Report Title:

Petroleum Industry, Reports

 

Description:

Requires, rather than just permits, DBEDT to provide information on the supply and pricing of petroleum products in the State.

THE SENATE

S.B. NO.

2958

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE PETROLEUM INDUSTRY.

 

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

SECTION 1. In 1997, the legislature enacted chapter 486J, Hawaii Revised Statutes, the Petroleum Industry Information Reporting Act, to provide state government with, among other things, "[i]nformation and data concerning all aspects of the petroleum industry, including ... supplies ... [and] prices ... are essential for the State to develop and administer energy policies which are in the interest of the State's economy and the public's well-being[.]" The Act permits, but does not require, the department of business, economic development, and tourism to gather, analyze, and interpret this information.

The department has chosen not to perform this optional function, which leaves the legislature in no better shape to plan and administer the State's energy policies than it was five years ago. The purpose of this Act is to require, rather than just permit, this reporting.

SECTION 2. Section 486J-5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§486J-5[]] Analysis of information; audits and inspections; summary reports. (a) The department [may], with its own staff and other support staff with expertise and experience in, or with, the petroleum industry, shall gather, analyze, and interpret the information submitted to it pursuant to sections 486J-3 and 486J-4 and other information relating to the supply and price of petroleum products, with particular emphasis on motor vehicle fuels, including[, but not limited to,] all of the following:

(1) The nature, cause, and extent of any petroleum or petroleum products shortage or condition affecting supply;

(2) The economic and environmental impacts of any petroleum and petroleum product shortage or condition affecting supply;

(3) Petroleum or petroleum product demand and supply forecasting methodologies utilized by the petroleum industry in Hawaii;

(4) The prices, with particular emphasis on retail motor fuel prices, and any significant changes in prices charged by the petroleum industry for petroleum or petroleum products sold in Hawaii and the reasons for [such] those changes;

(5) The income, expenses, and profits, both before and after taxes, of the industry as a whole and of major firms within it, including a comparison with other major industry groups and major firms within them as to profits, return on equity and capital, and price- earnings ratio;

(6) The emerging trends relating to supply, demand, and conservation of petroleum and petroleum products;

(7) The nature and extent of efforts of the petroleum industry to expand refinery capacity and to make acquisitions of additional supplies of petroleum and petroleum products; and

(8) The development of a petroleum and petroleum products information system in a manner which will enable the State to take action to meet and mitigate any petroleum or petroleum products shortage or condition affecting supply.

(b) The department [may] shall conduct random or periodic audits and inspections of any supplier or suppliers of oil or petroleum products to determine whether they are unnecessarily withholding supplies from the market or are violating applicable policies, laws, or rules. The department may solicit assistance of the department of taxation in any such audit. The department shall cooperate with other state and federal agencies to ensure that any audit or inspection conducted by the department is not duplicative of the data received by any of their audits or inspections which is available to the department.

(c) The department [may] shall analyze the impacts of state and federal policies, rules, and regulations upon the supply and pricing of petroleum products.

(d) The department shall publish annually and submit to the governor and the legislature twenty days prior to the [first day of the current legislative session] convening of each regular session of the legislature the information requested in subsections (a), (b), and (c), as well as a summary, including any analysis and interpretation, of [the] any other information submitted to it pursuant to this chapter. Any person may submit comments in writing regarding the accuracy or sufficiency of the information submitted. At the option of the director, this report may be combined with reporting required by section 196-4(11), in the director's role as state energy resources coordinator."

SECTION 3. The department of business, economic development, and tourism, if it is has not already done so, shall promptly adopt rules under sections 486J-3 and 486J-4 on the receipt of the first set of statements and informational reports from the distributors, and the distributors shall promptly comply. If the department has adopted rules and the distributors are not in compliance, the department shall promptly apply to the public utilities commission for the imposition of penalties as prescribed in section 496J-9.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2002-2003, for the purpose of hiring an analyst to comply with the reporting requirements of section 2 of this Act.

SECTION 5. The sum appropriated shall be expended by the Department of Business, Economic Development, and Tourism for the purposes of this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2002.

INTRODUCED BY:

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