HB2815

Report Title:

Petroleum; Production, Transportation, Refinery; Approp.

 

Description:

Appropriates funds for the State to own or control all of the phases of production of petroleum products to be sold in Hawaii, including plans, designs, construction, and equipment related to oil exploration, production, transportation, refinery, and marketing refined products in Hawaii.

 

HOUSE OF REPRESENTATIVES	H.B. NO.	2815
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

relating to petroleum.

 

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

SECTION 1. The legislature finds that Hawaii's almost complete dependence on imported oil and the vulnerability of the State in the event of a market disruption, combined with the decision of Hawaii's major oil companies not to lower the wholesale price of gasoline in the State in a meaningful way, makes it necessary for the State to enter the petroleum market as a major player in order to directly compete against those oil companies.

Accordingly, the purpose of this Act is to appropriate funds for the State to own or control all of the phases of the production of petroleum products that will eventually be sold in Hawaii, including plans, designs, construction, and equipment related to oil exploration and production, the transportation of crude oil and petroleum products from the point of origin to Hawaii, the refinery of crude oil, and marketing refined products in this State. The legislature finds that this Act is necessary for the health, safety, and welfare of Hawaii's residents.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2002-2003, for the State to own or control all of the phases of the production of petroleum products to be sold in Hawaii, including plans, designs, construction, materials, and equipment related to oil exploration and production, the transportation of crude oil and petroleum products from the point of origin to Hawaii, the refinery of crude oil, and the marketing of refined products in this State; and shall further include all necessary expenses related to the drilling, pumping, refining (including the construction or purchase of a refinery, pipelines, and other infrastructure in this State), distribution, and resale of gasoline and other petroleum products, from exploratory wells to gasoline pumps.

SECTION 3. The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 4. The governor may use any of the emergency powers enumerated under Act 15, Third Special Laws of Hawaii 2001, or any other emergency powers as authorized by law, as may be necessary to implement the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2002.

INTRODUCED BY:	_____________________________