Bill Text: HI HB2631 | 2010 | Regular Session | Introduced
Bill Title: Petroleum Industry; Information
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-05-28 - (H) Act 152, on 5/28/2010 (Gov. Msg. No. 369). [HB2631 Detail]
Download: Hawaii-2010-HB2631-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2631 |
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TWENTY-FIFTH LEGISLATURE, 2010 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ENERGY INDUSTRY REPORTING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that there is a need to coordinate the development of the State's energy resources to preserve energy security by increasing the use of indigenous renewable energy, and reducing the State's overdependence on oil. The legislature also finds that energy data and analysis are essential to energy planning, policy development, and energy emergency preparedness and response. In recent years, energy markets, resources, systems and technologies, the variety and types of fuels, environmental standards and specifications of fuels, and policies related to energy and fuels have undergone dramatic changes. These transitional trends are expected to continue to influence Hawaii's energy situation. There is a critical need to develop the State's technical and analytic capabilities and understanding of Hawaii's energy situation for effective energy planning to achieve energy independence, increase the State's energy security, and ability to respond in a disaster.
The legislature finds that the director of business, economic development, and tourism, who serves as the state energy resources coordinator pursuant to section 196-3, Hawaii Revised Statutes, is responsible for coordinating the development of the State's energy resources, policies, programs, and plans.
The legislature finds that the energy data and analytic functions of the state energy resources coordinator are distinctive from other agencies' functions; for example the public utilities commission, which focuses primarily on monitoring petroleum prices and industry profits, a "watchdog" role.
The legislature, in Act 182, Session Laws of Hawaii 2007, codified as chapter 486J-5.3, Hawaii Revised Statutes, acknowledged the difference between the department of business, economic development, and tourism's energy analysis role and the public utilities commission's role to conduct analysis with a focus on petroleum prices and petroleum industry profits. The statute directs the department of business, economic development, and tourism to use the data collected under the petroleum industry information reporting act "to effectuate the purposes of chapters 125C and 196, Hawaii Revised Statutes, and other relevant laws". The legislature recognized that the use and analysis of energy and fuels data remain critical to virtually all of the department of business, economic development, and tourism's statutory energy program functional requirements.
Furthermore, the legislature finds that while chapter 486J, Hawaii Revised Statutes, directs the department of business, economic development, and tourism on how, and for what purposes, to use the data collected by the public utilities commission pursuant to chapter 486J, Hawaii Revised Statutes, the data and information collected are inadequate for energy emergency management purposes. The legislature also finds that these indirect reporting mechanisms cannot necessarily be depended upon during an emergency or disaster.
The legislature finds this represents an unacceptable situation when considered in the context of the State's role and responsibilities for energy emergency management. The legislature finds that authoritative policy support and functional guidance are needed to meet the following critical energy emergency preparedness needs of the State:
(1) Provide relevant and consistent policy guidance to accommodate actual and expected changes in Hawaii's energy (and economic) security and vulnerability, stemming from significant changes in energy and fuel markets; and
(2) Rectify inadequacies in data collection, analysis, and reporting provisions with amendments to accommodate and address the economic and energy systems risks associated with transitional issues and trends relating to both petroleum-based fuels and biofuels.
In summary, the legislature finds that the State has a critical technical and analytic role to understand Hawaii's energy situation for effective energy planning, increase the State's energy security, and manage energy emergencies. This role cannot depend solely on data and information reported to regulatory agencies for separate, non-strategic planning, and non-emergency purposes. These factors continue to create unacceptable risks to Hawaii's economy and energy security. Therefore, the legislature finds that changes to the current laws governing energy planning and security are needed to meet the needs of the State.
The legislature, therefore, finds that it is essential and appropriate to include within chapter 196, Hawaii Revised Statutes, provisions for the department of business, economic development, and tourism to directly collect relevant energy data and information to achieve the State's energy policies, programs, and plans.
SECTION 2. Chapter 196, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part
ENERGY INDUSTRY MONITORING AND ANALYSIS PROGRAM
§196-A Definitions. As used in this part:
"Aviation fuel" means and includes all liquid substances of whatever chemical composition usable for the propulsion of airplanes.
"Classes of retail trade" means the separate subdivisions, or "classes", of outlets or methods of retail sales of liquid fuels, typically but not always 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.
"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.
"Department" means the department of business, economic development, and tourism.
"Director" means the director of business, economic development, and tourism.
"Distributor" means:
(1) Every person who refines, manufactures, produces, or compounds fuel in the State and sells it at wholesale or at retail;
(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;
(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); provided that "distributor" shall not include a marina, lessee dealer-operated station, owner-operated station, or other retailer that retails fuel only to end users or the public.
"Energy" means work or heat that is, or may be, produced from any fuel or source whatsoever.
"Fuel" means 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.
"Liquid fuel" means fuels in liquid form, commercially usable for energy needs, power generation, and fuels 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.
"Major marketer" means any person who sells natural gas, propane, synthetic natural gas, or oil in amounts determined by the department as having a major effect on energy supplies.
"Major oil producer" means any person who produces oil in amounts determined by the department as having a major effect on energy supplies.
"Major oil storer" means any person who stores oil or other petroleum products in amounts determined by the department as having a major effect on energy supplies.
"Major oil transporter" means any person who transports oil or other petroleum products in amounts determined by the department as having a major effect on energy supplies.
"Month" means each full month of the calendar year.
"Nonrefiner wholesale price" 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.
"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.
"Refiner wholesale price" 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.
"Refinery" means any industrial plant, regardless of capacity, processing crude oil feedstock and manufacturing oil products.
§196-B Statements. (a) Each month every distributor, on the reporting dates as the director may establish, shall file with the department, on forms prescribed, prepared, and furnished by the department 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 month, the following:
(1) The total number of gallons or units of fuel, by type or grade, refined, manufactured, or compounded by the distributor within the State and, if for ultimate sale or consumption in another county or on another island, the number of gallons or units of fuel, by type or grade, sold, exchanged, or otherwise transferred or used by the distributor in each county or island;
(2) The total number of gallons or units of fuel, by type or grade, imported or exported by the distributor; the total volumes of fuel, by type or grade, sold, exchanged, or otherwise transferred or used by the distributor; and if for ultimate sale or consumption in another county or on another island, the number of gallons or units of fuel, by type or grade, sold, exchanged, or otherwise transferred or used by the distributor in each 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 department;
(4) The total number of gallons or units of fuel, by type or grade, 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 department;
(5) Monthly weighted average volume of foreign or domestic crude oil or other liquid fuels, finished or unfinished, imported to Hawaii, including information identifying the source of the crude oil or other liquid fuels;
(6) The volumes of finished unleaded regular and premium motor gasoline, and of each other grade of gasoline sold, by island, to retail outlets, by classes of retail trade, and to wholesale distributors;
(7) Monthly weighted average 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;
(8) The volumes of No. 2 diesel fuel and No. 2 fuel oil, by island, sold to retail distributor outlets, by classes of retail trade, and to all other wholesale distributors;
(9) Monthly weighted average 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; and
(10) Monthly weighted average 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 department shall prescribe applicable standards and practices for reporting to facilitate uniformity, consistency, and comparability of the data to be submitted.
(b) Each major marketer shall submit to the department, at a time and in a form as the department shall prescribe, information, including petroleum and petroleum product receipts, exchanges, inventories, and distributions.
(c) The department may request additional information as and when the department deems necessary to perform the department's responsibilities under this chapter.
(d) Information in the statements filed pursuant to this section shall be collected and maintained to effectuate the purposes of this chapter, chapter 125C, and other relevant laws.
§196-C Annual information reports. (a) Each major oil producer, refiner, marketer, oil transporter, and oil storer shall submit to the department, in a form as the department shall prescribe, information 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 decrease any authority the department 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.
(b) The department may request additional information as and when the department deems it necessary to perform the department's responsibilities under this chapter, chapter 125C, and other relevant laws.
§196-D Confidential information. (a) Confidential commercial information provided to the department pursuant to this chapter, chapter 125C, and other relevant laws, that is exempt from public disclosure under section 92F-13(4), shall be held in confidence by the department or aggregated to the extent necessary to ensure confidentiality as required by chapter 92F.
(b) No data or information submitted to the department shall be deemed confidential if the person submitting the information or data has made it public.
(c) Unless otherwise provided by law, with respect to data that the department obtains or is provided pursuant to section 196-B or 196-C, neither the department nor any employee of the department may do any of the following:
(1) Use the information furnished or obtained for any purpose other than the purposes for which it is supplied;
(2) Make any publication whereby the data furnished by any person can be identified; or
(3) Permit any person other than the department, and the authorized representatives and employees of the department to examine the individual reports or statements provided.
§196-E Confidential information obtained by another state agency. Any confidential information pertinent to the responsibilities of the department specified in this chapter, chapter 125C, and other relevant laws that is obtained by another state agency, including the department of taxation, the attorney general, and the consumer advocate, shall be available only to the attorney general, and the attorney general's authorized representatives and shall be treated in a confidential manner.
§196-F Sharing of information obtained by the department. The department shall make any information obtained by the department under this chapter, including confidential information, available only to the attorney general, an appropriate legislative committee, and the authorized representative of each, who shall safeguard the confidentiality of all confidential information received.
§196-G Failure to timely provide information; failure to make and file statements; false statements; penalties; referral to the attorney general. (a) The department shall notify those persons who have failed to timely provide the information requested by the department in section 196-B or 196-C. 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.
(b) Any person, or any employee of any person, who willfully makes any false statement, representation, or certification in any record, report, plan, or other document filed with the department 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 department shall refer any matter under subsection (a) or (b) to the attorney general, who may exercise any appropriate legal or equitable remedies that may be available to the State.
(d) For the purposes of this section, "person" means, in addition to the definition contained in section 196-A, any responsible corporate officer.
§196-H Energy industry monitoring, and analysis special fund. (a) There is established an energy industry monitoring and analysis special fund to be administered by the department.
(b) The legislature may make appropriations from the general revenues of the State of Hawaii, not to exceed $ in any fiscal year, for the energy industry monitoring and analysis special fund.
(c) Moneys in the special fund shall be used to:
(1) Administer the energy industry monitoring and analysis program pursuant to this chapter; and
(2) Establish a full-time staff position in the department to implement and maintain the energy industry monitoring and analysis program, including an automated energy industry information reporting system."
SECTION 3. Notwithstanding any other law to the contrary, sections 486J-3, 486J-4, 486J-4.5, and 486J-5, Hawaii Revised Statutes, are hereby suspended and shall have no force and effect from the enactment date of this Act indefinitely, as may be subsequently required by law.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050.
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INTRODUCED BY: |
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Report Title:
Energy Industry Reporting
Description:
Establishes the energy industry monitoring and analysis program within DBEDT. Suspends the petroleum industry monitoring and reporting program in the PUC.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
