STAND. COM. REP. NO. 1666

Honolulu, Hawaii

RE:    H.B. No. 791

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred H.B. No. 791, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GASOLINE,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Enact a gasoline ethanol content by grade requirement, and repeal a similar existing statute; and

     (2)  Require fuel distributors to make available gasoline that does not contain ethanol for those who wish to purchase non-ethanol fuel.

     Your Committee received testimony in support of this measure from the Mayor of the County of Hawaii; Experimental Aircraft Association, Local Chapter-1182 Hilo; Hawaii Boaters Political Action Association; Street Bikers United Hawaii; and three individuals.  Testimony in opposition was received from the Department of Agriculture; Western States Petroleum Association; Chevron USA; Tesoro Hawaii Corporation; and one individual.  Comments were received from the Department of Business, Economic Development, and Tourism.

     Your Committee finds that there is a need to provide non-ethanol gasoline for use in boats, small gasoline powered tools, and experimental and light-sport aircraft.  Doing so would protect the investments made by the owners of such items and prevent the need for these owners to make costly repairs to the fuel systems of these items.  Your Committee further finds that, while this measure will provide for those individuals in need of non-ethanol fuel, it also provides an important phase out provision to further the State's goal of energy independence.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 791, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

BRIAN T. TANIGUCHI, Chair