STAND. COM. REP. NO. 551

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 146

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committees on Energy and Environment and Transportation and International Affairs and Ways and Means, to which was referred S.B. No. 146 entitled:

 

"A BILL FOR AN ACT RELATING TO BIOFUEL,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to require transportation fuel sold in the State for use in motor vehicles to contain no less than fifteen percent biofuel that is produced in the State from feedstock grown in the State.

 

     Your Committees received testimony in support of this measure from Chris Eldridge, Aina Koa Pono; and Arvid Tadao Youngquist.  Your Committees received comments on this measure from Richard Lim, Department of Business, Economic Development, and Tourism; and Kelly King, Pacific Biodiesel, Inc.

 

     You Committees find that the State needs to expand the use of biofuels as a viable source of energy in order to reduce dependence on imported fossil fuels and that the use of biofuels is consistent with the State's goals relating to renewable energy and sustainability.  Your Committees recognize, however, that imposing a statutory requirement to utilize biofuels as transportation fuel may be premature at this time in view of the nascent nature of the industry and the uncertain availability of biomass crops in Hawaii to produce enough fuel to fulfill the mandate originally contemplated in this measure.

 

     Accordingly, your Committees have amended this measure by removing its contents and replacing them with language that:

 

     (1)  Directs the Department of Business, Economic Development, and Tourism to conduct a study that includes:

 

         (A)  An estimate of the projected demand for biofuel in the State and the availability of local biomass feedstock to meet existing and proposed biofuel production;

 

         (B)  The capacity of any biofuel producer's facilities to produce sufficient amounts of biofuel to meet the projected demand for biofuel;

 

         (C)  An estimate of the number of gallons of biofuel, broken down by type of biofuel, that can be produced solely from feedstock grown in the State;

 

          (D)  The percentage of transportation fuel sold in the State that could be biofuel-based; and

 

         (E)  Any other relevant information that the Department deems necessary; and

 

     (2)  Requires the Department of Business, Economic Development, and Tourism to report its findings and recommendations to the Legislature no later than twenty days prior to the Regular Session of 2012; provided that the study may be included in the Energy Resources Coordinator's annual report to the Governor and Legislature.

 

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Transportation and International Affairs and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 146, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 146, S.D. 1, and be placed on the calendar for Third Reading.

 


Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Transportation and International Affairs and Ways and Means,

 

____________________________

J. KALANI ENGLISH, Chair

 

____________________________

MIKE GABBARD, Chair

 

 

____________________________

DAVID Y. IGE, Chair