Appendix G




              CHAPTER 486E, HAWAII REVISED STATUTES
                        FUEL DISTRIBUTION


Section
   486E-1 Definitions
   486E-2 Distributors to register
   486E-3 Statements
   486E-4 Failure to register; to make and file statements;
          making false statement unlawful; penalty
   486E-5 Ethanol content requirement


	§486E-1  Definitions.  Whenever used in sections 486E-2 to 486E-4:
	
	"Aviation fuel" means and includes all liquid substances of whatever
chemical composition usable for the propulsion of airplanes.
	
	"Director" means the director of business, economic development, and
tourism.
	
	"Distributor" means and includes: 

     (1)  Every person who refines, manufactures, produces, or
          compounds fuel in the State, and sells it at wholesale
          or at retail, or who utilizes it directly in the
          manufacture of products or for the generation of power; 

     (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; and 

     (3)  Every person who acquires fuel through exchanges with
          another distributor. 

	"Fuel" means and includes fuels whether liquid, solid, or gaseous,
commercially usable for energy needs, power generation, and fuels
manufacture, which may be manufactured, grown, produced, or imported
into the State or which may be exported therefrom; including petroleum
and petroleum products and gases, coal, coal tar, vegetable ferments,
and all fuel alcohols.
	
	"Month" or "calendar month" means each full month of the calendar
year.
	
	"Person", except where the context or sense otherwise requires, means
and includes individuals, firms, associations, or corporations.
	
	
	§486E-2  Distributors to register.  Every distributor, and any person
before becoming a distributor, shall register as such with the
department of business, economic development, and tourism on forms to
be prescribed, prepared, and furnished by the department.
	
	
	§486E-3  Statements.  Each distributor shall, at such reporting dates
as the director may establish, file with the director, on forms
prescribed, prepared, and furnished by the director, 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 period, the following:

     (1)  The total number of gallons or units of fuel refined,
          manufactured, or compounded by the distributor within
          the State and sold or used by the distributor, and if
          for ultimate use in another county or on another
          island, the name of that county or island; 

     (2)  The total number of gallons or units of fuel imported
          or exported by the distributor or sold or used by the
          distributor, and if for ultimate use in another county
          or on another island, the name of that county or
          island; 

     (3)  The total number of gallons or units of fuel sold as
          liquid fuel, aviation fuel, diesel fuel, and such other
          types of fuel as required by the director; and 

     (4)  The total number of gallons or units of fuel and the
          types thereof sold to:  federal, state, and county
          agencies, ships stores, or base exchanges, commercial
          agricultural accounts, commercial nonagricultural
          accounts, retail dealers, and such other customers as
          required by the director. 

	In addition to the above reporting, each distributor shall file with
the director, Federal Form FEO-1000 or an equivalent state form to be
prescribed, prepared, and furnished by the director, showing the
expected supply of fuel products for the coming month, and their
intended distribution as categorized by Form FEO-1000 or the equivalent
state form.  The state form shall be supplied in the event that the
Federal Mandatory Petroleum Allocation Regulations should expire, be
revoked, or be amended to delete or substantially change the reporting
requirements provided therein.
	
	All statements submitted to the director under this section shall
be held confidential.
	
	
	§486E-4  Failure to register; to make and file statements; making
false statement unlawful; penalty.  It shall be unlawful for any
distributor, or any other person, to fail, neglect, or refuse to
register or to make and file any statement required by section 486E-3
in the manner or within the time therein provided or to make any such
statement which is false in any particular. Any distributor or any
other person violating the requirements of this section, or sections
486E-2 and 486E-3 shall be fined not more than $5,000.
	
	
	[§486E-5]  Ethanol content requirement.  [Section effective July 1,
1996.  L 1994, c 199, §5.]  (a)  The department shall adopt rules in
accordance with chapter 91 to require that gasoline sold in the State
for use in motor vehicles contain ten per cent ethanol by volume.  The
amounts of gasoline sold in the State containing ten per cent ethanol
shall be in accordance with rules as the director deems appropriate. 
The director may authorize the sale of gasoline that does not meet
these requirements as provided in subsection (d).
	
	(b)  Gasoline blended with an ethanol-based product, such as ethyl
tertiary butyl ether, shall be considered to be in conformance with
this section if the quantity of ethanol used in the manufacture of the
ethanol-based product represents ten per cent, by volume, of the
finished motor fuel.
	
	(c)  Ethanol used in the manufacture of ethanol-based gasoline
additives, such as ethyl tertiary butyl ether, may be considered to
contribute to the distributor's conformance with this section; provided
that the total quantity of ethanol used by the distributor is an amount
equal to or greater than the amount of ethanol required under this
section.
	
	(d)  The department may authorize the sale of gasoline that does not
meet the provisions of this section:

     (1)  To the extent that sufficient quantities of
          competitively-priced ethanol are not available to meet
          the minimum requirements of this section; or

     (2)  In the event of any other circumstances for which the
          department determines compliance with this section
          would cause undue hardship.

	(e)  Each distributor, at such reporting dates as the director may
establish, shall file with the director, on forms prescribed, prepared,
and furnished by the director, a certified statement showing:

     (1)  The price and amount of ethanol available;

     (2)  The amount of ethanol-blended fuel sold by the
          distributor;

     (3)  The amount of non-ethanol-blended gasoline sold by the
          distributor; and

     (4)  Any other information the department shall require for
          the purposes of compliance with this section.

	(f)  Provisions with respect to confidentiality of information shall
be the same as provided in chapter 486I.
	
	(g)  Any distributor or any other person violating the requirements
of this section shall be subject to a fine of not less than $2 per
gallon of nonconforming fuel, up to a maximum of $10,000 per
infraction.
	
	(h) The department, in accordance with chapter 91, shall adopt rules
for the administration and enforcement of this section.
	
	(i)  As used in this section:

	"Competitively priced" means fuel-grade ethanol for which the
wholesale price, minus the value of all applicable federal, state, and
county tax credits and exemptions, is not more than the average posted
rack price of unleaded gasoline of comparable grade published in the
State.
	
	"Department" means the department of business, economic development,
and tourism.
	

	Appendix H	Table of Contents