HB3070

SECTION 1. The legislature finds the State's economic security and stability continues to remain extremely vulnerable to the increasing risks and threats to its energy security, due to Hawaii's overdependence on imported oil to meet approximately eighty-nine per cent of the State's total energy demand. This vulnerability is exacerbated because nearly seventy-seven per cent of the State's electricity is generated using petroleum fuels. The United State's average for oil-generated electricity is only about three per cent. There is a general consensus among experts that global oil market fundamentals have created a new, much higher "plateau price" for crude oil from which low price trends of the past are not projected to return. These factors continue to create unacceptable risks to Hawaii's economy, and energy security remains a priority.

The legislature also finds as the variety of fuels and fuel production feedstocks – petroleum-based, biofuels, or other alternatives -- being directly imported into the State increases, so do unique risks related to availability, and the economic and energy system impacts associated with each respective commodity, should imports be disrupted. There are also new fuel and feedstock-specific infrastructure requirements associated with such transitional issues and trends.

The recent statewide propane shortage and earthquake underscored and validated the need to address the serious inadequacies of the current statutes and the State's concern that the data reporting and collection provisions of these energy emergency preparedness laws do not include all necessary data and all relevant components of the energy industry.

Current provisions of chapter 125C, Hawaii Revised Statutes, require only importers of fuel to provide emergency data reports, and then only for supply and demand information. The statute's outdated limitations of data collection authority and lack of accommodation to changed energy markets, and changes of fuel products and specifications preclude the governor and state energy resources coordinator's (director of business, economic development, and tourism) ability to adequately ascertain the severity and impacts of an energy emergency or fuel shortage, and to determine what response measures may be necessary. Vital information from other non-importing distributors, wholesalers, retailers, and other major energy companies, and other more extensive and detailed types of data and information on all aspects of the state's energy systems and market are essential for effective energy system situational analyses and reporting, coordination, and management of near- and longer-term energy emergency response and vulnerability mitigation initiatives, preparedness, and exercise functions, maintaining current energy emergency plans, and energy security policy planning and analysis -- all necessary components to ensure the readiness and robustness of the State's energy emergency preparedness program.

The legislature also finds that chapter 125C, Hawaii Revised Statutes, does not currently require major energy companies to report critical emergency preparedness information regarding storage, transport, inventory, supply, demand, production and capacities, actual prices, and other aspects of energy systems and markets, which are essential to the State's emergency management role, irrespective of these companies' import status. Moreover, use of this type of data and information to effectuate chapter 125C is already directed by Act 182, Session Laws of Hawaii 2007. Act 182 added to chapter 486J, Hawaii Revised Statutes, an important section directing the department of business, economic development, and tourism on how, and for what purposes to use the expansive data collected by the public utilities commission pursuant to chapter 486J, Hawaii Revised Statutes. However, the data and information collected pursuant to chapter 486J, Hawaii Revised Statutes, alone are inadequate for energy emergency management. In addition, when controlled by another agency, while close cooperation is assumed, as a pragmatic matter, such indirect reporting mechanisms cannot necessarily be depended upon during emergencies, nor can data reported on weekly or monthly schedules be expected to be effectively responsive to immediate emergency situations and needs, which frequently change with little or no warning.

This represents an unacceptable situation when considered in the context of the State's role and responsibilities for energy emergency management. The legislature finds that it is essential to strengthen and comprehensively address deficiencies in Hawaii's energy emergency preparedness and energy resources coordination statutes by amending chapter 125C, Hawaii Revised Statutes. Such amendments are necessary to provide adequately authoritative policy support and enabling functional guidance to meet the following critical needs of the State: (1) regain and retain the law's relevance, consistency, and adequacy as contingency policy guidance to accommodate actual and expected changes in Hawaii's energy (and economic) security and vulnerability, stemming from significant changes in energy and fuel markets; (2) update and align key provisions of chapter 125C, Hawaii Revised Statutes, with relevant changes to federal and state overall emergency management, and energy emergency management policies and planning guidance, stemming from the post-9/11 and post-Katrina evolution of the "all-hazards/all-threats" emergency management context, and fundamental shifts in the global energy and markets; and (3) rectify the several inadequacies of data collection, analysis, and reporting provisions of chapter 125C, Hawaii Revised Statutes, with amendments to accommodate and address the unique economic and energy systems risks associated with transitional issues and trends relating to both petroleum-based fuels and biofuels, and actionable provisions to add sufficiently detailed definition to conduct energy emergency preparedness-related energy analytic functions.

The legislature also finds that amendments to chapter 125C, Hawaii Revised Statutes, are necessary to provide improvements and updates of the State's energy emergency policy guidance, an important authoritative basis for energy emergency preparedness programmatic improvements, and updated drafts of the State energy emergency preparedness plan, developed in a multi-year effort in coordination with Hawaii's major energy companies, Department of Defense personnel, other relevant federal, state, and county agencies, and expert consultants.

In summary, the legislature finds that Hawaii's oil dependence, emergency events, and transitional fuel issues are factors that stress the need for industry and government to coordinate contingency plans to contend with energy disruptions, irrespective of cause. To be effective, the government's legitimate leadership role in planning for and managing emergencies, including energy emergencies, cannot depend solely on cooperative efforts, nor can data and information reported to regulatory agencies for separate, non-emergency purposes be expected to be adequate to support emergency management information needs. Such factors continue to create unacceptable risks to Hawaii's economy, and represent a worrisome situation.

Therefore, the legislature finds that, while the State's emergency management and energy emergency preparedness and energy planning and policy development programs have attempted to keep pace with changes to Hawaii's energy and fuel markets, and federal and state energy emergency management policies and planning guidance, changes to the current law and resources are needed to meet critical needs of the State.

The purpose of this Act is to remedy the deficiencies in the law governing energy emergency planning in this State.

SECTION 2. Chapter 125C, Hawaii Revised Statutes, is amended by adding four new sections to be appropriately designated and to read as follows:

"§125C-A Definitions. As used in this chapter, unless the context requires otherwise:

"Commission" means the public utilities commission.

"Department" means the department of business, economic development, and tourism.

"Director" means the director of business, economic development, and tourism, who is also the state energy resources coordinator pursuant to section 196-3.

"Distributor" means every person who:

(1) Refines, manufactures, produces, or compounds fuel in the State, and sells it at wholesale or retail, or who utilizes it directly in the manufacture of products or for the generation of power;

(2) Imports or causes to be imported into the state, or exports or causes to be exported from the state, any fuel;

(3) Acquires fuel through exchanges with another distributor; or

(4) Purchases fuel for resale at wholesale or retail from any person described in paragraph (1), (2), or (3).

"Electricity" means all electrical energy produced by combustion of any fuel as defined in this section, or generated or produced using wind, the sun, geothermal, ocean water, falling water, currents, and waves, or any other source.

"Energy" means work or heat that is, or may be, produced from any fuel or source whatsoever.

"Energy resources" means fuel and electricity as defined in this section.

"Fuel" means fuels, whether liquid, solid, or gaseous, commercially usable for energy needs, power generation, and fuels manufacture, that may be manufactured, grown, produced, or imported into the State or that may be exported therefrom, including petroleum and petroleum products and gases to include all fossil fuel-based gases, coal tar, vegetable ferments, biomass, municipal solid waste, biofuels, hydrogen, agricultural products used as fuels and as feedstock to produce fuels, and all fuel alcohols.

"Major energy marketer" means any person who sells energy resources in amounts determined by the director as having a major effect on the supplies of, or demand for, energy resources in the State.

"Major energy producer" means any person who produces energy resources in amounts determined by the director as having a major effect on the supplies of, or demand for, energy resources in the State.

"Major energy transporter" means any person who transports energy resources in amounts determined by the director as having a major effect on the supplies of, or demand for, energy resources in the State.

"Major energy user" means any person who uses energy resources in the manufacture of products or for the generation of electricity in amounts determined by the director as having a major effect on the supplies of, or demand for, energy resources in the State.

"Major fuel storer" means any person who stores fuels in amounts determined by the director as having a major effect on the supplies of, or demand for, energy resources in the State.

§125C-B Information and analysis required for state energy emergency planning and preparedness, mitigation, response, and recovery. (a) The department, with its staff and its agents who are designated by the director as authorized representatives, shall use the information, including confidential information, received from all sources, and the information received from the public utilities commission pursuant to chapter 486J, solely to effectuate the purposes of this chapter and chapter 196, and to conduct systematic statistical and quantitative analyses of the State's energy resources, systems, and markets that the director determines is necessary to:

(1) Produce assessments designed to determine and mitigate the potential for energy supply disruptions, and to develop state energy emergency response plans and measures including systematic situational energy analyses, which in the event of energy crisis or supply disruption could assist in determining the nature, scope, severity, and expected duration of such an event, and assess potential and actual economic and other impacts of the crisis, particularly to determine and recommend what, if any, emergency government interventions may be necessary and appropriate, and to implement and evaluate the effectiveness of such emergency interventions;

(2) Conduct systematic statistical, energy, economic, and other relevant analyses for comprehensive energy emergency planning toward determining, measuring, evaluating, formulating, and recommending specific proposals to improve government and industry energy emergency plans and programs, and to support longer term measures to preserve Hawaii's energy security;

(3) Establish and maintain a quantitative and qualitative technical understanding of Hawaii's statewide energy resources, systems, and markets and their relationships with the economy;

(4) Produce trend analyses and forecasts of energy supply and demand and trend analyses of major aspects of risks to and vulnerabilities of Hawaii's energy resources, systems, and markets; and

(5) Produce other relevant energy analyses that the director deems necessary to administer the energy emergency preparedness and energy supply security policies pursuant to this chapter, and implement and evaluate other related activities in support of the director's role and responsibilities pursuant to chapters 486J and 196.

(b) If the information that the department is authorized to receive from the public utilities commission pursuant to chapter 486J, including confidential information, becomes unavailable, or if such information is determined by the director to be unsuitable in any way whatsoever, the director is authorized to require that this information and any other relevant information, including confidential information, be reported by distributors to the director. To facilitate the efficient and systematic conveyance of this information, including confidential information, the public utilities commission, regularly shall provide to the department copies of the statements and information that the commission receives pursuant to sections 486J-3, 486J-4, and 486J-4.5. Such statements and information are to be provided to the department within three working days of receipt by the commission, and the commission shall provide the department secure electronic access to all such information, including confidential information, via the automated petroleum industry monitoring, analysis, and reporting program established in section 486J-5.5.

(c) To conduct the analyses pursuant to this chapter, the director may require distributors to report any other relevant information, including confidential information, at a time and in such form and manner as to be prescribed by the director.

§125C-C Reporting requirements. Each major energy producer, major fuel storer, major energy transporter, major energy user, and major energy marketer, on reporting dates as the director may establish, and on forms prescribed, prepared, and furnished by the director, shall submit to the director certified statements. These statements shall report information to include, but not be limited to, information related to those aspects of their respective Hawaii facilities and operations that are described in this section. These statements shall provide for reporting this information on a statewide consolidated basis, and separately for each county and for the islands of Lanai and Molokai as follows:

(1) For fuel:

(A) The volumes, movement, processing, blending, and transformation of fuels beginning with crude oil, feedstocks, ethanol, biodiesel, and other refined petroleum or fuel product imports, through and including the State's fuel infrastructure, from and between distributors and to all fuel end-users, as well as any exports of these fuels and fuel products out of the State, wholesale and retail transactions (sales and purchases), and wholesale and retail prices of all fuels; and

(B) The capacities and actual inventories, throughput and output of all these entities' infrastructure, including refineries, storage and distribution tanks and terminals, transport modes such as pipelines, barges, and other vessels, and other such critical fuel infrastructure; and

(2) For electricity: the name and location of all generation systems and components greater than one megawatt, renewable sources greater than two hundred fifty kilowatts, generating capacity, actual loads generated, average gross and net electricity generation, energy resources used and fuels consumed, heating values of fuels, total electricity produced, transmitted and sold, the name and location of all transmission and distribution systems and components including lines greater than ten kilovolt capacity and substations, major command and control centers and schemes, storage devices, and average actual electricity flows and utilization.

§125C-D Confidential information. In effectuating the purposes of this chapter, chapter 196, and other relevant laws, or in order for the director to perform the duties pursuant to this chapter, chapter 196, and other relevant laws:

(1) All confidential information received by the director shall be exempt from public disclosure under section 92F-13, and shall be held in confidence by the director and the director's staff and agents, or aggregated to the extent necessary in the director's discretion to ensure confidentiality as required by chapter 92F;

(2) The director and the director's staff and agents shall preserve the confidentiality and protection of all information received by the director and, by application and extension of any other agency's respective safeguards, to protect and prevent the unauthorized further release of such information. Each agency shall afford any such shared information the protections from disclosure provided for under chapter 92F;

(3) Each major energy producer, distributor, major energy marketer, major fuel storer, major energy transporter, and major energy user that is required to provide confidential information shall provide written or electronic notification to the director as to the specific information that is confidential; and

(4) Unless otherwise provided by law with respect to the confidential information that the director obtains, purchases, receives, or otherwise acquires, neither the governor nor the director, nor the staff and agents thereof, may do any of the following:

(A) Use the confidential information for any purposes other than the purposes for which it is acquired;

(B) Make any publication whereby the confidential information furnished by any person can be identified; or

(C) Permit any person other than the governor, the director, or the director's staff and agents to examine any confidential information, individual reports, or statements acquired unless provided for under the authority of the governor or the director as deemed essential to effectuate the energy emergency management purposes of this chapter."

SECTION 3. Chapter 125C, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"CHAPTER 125C

[~~PROCUREMENT, CONTROL, DISTRIBUTION AND SALE OF PETROLEUM PRODUCTS~~] ENERGY EMERGENCY PREPAREDNESS AND MANAGEMENT"

SECTION 4. Section 125C-1, Hawaii Revised Statutes, is amended to read as follows:

"§125C-1 Findings and purpose. The legislature finds that adequate supplies of [~~petroleum products~~] energy resources are essential to the health, welfare, and safety of the people of Hawaii, and that any severe [~~disruption in petroleum product supplies~~] energy emergency or shortage of energy resources for use within the State would cause grave hardship, pose a threat to the economic well-being of the people of the State, and have significant adverse effects upon public confidence and order and effective conservation of [~~petroleum products.~~] energy. The purpose of this chapter is to grant to the governor or the governor's authorized representative the clear authority, when energy emergencies or shortages of [~~petroleum products~~] energy resources occur or are anticipated, to control the distribution and sale of [~~petroleum~~] fuel products in this State, to procure such products, and to impose rules that will provide extraordinary measures for the conservation of energy and the allocation of [~~petroleum~~] fuel products and for [~~their~~] the distribution and sale of fuel in an orderly, efficient, and safe manner. Another purpose of this chapter is to grant the clear authority to the director to acquire, use, and analyze relevant and essential information on Hawaii's energy resources, systems, and markets to effectively plan and prepare for, mitigate against, respond to, and recover from any energy emergency and preserve the State's energy security."

SECTION 5. Section 125C-2, Hawaii Revised Statutes, is amended to read as follows:

"§125C-2 "Shortage" defined. As used in this chapter, unless otherwise indicated by the context, a "shortage" exists whenever the governor determines that there is an increase in the demand for any [~~petroleum~~] fuel product or there is a decrease in the available supply for the [~~petroleum~~] fuel product in question, or both; and [~~such~~] the decrease in the available supply of or increase in the demand for the [~~petroleum~~] fuel product in question, or both, may cause a major adverse impact on the economy, public order, or the health, welfare, or safety of the people of Hawaii and may not be responsibly managed within the [~~free~~] prevailing market distribution system. Further, to plan and prepare for, mitigate against, respond to, or recover from any declared or anticipated shortage of fuel products, the governor may require [~~importers~~] major energy producers, distributors, major energy marketers, major fuel storers, major energy transporters, and major energy users of any [~~petroleum~~] fuel product or other fuel to monitor and report to the department of business, economic development, and tourism relevant [~~supply and demand~~] data[.] and information on all aspects of the state's energy resources, systems, and markets. The governor shall review the status of a shortage within one hundred twenty days after the governor's initial determination of a shortage as defined under this chapter; thenceforth, the governor shall conduct a review of the shortage to make a new determination every thirty days until a shortage no longer exists."

SECTION 6. Section 125C-3, Hawaii Revised Statutes, is amended to read as follows:

"§125C-3 Powers in a shortage. When a shortage as defined in section 125C-2 exists, the governor or the governor's authorized representative, to ensure that [~~petroleum~~] fuel products are made available to the public in an orderly, efficient, and safe manner, may:

(1) Control the retail distribution and sale of [~~petroleum~~] fuel products by adopting rules that may include, but are not limited to, the following measures:

(A) Restricting the sale of [~~petroleum~~] fuel products to specific days of the week, hours of the day or night, odd- and even-numbered calendar days, and vehicles having less than a specified amount of gasoline in their tanks, with exceptions for certain designated geographical areas;

(B) Restricting sales of [~~petroleum~~] fuel products by dealers to daily allocations, which shall be determined by dividing the monthly allocation by the number of selling days per month;

(D) Instituting a statewide rationing plan; and

(E) Allowing for special handling for essential commercial and emergency-user vehicles;

(2) Require that a percentage of [~~petroleum~~] fuel products, not to exceed five per cent, be set aside to alleviate hardship; provided that aviation gasoline set aside shall not exceed ten per cent;

(3) Purchase and resell or otherwise distribute [~~petroleum~~] fuel products[~~, and purchase and resell or otherwise distribute ethanol that is produced within the State and can be used as a substitute for petroleum products~~];

(4) Temporarily suspend for the duration of a shortage, or until such time as the governor deems appropriate, standards which may affect or restrict the use of a substitute fuel to meet energy demand;

[~~(4)~~] (5) Receive, expend, or use contributions or grants in money or property, or special contributions thereof for special purposes not inconsistent with this chapter;

[~~(5)~~] (6) Borrow and expend moneys needed to exercise the powers granted under this section;

[~~(6)~~] (7) Contract in the name of the State for the purpose of implementing this chapter or any part thereof; and

[~~(7)~~] (8) Exercise the powers granted under this section to the degree and extent deemed by the governor to be necessary, including the temporary or indefinite suspension of all or part of the measures taken, as the governor deems appropriate."

SECTION 7. Section 125C-4, Hawaii Revised Statutes, is amended to read as follows:

"§125C-4 Adopting, filing, and taking effect of rules. The governor or the [~~governor's authorized representative~~] director shall adopt rules pursuant to chapter 91, to [~~insure~~] ensure that [~~petroleum~~] fuel products are made available to the public in an orderly, efficient, and safe manner, to become effective when a shortage, as defined in section 125C-2, exists. If additional and unforeseen measures are required to [~~insure~~] ensure that [~~petroleum~~] fuel products are distributed in an orderly, efficient, and safe manner, the governor or the [~~governor's authorized representative~~] director may proceed without prior notice or hearing or upon such abbreviated notice and hearing as the governor finds practicable to adopt additional rules authorized under this chapter with the additional rules to be effective for a period of not longer than one hundred twenty days without renewal. Any rule so adopted may be amended or repealed by the governor without prior notice or hearing or upon abbreviated notice and hearing prior to the expiration of the one hundred twenty-day period; provided that no amendment shall extend the rule beyond the original period of one hundred and twenty days. To be effective after the one hundred twenty-day period, the rules shall be adopted pursuant to chapter 91. Each rule adopted, amended, or repealed shall become effective as adopted, amended, or repealed upon approval by the governor and filing with the lieutenant governor. Each rule in effect shall have the force and effect of law, but the effect of each rule may be temporarily or indefinitely suspended by the governor by written declaration filed with the lieutenant governor. Each rule temporarily suspended shall take effect again immediately upon expiration of the suspension period. Each rule indefinitely suspended shall take effect immediately upon the filing with the lieutenant governor of the written declaration by the governor terminating the suspension. The rulemaking requirements in this section shall exclusively apply to the implementation of sections 125C-2 and 125C-3 and part II of this chapter."

SECTION 8. Section 125C-6, Hawaii Revised Statutes, is amended to read as follows:

"[[]§125C-6[]] Petition for adoption, amendment, repeal, or suspension of rules. Any interested person may petition the governor or the [~~governor's authorized representative~~] director requesting the adoption, amendment, repeal, or suspension of any rule and stating reasons therefor. The governor or the [~~governor's authorized representative~~] director shall prescribe the form for the petitions and the procedures for their submission, consideration, and disposition, and within thirty days after submission of the petition, shall either deny the petition in writing, stating the governor's or the [~~governor's authorized representative's~~] director's reasons for the denial, or grant the petition and adopt, amend, repeal, or suspend the rule accordingly. The requirements of this section shall exclusively apply to the implementation of sections 125C-2, 125C-3, and part II of this chapter."

SECTION 9. Section 125C-8, Hawaii Revised Statutes, is amended to read as follows:

"§125C-8 Personnel; delegation of powers. (a) The director is the governor's authorized representative to fulfill and effectuate the purposes of this chapter.

(b) The governor may appoint or employ temporary boards, agencies, officers, employees, and other persons, or any of them, for the purpose of carrying out the provisions of this chapter. All such temporarily appointed or employed officers and employees, whether or not employed by contract, shall be exempt from and not subject to nor entitled to the benefits of the provisions of chapters 76 and 88, or any other law, collective bargaining agreement, executive order, executive directive, or rule that is inapplicable to temporary employees of the State."

SECTION 10. Section 125C-9, Hawaii Revised Statutes, is amended to read as follows:

"[[]§125C-9[]] Investigations, information collection, and surveys. The governor or the [~~governor's authorized representative~~] director may make investigations, collect information, including confidential information, and conduct surveys for the purpose of ascertaining facts to be used in administering this chapter, and in making the investigations, collecting the information, and conducting the surveys, may require the making, filing, or keeping of applications, schedules, records, reports, or statements, under oath or otherwise, administer oaths, take evidence under oath, subpoena witnesses, and require the production of books, papers, and records. Witnesses shall be allowed their fees and mileage as in cases in the circuit courts. The circuit court of any circuit or judge thereof may enforce by proper proceedings the attendance and testimony of any witness subpoenaed to appear within the circuit, or the production of books, papers, and records."

SECTION 11. Section 125C-10, Hawaii Revised Statutes, is amended to read as follows:

"[[]§125C-10[]] Fraud; [~~misdemeanor.~~] penalties. Any person required by the governor or the [~~governor's authorized representative,~~] director, pursuant to [~~section 125C-9,~~] this chapter, to make, keep, or file any application, schedule, record, report, or statement, whether or not under oath, who intentionally makes, files, or keeps a false or fraudulent application, schedule, report, or statement or intentionally conceals therein any material fact, and any person who in any other manner intentionally deceives or attempts to deceive the governor or the [~~governor's authorized representative~~] director with respect to any fact to be used in administering this chapter, and any person who intentionally fails to observe and comply with any rule promulgated under this chapter, shall be [~~guilty of a misdemeanor.~~] assessed a civil penalty of not more than $10,000 per violation."

SECTION 12. Chapter 125C, Hawaii Revised Statutes, is amended by amending the title of part II to read as follows:

"PART II. HARDSHIP SET-ASIDE AND ALLOCATION OF [~~PETROLEUM~~]

FUEL PRODUCTS DURING A SHORTAGE"

SECTION 13. Section 125C-21, Hawaii Revised Statutes, is amended to read as follows:

"§125C-21 Definitions." "[~~Petroleum~~] Fuel product" means any fuel subject to the set-aside system described in this chapter, including heating oils, [~~light and heavy diesel oil,~~] all classifications of diesel fuels, motor gasoline[,] and all blends of motor gasoline with other fuel products, propane, butane, residual fuel oils, kerosene, [~~and~~] naphtha, biodiesel, ethanol, suboctane motor gasoline, aviation fuels used for emergency and essential intrastate air transport services, but excluding all other aviation fuels.

"Prime supplier" means any individual, trustee, agency, partnership, association, corporation, company, municipality, political subdivision, or other legal entity [~~which~~] that makes the first sale of any [~~liquid fossil~~] fuel product into the state distribution system for consumption within the State."

SECTION 14. Section 125C-22, Hawaii Revised Statutes, is amended to read as follows:

"§125C-22 When set-aside required. When a shortage as defined in section 125C-2 exists, all prime suppliers shall set aside supplies of each [~~petroleum~~] fuel product for which there is a shortage. The amount set aside shall be in accordance with [~~the~~] any rules adopted by the [~~state energy resources coordinator~~] director."

SECTION 15. Section 125C-23, Hawaii Revised Statutes, is amended to read as follows:

"§125C-23 Set-aside system. The [~~state energy resources coordinator~~] director shall adopt rules establishing a [~~petroleum~~] fuel products set-aside system. The purpose of this system shall be:

(1) The protection of public health, safety, and welfare;

(2) The maintenance of public services, utilities, and transportation, including emergency and essential intrastate air transport services;

(3) The maintenance of agricultural operations, including farming, horticulture, dairy, fishing, and related services;

(4) The preservation of economically sound and competitive industry, through the equitable acquisition and distribution of [~~petroleum~~] fuel products; and

(5) The promotion of efficiency, with minimum economic disruptions, during a shortage of [~~petroleum~~] fuel products.

The rules establishing the set-aside system shall be adopted in accordance with chapter 91."

SECTION 16. Section 125C-31, Hawaii Revised Statutes, is amended to read as follows:

"[[]§125C-31[]] [~~Biennial state~~] State energy emergency preparedness plan. (a) The department of business, economic development, and tourism shall prepare a comprehensive and integrated [~~biennial~~] state energy emergency preparedness plan to be implemented in the event of, or in anticipation of, a change in the State's [~~petroleum~~] energy supply or demand situation that is judged by the governor to be unmanageable by the [~~free market.~~] prevailing markets. The department of business, economic development, and tourism shall prepare a [~~biennial~~] state energy emergency preparedness plan [~~in every even-numbered year~~] in accordance with the following:

(1) The [~~biennial~~] state energy emergency preparedness plan shall replace the previous state energy emergency plan developed by the [~~energy resources coordinator,~~] director, who shall act as the governor's authorized representative under this chapter;

(2) In preparing the [~~biennial~~] state energy emergency preparedness plan, the department shall:

(A) Solicit input, comment, and review from the governor's energy emergency preparedness advisory committee composed of representatives of federal, state, and county governments; [~~private energy suppliers;~~] distributors, major energy producers, major fuel storers, major energy transporters, and major energy marketers; consumer and other public interest groups; and the public at-large; and

(B) Establish other task forces and advisory groups, as may be deemed necessary, to assist in the preparation and review of the [~~biennial~~] state energy emergency preparedness plan;

(3) The [~~biennial~~] state energy emergency preparedness plan shall be comprehensive and encompassing, and shall integrate into its analytic and planning framework the emergency preparedness plans of [~~electric and gas utilities and other energy suppliers,~~] distributors, major energy producers, major fuel storers, major energy transporters, major energy marketers, and relevant state agencies, including the Hawaii department of defense, the department of transportation, counties, and such other entities as deemed appropriate[;] by the director; and

(4) The [~~biennial~~] state energy emergency preparedness plan shall include a review and update of the previous [~~biennial~~] state energy emergency preparedness plan and [~~a review of the energy emergency plans prepared by the counties.~~] shall be prepared or updated as determined by the director to be necessary to comport with changes in federal or state overall emergency management policies and plans which significantly affect the State's energy emergency preparedness plans or as warranted by changes in Hawaii's energy security situation.

(b) The department shall prepare an energy emergency communication plan, which shall be [~~updated biennially and shall be~~ ] consistent with the energy emergency preparedness plans prepared by the counties. The energy emergency communication plan shall be used by the State and counties to communicate and otherwise coordinate state and county actions taken in response to implementing the [~~biennial~~] state energy emergency preparedness plan."

SECTION 17. Section 125C-32, Hawaii Revised Statutes, is amended to read as follows:

"§[[]§125C-32[] ~~Biennial county~~] County energy emergency preparedness plans. The mayor of each county, or the mayor's authorized representative, shall prepare a comprehensive county energy emergency preparedness plan. The plan shall be prepared in coordination with and be consistent with the [~~biennial~~] state energy emergency preparedness plan[,] and shall be implemented in coordination with the state energy emergency preparedness plan upon declaration of an energy emergency by the governor. [Not later than September 30 of every even-numbered year, each county shall prepare and transmit to the director of business, economic development, and tourism the county's biennial county energy emergency preparedness plan.]"

SECTION 18. In codifying the new sections of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 19. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 20. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST

HOUSE OF REPRESENTATIVES	H.B. NO.	3070
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII