Report Title:

Ethanol Production

 

Description:

Requires certain per cent of ethanol produced in State to be produced using locally grown feed stock.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1116

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to energy.

 

 

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

 


     SECTION 1.  In 1997, the legislature enacted Act 257, Session Laws of Hawaii 1997, that in part, directed the department of business, economic development, and tourism to adopt rules to require that gasoline sold in the State for use in motor vehicles contain ten per cent ethanol by volume.  On April 2, 2006, that requirement was implemented requiring that at least eighty-five per cent of all gasoline sold in the State contain at least ten per cent ethanol by volume.

     In spite of the almost nine year lead time and a tax credit of up to one hundred per cent of the investment in a qualified ethanol production facility that was enacted during the Regular Session of 2000, there are no local ethanol production facilities in the State.  All of the thirty-eight million gallons of ethanol a year required to meet the ethanol blending requirement is being imported.  To date, there have been proposals for the development of six ethanol production facilities on the islands of Oahu, Maui, and Kauai; however, it is uncertain when the first facility will become operational.  Even when fully operational, some of these production facilities intend to produce ethanol from molasses, sorghum, or other feed stock grown out of the State.  One of the benefits that was being hailed with the ethanol content requirement was that it would be a benefit to the State's agricultural industry.

     The purpose of this Act is to require that a portion of all the ethanol produced in the State be produced from locally grown feed stock.

     SECTION 2.  Chapter 486J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§486J-    Ethanol production.  Any ethanol production facility in the State shall by:

     (1)  January 1, 2010, produce at least    per cent of all the ethanol it produces using feed stock grown in the State;

     (2)  January 1, 2012, produce at least    per cent of all the ethanol it produces using feed stock grown in the State; and

     (3)  January 1, 2014, produce at least    per cent of all the ethanol it produces using feed stock produced in the State.

     For purposes of this section, "feed stock" means the basic organic ingredient used to produce ethanol, including but not limited to sugar cane, sorghum, corn, grain, or other fiber or any of their by-products."

     SECTION 3.  New statutory material is underscored.

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

 

INTRODUCED BY:

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