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 ________________________________________________________________ ________________________________________________________________ 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 H.B. NO. H.D. 1 S.D. 1 1 follows: 2 "ยง - 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 H.B. NO. H.D. 1 S.D. 1 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.