Report Title:

Biofuel; Incentive to Use; Public Sector Preference

Description:

Establishes a preference in public contracts for the use of biofuels. (SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1405

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

relating to biofuel.

 

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

SECTION 1. Biofuel is an alternative energy source derived from plant material, is comparable in quality to conventional petroleum fuels and can be used for transportation, heating, and air-conditioning. Biodiesel, a type of biofuel, is a renewable energy source with great potential, as it burns cleaner than its petroleum-based counterpart, produces much less air pollution, and diverts used cooking oil from landfills. One facility on Maui diverts three hundred and fifty tons of cooking oil out of the landfill and into a biodiesel product every month.

Biodiesel can be used by itself or in a blend with petroleum-based diesel oils. It does not require costly engine modifications before use. Moreover, biodiesel is simple to use, renewable, locally-produced, and readily available.

The purpose of this Act is to provide an incentive for the State and counties to use alternative fuels that promote important state energy and environmental objectives by establishing a preference in public contracts for the use of

biofuels.

SECTION 2. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§103D- Biofuel preference. (a) Notwithstanding any other law to the contrary, contracts for the purchase of fuel shall be awarded to the lowest responsible and responsive bidders, with preference given to bidders using or selling biofuel. The preference shall be     cents per gallon of fuel for B20 and higher biofuel. The policy board shall adopt rules in accordance with chapter 91 establishing lesser preferences for mixed biofuel products.

(b) When purchasing diesel fuel for transportation, state agencies shall, and county agencies may, give preference to biofuel to assist in the diversion of cooking oil wastes from the waste stream.

(c) When purchasing low-grade fuel for power generation state agencies shall, and county agencies may give preference to bidders using biofuel.

(d) As used in this section, "biofuel" means:

(1) Biodiesel fuel produced from recycled or recyclable cooking oil, fats, and greases, which meets the American Society of Testing and Materials Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels, as amended; and

(2) Fuel produced from waste cooking oils, fats, or greases, including grease trap waste, that can be used for power generation."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.