Report Title:

Repeal of ethanol content requirement

Description:

Repeals section 486J-10, which requires that gasoline sold in Hawaii for use in motor vehicles contain ten per cent ethanol by volume. Amends section 196-9 to strike directive that state agencies should purchase ethanol blended gasoline when possible.

THE SENATE	S.B. NO.	1630
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

Relating to repeal of the ethanol Content requirement.

.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 196-9, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c) With regard to motor vehicles and transportation fuel, each agency shall:

     (1)  Comply with Title 10, Code of Federal Regulations, Part 490, Subpart C, "Mandatory State Fleet Program", if applicable;

     (2)  Comply with all applicable state laws regarding vehicle purchases;

     (3)  Once federal and state vehicle purchase mandates have been satisfied, purchase the most fuel-efficient vehicles that meet the needs of their programs; provided that life cycle cost-benefit analysis of vehicle purchases shall include projected fuel costs;

     (4)  Purchase alternative fuels [and ethanol blended gasoline] when available;

     (5)  Evaluate a purchase preference for biodiesel blends, as applicable to agencies with diesel fuel purchases;

     (6)  Promote efficient operation of vehicles;

     (7)  Use the most appropriate minimum octane fuel; provided that vehicles shall use 87-octane fuel unless the owner's manual for the vehicle states otherwise or the engine experiences knocking or pinging;

     (8)  Beginning with fiscal year 2005-2006 as the baseline, collect and maintain, for the life of each vehicle acquired, the following data:

         (A)  Vehicle acquisition cost;

         (B)  United States Environmental Protection Agency rated fuel economy;

         (C)  Vehicle fuel configuration, such as gasoline, diesel, flex-fuel gasoline/E85, and dedicated propane;

         (D)  Actual in-use vehicle mileage;

         (E)  Actual in-use vehicle fuel consumption; and

         (F)  Actual in-use annual average vehicle fuel economy; and

     (9)  Beginning with fiscal year 2005-2006 as the baseline with respect to each agency that operates a fleet of thirty or more vehicles, collect and maintain, in addition to the data in paragraph (8), the following:

         (A)  Information on the vehicles in the fleet, including vehicle year, make, model, gross vehicle weight rating, and vehicle fuel configuration;

         (B)  Fleet fuel usage, by fuel;

         (C)  Fleet mileage; and

         (D)  Overall annual average fleet fuel economy and average miles per gallon of gasoline and diesel."

     SECTION 2.  Section 486J-10, Hawaii Revised Statutes, is repealed.

     ["§486J-10  Ethanol content requirement.  (a)  The director shall adopt rules in accordance with chapter 91 to require that gasoline sold in the State for use in motor vehicles contain ten per cent ethanol by volume.  The amounts of gasoline sold in the State containing ten per cent ethanol shall be in accordance with rules as the director may deem appropriate.  The director may authorize the sale of gasoline that does not meet these requirements as provided in subsection (d).

(b)  Gasoline blended with an ethanol-based product, such as ethyl tertiary butyl ether, shall be considered to be in conformance with this section if the quantity of ethanol used in the manufacture of the ethanol-based product represents ten per cent, by volume, of the finished motor fuel.

(c)  Ethanol used in the manufacture of ethanol-based gasoline additives, such as ethyl tertiary butyl ether, may be considered to contribute to the distributor's conformance with this section; provided that the total quantity of ethanol used by the distributor is an amount equal to or greater than the amount of ethanol required under this section.

(d)  The director may authorize the sale of gasoline that does not meet the provisions of this section:

(1) To the extent that sufficient quantities of competitively-priced ethanol are not available to meet the minimum requirements of this section; or

(2) In the event of any other circumstances for which the director determines compliance with this section would cause undue hardship.

(e)  Each distributor, at reporting dates as the director may establish, shall file with the director, on forms prescribed, prepared, and furnished by the director, a certified statement showing:

(1) The price and amount of ethanol available;

(2) The amount of ethanol-blended fuel sold by the distributor;

(3) The amount of non-ethanol-blended gasoline sold by the distributor; and

(4) Any other information the director shall require for the purposes of compliance with this section.

(f)  Provisions with respect to confidentiality of information shall be the same as provided in section 486J-6.

(g)  Any distributor or any other person violating the requirements of this section shall be subject to a fine of not less than $2 per gallon of nonconforming fuel, up to a maximum of $10,000 per infraction.

(h)  The director, in accordance with chapter 91, shall adopt rules for the administration and enforcement of this section.]"

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.

     SECTION 3.  This Act shall take effect upon its approval.

INTRODUCED BY:

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