STAND. COM. REP. NO. 3432

Honolulu, Hawaii

RE:    H.B. No. 2811

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 2811, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

     The purpose of this measure is to require the oil industry to report weekly to the Public Utilities Commission on the price of oil and gasoline.

The measure also requires the Public Utilities Commission to publish weekly oil industry reports on the average oil and wholesale gasoline prices for each island.

     Your Committee received testimony in support of this measure from the Hawaii County Council.  Testimony in opposition was received from the Western States Petroleum Association, Aloha Petroleum Company, Koolau Chevron Food Mart, Waialae Chevron, Tesoro Hawaii Corporation, and Akana Petroleum Inc.

     Your Committee finds that the volatile and skyrocketing prices of crude oil and gasoline require the State to be more proactive with respect to documenting and studying the fluctuating price of oil and gasoline.  This measure requires the oil industry to report oil and gasoline prices on a weekly basis to the Public Utilities Commission to gain an accurate assessment of the price of oil and gasoline in the State and to provide the basis for managing the State's energy resources.

     Your Committee has amended the measure by:

     (1)  Changing the effective date to July 1, 2050, to facilitate further discussion; and

     (2)  Making technical amendments for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2811, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2811, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair