Energy

HB 1986 requires the state Department of Transportation to create rules by January 1, 2028, establishing a clean fuel standard for alternative fuels used in vehicles. The bill mandates regular reporting to the legislature and public informational sessions about the standard's implementation. It directly affects alternative fuel providers and the Department of Transportation, setting new requirements for fuel composition and emissions. The bill is currently pending committee review (deferred until February 2026) and has not yet become law.

Establishes a tax credit for sustainable aviation fuel distribution in Hawaii to reduce greenhouse gas emissions. Provides $1 per gallon, increasing by 2 cents per additional 1 per cent emissions reduction, up to $2 per gallon. Caps total credits at $20,000,000 annually, with carryover provisions. Requires reporting to ensure transparency and compliance. Applies to taxable years beginning after December 31, 2026, and sunsets on December 31, 2035. Effective 7/1/3000. (HD2)

Reestablishes the Agricultural Development and Food Security Special Fund. Renames the Environmental Response, Energy, and Food Security Tax, also known as the barrel tax, as the Environmental Response, Energy, Carbon Emissions, and Food Security Tax; gradually increases barrel tax rates; and allocates portions of barrel tax revenues to the Agricultural Development and Food Security Special Fund, Carbon Emissions Tax and Dividend Special Fund, Airport Revenue Fund, and Boating Special Fund. Establishes a refundable Carbon Cashback Tax Credit and appropriates funds to the Department of Taxation to administer the tax credit. Establishes the Carbon Emissions Tax and Dividend Special Fund to be used in the administration of the barrel tax and Carbon Cashback Tax Credit and for public awareness of the Carbon Cashback Tax Credit. Requires the Department of Taxation to submit reports to the Legislature. Effective 7/1/3000. (HD1)

Prohibits the Public Utilities Commission from approving costs of infrastructure, operations and maintenance, fuel, or other costs relating to supplying and using liquefied natural gas unless certain conditions are met. Requires the Public Utilities Commission to consider the effect of fossil fuels on renewable energy, stranded investment risks and costs, and costs and risks of reliance on a single fuel supply or monopoly supplier when making determinations of the reasonableness of the costs pertaining to electric or gas utility system capital improvements and operations. Effective 7/1/3000. (HD1)