THE SENATE	S.B. NO.	15
TWENTY-SEVENTH LEGISLATURE, 2013		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO ENERGY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the intent of the ten per cent ethanol requirement under section 486J-10, Hawaii Revised Statutes, was to provide energy independence from foreign oil, reduce statewide gasoline consumption, and establish industrial plants to produce ethanol locally.

     The State of Hawaii imports all of its ethanol, along with crude oil, from overseas.  Act 257, Session Laws of Hawaii 1997, requires that gasoline sold in the State contain ten per cent ethanol.  Despite several planned ethanol plants and an abundance of vacant sugar cane land, no plants have been built. The legislature finds that the intent of Act 257 remains unfulfilled.

     The purpose of this Act is to change the existing law requiring ten per cent ethanol fuel content in gasoline to a requirement that biofuels account for at least five per cent of all liquid transportation fuel sales.

     SECTION 2.  Section 486J-10, Hawaii Revised Statutes, is amended to read as follows:

"§486J-10  [Ethanol] Biofuel content requirement.  (a)  The director shall adopt rules in accordance with chapter 91 to require that [gasoline] liquid fuels sold in the State for use in motor vehicles contain [ten] at least five per cent [ethanol] biofuel by volume.  The amounts of [gasoline] motor fuel sold in the State containing [ten per cent ethanol] biofuel shall be in accordance with rules as the director may deem appropriate.  The director may authorize the sale of [gasoline] fuel that does not meet these requirements as provided in subsection [(d)] (b).

     [(b)  Gasoline blended with an ethanol-based product, such as ethyl tertiary butyl ether, shall be considered to be in conformance with this section if the quantity of ethanol used in the manufacture of the ethanol-based product represents ten per cent, by volume, of the finished motor fuel.

(c)  Ethanol used in the manufacture of ethanol-based gasoline additives, such as ethyl tertiary butyl ether, may be considered to contribute to the distributor's conformance with this section; provided that the total quantity of ethanol used by the distributor is an amount equal to or greater than the amount of ethanol required under this section.

(d)] (b)  The director may authorize the sale of [gasoline] fuel that does not meet the provisions of this section:

     (1)  To the extent that sufficient quantities of competitively-priced [ethanol] biofuel 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.

     [(e)] (c)  Each distributor, at reporting dates as the director may establish, shall file with the director, on forms prescribed, prepared, and furnished by the director, a certified statement [showing:

(1) The price and amount of ethanol available;

(2) The amount of ethanol-blended fuel sold by the distributor;

(3) The amount of non-ethanol-blended gasoline sold by the distributor; and

(4) Any] providing fuel types and quantities sold by the distributor and any other information the director [shall] may require for the purposes of compliance with this section.

     [(f)] (d)  Provisions with respect to confidentiality of information shall be the same as provided in section 486J-6.

     [(g)] (e)  Any distributor or any other person violating the requirements of this section shall be subject to a fine of not less than $2 per gallon of nonconforming fuel, up to a maximum of $10,000 per infraction.

     [(h)] (f)  The director, in accordance with chapter 91, shall adopt rules for the administration and enforcement of this section.

(g)  As used in this section, "biofuel" means liquid or gaseous fuels produced from organic sources, such as biomass crops; agricultural residues; oil crops, including but not limited to algae, canola, jatropha, palm, soybean, and sunflower; other agricultural crops; grease and waste cooking oil; food wastes; municipal solid wastes and industrial wastes; and produced animal residues and wastes."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2013.

Report Title:

Biofuel; Ethanol; Gasoline

Description:

Changes existing gasoline requirement of ten per cent ethanol fuel content to at least five per cent biofuel content.  Alters the reporting requirements for biofuel distributors.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.