Informing the Legislature that on June 6, 2025, the Governor signed the following bill into law: SB1501 SD2 HD1 CD1 (ACT 191).

SB1501, enacted as Act 191, creates a payment assurance mechanism to protect independent power producers (IPPs) who supply renewable energy to Hawaii's investor-owned electric utility. The law requires the Department of Budget and Finance to step in and make payments to IPPs if the utility fails to pay under power purchase agreements, using only funds from a dedicated trust fund (revenues from power purchase charges and reserve fees). This addresses concerns that the utility's weakened credit rating - following the 2023 Maui wildfires - has caused IPPs to cancel projects or demand higher prices, risking clean energy progress. The policy aims to secure reliable renewable energy supply, support Hawaii's 2045 goal of 100% renewable electricity, and prevent higher costs for utility customers. The mechanism does not pledge state funds or credit, relying solely on existing trust fund resources.