Local gasoline consumers may feel better protected from price gouging knowing the oil industry watchdog in Hawai‘i is now fully funded. “For Kauaians, and for all Hawai‘i drivers, we believe Senate Bill 990 serves to protect them from gas gouging,”
Local gasoline consumers may feel better protected from price gouging knowing the oil industry watchdog in Hawai‘i is now fully funded.
“For Kauaians, and for all Hawai‘i drivers, we believe Senate Bill 990 serves to protect them from gas gouging,” Sen. Gary Hooser, D-Kaua‘i, Ni‘ihau, and Rep. Roland Sagum III, D-16th House District, said in a joint statement yesterday.
Lt. Gov. Duke Aiona, the acting governor while Linda Lingle is in Japan, signed the bill Friday. The new law strengthens the Public Utilities Commission’s oversight authority and appropriates $1.2 million for it to collect and analyze data to monitor the local petroleum industry, lawmakers said.
However, some oil industry officials voiced concerns about potential confidentiality issues and meeting stricter time interval requirements.
Senter Petroleum General Manager Roger Cable said local oil companies wanted the PUC to have discretion in designing forms and setting filing dates. Under the new law, the state requires the industry to submit to the PUC weekly reports and more detailed information than ever to improve transparency.
“We are disappointed that after receiving all of the comments from the industry that the bill was signed. The flaws in the current bill may cause legal action by some in the industry when it could have been resolved with a simple restoration of the stricken language at the 11th hour,” Cable said in a statement yesterday.
The oil company had asked the PUC and state Legislature to keep “flexibility language” in the bill.
“The work that had gone into developing the bill so that the PUC could effectively do what is required by Act 78 was undermined … We will just have to wait and see what can be worked out to provide the information that is requested in a timely manner,” Cable said.
Rep. Mina Morita, D-14th District, said the flexibility language regarding reporting time intervals was not removed “at the 11th hour,” but “ironed out during conference.”
The Senate position was to require weekly reports. The House wanted to grant the PUC discretion. Compromises were made, she said.
“We needed to get the program up and running. The reporting requirement should not have been a deal breaker in getting this program funded,” Morita said. “The industry had every opportunity to bring their concerns to the Legislature on this issue in the numerous public hearings and they did not.”
Lawmakers say they hope for cooperation.
“For Kaua‘i dealers, if they are truly unable to meet the reporting requirements, we hope they will work with the PUC to develop a reporting system that meets everyone’s needs … If there is the will to make the program work, we’re sure there is a way to meet the reporting requirements and protect any proprietary information,” Hooser and Sagum state.
The PUC started collecting monthly information from the petroleum industry in 2005 after the gas cap law went into effect, PUC Chief Researcher Lisa Kikuta said.
In 2006, the Legislature created the petroleum industry monitoring, analysis and reporting program to improve transparency, but failed to fund it.
“There was a lack of funds at that point,” Kikuta said. “We were making do with what we had in terms of staff and resources.”
Kikuta acknowledged it was “unfortunate” PUC did not retain more discretion, but was pleased with the law appropriating the funds necessary to operate the program and language clarifying PUC’s authority.
“Those monies will be going toward things like the design and development of an automated reporting system. The law was important to the commission because it gives us the investigatory and subpoena powers that we were seeking,” Kikuta said.
The legislation requires the PUC to report to the attorney general unlawful profiteering and false or deceptive statements.
Newspaper editorials in recent months called on legislators to strengthen the “how and when” of the PUC reporting requirements.
In the April 20, Honolulu Advertiser: “The law needs to set firmer guidelines on the process so that the pricing information is released without excessive delay. If lawmakers are sincere about giving consumers oversight on the pricing of a commodity in their captive market, that information has to be available on a timely basis, and in as much detail as possible.”
The PUC on Monday issued revised weekly and monthly forms to members of the petroleum industry, Kikuta said.
“Energy prices are already a huge issue for Kaua‘i residents. We expect that the petroleum industry, including Kaua‘i dealers, understands that we are all in this together,” Hooser and Sagum state. “The information we receive as a result of Senate Bill 990 will help us prepare for our energy future.”
• Nathan Eagle, staff writer, can be reached at 245-3681 (ext. 224) or neagle@kauaipubco.com.
