-10, Hawaii Revised Statutes, requires the Director of Business, Economic Development and Tourism to establish rules that require an ethanol content of ten percent for gasoline sold in the State for use in motor vehicles.  Your Committee received multiple testimony that suggests that ethanol-enriched gasoline, while appropriate for use in motor vehicles, may be damaging to marine engines and small-tool engines.  However, as "motor vehicles" does not include vessels, watercraft, or small engines, there is nothing in the plain language of this statute to prevent the sale of non-ethanol gasoline for use in these applications.  Your Committee also finds that the Department of Business, Economic Development, and Tourism already has the authority under section 486J-10(d)(2), Hawaii Revised Statutes, to allow sale of gasoline that does not meet the ten percent ethanol requirement.

     In light of this information, your Committee is curious to learn whether non-blended gasoline is available to the public and users in the marine and small engine markets.  If this product is not available, and barring any other restrictions, the Committee wishes to understand why dealers are not making non-blended gasoline available to these markets.

     Your Committee notes that testimony from the Department of Business, Economic Development, and Tourism would be helpful in clarifying some of the issues presented by this proposed measure.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 791 and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

HERMINA MORITA, Chair