STAND. COM. REP. NO.1220-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2179

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2179, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY RESOURCES,"

begs leave to report as follows:

The purpose of this bill is to:

(1) Improve energy management by State agencies;

(2) Require the Department of Business, Economic Development, and Tourism (DBEDT) to determine the maximum wholesale price of gasoline, on a quarterly basis, based on certain criteria, including the cost of a barrel of site-specific crude oil;

(3) Prohibit petroleum manufacturers and jobbers from selling gasoline to a dealer operated retail service station for more than the maximum wholesale price;

(4) Allow a manufacturer or jobber to petition DBEDT to readjust the maximum wholesale price of gasoline in the event of an abrupt change in crude oil prices in the world market; and

(5) Provide for treble damages or $500,000, whichever is greater, for violations by manufacturers or jobbers.

The Office of Environmental Quality Control and Hawaii Automotive Repair & Gasoline Dealers Association supported this measure. DBEDT, Hawaiian Electric Company, Hawaii Electric Light Company, and Maui Electric Company supported the intent of this bill. The Department of Accounting and General Services, Chevron Texaco Corporation, and Western States Petroleum Association opposed this measure.

Your Committee notes that the procurement provisions relating to energy resources under Part I of this bill appear to conflict with current law. Your Committee intends to continue working with the State Procurement Office to address these concerns as this measure moves into Conference.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2179, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT Y. TAKAMINE, Chair