HB 974 Hawaii House · 2026 Regular Session

RELATING TO ENERGY.

Summary

Requires the Department of Budget and Finance to enter into step-in agreements for payment obligations arising under certain power purchase agreements. Establishes the Power Purchase Costs Trust Fund. Establishes that money collected from on-bill charges for power purchase agreements and money received from a surcharge supporting a reserve account that are deposited in the Trust Fund shall be held in trust by the State, and that independent power producers shall hold a beneficial interest in the moneys to the extent of the amounts owed under the covered power purchase agreements. Appoints, authorizes, and empowers an electric utility to serve as the billing, collection, and payment agent of the Department of Budget and Finance in the service of performing step-in agreements. (SD1)

Bill status passed both 4 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

House Passage

Feb 2025

Senate Passage

Mar 2025

Governor

Introduced Jan 21, 2025 Last action Dec 8, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

HB974_HD1 → HB974_SD1 · 6 edits

MODERATE

This bill was revised from a House Draft (HD1) to a Senate Draft (SD1) to address concerns about the utility's ability to pay independent power producers. The changes shift the focus from 'procurement' to 'purchase,' clarify that the state's financial guarantee is limited strictly to specific trust fund monies rather than the state's full faith and credit, and add a requirement for the state to conduct due diligence on power producers before entering agreements. The effective date was accelerated from July 1, 3000, to immediate approval.

Scope change

The bill's scope expanded to cover 'purchases' of energy in addition to procurement, and the definition of 'power purchase agreement' was broadened to include facilities that have not provided power before July 1, 2025, rather than a specific date cutoff.

FISCAL

Clarified that the state's payment obligation is limited to specific trust fund monies and reserve fees, explicitly removing any pledge of the state's full faith and credit.

REQUIREMENT

Added a mandatory requirement for the Department of Budget and Finance to conduct due diligence on power producers within 30 days of the act's effective date before entering step-in agreements.

Added a provision requiring the department to pay claims arising from the termination of a power purchase agreement due to bankruptcy.

DEFINITION

Changed the definition of 'power purchase agreement' to include facilities that have not provided electricity to the utility before July 1, 2025, broadening the bill's applicability.

TIMELINE

Changed the effective date from July 1, 3000, to 'upon approval,' significantly accelerating the implementation timeline.

ENFORCEMENT

Added specific language limiting the remedy for breaches of the agreement to specific performance, preventing obligees from seeking monetary damages or other relief.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 25, 2025

Upper · Passed

The committee(s) on WAM will hold a public decision making on 03-28-25 10:02AM; Conference Room 211 & Videoconference.

upper

Mar 21, 2025

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

Mar 21, 2025

Committee

Reported from EIG/CPN (Stand. Com. Rep. No. 1348) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Mar 20, 2025

Upper · Passed

The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EIG were as follows: 4 Aye(s): Senator(s) Wakai, Chang, DeCoite, Richards; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.

upper

Mar 20, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Richards; Aye(s) with reservations: Senator(s) Fukunaga, McKelvey ; 1 No(es): Senator(s) Awa; and 0 Excused: none.

upper

Mar 14, 2025

Upper · Passed

The committee(s) on EIG/CPN has scheduled a public hearing on 03-20-25 9:30AM; Conference Room 229 & Videoconference.

upper

Mar 4, 2025

Committee

Referred to EIG/CPN, WAM.

upper

Feb 28, 2025

Introduced

Received from House (Hse. Com. No. 45).

upper

Feb 27, 2025

Lower · Passed

Passed Third Reading with Representative(s) Amato, Garcia voting aye with reservations; none voting no (0) and Representative(s) Cochran, Pierick, Templo, Ward excused (4). Transmitted to Senate.

lower

Feb 20, 2025

Lower · Passed

The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 14 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Alcos, Ward.

lower

Feb 14, 2025

Committee

Reported from EEP (Stand. Com. Rep. No. 769) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Feb 13, 2025

Lower · Passed

The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 4 Ayes: Representative(s) Lowen, Perruso, Kahaloa, Kusch; Ayes with reservations: none; 0 Noes: none; and 2 Excused: Representative(s) Quinlan, Ward.

lower

Jan 23, 2025

Committee

Referred to EEP, FIN, referral sheet 3

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 21, 2025

Introduced

Pending introduction.

lower

1 primary · 0 co-sponsors