STAND. COM. REP. NO. 630

Honolulu, Hawaii

RE:    S.B. No. 715

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 715 entitled:

"A BILL FOR AN ACT RELATING TO GASOLINE,"

begs leave to report as follows:

     The purpose and intent of this measure is to repeal the requirement that gasoline sold in the State include ten per cent ethanol.

     Your Committee received testimony in support of this measure from Reg White, Royal Star Hawaii Transit; and Dr. Myron Berney, Natural Cancer Wellness Foundation.  Your Committee received testimony in opposition to this measure from Richard Lim, Department of Business, Economic Development, and Tourism; and William Maloney, Pacific West Energy LLC.

     Your Committee finds that at the time the ethanol content requirement was enacted, it was stated that, without local demand for ethanol, local supply was extremely unlikely to be developed.  Your Committee also finds that although there are currently no commercial producers of ethanol in the State, there are two different biofuel projects in the permitting phase and several other projects under development.

     Your Committee has amended this measure by changing the effective date to July, 1, 2050, to facilitate further discussion on the measure.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 715, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 715, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair