STAND. COM. REP. NO. 2714

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 Committee on Ways and Means, to which was referred S.B. No. 2339, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ETHANOL,"

begs leave to report as follows:

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

     Your Committee received written comments on this measure from the Department of Business, Economic Development, and Tourism.

     Your Committee finds that the existing ethanol mandate is intended to utilize local sources to contribute to the State's energy security and indigenous energy resource goals.  However, ethanol production and fuel blending has yet to take place in the State because landowners, technology experts, and financiers have not yet executed the necessary agreements.  Therefore, your Committee finds that the ethanol mandate reaps no economic benefit for Hawaii, requires the import of ethanol into Hawaii, creates an economic burden for our residents, and, therefore, should be repealed.

     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. 2339, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

DAVID Y. IGE, Chair