STAND. COM. REP. NO. 1103

Honolulu, Hawaii

, 2005

RE: H.B. No. 863

H.D. 2

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.B. No. 863, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE PETROLEUM INDUSTRY,"

begs leave to report as follows:

The purpose of this measure is to facilitate the development of a single integrated state energy strategy by requiring the development of an automated petroleum industry information reporting system and establishing a dedicated source of funding to support the reporting program and other related activities.

Testimony in support of the measure was received from the Department of Business, Economic Development, and Tourism (DBEDT), Hawaii Energy Policy Forum, Hawaii Renewable Energy Alliance, and an individual. The Department of Budget and Finance, Department of Health, and Western State Petroleum Association opposed the measure. Comments were submitted by the Public Utilities Commission (PUC) and The Gas Company.

Currently, the Petroleum Industry Information Reporting Act (PIIRA), codified in chapter 486J, Hawaii Revised Statutes, requires the filing of reports with the Petroleum Commissioner (Commissioner) by fuel distributors, major oil producers, refiners, marketers, oil transporters and oil storers, and requires the Commissioner to analyze the information collected with respect to the issues of the supply and pricing of petroleum products in the State. This measure modifies and establishes additional reporting requirements under PIIRA and requires DBEDT to develop and maintain an automated petroleum industry information system with the goal of developing a single integrated state energy strategy.

Additionally, this measure establishes the Petroleum Industry Monitoring, Analysis, and Reporting Special Fund, appropriates funds thereto from the Environmental Response Revolving Fund, and appropriates moneys from the new fund to support the reporting program, fund positions within the PUC to operate the gasoline price control program, and fund activities of the Hawaii Energy Policy Forum.

Your Committee has amended this measure:

(1) To take effect on July 1, 2005; and

(2) By making technical amendments for the purposes of clarity, consistency, and style, and to correctly reflect the language in the Hawaii Revised Statutes.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 863, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 863, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Housing,

____________________________

RON MENOR, Chair