STAND. COM. REP. NO. 2158

Honolulu, Hawaii

RE: S.B. No. 2768

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Agriculture and Environment, to which was referred S.B. No. 2768 entitled:

"A BILL FOR AN ACT RELATING TO GREENHOUSE GAS EMISSIONS,"

beg leave to report as follows:

The purpose and intent of this measure is to require the Hawaii State Energy Office to adopt rules governing a clean fuel standard for gasoline and diesel in the State.

Your Committees received testimony in support of this measure from the Hawaiʻi Climate Change Mitigation and Adaptation Commission, Neste, Clean Energy U.S., Biotechnology Innovation Organization, and two individuals.

Your Committees received testimony in opposition to this measure from the Environmental Caucus of the Democratic Party of Hawaiʻi and two individuals.

Your Committees received comments on this measure from the Hawaiʻi State Energy Office, Alliance for Automotive Innovation, Hawaiian Electric, Par Hawaii, and 350Hawaii.

Your Committees find that a clean fuel standard is central to reducing the State's greenhouse gas emissions. Without policy specific to the transportation sector, emissions reductions will not be achieved in a timeframe consistent with the State's goal. Your Committees further find that a clean fuel standard that is technology-neutral and market-based is an effective policy for reducing emissions in the transportation sector while also achieving other co-benefits.

Your Committees also find that the specific goals for carbon reduction and allocation amounts for clean energy programs merits further consideration and requests that subsequent Committees who choose to hear this measure as it advances through the legislative process further examine and make recommendations on the unspecified percentage levels for carbon intensity reduction and annual deficit allocation to clean energy programs.

Accordingly, your Committees have amended this measure by:

(1) Inserting an effective date of January 1, 2060, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2768, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2768, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ LYNN DECOITE, Chair