Rep.’s proposal
would allow governor
to drop gas price cap

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By Tim Ruel
truel@starbulletin.com

Responding to concerns that state Legislators are acting too fast to regulate Hawaii's high gasoline prices, a state representative is seeking to give Hawaii's governor the temporary power to suspend any gas-price regulation that is passed into law this legislative session.

Rep. Paul Whalen, an advocate of regulating gas prices, said the move will quell criticism that regulation could make it harder for oil companies to do business here. Aloha Petroleum Ltd. has opposed a price cap, saying it may not be able to make a profit under the proposal.

Under Whalen's proposal, the governor would have broad authority over the next year to shelve price controls without calling for a special session of the Legislature. If there's any problem with the new law, the Legislature can deal with it in the 2003 regular legislative session, said Whalen (R, Kona).

"It's unusual and I stuck it in there basically for representatives who don't want to take the time to understand the issue," Whalen said.

Whalen and other legislators have been acting fast to come up with new laws to deal with gas prices in light of the recent settlement of the state's antitrust lawsuit against Hawaii's major oil companies.

Gov. Ben Cayetano had scheduled a press conference for the afternoon today to speak out in support of regulation. But some legislators, as well as Republican gubernatorial candidate Linda Lingle, have called for further study of Hawaii's gas market, a move that would effectively stall any regulation.

The debate is turning into an important issue in this high-stakes election year.

Last week, the Attorney General's Office released a proposal that would establish and enforce maximum wholesale and retail gas prices, using prices from the West Coast. The Legislature will hold a conference committee hearing on the bill this evening, where Whalen will introduce his proposal.

Whalen said he agrees with the intent of the attorney general's measure, but he thinks a few changes are needed.

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