Report Title:

Petroleum Industry; Special Fund; Reporting System

Description:

Requires DBEDT to develop and maintain a petroleum industry information reporting system. Establishes, funds, and appropriates moneys from the Petroleum Industry Monitoring, Analysis, and Reporting Special Fund. (SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

863

TWENTY-THIRD LEGISLATURE, 2005

H.D. 2

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

relating to the petroleum industry.

 

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

SECTION 1. The legislature finds that the establishment and allocation of adequate resources for a vigorous state watchdog system to monitor and oversee the petroleum industry and gasoline market is a prerequisite to fully implementing the regulation of gasoline pricing. The monitoring of fuel prices, volumes, and industry data on costs and profits, and the subsequent analysis and reporting of this information to enforcement agencies, such as the public utilities commission and the departments of the attorney general and taxation, are critical components in the ability of each agency to carry out the regulation of gasoline prices.

Most importantly, the legislature finds that current global energy supplies cannot keep pace with the increased global demands for energy. The growing economies of China and India place Hawaii in a very vulnerable position as we all compete for the same fossil fuel resources. Further, with many oil-producing countries facing political instability and sensitive diplomatic relations, Hawaii's deep dependency on imported fossil fuels leaves it reliant on factors it cannot control that affect its energy security and economy.

The legislature also finds that a holistic approach is needed to ensure that improvements in one area of Hawaii's energy system do not cause deterioration in another. For instance, replacing residual oil with liquefied natural gas to produce electricity and incorporating ethanol blending are examples of policies that may cause financial difficulties for existing industry participants but may be beneficial to the State's economy overall.

An integrated energy strategy will give the legislature and other policymakers a broad range of policy options, including improved planning and enhanced data collection and monitoring to support the development of a long-term plan with realistic goals. An integrated energy strategy with long-range objectives may also lead to an improved investment climate. Such a plan will also greatly improve strategic partnerships. Additionally, developing an integrated energy strategy will allow the State to pursue meaningful investment strategies and technology options.

Under section 196-4, Hawaii Revised Statutes, the responsibility for long-range planning and coordination of the state's energy systems falls under the director of business, economic development, and tourism, in the director's role as the energy resources coordinator. One of the coordinator's responsibilities is to complete periodic strategic assessments of Hawaii's energy needs and recommend policies and programs to achieve the State's long-term energy objectives found in section 226-18, Hawaii Revised Statutes. The development of a single integrated state energy strategy is consistent with this responsibility.

The purposes of this Act are to:

(1) Establish the petroleum industry monitoring, analysis, and reporting special fund, to be funded from the environmental response revolving fund;

(2) Require the department of business, economic development, and tourism to develop and maintain the petroleum industry monitoring, analysis, and reporting system, including an automated petroleum industry information reporting system;

(3) Redelineate the types of information that the petroleum industry must submit to the department of business, economic development, and tourism; and

(4) Make appropriations out of the petroleum industry monitoring, analysis, and reporting special fund to be expended by the:

(A) Department of business, economic development, and tourism to establish the petroleum industry monitoring, analysis, and reporting program and to continue support for the Hawaii energy policy forum; and

(B) Public utilities commission to implement and operate the petroleum price control program established by chapter 486H, Hawaii Revised Statutes.

SECTION 2. Chapter 486J, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows:

"§486J-A Informational cost reports. (a) Each refiner, at such reporting dates as the director may establish, shall file with the director, on forms prescribed, prepared, and furnished by the director, a certified statement of operating and overhead costs for the refiner's Hawaii operations, that shall include but not be limited to the following:

(1) Crude oil costs;

(2) Other feedstock costs;

(3) Refinery operating expenses;

(4) Marketing operating expenses;

(5) Distribution expenses; and

(6) Corporate overhead expenses.

(b) In addition to the reporting required under subsection (a), each distributor shall file with the director all Securities and Exchange Commission Forms 10-K, 10-Q, annual reports, quarterly reports, and earnings supplements published by the distributor.

(c) Each distributor, except a distributor who is so defined solely by criteria in paragraph (4) of that definition in section 486J-1, who sells liquid fuel only at retail and is not a refiner, shall file with the director, at such reporting dates as the director may establish, on forms prescribed, prepared, and furnished by the director, a certified statement of operating and overhead costs, that shall include the following:

(1) Gasoline purchases;

(2) Diesel purchases;

(3) Marketing expenses; and

(4) Distribution expenses.

§486J-B Petroleum industry information reporting system. The department shall develop and maintain an automated petroleum industry information reporting system that meets the requirements of government, industry, and the public while promoting sound policy making and consumer information and protection. The purpose of the petroleum industry information reporting system is to conduct and facilitate the efficient reporting analysis of information described in section 486J-5. The department shall develop the petroleum industry information reporting system in a manner that will result in greater market transparency and provide useful information to those agencies that are authorized to conduct oversight of the petroleum industry and ensure compliance with all relevant laws.

§486J-C Petroleum industry monitoring, analysis, and reporting special fund; environment response revolving fund. (a) There is established a petroleum industry monitoring, analysis, and reporting special fund to be administered by the department.

(b) The legislature may make appropriations from the environmental response revolving fund, established pursuant to section 128D-2, not to exceed $2,000,000, in any fiscal year, for the petroleum industry monitoring, analysis, and reporting special fund.

(c) Moneys in the special fund shall be used to:

(1) Administer the petroleum industry information reporting program pursuant to this chapter;

(2) Establish       full-time staff positions in the public utilities commission to implement and maintain the gasoline price control program established by chapter 486H;

(3) Develop a single integrated state energy strategy under the guidance of the energy resources coordinator; and

(4) Fund the State's share in any matching grant program that advances the State's energy policy and energy strategy."

SECTION 3. Section 128D-2, Hawaii Revised Statutes, is amended to read as follows:

"§128D-2 Environmental response revolving fund; uses. (a) There is created within the state treasury an environmental response revolving fund[, which] that shall consist of moneys appropriated to the fund by the legislature, moneys paid to the fund as a result of departmental compliance proceedings, moneys paid to the fund pursuant to court-ordered awards or judgments, moneys paid to the fund in court-approved or out-of-court settlements, all interest attributable to investment of money deposited in the fund, moneys generated by the environmental response tax established in section 243-3.5, and moneys allotted to the fund from other sources; provided that when the total balance of the fund exceeds $20,000,000, the department of health shall notify the department of taxation of this fact in writing within ten days. The department of taxation [then] shall then notify all distributors liable for collecting the tax imposed by section 243-3.5 of this fact in writing, and the imposition of the tax shall be discontinued beginning the first day of the second month following the month in which notice is given to the department of taxation. If the total balance of the fund thereafter declines to less than $3,000,000, the department of health shall notify the department of taxation, which [then] shall then notify all distributors liable for collecting the tax imposed by section 243-3.5 of this fact in writing, and the imposition of the tax shall be reinstated beginning the first day of the second month following the month in which notice is given to the department of taxation.

(b) Moneys from the fund shall be expended by the department for response actions and preparedness, including removal and remedial actions, consistent with this chapter; provided that the revenues generated by the ["environmental response tax"] environmental response tax and deposited into the environmental response revolving fund:

(1) Shall also be used:

(A) For oil spill planning, prevention, preparedness, education, research, training, removal, and remediation; and

(B) For direct support for county used oil recycling programs; and

(2) May also be used to support environmental protection and natural resource protection programs, including but not limited to energy conservation and alternative energy development, and to address concerns related to air quality, global warming, clean water, polluted runoff, solid and hazardous waste, drinking water, and underground storage tanks, including support for the underground storage tank program of the department, and funding for the acquisition by the State of a soil remediation site and facility.

(c) Moneys from the fund, not exceeding $2,000,000 in any fiscal year, may be appropriated by the legislature for deposit into the petroleum industry monitoring, analysis, and reporting special fund pursuant to section 486J-C to:

(1) Administer the petroleum industry information reporting program pursuant to chapter 486J;

(2) Establish       full time staff positions in the public utilities commission to implement and maintain the gasoline price control program established by chapter 486H;

(3) Develop a single integrated state energy strategy under the guidance of the energy resources coordinator; and

(4) Fund the State's share in any matching grant program that advances the State's energy policy and energy strategy."

SECTION 4. Section 486J-1, Hawaii Revised Statutes, is amended as follows:

1. By adding four new definitions to be appropriately inserted and to read:

""Classes of retail trade" means the separate subdivisions, or "classes", of outlets or methods of retail sales of liquid fuels, typically but not limited to gasoline and diesel for motor vehicles, and includes any:

(1) Company-operated station that is a retail service station owned and operated by a refiner or wholesale distributor and where retail prices are set by that refiner or wholesale distributor;

(2) Lessee dealer-operated station that is a retail service station owned by a refiner or wholesale distributor and operated by a qualified gasoline dealer other than a refiner or wholesale distributor under a franchise; or

(3) Owner-operated station that is a retail service station not owned by a refiner or wholesale distributor and operated by a qualified gasoline dealer.

"Corporate overhead expenses" means the expenses or costs allocated by the refiners that reflect their Hawaii business units' share of corporate staff costs, such as legal, finance, accounting, information technology, and similar costs.

"Liquid fuel" means fuels in liquid form, commercially usable for energy needs, power generation, and fuels manufacture that may be manufactured, produced, or imported into the State or that may be exported therefrom, including petroleum and petroleum products and all fuel alcohols.

"Wholesale liquid fuel prices" means the prices at which liquid fuel is sold at wholesale for resale at wholesale or retail, typically but not limited to gasoline and diesel for motor vehicles, and includes:

(1) "Refiner wholesale price" which means the wholesale price at which liquid fuel is sold by a refiner to any distributor, not a refiner, for resale at any subsequent wholesale or retail transaction;

(2) "Nonrefiner wholesale price" which means the wholesale price at which liquid fuel is sold by any distributor, not a refiner, to any other distributor, not a refiner, for resale at any subsequent wholesale or retail transaction; and

(3) "Dealer tank wagon price" means the wholesale price at which liquid fuel is sold to any retail outlet by any distributor priced on a delivered basis to a retail outlet."

2. By amending the definitions of "distributor", "fuel", "person", and "refiner" to read:

""Distributor" means [and includes]:

(1) Every person who refines, manufactures, produces, or compounds fuel in the State, and sells it at wholesale or at retail, or who utilizes it directly in the manufacture of products or for the generation of power;

(2) Every person who imports or causes to be imported into the State or exports or causes to be exported from the State, any fuel; [and]

(3) Every person who acquires fuel through exchanges with another distributor[.]; or

(4) Every person who purchases fuel for resale at wholesale or retail from any person described in paragraph (1), (2), or (3).

"Fuel" means [and includes] fuels whether liquid, solid, or gaseous, commercially usable for energy needs, power generation, and fuels manufacture, that may be manufactured, grown, produced, or imported into the State or that may be exported therefrom[;], including petroleum and petroleum products and gases, coal, coal tar, vegetable ferments, and all fuel alcohols.

"Person"[,] means any person, firm, association, organization, partnership, business trust, corporation, or company. "Person" also includes any city, county, public district or agency, the State or any department or agency thereof, and the United States to the extent authorized by federal law.

"Refiner" means any person who owns, operates, or controls the operations of one or more refineries[.] in Hawaii."

3. By repealing the definition of "petroleum commissioner".

[""Petroleum commissioner" or "commissioner" means the administrator of the energy, resources, and technology division of the department of business, economic development, and tourism."]

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

"§486J-2 Distributors to register. Every distributor, and any person before becoming a distributor, shall register as such with the [commissioner] director on forms to be prescribed, prepared, and furnished by the [commissioner.] director."

SECTION 6. Section 486J-3, Hawaii Revised Statutes, is amended to read as follows:

"§486J-3 Statements. (a) Each distributor [shall], at [such] reporting dates as the [commissioner] director may establish, shall file with the [commissioner,] director, on forms prescribed, prepared, and furnished by the [commissioner,] director, a certified statement showing separately for each county and for the islands of Lanai and Molokai within which and whereon fuel is sold or used during the last preceding reporting period, the following:

(1) The total number of gallons or units of fuel refined, manufactured, or compounded by the distributor within the State and sold or used by the distributor, and if for ultimate use in another county or on another island, the name of that county or island;

(2) The total number of gallons or units of fuel imported or exported by the distributor or sold or used by the distributor, and if for ultimate use in another county or on another island, the name of that county or island;

(3) The total number of gallons or units of fuel sold as liquid fuel, aviation fuel, diesel fuel, and other types of fuel as required by the [commissioner;] director;

(4) The total number of gallons or units of fuel and the types thereof sold to: federal, state, and county agencies, ships stores, or base exchanges, commercial agricultural accounts, commercial nonagricultural accounts, retail dealers, and other customers as required by the [commissioner;] director;

(5) Monthly weighted average acquisition cost per barrel and volumes of foreign or domestic crude oil or other liquid fuels, finished or unfinished, imported to Hawaii;

[(5) Monthly Hawaii] (6) Weekly weighted average wholesale prices and sales volumes of finished [leaded regular,] unleaded regular[,] and premium motor gasoline, and of each other grade of gasoline sold [through company-operated], by island, to retail outlets, [to other end-users,] by class of retail trade, and to wholesale [customers;] distributors;

(7) Weekly weighted average retail prices, and sales volumes of finished unleaded regular and premium motor gasoline, and of each other grade of gasoline sold, by island, by retail distributor outlets of all classes of retail trade and by any distributor to other end-users. The department may purchase retail price data from data service companies, which the department may use to substitute some or all data to meet the reporting requirement for retail price data under this section;

[(6) Monthly Hawaii] (8) Weekly weighted average wholesale prices, and sales volumes [for residential sales, commercial and institutional sales, industrial sales, sales through company-operated retail outlets, sales to other end-users, and wholesale sales of No. 2 diesel fuel and No. 2 fuel oil; and] of No. 2 diesel fuel and No. 2 fuel oil, by island, to retail distributor outlets, by class of retail trade, and to all other wholesale distributors. Weighted average wholesale prices and sales volumes shall be reported by type of wholesale liquid fuel price;

(9) Weekly weighted average retail prices, and sales volumes of No. 2 diesel fuel and No. 2 fuel oil sold, by island, by retail distributor outlets of all classes of retail trade and by any distributor to other end-users. The department may purchase retail price data from data service companies, which the department may use to substitute some or all data to meet the reporting requirement for retail price data under this section; and

[(7)] (10) Monthly [Hawaii] weighted average prices, and sales volumes for retail sales and wholesale sales, by island, of No. 1 distillate, kerosene, finished aviation gasoline, kerosene-type jet fuel, No. 4 fuel oil, residual fuel oil, and consumer grade propane.

[The commissioner shall prescribe by rule when the first report shall be submitted.

(b) In addition to the above reporting, each distributor shall file with the commissioner, Federal Form FEO-1000 or an equivalent state form to be prescribed, prepared, and furnished by the commissioner, showing the expected supply of fuel products for the coming month, and their intended distribution as categorized by Form FEO-1000 or the equivalent state form. The state form shall be supplied in the event that the Federal Mandatory Petroleum Allocation Regulations should expire, be revoked, or be amended to delete or substantially change the reporting requirements provided therein.

(c)] (b) Each major marketer shall submit to the [commissioner,] director, at a time and in a form as the [commissioner] director shall prescribe, information including petroleum and petroleum product receipts, exchanges, inventories, and distributions. [The commissioner shall prescribe by rule when the first report shall be submitted.

(d)] (c) The [commissioner] director may request additional information as and when [[the commissioner]] the director deems necessary to perform [[the commissioner's]] the director's responsibilities under this chapter."

SECTION 7. Section 486J-4, Hawaii Revised Statutes, is amended to read as follows:

"§486J-4 Informational reports. (a) Each major oil producer, refiner, marketer, oil transporter, and oil storer shall submit to the [commissioner,] director, in such form as the [commissioner] director shall prescribe, information [which] that includes the following:

(1) Major oil transporters shall report on petroleum by reporting the capacities of each major transportation system, the amount transported by each system, and inventories thereof. The provision of the information shall not be construed to increase [and] or decrease any authority the [commissioner] director may otherwise have;

(2) Major oil storers shall report on storage capacity, inventories, receipts and distributions, and methods of transportation of receipts and distributions;

(3) Refiners shall report on facility capacity and utilization and method of transportation of refinery receipts and distributions; and

(4) Major oil marketers shall report on facility capacity and methods of transportation of receipts and distributions.

[The commissioner shall prescribe by rule when the first report shall be submitted.]

(b) The [commissioner] director may request additional information as and when [[the commissioner]] the director deems it necessary to perform [[the commissioner's]] the director's responsibilities under this chapter."

SECTION 8. Section 486J-5, Hawaii Revised Statutes, is amended to read as follows:

"§486J-5 Analysis of information; audits and inspections; summary reports. (a) The [petroleum commissioner,] director, with the [commissioner's] director's 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 486J-A 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[;] and price;

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

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

(4) The prices, with particular emphasis on wholesale and retail motor vehicle 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 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, price, and conservation of petroleum and petroleum products; and

(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 commissioner 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 commissioner may solicit assistance of the department of taxation in any such audit. The commissioner shall cooperate with other state and federal agencies to ensure that any audit or inspection conducted by the commissioner is not duplicative of the data received by any of their audits or inspections which is available to the commissioner.

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

[(d)] (c) The [commissioner] director shall publish annually and submit to the governor and the legislature twenty days prior to the first day of [the current] each regular legislative session a summary, including any analysis and interpretation of the information submitted to it pursuant to this chapter, and any other activities taken by the [commissioner,] director, including civil penalties imposed and referrals of violations to the attorney general under section 486J-9. 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 9. Section 486J-6, Hawaii Revised Statutes, is amended to read as follows:

"§486J-6 Confidential information. (a) Confidential commercial information presented to the [commissioner] director pursuant to this chapter shall be held in confidence by the [commissioner] director or aggregated to the extent necessary to assure confidentiality as governed by chapter 92F, including its penalty provisions.

[(b) No data or information submitted to the commissioner shall be deemed confidential if the person submitting the information or data has made it public.

(c)] (b) Unless otherwise provided by law, with respect to data provided pursuant to [sections] section 486J-3 [and], 486J-4, or 486J-A, neither the [commissioner,] director, nor any employee of the department, may do any of the following:

(1) Use the information furnished under [sections] section 486J-3 [and], 486J-4, or 486J-A for any purpose other than the statistical purposes for which it is supplied;

(2) Make any publication whereby the data furnished by any particular establishment or individual under [sections] section 486J-3 [and], 486J-4, or 486J-A can be identified; or

(3) Permit anyone to examine the individual reports provided under [sections] section 486J-3 [and], 486J-4, or 486J-A other than the department of taxation, public utilities commission, the attorney general, and the consumer advocate, and the authorized representatives and employees of each."

SECTION 10. Section 486J-7, Hawaii Revised Statutes, is amended to read as follows:

"§486J-7 Confidential information obtained by another state agency. Any confidential information pertinent to the responsibilities of the [commissioner] director specified in this chapter that is obtained by another state agency, including the department of taxation, the public utilities commission, the attorney general, and the consumer advocate, shall be available to the attorney general, the attorney general's authorized representatives, and the [commissioner] director, and shall be treated in a confidential manner."

SECTION 11. Section 486J-8, Hawaii Revised Statutes, is amended to read as follows:

"§486J-8 Sharing of information obtained by the [commissioner.] director. The [commissioner] director shall make all information obtained by the [commissioner] director under this chapter, including confidential information, available to the attorney general, the department of taxation, the public utilities commission, the consumer advocate, and the authorized representative of each, who shall safeguard the confidentiality of all confidential information received."

SECTION 12. Section 486J-9, Hawaii Revised Statutes, is amended to read as follows:

"§486J-9 Failure to timely provide information; failure to make and file statements; false statements; penalties; referral to the attorney general. (a) The [petroleum commissioner] director shall notify those persons who have failed to timely provide the information specified in section 486J-3 [or], 486J-4, or 486J-A, or requested by the [commissioner] director under section 486J-3 [or], 486J-4[.], or 486J-A. If, within five business days after being notified of the failure to provide the specified or requested information, the person fails to supply the specified or requested information, the person shall be subject to a civil penalty of not less than $50,000 per day nor more than $100,000 per day for each day the submission of information is refused or delayed[, unless the person has timely filed objections with the commissioner regarding the information and the commissioner has held a hearing and, following a ruling by the commissioner, the person has properly submitted the issue to a court of competent jurisdiction for review].

(b) Any person who wilfully makes any false statement, representation, or certification in any record, report, plan, or other document filed with the [commissioner] director shall be subject to a civil penalty not to exceed $500,000, and shall be deemed to have committed an unfair or deceptive act or practice in the conduct of a trade or commerce and subject to the penalties specified in chapter 480.

(c) The [commissioner] director shall refer any matter under [this] subsection (a) or (b) to the attorney general, who may exercise any appropriate legal or equitable remedies that may be available to the State.

[(c)] (d) For the purposes of this section, "person" means, in addition to the definition contained in section 486J-1, any responsible corporate officer."

SECTION 13. Section 486J-10, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) The [commissioner] director shall adopt rules in accordance with chapter 91 to require that gasoline sold in the State for use in motor vehicles contain ten per cent ethanol by volume. The amounts of gasoline sold in the State containing ten per cent ethanol shall be in accordance with rules as the [commissioner] director may deem appropriate. The [commissioner] director may authorize the sale of gasoline that does not meet these requirements as provided in subsection (d)."

2. By amending subsections (d), (e), and (f) to read:

"(d) The [commissioner] director may authorize the sale of gasoline that does not meet the provisions of this section:

(1) To the extent that sufficient quantities of competitively-priced ethanol are not available to meet the minimum requirements of this section; or

(2) In the event of any other circumstances for which the [commissioner] director determines compliance with this section would cause undue hardship.

(e) Each distributor, at such reporting dates as the [commissioner] director may establish, shall file with the [commissioner,] director, on forms prescribed, prepared, and furnished by the [commissioner,] director, a certified statement showing:

(1) The price and amount of ethanol available;

(2) The amount of ethanol-blended fuel sold by the distributor;

(3) The amount of non-ethanol-blended gasoline sold by the distributor; and

(4) Any other information the [commissioner] director shall require for the purposes of compliance with this section.

(f) Provisions with respect to confidentiality of information shall be the same as provided in section [486J-7.] 486J—6."

3. By amending subsection (h) to read:

"(h) The [commissioner,] director, in accordance with chapter 91, shall adopt rules for the administration and enforcement of this section."

SECTION 14. Section 486J-12, Hawaii Revised Statutes, is repealed.

["§486J-12 Rules. The commissioner shall adopt, amend, or repeal such rules as [the commissioner] may deem proper to fully effectuate this chapter."]

SECTION 15. There is appropriated out of the petroleum industry monitoring, analysis, and reporting special fund the sum of $          , or so much thereof as may be necessary for fiscal year 2005-2006, and the same sum, or so much thereof as may be necessary for fiscal year 2006-2007, to establish the petroleum industry monitoring, analysis, and reporting program established under chapter 486J, Hawaii Revised Statutes.

The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 16. There is appropriated out of the petroleum industry monitoring, analysis, and reporting special fund the sum of $          , or so much thereof as may be necessary for fiscal year 2005-2006, and the same sum ,or so much thereof as may be necessary for fiscal year 2006-2007, for       full-time equivalent positions in the public utilities commission to implement and operate the petroleum price control program established by chapter 486H, Hawaii Revised Statutes.

The sums appropriated shall be expended by the department of budget and finance for the purposes of this Act.

SECTION 17. (a) The legislature recognizes the effort of the Hawaii energy policy forum, convened by the University of Hawaii in May 2002, in working to achieve the objective of creating a single integrated energy strategy and finds that the forum's efforts are invaluable and should continue.

(b) There is appropriated out of the petroleum industry monitoring, analysis, and reporting special fund the sum of $100,000, or so much thereof as may be necessary for fiscal year 2005-2006, and the same sum, or so much thereof as may be necessary for fiscal year 2006-2007, to support the Hawaii energy policy forum.

The sums appropriated shall be expended by the department of business, economic development, and tourism.

SECTION 18. There is appropriated out of the environmental response revolving fund the sum of $          , or so much thereof as may be necessary for fiscal year 2005-2006, and the same sum, or so much thereof as may be necessary for fiscal year 2006-2007, to be deposited in the petroleum industry monitoring, analysis, and reporting special fund for the purposes of this Act.

SECTION 19. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 20. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 21. This Act shall take effect on July 1, 2005.