STAND. COM. REP. NO. 2105

Honolulu, Hawaii

RE:    S.B. No. 2339

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Energy and Environment and Commerce and Consumer Protection, to which was referred S.B. No. 2339 entitled:

"A BILL FOR AN ACT RELATING TO ETHANOL,"

beg leave to report as follows:

     The purpose and intent of this measure is to repeal the requirement that gasoline sold in the State for use in motor vehicles contain ten percent ethanol by volume.  

     Your Committees received testimony in support of this measure from two individuals.  Your Committees received testimony in opposition to this measure from Pacific West Energy LLC.  Your Committees received comments on this measure from the Hawaii Renewable Energy Alliance.

     Your Committees find that meeting the existing ethanol mandate using local sources would contribute to the State's energy security and indigenous energy resource goals.  However, landowners, technology experts, and financiers have not yet executed the type of deal that would make local ethanol production and fuel blending a reality.  As such, your Committees find that the ethanol mandate reaps no economic benefit for Hawaii, requires the import of ethanol into Hawaii, and creates an economic burden for our residents and should therefore be repealed.

     Your Committees have amended this measure by changing its effective date from upon approval to July 1, 2050, to ensure further discussion.

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2339, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2339, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Commerce and Consumer Protection,

____________________________ ROSALYN H. BAKER, Chair

____________________________ MIKE GABBARD, Chair