STAND. COM. REP. NO. 178

Honolulu, Hawaii

RE:    S.B. No. 715

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committees on Commerce and Consumer Protection and Energy and Environment, to which was referred S.B. No. 715 entitled:

"A BILL FOR AN ACT RELATING TO GASOLINE,"

beg leave to report as follows:

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

     Your Committees received testimony in support of this measure from two private individuals.  Your Committees received testimony in opposition to this measure from the Department of Business, Economic Development, and Tourism.

     Your Committees find that at the time that the requirement to include ten percent ethanol in gasoline sold in this State was implemented, the purpose of the requirement was to further the goal of statewide energy independence by creating a market for locally-produced ethanol.  However, this goal has yet to materialize.  There are no commercial producers of ethanol within the State despite the abundance of vacant land with which to produce fuel stock and no regulatory climate conducive to the development of the required infrastructure.  While your Committees are sympathetic to the Department of Business, Economic Development, and Tourism's desire to maintain the appearance of enthusiasm for biofuel development, your Committees note that ethanol remains an import-only commodity within the State, and the ten percent ethanol requirement for gasoline does nothing to impact Hawaii's energy independence.

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Energy and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 715 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

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

____________________________ MIKE GABBARD, Chair

____________________________ ROSALYN H. BAKER, Chair