SB558.DOC

SECTION 1. The legislature finds that the State of Hawaii, with its dependence on imported fuel, is particularly vulnerable to dislocations in the global energy market. This is an anomalous situation, as there are few places in the world so generously endowed with natural energy sources, such as geothermal, solar, ocean temperature differential, wind, waves, and currents, all of which are potential non‑polluting power sources.

The purpose of this Act is to promote the use of local energy sources, which will reduce the State's reliance on imported fuels.

SECTION 2. 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; provided that sufficient quantities of competitively-priced ethanol produced in Hawaii from locally grown renewable feedstocks or waste materials are 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;

(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;

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

SECTION 3. Section 196-42, Hawaii Revised Statutes, is amended to read as follows:

"[[]§196-42[]] State support for achieving alternate fuels standards. The State shall facilitate the development of alternate fuels and support the attainment of a statewide alternate fuel standard of ten per cent of highway fuel demand to be provided by alternate fuels by 2010, fifteen per cent by 2015, and twenty per cent by 2020. For purposes of the alternate fuels standard, ethanol produced from cellulosic materials shall be considered the equivalent of 2.5 gallons of noncellulosic ethanol. "Alternate fuels" shall have the same meaning as contained in 10 Code of Federal Regulations Part 490; provided that it shall also include liquid or gaseous fuels produced from renewable feedstocks such as organic wastes, or from water using electricity from renewable energy sources[.]; provided further that it shall not include imported fuels."

SECTION 4. Section 486J-10, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The director [~~may~~] shall 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 produced in Hawaii from locally grown renewable feedstocks or waste materials 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."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	558
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII