Hawaii Lawmakers Eliminate Ethanol Mandate

Legislation awaiting the governor’s signature would make Hawaii second state to end ethanol mandates.

May 08, 2015

HONOLULU – Hawaii is poised to be the second state to get rid of a mandate to mix fuel with ethanol. The state’s legislature has already passed the bill and if signed into law by the governor, Hawaii would join Florida in ending its ethanol mandate.

Since 2006, the state has required that gasoline sold on the islands contain 10% ethanol, a mandate intended to support alternative energy and boost local agriculture through ethanol production. However, in practice, despite tax credits to produce ethanol, local companies aren't doing it. Instead, Hawaii has been importing the blended fuel.

A seemingly odd coalition of fuel manufacturers, environmentalists and chicken farmers have joined together to push for rescinding the state’s ethanol mandate, each for their own reasons. The higher corn prices as a result of the mandate are frustrating chicken farmers and the environmentalists and automakers complain of lower fuel mileage using the ethanol blend.

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