Report Title:

Petroleum industry reporting; ethanol content in gasoline

Description:

Establishes new requirements for the blending of ethanol in gasoline. (SB3170 HD1)

THE SENATE

S.B. NO.

3170

TWENTY-SECOND LEGISLATURE, 2004

S.D. 2

STATE OF HAWAII

H.D. 1


 

A BILL FOR AN ACT

 

RELATING TO PETROLEUM PRODUCTS.

 

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

SECTION 1. Section 486J-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Ten per cent ethanol by volume" means a blend of gasoline and ethanol that has an ethanol content, exclusive of denaturants and permitted contaminants, that is not less than 9.2 per cent by volume and not more than 10.0 per cent by volume of the blend, as determined by an appropriate United States Environmental Protection Agency or American Society of Testing Material standard method of analysis of alcohol content in motor fuels."

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

"486J-10 Ethanol content requirement. [a)  The commissioner shall adopt rules in accordance with chapter 91 to require that gasoline sold in the State for use in motor vehicles contain ten per cent ethanol by volume. The amounts of gasoline sold in the State containing ten per cent ethanol shall be in accordance with rules as the commissioner may deem appropriate. The commissioner may authorize the sale of gasoline that does not meet these requirements as provided in subsection (d).] (a) Beginning January 1, 2006, not less than eighty-five per cent of all gasoline sold by each distributor for use in motor vehicles in the State shall contain ten per cent ethanol by volume on an annual basis.

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

(1) To the extent that sufficient quantities of competitively-priced ethanol are not available or insufficient ethanol production capacity exists to meet the minimum requirements of this section; or

(2) In the event of any other circumstances for which the [commissioner] director determines compliance with this section would cause undue hardship.

[(e) Each] (d) Within ninety calendar days following the close of each calendar year, each distributor[, at such reporting dates as the commissioner may establish,] shall file with the [commissioner,] director, on forms prescribed, prepared, and furnished by the [commissioner,] director, a [certified] statement for the previous calendar year showing:

[(1) The price and amount of ethanol available;

(2)] (1) The amount of ethanol-blended [fuel] gasoline sold by the distributor[;] to fleets or gasoline retailers;

[(3)] (2) The amount of non-ethanol-blended gasoline sold by the distributor[;] to fleets or gasoline retailers; and

[(4)] (3) Any other information the [commissioner] director shall require for the purposes of compliance with this section.

[(f)] (e) Provisions with respect to confidentiality of information shall be the same as provided in section 486J-7.

[(g)] (f) 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)] (g) The [commissioner, in accordance with chapter 91, shall] director may adopt rules for the administration and enforcement of this section. Such rules shall be exempt from the requirements of chapter 91."

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

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