Report Title:

Public Utilities Commission; Regulation of Gasoline Prices

 

Description:

Requires the public utilities commission to regulate wholesale and retail gasoline prices in the State.

HOUSE OF REPRESENTATIVES

H.B. NO.

2339

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE PUBLIC UTILITIES COMMISSION.

 

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

SECTION 1. The purpose of this Act is to require the public utilities commission to regulate wholesale and retail gasoline prices in Hawaii. The legislature finds that the regulation of the price of gasoline is necessary for the health, safety, and welfare of the people of this State.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§269-    Regulation of gasoline prices. (a) The public utilities commission shall:

(1) Regulate wholesale and retail gasoline prices by establishing ceilings that are tied to comparable markets in other states and by factoring in unique Hawaii economic circumstances, including taxes, business costs, and other variables, as determined in rules adopted by the commission under chapter 91;

(2) As necessary, restrict wholesale and retail gasoline price increases when prices rise above a certain percentage over a benchmark market, as determined by rules adopted by the commission under chapter 91;

(3) Provide for the enforcement of this section.

(b) Every petroleum utility, upon the request of the commission, shall:

(1) Furnish to the commission all information that the commission may require with respect to any of the matters within its jurisdiction relating to the regulation of wholesale and retail gasoline prices; and

(2) Permit the examination of the petroleum utility's books, records, contracts, and other documents by the commission or any person authorized by it in writing to make an examination.

(c) Petroleum utilities that are required to submit statements or informational reports to the department of business, economic development, and tourism pursuant to chapter 486J may submit copies of those statements or reports to the commission to fulfill the requirements of this section, to the extent that the information contained in those statements or reports is responsive to the requests of the commission; provided that the petroleum utilities shall submit any additional information to the commission as requested by the commission pursuant to this section to enable the commission to enforce this section.

(d) The petroleum utility shall publish the prices of gasoline in such a manner as the commission may require, and copies shall be furnished to any person on request.

(e) The commission, with the assistance of the department of business, economic development, and tourism and the department of taxation, may conduct random or periodic audits and inspections of any petroleum utility to determine whether it is unnecessarily withholding gasoline supplies from the market or are violating applicable policies, laws, or rules. The commission shall cooperate with other state and federal agencies to ensure that any audit or inspection conducted by the commission is not duplicative of the data received by any of their audits or inspections which is available to the commission.

(f) The commission shall analyze the impacts of state and federal policies, rules, and regulations upon the supply and pricing of gasoline.

(g) Any petroleum utility violating, neglecting, or failing in any particular to conform to or comply with this section or any order of the commission shall forfeit to the State not more than $10,000 for every violation, neglect, or failure, to be recovered pursuant to proceedings instituted in accordance with section 269-15. Each day of violation shall be a separate violation. A petroleum utility may be enjoined by the circuit court from carrying on its business while the violation, neglect, or failure continues.

(h) The commission shall adopt rules in accordance with chapter 91 as may be necessary to implement this section.

(i) The commission shall publish annually and submit to the governor and the legislature twenty days prior to the convening of the regular session of the legislature, a report relating to its actions under this section during the preceding fiscal year, including any recommendations for legislation. The report required by this section shall be submitted in conjunction with the report required to be submitted to the governor and legislature by section 486J-5(d) by the department of business, economic development, and tourism."

SECTION 3. Section 269-1, Hawaii Revised Statutes, is amended as follows:

1. By adding two new definitions to be appropriately inserted and to read:

""Commission" means the public utilities commission.

"Petroleum utility" includes any person, or the person's lessee, trustee, or receiver, who owns, manages, operates, leases, or controls within this State any pipeline, plant, property, equipment, facility, franchise, license, or permit for producing, obtaining, refining, processing, transporting, conveying, distributing, delivering, or furnishing crude petroleum oil or petroleum products, at wholesale or retail."

2. By amending the definition of "public utility" to read:

""Public utility" includes every person who may own, control, operate, or manage as owner, lessee, trustee, receiver, or otherwise, whether under a franchise, charter, license, articles of association, or otherwise, any plant or equipment, or any part thereof, directly or indirectly for public use, for the transportation of passengers or freight, or the conveyance or transmission of telecommunications messages, or the furnishing of facilities for the transmission of intelligence by electricity by land or water or air within the State, or between points within the State, or for the production, conveyance, transmission, delivery, or furnishing of light, power, heat, cold, water, gas, or oil, or for the storage or warehousing of goods, or the disposal of sewage; provided that the term:

(1) Shall include any person insofar as that person owns or operates a private sewer company or sewer facility;

(2) Shall include telecommunications carrier or telecommunications common carrier;

(3) Shall include petroleum utilities;

[(3)] (4) Shall not include any person insofar as that person owns or operates an aerial transportation enterprise;

[(4)] (5) Shall not include persons owning or operating taxicabs, as defined in this section;

[(5)] (6) Shall not include common carriers transporting only freight on the public highways, unless operating within localities or along routes or between points that the public utilities commission finds to be inadequately serviced without regulation under this chapter;

[(6)] (7) Shall not include persons engaged in the business of warehousing or storage unless the commission finds that regulation thereof is necessary in the public interest;

[(7)] (8) Shall not include:

(A) The business of any carrier by water to the extent that the carrier enters into private contracts for towage, salvage, hauling, or carriage between points within the State and the carriage is not pursuant to either an established schedule or an undertaking to perform carriage services on behalf of the public generally; and

(B) The business of any carrier by water, substantially engaged in interstate or foreign commerce, transporting passengers on luxury cruises between points within the State or on luxury round-trip cruises returning to the point of departure;

[(8)] (9) Shall not include any person who:

(A) Controls, operates, or manages plants or facilities for the production, transmission, or furnishing of power primarily or entirely from nonfossil fuel sources; and

(B) Provides, sells, or transmits all of that power, except such power as is used in its own internal operations, directly to a public utility for transmission to the public;

[(9)] (10) Shall not include a telecommunications provider only to the extent determined by the commission pursuant to section 269-16.9;

[(10)] (11) Shall not include any person who controls, operates, or manages plants or facilities developed pursuant to chapter 167 for conveying, distributing, and transmitting water for irrigation and such other purposes that shall be held for public use and purpose; and

[(11)] (12) Shall not include any person who owns, controls, operates, or manages plants or facilities for the reclamation of wastewater; provided that:

(A) The services of the facility shall be provided pursuant to a service contract between the person and a state or county agency and at least ten per cent of the wastewater processed is used directly by the State or county which has entered into the service contract;

(B) The primary function of the facility shall be the processing of secondary treated wastewater that has been produced by a municipal wastewater treatment facility that is owned by a state or county agency;

(C) The facility shall not make sales of water to residential customers;

(D) The facility may distribute and sell recycled or reclaimed water to entities not covered by a state or county service contract; provided that, in the absence of regulatory oversight and direct competition, the distribution and sale of recycled or reclaimed water shall be voluntary and its pricing fair and reasonable. For purposes of this [[]subparagraph[]], "recycled water" and "reclaimed water" mean treated wastewater that by design is intended or used for a beneficial purpose; and

(E) The facility shall not be engaged, either directly or indirectly, in the processing of food wastes.

In the event the application of this chapter is ordered by the commission in any case provided in paragraphs [(5),] (6), [(9), and] (7), (10), and (11), the business of any public utility that presents evidence of bona fide operation on the date of the commencement of the proceedings resulting in the order shall be presumed to be necessary to public convenience and necessity, but any certificate issued under this proviso shall nevertheless be subject to such terms and conditions as the commission may prescribe, as provided in sections 269-16.9 and 269-20."

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:

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