S.B. NO.














Relating to Biofuel.





SECTION 1. The legislature finds that there are advantages to encouraging the use of biofuel in motor vehicles. Biofuels are a renewable energy source, derived from crops that can be harvested and regrown annually. The ability to grow the energy source is even more beneficial to the State, allowing the State to be more energy independent and less reliant on imported fossil fuels.

The legislature further finds that biofuels can help achieve the Hawaii clean energy initiative's goal of one hundred per cent clean energy by 2045, by transitioning away from fossil fuels. Biofuels tend to be more environmentally-friendly than fossil fuels. Biofuels contain less sulphur, which is a main component of acid rain. Biofuels also emit less net carbon dioxide, because the plants used to make the biofuels use carbon dioxide. The carbon dioxide emitted when burning the biofuels is offset by the carbon dioxide taken in during the growth of the plants used to make the biofuels. The reduction in net carbon dioxide emissions can help limit global warming.

The purpose of this Act is to encourage the use of biofuels by requiring that motor vehicle fuel contain at least ten per cent biofuel by volume and setting fines for distributors who do not meet the minimum requirement.

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

"486J-   Biofuel content requirement. (a) The director shall adopt rules in accordance with chapter 91 to require that fuel sold in the State for use in motor vehicles contain no less than ten per cent biofuel by volume. The biofuel shall be produced in the State from agricultural products grown in the State. The amounts of motor vehicle fuel sold in the State containing no less than ten per cent biofuel shall be in accordance with rules adopted by the director to administer and enforce this section. Rules adopted pursuant to this subsection shall take effect no later than ninety days after production of biofuel in Hawaii equals       gallons per year, sustained over a period of four consecutive weeks.

(b) The director may authorize the sale of motor vehicle fuel that does not meet the provisions of this section if sufficient quantities of competitively-priced biofuel produced in the State are not available to meet the requirements of this section.

(c) Each distributor, at reporting dates established by the director, shall file with the director, on forms prescribed, prepared, and furnished by the director, a certified statement showing:

(1) The price and amount of biofuel available;

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

(3) The amount of non-biofuel-blended motor vehicle fuel sold by the distributor; and

(4) Any other information that the director requires for the purposes of compliance with this section.

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

(e) Any distributor or any other person who violates 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 $1,000,000 per infraction."

SECTION 3. Section 486J-1, Hawaii Revised Statutes, is amended by amending the definition of "biofuels" to read as follows:

""Biofuels" means liquid or gaseous fuels, including biodiesel and ethanol, produced from organic sources such as biomass crops, agricultural residues, and oil crops, such as palm oil, canola oil, soybean oil, waste cooking oil, grease, and food wastes, animal residues and wastes, and sewage and landfill wastes."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.














Report Title:

Biofuels; Motor Vehicle Fuel; Fine



Requires fuel sold in the State to contain no less than ten per cent biofuel by volume that is produced in the State from agriculture products grown or sourced in the State; provided certain quantities of biofuel produced in the State are available. Sets amount of fine for violating biofuel requirement. Amends definition of "biofuels" to include ethanol and biodiesel.




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