SB1669 SD1

THE SENATE	S.B. NO.	1669
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

relating to energy.

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

SECTION 1. The legislature finds that while ethanol can be used in cars, biodiesel or bio-jet fuel is needed for heavy transportation, ships, and jetliners. The legislature also finds that Maui county has declared that its top priority in renewable energy and biodiesel production is a facility to house the concerted research and demonstration activities needed to effect a robust statewide work in feedstock development is a must. The facility would also be home to the development of supporting related technologies that will truly create in the State of Hawaii a sustainable biofuel industry. In addition to county funding, it is anticipated that federal funds will also be secured.

If Hawaii is to become independent from outside sources of vegetable oil for biodiesel production, a supply of Hawaii grown feedstock is required. In a recent news release, the Hawaii department of agriculture identified Oil Palm (Elaeis guineensis Jacq.) and Jatropha (Jatropha curcas L.) as the most promising crops for biodiesel feedstock development in the State. Due to their contrasting agronomic requirements, suitable lines have to be selected for the many potential growing sites in the Big Island, Maui, Molokai, Lanai, Oahu, Kauai, and Niihau. With the decision by Hawaiian Electric Company to use biodiesel in its planned 100-megawatt power station in Oahu, and with a potential consumption of 71,000,000 gallons if all the company's subsidiaries (including Maui Electric Company and Hawaii Electric Light Company) are to convert to biodiesel, there is an urgent call for a rapid progress in coming up with suitable oilseed lines that would supply the anticipated feedstock requirement. It is envisioned that growing oilseed crops would result in a large scale boost for agriculture in Hawaii.

The purpose of this Act is to appropriate funds for renewable energy projects in Hawaii.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $5,250,000, or so much thereof as may be necessary for fiscal year 2007-2008, for:

(1) $2,000,000 to establish the Hawaii renewable energy and biofuel center to be located in Maui;

(2) $2,000,000 for the University of Hawaii at Hilo college of agriculture, forestry and natural resources management for an oil and feedmill building to house existing equipment purchased by the Oceanic Institute, to be used in processing oilseeds; and

(3) $1,250,000 for research and demonstration of a germplasm collection, selection and grow-out in each county.

The sum appropriated shall be expended by the county of Maui for the purposes of this Act.

SECTION 3. This Act shall take effect on July 1, 2007.