These issues aren't stopping island-based companies from planning to make ethanol. Local production might start in late 2007 by any one of the five interested companies. The state government has said it is willing to give up to $12 million a year in tax breaks, but won't pay until the ethanol starts to flow. So far, the government is holding on to the cash.
For all the details, read the article in the Honolulu Advertiser. It's well done and makes me even more convinced EVs are the way to go here.
[Source: Honolulu Advertiser]