Report Title:

Emergency preparedness; coordinator

 

Description:

Establishes chapter 125C as the enabling statute for the State's energy emergency preparedness program's coverage of all forms of energy emergencies, irrespective of cause, consistent with the threats to energy security and the state energy emergency preparedness program.  Clarifies that the Director of the Department of Business, Economic Development, and Tourism is the state energy resource coordinator who is authorized to acquire and use energy industry information obtained by the public utilities commission.  Redefines the types of information that all energy companies may be required to submit to the energy resources coordinator in case of an energy emergency or shortage.  Authorizes Department of Business, Economic Development, and Tourism to compile and analyze information, including confidential information, for energy emergency planning and preparedness, mitigation, response, and recovery.  Appropriates $100,000 for FY 2007-2008 and FY 2008-2009 to fund 1 temporary full-time professional position to support the State's energy emergency preparedness and energy security analytic functions.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1267

TWENTY-FOURTH LEGISLATURE, 2007

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO ENERGY SECURITY AND ENERGY EMERGENCY PREPAREDNESS.

 

 

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

 


     SECTION 1.  The legislature finds that despite the comprehensive integrated energy policy measures enacted in recent years, particularly in 2006, Hawaii's major energy systems remain mainly dependent on oil.  Historic supply and demand patterns have resulted in the development of an integrated and interdependent statewide energy system.  Nearly ninety per cent of the State's primary energy is from petroleum, and approximately seventy-six per cent of the State's electricity is generated using petroleum fuels.

     In 2005, the State received twenty-five per cent of its total annual crude oil imports from the Middle East, and Saudi Arabia became the State's largest import source, supplying over seventeen per cent.  In previous years, less than one per cent of Hawaii's crude oil imports came from the Middle East. 

     One of the primary functions of government includes the need to coordinate development of the State's energy resources to preserve energy security and maintain an effective energy emergency preparedness program from an informed technical and analytical perspective.  Policy changes and other events have revealed to the legislature a critical need to improve the State's technical understanding of Hawaii's energy resources, markets, and systems for effective energy emergency planning and preparedness, mitigation, response, and recovery and includes using these energy-related functions to support the state civil defense mission.  Such improved technical analytic capabilities and understanding are also necessary to plan longer term measures to preserve the State's energy security, which is a prerequisite for economic stability and resilience.  These functions are among the statutory roles and responsibilities of the director of the department of business, economic development, and tourism, who serves as the state energy resources coordinator pursuant to chapter 196, Hawaii Revised Statutes, and, as such, is the governor's authorized representative for energy emergency preparedness and management under chapter 125C, Hawaii Revised Statutes.

     To strengthen and comprehensively address deficiencies in Hawaii's energy emergency preparedness and energy resources coordination statutes, it is necessary to amend chapters 125C and 196, Hawaii Revised Statutes, to comprehensively update their provisions consistent with, and to support, current federal and statewide overall emergency management, and energy emergency management policies, plans, and practices.  Moreover, these amendments would support the efforts of the department of business, economic development, and tourism, which has taken the initiative to update its energy emergency preparedness program to meet requirements of the post-9/11 world in which preparedness and planning must address all possible hazards in relation to all sectors of the energy industry.  Both Hawaii's oil over-dependency and transitional issues concerning both petroleum and biofuels are anticipated to increase Hawaii's exposure to the risk of supply disruption over the next several years.  The department conducted the update with Hawaii state agencies and energy companies in consultation with relevant federal and county agencies, the United States military, and expert consultants. 

     The recent statewide propane shortage and earthquake underscored and validated the need to address the serious inadequacies of the current statutes and the State's concern that the data reporting and collection provisions of these energy emergency preparedness laws do not include all necessary data and all relevant components of the energy industry.

Currently, only importers of fuel are subject to reporting requirements, and then only for supply and demand information.  However, vital information from other non-importing distributors, wholesalers, retailers, and other major energy companies, and other more extensive and detailed types of data and information on all aspects of the State's energy systems and market are essential for effective energy system situational analyses, policy development, energy security, and an energy emergency preparedness program.  Existing restrictions on data collection preclude the governor's and energy resources coordinator's ability to adequately understand the severity and impacts of an energy emergency or fuel shortage on a statewide basis and to determine what response measures may be necessary. 

     Chapter 125C, Hawaii Revised Statutes, does not currently require major energy companies to report critical emergency preparedness information regarding storage, transport, inventory, supply, demand, production and capacities, actual prices, and other aspects of energy systems and markets, which are essential to the State's emergency management role, irrespective of the companies' import status.

     Data inadequacies constrain the department of business, economic development, and tourism's energy planning and policy analytic capabilities that support preservation of the State's energy security.

     The amendments of Act 78, Session Laws of Hawaii 2006, added precision to the petroleum industry information reporting requirements, and thus amended the purpose of that law itself by having sharpened the focus of chapter 486J, Hawaii Revised Statutes, primarily on monitoring industry profits and consumer prices.  Act 78, Session Laws of Hawaii 2006, redirected functional implementation of chapter 486J, Hawaii Revised Statutes, from the department of business, economic development, and tourism to the public utilities commission and repealed language related to the previous statutory purposes.  One such purpose was use of petroleum industry information, including confidential information to plan for and manage fuel shortages (energy emergencies) by the department of business, economic development, and tourism, a function it retains in support of the governor and the state civil defense.  While Act 78, Session Laws of Hawaii 2006, required that the department of business, economic development, and tourism retain access to all information, including confidential information, obtained by the public utilities commission pursuant to chapter 486J, Hawaii Revised Statutes, the department was required to return implementation resources previously appropriated by the legislature from the public utilities commission special fund pursuant to section 167, Act 178, Session Laws of Hawaii 2005, because the positions to be funded were not authorized by the legislature.  Moreover, the conference committee's inordinately lengthy schedule precluded submission of a final conference draft of the bill enacted as Act 78, Session Laws of Hawaii 2006, such that complementary amendments could be formulated to bolster information requirements for energy emergency planning and management and comprehensive energy resources coordination and planning to preserve the State's energy security prior to adjournment of the regular 2006 session.

     Therefore, new legislation and amendments to current laws and resources are needed to implement these expanded functions and responsibilities.

     The purpose of this Act is to remedy the deficiencies in existing statutes governing energy emergency planning in this State.

     SECTION 2.  Chapter 125C, Hawaii Revised Statutes, is amended by adding four new sections to be appropriately designated and to read as follows:

     "§125C-A  Definitions.  As used in this chapter, unless the context requires otherwise: "Commission" means the public utilities commission.

     "Department" means the department of business, economic development, and tourism.

     "Director" means the director of business, economic development, and tourism, who is also the state energy resources coordinator pursuant to chapter 196.

     "Distributor" means every person who:

     (1)  Refines, manufactures, produces, or compounds fuel in the State and sells it at wholesale or retail, or who utilizes it directly in the manufacture of products or for the generation of power;

     (2)  Imports or causes to be imported into the State, or exports or causes to be exported from the State, any fuel;

     (3)  Acquires fuel through exchanges with another distributor; or

     (4)  Purchases fuel for resale at wholesale or retail from any person described in paragraph (1), (2), or (3).

     "Electricity" means all electrical energy produced by combustion of any fuel as defined in this section, or generated or produced using wind, the sun, geothermal, ocean water, falling water, currents, and waves, or any other source.

     "Energy" means work or heat that is, or may be, produced from any fuel or source whatsoever.

     "Energy resources" means fuel and electricity as defined in this section.

     "Fuel" means fuels, whether liquid, solid, or gaseous, commercially usable for energy needs, power generation, and fuels manufacture, that may be manufactured, grown, produced, or imported into the State or that may be exported therefrom, including petroleum and petroleum products and gases to include all fossil fuel-based gases, coal tar, vegetable ferments, biomass, municipal solid waste, biofuels, hydrogen, agricultural products used as fuels and as feedstock to produce fuels, and all fuel alcohols.

     "Major energy marketer" means any person who sells energy resources in amounts determined by the director as having a major effect on the supplies of, or demand for, energy resources.

     "Major energy producer" means any person who produces energy resources in amounts determined by the director as having a major effect on the supplies of, or demand for, energy resources.

     "Major energy transporter" means any person who transports energy resources in amounts determined by the director as having a major effect on the supplies of, or demand for, energy resources.

     "Major energy user" means any person who uses energy resources in the manufacture of products or for the generation of electricity in amounts determined by the director as having a major effect on the supplies of, or demand for, energy resources.

     "Major fuel storer" means any person who stores fuels in amounts determined by the director as having a major effect on the supplies of, or demand for, energy resources.

     §125C-B  Information and analysis required for state energy emergency planning and preparedness, mitigation, response, and recovery.  (a)  The department, with its own staff and its agents who are designated by the director as authorized representatives, shall use the information, including confidential information, received from all sources, including the information received from the public utilities commission pursuant to chapter 486J, solely to effectuate the purposes of this chapter and chapter 196, and to conduct systematic statistical and quantitative analyses of the State's energy resources, systems, and markets that the director determines are necessary to:

(1)         Produce assessments designed to determine and mitigate the potential for energy supply disruptions, and to develop state energy emergency response plans and measures including systematic situational energy analyses, which in the event of an energy crisis or supply disruption could assist in determining the nature, scope, severity, and expected duration of such an event, and assess potential and actual economic and other impacts of the crisis, particularly to determine and recommend what, if any, well-informed emergency government interventions may be necessary and appropriate, and to implement and evaluate the effectiveness of such emergency interventions;

(2)         Conduct systematic statistical, energy, economic, and other relevant analyses for comprehensive energy emergency planning toward determining, measuring and evaluating, formulating, and recommending specific proposals to improve government and industry energy emergency plans and programs, and to support longer term measures to preserve Hawaii's energy security;

(3)         Establish and maintain a quantitative and qualitative technical understanding of Hawaii's statewide energy resources, systems, and markets and their relationships with the economy;

(4)         Produce trend analyses and forecasts of energy supply and demand and trend analyses of major aspects of risks to and vulnerabilities of Hawaii's energy resources, systems, and markets; and

(5)         Produce other relevant energy analyses that the director deems necessary to administer the energy emergency preparedness and energy supply security policies pursuant to this chapter, and implement and evaluate other related activities in support of the director's role and responsibilities pursuant to chapters 486J and 196.

     (b)  If the information that the department is authorized to receive from the public utilities commission pursuant to chapter 486J, including confidential information, becomes unavailable, or if such information is determined by the director to be unsuitable in any way whatsoever, the director is authorized to require that this information and any other relevant information, including confidential information, be reported by distributors to the director.  To facilitate the efficient and systematic conveyance of this information, including confidential information, the public utilities commission, as a matter of routine, shall provide to the department copies of the statements and information that the commission receives pursuant to sections 486J-3, 486J-4, and 486J-4.5.

     (c)  To conduct the analyses pursuant to this chapter, the director may require distributors to report any other relevant information, including confidential information, at a time and in such form and manner as to be prescribed by the director.

     §125C-C  Reporting requirements.  Each major energy producer, major fuel storer, major energy transporter, major energy user, and major energy marketer, on reporting dates as the director may establish, and on forms prescribed, prepared, and furnished by the director, shall submit to the director certified statements.  These statements shall report information to include, but not be limited to, information related to those aspects of their respective Hawaii facilities and operations described in this section.  These statements shall provide for reporting this information on a statewide consolidated basis, and separately for each county and for the islands of Lanai and Molokai, as follows:

(1)  For fuel:

         (A)  The volumes, movement, processing, blending, and transformation of fuels beginning with crude oil, feedstocks, ethanol, biodiesel, and other refined petroleum or fuel product imports, through and including the State's fuel infrastructure, from and between distributors and to all fuel end-users, as well as any exports of these fuels and fuel products out of the State, wholesale and retail transactions (sales and purchases), and wholesale and retail prices of all fuels; and

         (B)  The capacities and actual inventories, throughput, and output of all these entities' infrastructure, including refineries, storage and distribution tanks and terminals, transport modes such as pipelines, barges, and other vessels, and other such critical fuel infrastructure; and

(2)  For electricity: the name and location of all generation systems and components greater than ten megawatts, renewable sources greater than two hundred fifty kilowatts, generating capacity, actual loads generated, average gross and net electricity generation, energy resources used and fuels consumed, heating values of fuels, total electricity transmitted and sold, the name and location of all transmission and distribution systems and components including lines greater than ten kilovolt capacity and substations, major command and control centers and schemes, storage devices, and average actual electricity flows and utilization.

     §125C-D  Confidential information.  In effectuating the purposes of this chapter, chapter 196, and other relevant laws, or in order for the director to perform the duties pursuant to this chapter, chapter 196, and other relevant laws:

(1)  All confidential information received by the director shall be exempt from public disclosure under section 92F-13, and shall be held in confidence by the director and the director's staff and agents, or aggregated to the extent necessary in the director's discretion to ensure confidentiality as required by chapter 92F;

(2)  The director and the director's staff and agents shall preserve the confidentiality and protection of all information received by the director and, by application and extension of any other agency's respective safeguards, to protect and prevent the unauthorized further release of such information.  Each agency shall afford any such shared information the protections from disclosure provided for under chapter 92F;

(3)  Each major energy producer, distributor, major energy marketer, major fuel storer, major energy transporter, and major energy user that is required to provide confidential information shall provide written or electronic notification to the director as to the specific information that is confidential; and

(4)  Unless otherwise provided by law with respect to the confidential information that the director obtains, purchases, receives, or otherwise acquires, neither the governor nor the director, nor the staff and agents thereof, may do any of the following:

         (A)  Use the confidential information for any purposes other than the purposes for which it is acquired;

         (B)  Make any publication whereby the confidential information furnished by any person can be identified; or

         (C)  Permit any person other than the governor, the director, or the director's staff and agents thereof to examine any confidential information, individual reports, or statements acquired."

     SECTION 3.  Chapter 196, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§196-A  Information and analysis required for state comprehensive energy planning for energy security.  (a)  The department, with its own staff and agents which the director designates as authorized representatives, shall use the information, including confidential information, received from all sources, including the information received from the public utilities commission pursuant to chapter 486J and information received pursuant to chapter 125C, solely to effectuate the purposes of this chapter and chapter 125C, and shall conduct systematic statistical and quantitative analyses of the State's energy resources, systems, and markets that the director determines are necessary to:

(1)  Produce analyses designed to determine the status of energy resources, systems, and markets, both in-state and those to which Hawaii is directly tied, particularly in relation to the State's economy, and to recommend, develop proposals for, and assess the effectiveness of policy and regulatory decisions and assessments of renewable energy, energy efficiency, and all fuels in all sectors, and ensure energy security;

(2)  Produce analyses of private and public sector energy planning efforts and market-based policies to develop Hawaii's energy resources, systems, and markets in all sectors, and programs to preserve and protect the State's energy security, effectuate the conservation of energy resources, and formulate plans for the development and use of alternative energy sources;

(3)  Conduct systematic statistical, energy economic, and other relevant analyses for comprehensive energy planning toward determining, measuring and evaluating, formulating, and recommending specific proposals for achieving optimum development of Hawaii's energy resources;

(4)  Establish and maintain a quantitative and qualitative technical understanding of Hawaii's statewide energy resources, systems, and markets and their relationships to the economy;

(5)  Produce trend analyses and forecasts of energy supply and demand, and trend analyses of major aspects of Hawaii's energy resources, systems, and markets; and

(6)  Produce assessments of the cost-competitiveness of developing renewable energy and energy efficiency resources and subcategories of those energy resources in relation to each other, and relative to petroleum-based fuels, other fossil fuels, and other energy resources.

     §196-B  Confidential information.  In effectuating the purposes of this chapter, chapter 125C, and other relevant laws, or in order for the director to perform the duties pursuant to this chapter, chapter 125C, and other relevant laws:

(1)  All confidential information received by the director shall be afforded all the protections available pursuant to chapter 486J, shall be exempt from public disclosure under section 92F-13, and shall be held in confidence by the director and the director's own staff and agents, or aggregated to the extent necessary in the director's discretion to ensure confidentiality as required by chapter 92F;

(2)  The director and the director's own staff and agents, shall preserve the confidentiality and protection of all information received by the director and, by application and extension of any other agency's respective safeguards, protect and prevent the unauthorized further release of such information.  Each agency shall afford any shared information the protections from disclosure provided for under chapter 92F;

(3)  Each major energy producer, distributor, major energy marketer, major fuel storer, major energy transporter, and major energy user that provides confidential information, shall provide written or electronic notification to the director as to the specific information that is confidential; and

(4)  Unless otherwise provided by law with respect to the confidential information that the director obtains, purchases, receives, or otherwise acquires, neither the governor nor the director, nor the staff and agents thereof, may do any of the following:

         (A)  Use the confidential information for any purposes other than the purposes for which it is acquired;

         (B)  Make any publication whereby the confidential information furnished by any person can be identified; or

         (C)  Permit any person other than the governor, the director, the director's staff and agents thereof, to examine any confidential information, individual reports, or statements acquired."

     SECTION 4.  Chapter 125C, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"CHAPTER 125C

[PROCUREMENT, CONTROL, DISTRIBUTION AND SALE OF PETROLEUM PRODUCTS] ENERGY EMERGENCY PREPAREDNESS AND MANAGEMENT"

     SECTION 5.  Section 125C-1, Hawaii Revised Statutes, is amended to read as follows:

     "§125C-1  Findings and purpose.  The legislature finds that adequate supplies of [petroleum products] energy resources are essential to the health, welfare, and safety of the people of Hawaii, and that any severe [disruption in petroleum product supplies] energy emergency or shortage of energy resources for use within the State would cause grave hardship, pose a threat to the economic well-being of the people of the State, and have significant adverse effects upon public confidence and order and effective conservation of [petroleum products.] energy.  The purpose of this chapter is to grant to the governor or the governor's authorized representative the clear authority, when energy emergencies or shortages of [petroleum products] energy resources occur or are anticipated, to control the distribution and sale of [petroleum] fuel products in this State, to procure such products, and to impose rules that will provide extraordinary measures for the conservation of energy and the allocation of [petroleum] fuel products and for [their] the distribution and sale of fuel in an orderly, efficient, and safe manner.  Another purpose of this chapter is to grant the clear authority to the director to acquire, use, and analyze relevant and essential information on Hawaii's energy resources, systems, and markets to effectively plan and prepare for, mitigate against, respond to, and recover from any energy emergency and preserve the State's energy security."

     SECTION 6.  Section 125C-2, Hawaii Revised Statutes, is amended to read as follows:

     "§125C-2  "Shortage" defined.  As used in this chapter, unless otherwise indicated by the context, a "shortage" exists whenever the governor determines that there is an increase in the demand for any [petroleum] fuel product or there is a decrease in the available supply for the [petroleum] fuel product in question, or both; and [such] the decrease in the available supply of or increase in the demand for the [petroleum] fuel product in question, or both, may cause a major adverse impact on the economy, public order, or the health, welfare, or safety of the people of Hawaii and may not be responsibly managed within the [free] prevailing market distribution system.  Further, to plan and prepare for, mitigate against, respond to, or recover from any declared or anticipated shortage of fuel products, the governor may require [importers] major energy producers, distributors, major energy marketers, major fuel storers, major energy transporters, and major energy users of any [petroleum] fuel product or other fuel to monitor and report relevant supply and demand data to the department of business, economic development, and tourism [relevant supply and demand data].  The governor shall review the status of a shortage within one hundred twenty days after the governor's initial determination of a shortage as defined under this chapter; thenceforth, the governor shall conduct a review of the shortage to make a new determination every thirty days until a shortage no longer exists."

     SECTION 7.  Section 125C-3, Hawaii Revised Statutes, is amended to read as follows:

     "§125C-3  Powers in a shortage.  When a shortage as defined in section 125C-2 exists, the governor or the governor's authorized representative, to ensure that [petroleum] fuel products are made available to the public in an orderly, efficient, and safe manner, may:

     (1)  Control the retail distribution and sale of [petroleum] fuel products by adopting rules that may include, but are not limited to, the following measures:

         (A)  Restricting the sale of [petroleum] fuel products to specific days of the week, hours of the day or night, odd- and even-numbered calendar days, and vehicles having less than a specified amount of gasoline in their tanks, with exceptions for certain designated geographical areas;

         (B)  Restricting sales of [petroleum] fuel products by dealers to daily allocations, which shall be determined by dividing the monthly allocation by the number of selling days per month;

         (C)  Requiring dealers to post signs designating their hours of operation and the sell-out of daily allocation;

         (D)  Instituting a statewide rationing plan; and

         (E)  Allowing for special handling for essential commercial and emergency-user vehicles;

     (2)  Require that a percentage of [petroleum] fuel products, not to exceed five per cent, be set aside to alleviate hardship; provided that aviation gasoline set aside shall not exceed ten per cent;

     (3)  Purchase and resell or otherwise distribute [petroleum] fuel products[, and purchase and resell or otherwise distribute ethanol that is produced within the State and can be used as a substitute for petroleum products];

     (4)  Temporarily suspend for the duration of a shortage, or until such time as the governor deems appropriate, standards that may affect or restrict the use of a substitute fuel to meet energy demand;

    [(4)] (5)  Receive, expend, or use contributions or grants in money or property, or special contributions thereof for special purposes not inconsistent with this chapter;

    [(5)] (6)  Borrow and expend moneys needed to exercise the powers granted under this section;

    [(6)] (7)  Contract in the name of the State for the purpose of implementing this chapter or any part thereof; and

    [(7)] (8)  Exercise the powers granted under this section to the degree and extent deemed by the governor to be necessary, including the temporary or indefinite suspension of all or part of the measures taken, as the governor deems appropriate."

     SECTION 8.  Section 125C-4, Hawaii Revised Statutes, is amended to read as follows:

     "§125C-4  Adopting, filing, and taking effect of rules.  The governor or the [governor's authorized representative] director shall adopt rules pursuant to chapter 91, to [insure] ensure that [petroleum] fuel products are made available to the public in an orderly, efficient, and safe manner, to become effective when a shortage, as defined in section 125C-2, exists.  If additional and unforeseen measures are required to insure that [petroleum] fuel products are distributed in an orderly, efficient, and safe manner, the governor or the [governor's authorized representative] director may proceed without prior notice or hearing or upon such abbreviated notice and hearing as the governor finds practicable to adopt additional rules authorized under this chapter with the additional rules to be effective for a period of not longer than one hundred twenty days without renewal.  Any rule so adopted may be amended or repealed by the governor without prior notice or hearing or upon abbreviated notice and hearing prior to the expiration of the one hundred twenty-day period; provided that no amendment shall extend the rule beyond the original period of one hundred and twenty days.  To be effective after the one hundred twenty-day period, the rules shall be adopted pursuant to chapter 91.  Each rule adopted, amended, or repealed shall become effective as adopted, amended, or repealed upon approval by the governor and filing with the lieutenant governor.  Each rule in effect shall have the force and effect of law, but the effect of each rule may be temporarily or indefinitely suspended by the governor by written declaration filed with the lieutenant governor.  Each rule temporarily suspended shall take effect again immediately upon expiration of the suspension period.  Each rule indefinitely suspended shall take effect immediately upon the filing with the lieutenant governor of the written declaration by the governor terminating the suspension.  The rulemaking requirements in this section shall exclusively apply to the implementation of sections 125C-2, 125C-3, and part II."

     SECTION 9.  Section 125C-6, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§125C-6[]]  Petition for adoption, amendment, repeal, or suspension of rules.  Any interested person may petition the governor or the [governor's authorized representative] director requesting the adoption, amendment, repeal, or suspension of any rule and stating reasons therefor.  The governor or the [governor's authorized representative] director shall prescribe the form for the petitions and the procedures for their submission, consideration, and disposition, and within thirty days after submission of the petition, shall either deny the petition in writing, stating the governor's or the [governor's authorized representative's] director's reasons for the denial, or grant the petition and adopt, amend, repeal, or suspend the rule accordingly.  The rulemaking requirements in this section shall exclusively apply to the implementation of sections 125C-2, 125C-3, and part II."

     SECTION 10.  Section 125C-8, Hawaii Revised Statutes, is amended to read as follows:

     "§125C-8  Personnel; delegation of powers.  (a)  The director is the governor's authorized representative to fulfill and effectuate the purposes of this chapter.

     (b)  The governor may appoint or employ temporary boards, agencies, officers, employees, and other persons, or any of them, for the purpose of carrying out the provisions of this chapter.  All such temporarily appointed or employed officers and employees, whether or not employed by contract, shall be exempt from and not subject to nor entitled to the benefits of the provisions of chapters 76 and 88, or any other law, collective bargaining agreement, executive order, executive directive, or rule that is inapplicable to temporary employees of the State."

     SECTION 11.  Section 125C-9, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§125C-9[]]  Investigations, information collection, and surveys.  The governor or the governor's authorized representative may make investigations, collect information, including confidential information, and conduct surveys for the purpose of ascertaining facts to be used in administering this chapter, and in making the investigations, collecting the information, and conducting the surveys, may require the making, filing, or keeping of applications, schedules, records, reports, or statements, under oath or otherwise, administer oaths, take evidence under oath, subpoena witnesses, and require the production of books, papers, and records. Witnesses shall be allowed their fees and mileage as in cases in the circuit courts. The circuit court of any circuit or judge thereof may enforce by proper proceedings the attendance and testimony of any witness subpoenaed to appear within the circuit, or the production of books, papers, and records."

     SECTION 12.  Chapter 125C, Hawaii Revised Statutes, is amended by amending the title of part II to read as follows:

"PART II.  HARDSHIP SET-ASIDE AND ALLOCATION OF [PETROLEUM]

FUEL PRODUCTS DURING A SHORTAGE"

     SECTION 13.  Section 125C-21, Hawaii Revised Statutes, is amended by amending the definitions of "petroleum product" and "prime supplier" to read as follows:

     ""[Petroleum] Fuel product" means heating oils, [light and heavy diesel oil,] all classifications of diesel fuels, motor gasoline and all blends of motor gasoline with other fuel products, propane, butane, residual fuel oils, kerosene, [and] naphtha, biodiesel, ethanol, suboctane motor gasoline, aviation fuels used for emergency and essential intrastate air transport services, but excluding all other aviation fuels[.], and any other blends of fuel products used by services supported by the set-aside system described in this chapter.

     "Prime supplier" means any individual, trustee, agency, partnership, association, corporation, company, municipality, political subdivision or other legal entity [which] that makes the first sale of any [liquid fossil] fuel product into the state distribution system for consumption within the State."

     SECTION 14.  Section 125C-22, Hawaii Revised Statutes, is amended to read as follows:

     "§125C-22  When set-aside required.  When a shortage as defined in section 125C-2 exists, all prime suppliers shall set aside supplies of each [petroleum] fuel product for which there is a shortage.  The amount set aside shall be in accordance with [the] any rules adopted by the state energy resources coordinator."

     SECTION 15.  Section 125C-23, Hawaii Revised Statutes, is amended to read as follows:

     "§125C-23  Set-aside system.  The state energy resources coordinator shall adopt rules establishing a [petroleum] fuel products set-aside system.  The purpose of this system shall be:

(1)  The protection of public health, safety, and welfare;

(2)  The maintenance of public services, utilities, and transportation, including emergency and essential intrastate air transport services;

(3)  The maintenance of agricultural operations, including farming, horticulture, dairy, fishing, and related services;

(4)  The preservation of economically sound and competitive industry, through the equitable acquisition and distribution of [petroleum] fuel products; and

(5)  The promotion of efficiency, with minimum economic disruptions, during a shortage of [petroleum] fuel products.

The rules establishing the set-aside system shall be adopted in accordance with chapter 91."

     SECTION 16.  Section 125C-31, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§125C-31[]]  [Biennial state] State energy emergency preparedness plan.  (a)  The department of business, economic development, and tourism shall prepare a comprehensive and integrated [biennial] state energy emergency preparedness plan to be implemented in the event of, or in anticipation of, a change in the State's [petroleum] energy supply or demand situation that is judged by the governor to be unmanageable by the [free] prevailing [market.] markets.  The department of business, economic development, and tourism shall prepare a [biennial] state energy emergency preparedness plan [in every even-numbered year] in accordance with the following:

(1)  The [biennial] state energy emergency preparedness plan shall replace the previous state energy emergency plan developed by the [energy resources coordinator,] director, who shall act as the governor's authorized representative under this chapter;

(2)  In preparing the [biennial] state energy emergency preparedness plan, the department shall:

         (A)  Solicit input, comment, and review from the governor's energy emergency preparedness advisory committee composed of representatives of federal, state, and county governments; [private energy suppliers;] distributors, major energy producers, major fuel storers, major energy transporters, and major energy marketers; consumer and other public interest groups; and the public at-large; and

         (B)  Establish other task forces and advisory groups, as may be deemed necessary, to assist in the preparation and review of the [biennial] state energy emergency preparedness plan;

(3)  The [biennial] state energy emergency preparedness plan shall be comprehensive and encompassing, and shall integrate into its analytic and planning framework the emergency preparedness plans of [electric and gas utilities and other energy suppliers,] distributors, major energy producers, major fuel storers, major energy transporters, major energy marketers, and relevant state agencies, including the Hawaii state civil defense, the department of transportation, counties, and such other entities as deemed appropriate[;] by the director; and

(4)  The [biennial] state energy emergency preparedness plan shall include a review and update of the previous [biennial] state energy emergency preparedness plan and [a review of the energy emergency plans prepared by the counties,] shall be prepared or updated as determined by the director to be necessary to comport with changes in federal or state overall emergency management policies and plans that significantly affect the State's energy emergency preparedness plans or as warranted by changes in Hawaii's energy security situation.

     (b)  The department shall prepare an energy emergency communication plan, which shall be [updated biennially and shall be] consistent with the energy emergency preparedness plans prepared by the counties.  The energy emergency communication plan shall be used by the State and counties to communicate and otherwise coordinate state and county actions taken in response to implementing the [biennial] state energy emergency preparedness plan."

     SECTION 17.  Section 125C-32, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§125C-32[]]  [Biennial county] County energy emergency preparedness plans.  The mayor of each county, or the mayor's authorized representative, shall prepare a comprehensive county energy emergency preparedness plan.  The plan shall be prepared in coordination with and be consistent with the [biennial] state energy emergency preparedness plan[,] and shall be implemented in coordination with the state energy emergency preparedness plan upon declaration of an energy emergency by the governor.  [Not later than September 30 of every even-numbered year, each county shall prepare and transmit to the director of business, economic development, and tourism the county's biennial county energy emergency preparedness plan.]"

     SECTION 18.  Section 196-1, Hawaii Revised Statutes, is amended to read as follows:

     "§196-1  Findings and declaration of necessity.  The legislature finds that:

     (1)  The global demand for petroleum and its derivatives has resulted in a sharp jump in energy prices and has caused severe economic hardships throughout the State and threatens to impair the public health, safety and welfare.

          The State of Hawaii, with its near total dependence on imported fossil fuel, is particularly vulnerable to dislocations in the global energy market.  This [is an anomalous] situation[,] can be changed, as there are few places in the world so generously endowed with natural energy: geothermal, solar radiation, ocean temperature differential, wind, biomass, waves, and currents--all potential non-polluting power sources;

     (2)  There is a real need for comprehensive strategic [comprehensive] planning in the effort towards achieving full utilization of Hawaii's energy [resource programs] resources and the most effective allocation of energy resources throughout the State.  Planning is necessary and desirable in order that the State may recognize and declare the major problems and opportunities in the field of energy resources. Both short-range and long-range planning will permit the articulation of:

         (A)  Broad policies, goals, and objectives;

         (B)  Criteria for measuring and evaluating accomplishments of objectives;

         (C)  Identification and implementation of programs that will carry out such objectives; and

         (D)  A determination of requirements necessary for the optimum development of Hawaii's energy resources.

     Such planning efforts will identify present conditions and major problems relating to energy resources, their exploration, development, production, and distribution.  It will show the projected nature of the situation and rate of change and present conditions for the foreseeable future based on a projection of current trends in the development of energy resources in Hawaii[;] and include initiatives designed to fundamentally change how Hawaii consumes energy, by accelerating the production of renewable and alternative energy, increasing energy efficiency, developing and adopting new technologies, and ensuring the State's energy security;

     (3)  The State requires an in-depth understanding of the causes and effects of any transitional issues and trends related to changes in the State's energy resources, systems, and markets;

    [(3)] (4)  There are many agencies of the federal, state, and county governments in Hawaii, as well as many private agencies[,] and a broad set of non-governmental entities, engaged in, or expressing an interest in, various aspects of the exploration, research, distribution, transportation, storage, conservation, and production of all forms of energy resources in Hawaii.  Some of these agencies include the University of Hawaii, the department of land and natural resources, the department of business, economic development, and tourism, the division of consumer advocacy, the public utilities commission, the state civil defense, the federal energy office, and various county agencies, as well as [the oil companies, gas stations, and other private enterprises;] Hawaii's energy and energy-related companies; and

    [(4)] (5)  There is [immediate] an ongoing need in this State to coordinate the efforts of [all these agencies,] statewide industry and government energy sectors, maintain the technical capability and adequate capacity to quantitatively and qualitatively evaluate, analyze, develop, and coordinate implementation of private and public sector energy planning efforts, and recommend market-based policies to develop Hawaii's energy resources, systems, and markets, establish and coordinate programs to preserve and protect the State's energy security, maintain a robust energy emergency preparedness program, effectuate the conservation of [fuel,] energy resources, to provide for the equitable distribution thereof, and to formulate plans for the development and use of alternative energy sources.  There is a need for such coordination, capability, and capacity so that there will be maximum conservation and utilization of energy resources in the State."

     SECTION 19.  Section 196-2, Hawaii Revised Statutes, is amended by amending the definitions of "coordinator" and "energy resources" to read as follows:

     ""Coordinator" means the energy resources coordinator[.] who, for the purposes of this chapter, is the director of the department of business, economic development, and tourism.

     "Energy resources" means [and includes fossil fuel, nuclear, geothermal, solar, hydropower, wind, and other means of generating energy.] fuels, whether liquid, solid, or gaseous, commercially usable for energy needs, power generation, and fuels manufacture, that may be manufactured, grown, produced, or imported into the State or that may be exported therefrom, including petroleum and petroleum products and gases, including all fossil fuel-based gases, coal tar, vegetable ferments, biomass, municipal solid waste, biofuels, hydrogen, agricultural products used as fuels and as feedstock to produce fuels, and all fuel alcohols.  "Energy resources" also includes all electrical energy produced by combustion of any fuel, or generated or produced using wind, the sun, geothermal, ocean water, falling water, currents, and waves, or any other source."

     SECTION 20.  Section 196-4, Hawaii Revised Statutes, is amended to read as follows:

     "§196-4  Powers and duties.  Subject to the approval of the governor, the coordinator shall:

     (1)  Formulate plans, including objectives, criteria to measure accomplishment of objectives, programs through which the objectives are to be attained, and financial requirements for the optimum development of Hawaii's energy resources;

     (2)  Conduct systematic analysis of existing and proposed energy resource programs, evaluate the analysis conducted by government agencies and other organizations and recommend to the governor and to the legislature programs [which] that represent the most effective allocation of resources for the development of energy [sources;] resources;

     (3)  Formulate and recommend specific proposals, as necessary, for conserving [energy and fuel,] energy resources, including the allocation and distribution thereof, to the governor and to the legislature;

     (4)  Assist public and private agencies in implementing energy conservation and related measures;

     (5)  Coordinate the State's energy conservation and allocation programs with that of the federal government, other state governments, governments of nations with interest in common energy resources, and the political subdivisions of the State;

     (6)  Develop programs to encourage private and public exploration and research of alternative energy resources [which] that will benefit the State;

     (7)  Conduct public education programs to inform the public of the energy resources situation as may exist from time to time and of the government actions taken [thereto];

     (8)  Serve as consultant to the governor, public agencies, and private industry on matters related to the acquisition, utilization, and conservation of energy resources;

     (9)  Contract for services when required for implementation of this chapter;

    (10)  Review proposed state actions [which] that the coordinator finds to have significant effect on energy [consumption] resources and report to the governor their effect on the energy conservation program, and perform such other services as may be required by the governor and the legislature;

    (11)  Prepare and submit an annual report and such other reports as may be requested to the governor and to the legislature on the implementation of this chapter and all matters related to energy resources; [and]

    (12)  Adopt rules for the administration of this chapter pursuant to chapter 91, provided that the rules shall be submitted to the legislature for review[.]; and

    (13)  Develop and maintain a comprehensive and systematic quantitative and qualitative capacity to analyze the status of energy resources, systems, and markets, both in-state and those to which Hawaii is directly tied, particularly in relation to the State's economy, and to recommend, develop proposals for, and assess the effectiveness of policy and regulatory decisions, conduct energy emergency planning."

     SECTION 21.  There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000, or so much thereof as may be necessary for fiscal year 2007–2008, and the same sum, or so much thereof as may be necessary for fiscal year 2008-2009, to support the purposes of this Act, of which so much as may be deemed necessary by the director shall be allocated to support the creation of one temporary full-time equivalent position within the department of business, economic development, and tourism to support the State's energy emergency preparedness and energy security analytic functions.  The sums appropriated shall be expended by the department of business, economic development, and tourism.

     SECTION 22.  In codifying the new sections added by sections 2 and 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 23.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 24.  This Act shall take effect upon its approval except that section 21 shall take effect on July 1, 2007.