HB1568

SECTION 1. The legislature finds that global gas production rose to a new high in 2024, increasing by two per cent from 2023. The United States, already the world's largest gas producer, broke new production records in 2024, due to the rapid expansion of the global liquefied natural gas trade. Liquefied natural gas is a natural gas that has been cooled to a liquid state, making it easier to transport. Once the liquefied natural gas reaches its destination, it can be warmed back into gas and used to generate electricity or provide heating. Despite being viewed as a "bridge fuel" and a greener alternative to coal, liquefied natural gas poses serious environmental risks due to its full lifecycle emissions. The legislature further finds that the State should not follow the national trend in liquefied natural gas usage and should instead turn to other, greener options to meet energy demands.

Liquefied natural gas is made up of mostly methane, which can leak through the extraction, transportation, and regasification process, increasing emissions and air pollutants. The infrastructure needed to sustain liquefied natural gas also poses its own environmental risks. Liquefied natural gas terminals are facilities that store and process liquefied natural gas, often located near coastal areas for water access to import and export ships. These facilities are often massive in scale and can require significant industrialization of coastal areas, threatening ecosystems and posing a health and safety risk to nearby communities.

The legislature also finds that the State should not rely on liquefied natural gas as a significant energy source as it poses serious economic risks and undermines the State's goals for renewable energy and grid resilience. Long-term contracts between public utilities and liquefied natural gas suppliers would increase the State's reliance on energy imports and expose the State to the highly volatile liquefied natural gas market, ultimately burdening ratepayers. The liquefied natural gas trade is prone to disruption because of offshore shipping and marine terminal interruptions, cold chain vulnerability, and reliance on highly specialized regasification infrastructure, making it an unreliable energy source.

The legislature additionally finds that the State should be prioritizing opportunities for energy democratization and encouraging community-owned and distributed energy systems. Investment in the renewable energy economy is vital for the State's clean energy future and would be undermined by further investment in liquefied natural gas and other fossil fuels.

The legislature further finds that the State has a constitutional obligation to protect Hawaii's natural resources for the benefit of present and future generations. This commitment is reflected in a series of legislative actions undertaken to promote environmental sustainability. Hawaii was the first state in the country to adopt a one hundred per cent renewable energy requirement for electricity by 2045 through the passage of Act 97, Session Laws of Hawaii 2015. Hawaii has also pledged to achieve carbon neutrality by 2045 through the passage of Act 15, Session Laws of Hawaii 2018, another first in the nation. The legislature further finds that a ban on liquefied natural gas would align with the State's previous steps towards a clean energy future and ensure the health, safety, and economic stability of residents.

Accordingly, the purpose of this Act is to:

(1) Prohibit, after June 30, 2026:

(A) The importation or storage of liquefied natural gas;

(B) The construction, expansion, or operation of liquefied natural gas infrastructure; and

(C) State agencies or counties from issuing a permit or lease that enables the development or expansion of liquefied natural gas;

(2) Authorize the public utilities commission and department of health to adopt rules for the enforcement and compliance of the prohibition;

(3) Repeal a provision from the Hawaii State Planning Act making it a policy of the State to use liquefied natural gas as a transitional, limited-term replacement of petroleum; and

(4) Prohibit, after June 30, 2026, the approval of a new or renewed purchase agreement that proposes to supply a utility with liquefied natural gas and the modification of an existing liquefied natural gas purchase agreement that proposes to extend the term or increase the amount of liquefied natural gas that is supplied under the existing agreement.

SECTION 2. Chapter 196, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§196- Liquefied natural gas; prohibition. (a) Beginning after June 30, 2026:

(1) The importation or storage of liquefied natural gas shall be prohibited;

(2) The construction, expansion, or operation of liquefied natural gas infrastructure shall be prohibited; and

(3) No state agency or county shall issue a permit or lease that enables the development or expansion of liquefied natural gas.

(b) This section shall not apply to any existing emergency backup generator powered by propane; provided that no liquefied natural gas is used to power the emergency backup generator.

(d) For the purposes of this section:

"Liquefied natural gas" means a natural gas, consisting primarily of methane, that has been cooled to a liquid state for shipping and storage.

"Liquefied natural gas infrastructure" means any import terminal, regasification facility, pipeline, or storage unit used to transport, receive, regasify, liquefy, or distribute liquefied natural gas."

SECTION 3. Section 226-18, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) To further achieve the energy objectives, it shall be the policy of this State to:

(1) Support research and development as well as promote the use of renewable energy sources;

(2) Ensure that the combination of energy supplies and energy-saving systems is sufficient to support the demands of growth;

(3) Base decisions of least-cost supply-side and demand-side energy resource options on a comparison of their total costs and benefits when a least-cost is determined by a reasonably comprehensive, quantitative, and qualitative accounting of their long-term, direct and indirect economic, environmental, social, cultural, and public health costs and benefits;

(4) Promote all cost-effective conservation of power and fuel supplies through measures, including:

(A) Development of cost-effective demand-side management programs;

(B) Education;

(D) Increasing energy efficiency and decreasing energy use in public infrastructure;

(5) Ensure, to the extent that new supply-side resources are needed, that the development or expansion of energy systems uses the least-cost energy supply option and maximizes efficient technologies;

(6) Support research, development, demonstration, and use of energy efficiency, load management, and other demand-side management programs, practices, and technologies;

(7) Promote alternate fuels and transportation energy efficiency;

(8) Support actions that reduce, avoid, or sequester greenhouse gases in utility, transportation, and industrial sector applications;

(9) Support actions that reduce, avoid, or sequester Hawaii's greenhouse gas emissions through agriculture and forestry initiatives;

(10) Provide priority handling and processing for all state and county permits required for renewable energy projects; and

[~~(11)~~ Ensure that liquefied natural gas is used only as a cost-effective transitional, limited-term replacement of petroleum for electricity generation and does not impede the development and use of other cost-effective renewable energy sources; and

~~(12)~~] (11) Promote the development of indigenous geothermal energy resources that are located on public trust land as an affordable and reliable source of firm power for Hawaii."

SECTION 4. Section 269-48, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-48[]] Coal power purchase agreements; liquefied natural gas purchase agreements; prohibited. (a) Beginning after June 30, 2020, the public utilities commission shall not approve:

(1) Any new or renewed power purchase agreement that proposes to burn or consume coal to generate electricity; or

(2) A modification of a coal power purchase agreement that proposes to extend the term or increase the amount of generation that is allowed to be produced under the existing agreement.

(b) Beginning after June 30, 2026, the public utilities commission shall not approve:

(1) Any new or renewed purchase agreement that proposes to supply a utility with liquefied natural gas; or

(2) Any modification of an existing liquefied natural gas purchase agreement that proposes to extend the term or increase the amount of liquefied natural gas that is supplied under the existing agreement.

For the purposes of this subsection, "liquefied natural gas" has the same meaning as in section 196- ."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2026.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1568
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII