Hawaii lawmakers vote to get rid of ethanol in gas mandate

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HONOLULU — Hawaii is poised to join an odd coalition of environmentalists, fuel manufacturers and chicken farmers who want to do away with a mandate to mix fuel with ethanol.

The state has required that gasoline sold on the Hawaiian islands contains 10 percent ethanol since 2006, and the original idea behind the mandate was to support alternative energy and boost local agriculture through ethanol production. But even though there are tax credits to produce ethanol, local companies aren’t doing it. Instead, Hawaii has been importing the blended fuel.

“Hawaii embarked on a grand experiment to figure out if we can help establish a local renewable ethanol industry, producing ethanol from locally grown feed stocks,” said Rep. Chris Lee, who introduced the bill to end the mandate. “Unfortunately, it just never materialized.”

The environmental benefits were questionable, since the state had to import the fuel, and some lawmakers were concerned about forest destruction abroad to make way for corn.

Meanwhile, motorists have complained of lower fuel mileage using the ethanol blend, and higher corn prices that resulted from increased ethanol demand are frustrating turkey and chicken farmers.

“Diversion of corn for ethanol is causing corn prices to skyrocket,” said Rep. Angus McKelvey.

The Hawaii Legislature passed the bill Tuesday. If Gov. David Ige signs it, Hawaii would become the second state behind Florida to end its ethanol mandate.

Congress is under pressure from lobbyists to on both sides of the debate to review its federal ethanol mandate, which requires fuel manufacturers to blend an increasing amount of ethanol into the nation’s fuel supply.

“I think the states have recognized the pitfalls and potential unintended consequences of mandating certain levels of ethanol in the fuel supply,” said Brendan Williams, senior vice president for advocacy at American Fuel & Petrochemical Manufacturers.