Gas cap gets delay
in latest proposal
Legislative conferees have approved a 14-month delay in the start of the state's unique gasoline price cap law, and have tightened the requirement for who gets them.
Under the agreement, the price cap regulations wouldn't take effect until Sept. 1, 2005, instead of July 1 this year.
The proposal goes to the House and Senate floors for a final vote this week.
Advocates said more time is needed for the state Public Utilities Commission to develop rules and regulations and hire staff to oversee the price cap.
The PUC and the state Department of Business, Economic Development and Tourism said they would be unable to meet the July 1 deadline.
The law passed two years ago allows the state set a maximum price at which gasoline can be sold in the state.
Other changes approved late Friday night include tying the price ceiling to a national average of prices, instead of prices in West Coast markets, and expanding the caps to cover all gasoline grades except diesel.
The bill also authorizes the attorney general to investigate any gasoline shortages resulting from the caps.
The PUC to also would have the authority to adjust the price ceiling in rural areas to account for the higher cost of delivering gasoline in those regions.
Tying Hawaii prices to those on the West Coast proved embarrassing to gas cap supporters last year when the West Coast prices briefly went above the average Hawaii price, and critics said the gas cap would have driven up prices in the islands. California prices in recent weeks have again exceeded those in Hawaii.
Oil companies operating in Hawaii contend that gasoline prices in the islands remain high because of the cost of doing business in Hawaii and the state's high taxes.
