HOUSE OF REPRESENTATIVES

H.C.R. NO.

99

TWENTY-SEVENTH LEGISLATURE, 2013

H.D. 1

STATE OF HAWAII

 

 

 

 

 

HOUSE CONCURRENT

RESOLUTION

 

 

REQUESTING THE CONVENING OF A LEGISLATIVE TASK FORCE ON ENERGY SECURITY.

 

 

 


     WHEREAS, in January 2013, Tesoro Corporation announced plans to shut down its oil refinery in Kapolei, Hawaii, and convert the facility into a terminal operation; and

 

     WHEREAS, the shutdown of Tesoro's refinery is expected to result in over 200 layoffs at the facility and is likely to impact more than 2,000 jobs in the region; and

 

     WHEREAS, currently, Hawaii does not have the capacity or infrastructure to convert its power plants, automobiles, and jet turbines to alternative fuel sources; and

 

     WHEREAS, for the foreseeable future, refined petroleum products will constitute a substantial portion of the State's energy mix; and

 

     WHEREAS, despite the shutdown and conversion of Tesoro's oil refinery, demand for fuel in Hawaii will continue, likely exposing the State and its residents and visitors to a significant increase in the price of fuel; and

 

     WHEREAS, in Executive Order 13-01, Governor Neil Abercrombie established the Hawaii Refinery Task Force to examine the impact of the closure of the Tesoro refinery, but the task force did not examine alternative efforts the State could take to prevent the closure of the refinery; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, the Senate concurring, that the Legislature convene a Legislative Task Force on Energy Security; and
     BE IT FURTHER RESOLVED that the Legislative Task Force on Energy Security shall be charged with identifying:

 

     (1)  Barriers to a potential sale of the refinery and providing recommendations to state and federal agencies on how to address and overcome those barriers;

 

     (2)  Legislative, administrative, and regulatory concerns that potential buyers may have in choosing to enter the refining industry in Hawaii and recommending strategies on how to address those concerns;

 

     (3)  Incentives that a qualified buyer of refinery assets may seek in pursuing an investment and assessing the feasibility of those incentives;

 

     (4)  Potential alternative green energy uses of the refinery assets, including conversion to green diesel fuel production; and

 

     (5)  Incentives that state agencies may provide to encourage Tesoro to actively pursue opportunities to sell the refinery to a qualified operator; and

 

     BE IT FURTHER RESOLVED that the membership of the Legislative Task Force on Energy Security shall include:

 

     (1)  The Senate President or the Senate President's designee;

 

     (2)  The Speaker of the House of Representatives or the Speaker's designee;

 

     (3)  The Director of Business, Economic Development, and Tourism, or the Director's designee;

 

     (4)  A representative of United Steelworkers Local 12-591;

     (5)  A representative of the Sierra Club, Hawaii Chapter;

 

     (6)  A representative of Tesoro Corporation; and

 

     (7)  The President of Hawaiian Electric Company or the President's designee; and

 

     BE IT FURTHER RESOLVED that the members on the Legislative Task Force on Energy Security shall not be compensated for their service on the Task Force but shall be reimbursed for reasonable expenses, including travel expenses, incurred by serving on the Task Force; and

 

     BE IT FURTHER RESOLVED that the members on the Legislative Task Force on Energy Security shall not be made subject to Chapter 84, Hawaii Revised Statutes, solely because of that member's participation as a member of the Task Force; and

 

     BE IT FURTHER RESOLVED that the Legislative Task Force on Energy Security is requested to submit to the Legislature a preliminary report of its findings and recommendations, including any proposed legislation, no later than 45 days after it first convenes, an interim report no later than October 15, 2013, and a final report no later than 20 days prior to the convening of the Regular Session of 2014; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Business, Economic Development, and Tourism; Director of United Steelworkers, District 12; Executive Director of the Sierra Club, Hawaii Chapter; President and Chief Executive Officer of Tesoro Corporation; and President and Chief Executive Officer of Hawaiian Electric Company.

Report Title:

Legislative Energy Security Task Force