REPORT TITLE: 
Gasoline additive


DESCRIPTION:
Prohibits the sale of gasoline that contains methyl tertiary-
butyl ether (MTBE).  Establishes fines.  Effective July 1, 2000.
(SD1)



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3021
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                     A BILL FOR AN ACT

RELATING TO GASOLINE.



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

 1      SECTION 1.  Since 1979, methyl tertiary-butyl ether (MTBE),
 
 2 a man-made chemical, has been added to gasoline to boost octane
 
 3 levels and to provide cleaner burning fuels.  According to the
 
 4 Environmental Protection Agency, MTBE reduces carbon monoxide by
 
 5 almost twenty per cent.
 
 6      The legislature finds that traces of MTBE have appeared in
 
 7 ground water in some states, possibly through leakage from
 
 8 underground storage tank systems, spills at gasoline stations,
 
 9 pipelines, spillage at industrial and refueling facilities, and
 
10 accidental spills during transport.
 
11      The presence of MTBE in ground water is a cause of concern,
 
12 because MTBE has been reported to cause cancer in laboratory
 
13 animals.  However, the Environmental Protection Agency needs to
 
14 evaluate further the available information before estimating the
 
15 potential cancer risk to humans from drinking water.
 
16      The purpose of this Act is to prohibit the sale of gasoline
 
17 containing MTBE beginning July 1, 2000.
 
18      SECTION 2. The Hawaii Revised Statutes is amended by adding
 
19 a new section to be appropriately designated and to read as
 

 
Page 2                                                     3021
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 1 follows:
 
 2      "  -      Gasoline content; prohibition; penalty.  (a)  No
 
 3 gasoline sold in the State for use in motor vehicles shall
 
 4 contain methyl tertiary-butyl ether.
 
 5      (b)  Any person who violates this section shall be fined not
 
 6 more than $25,000 for each separate occurrence or in an amount
 
 7 equal to three times the cost of cleaning up the contamination,
 
 8 whichever is greater.
 
 9      (c)  Fines received under this section shall be deposited
 
10 into the emergency response revolving fund established by section
 
11 128D-2."
 
12      SECTION 3.  Section 128D-2, Hawaii Revised Statutes, is
 
13 amended by amending subsection (a) to read as follows:
 
14      "(a)  There is created within the state treasury an
 
15 environmental response revolving fund, which shall consist of
 
16 [moneys]:
 
17      (1)  Moneys appropriated to the fund by the legislature[,
 
18           moneys];
 
19      (2)  Moneys paid to the fund as a result of departmental
 
20           compliance proceedings[, moneys];
 
21      (3)  Moneys paid to the fund pursuant to court-ordered
 
22           awards or judgments[, moneys];
 
23      (4)  Moneys paid to the fund in court-approved or out-of-
 

 
Page 3                                                     3021
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 1           court settlements[, all];
 
 2      (5)  Moneys paid to the fund as a result of fines collected
 
 3           from selling gasoline containing methyl tertiary-butyl
 
 4           ether;
 
 5      (6)  All interest attributable to investment of money
 
 6           deposited in the fund[, moneys];
 
 7      (7)  Moneys generated by the environmental response tax
 
 8           established in section 243-3.5[,]; and [moneys]
 
 9      (8)  Moneys allotted to the fund from other sources;
 
10 provided that when the total balance of the fund exceeds
 
11 $20,000,000, the department of health shall notify the department
 
12 of taxation of this fact in writing within ten days.  The
 
13 department of taxation then shall notify all distributors liable
 
14 for collecting the tax imposed by section 243-3.5 of this fact in
 
15 writing, and the imposition of the tax shall be discontinued
 
16 beginning the first day of the second month following the month
 
17 in which notice is given to the department of taxation.  If the
 
18 total balance of the fund thereafter declines to less than
 
19 $3,000,000, the department of health shall notify the department
 
20 of taxation which then shall notify all distributors liable for
 
21 collecting the tax imposed by section 243-3.5 of this fact in
 
22 writing, and the imposition of the tax shall be reinstated
 
23 beginning the first day of the second month following the month
 

 
Page 4                                                     3021
                                     H.B. NO.           H.D. 1
                                                        S.D. 1
                                                        

 
 1 in which notice is given to the department of taxation."
 
 2      SECTION 4.  Statutory material to be repealed is bracketed.
 
 3 New statutory material is underscored.
 
 4      SECTION 5.  This Act shall take effect on July 1, 2000.