THE SENATE	S.B. NO.	2255
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

A BILL FOR AN ACT

relating to BIODIESEL.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Hawaii's heavy dependence on imported petroleum threatens the State's energy security, economic stability, and national security interests in the Pacific region. Locally produced biodiesel provides an immediately deployable, renewable, energy-dense fuel that reduces reliance on foreign crude oil and increases the State's resilience against global supply disruptions, both of which have strategic local community and military importance. Biodiesel production can expand using locally sourced feedstocks from agriculture and recycled materials, strengthening the State's circular economy and supporting high-quality local jobs, regenerative farming, and food-security co-products.

The legislature further finds that biodiesel is essential to Hawaii's clean energy and transportation goals. Biodiesel is safe, biodegradable, and compatible with existing diesel engines and infrastructure without equipment modifications. It provides firm, dispatchable renewable energy to support the electric grid when solar and wind resources are unavailable and offers significant greenhouse gas reductions for expensive and hard-to-electrify vehicles such as trucks, buses, and marine vessels. Replacing even five per cent of the State's transportation diesel with biodiesel would prevent significant carbon emissions while keeping fuel dollars circulating within the State's economy. In addition, this change would impact fuel cost by fewer than 3 cents per retail gallon, which falls within the typical weekly fluctuations of diesel fuel prices.

The legislature additionally finds that a minimum biodiesel fuel requirement would help reduce fossil diesel usage, support biodiesel production and agricultural feedstocks, and help biodiesel become a critical component of the State's energy portfolio.

Accordingly, the purpose of this Act is to require the director of business, economic development, and tourism to adopt rules to require that diesel fuel sold in the State for use in on-highway diesel-powered motor vehicles contains no less than five per cent biodiesel by volume.

SECTION 2. As used in this Act, "biodiesel" means liquid fuel produced from organic sources such as biomass crops; agricultural residues; oil crops including sunflower oil, canola oil, and soybean oil; food wastes such as cooking oil or grease; animal residues and wastes; and sewage and landfill wastes that comply with ASTM International standard D6751.

SECTION 3. No later than           , the director of business, economic development, and tourism shall adopt rules in accordance with chapter 91, Hawaii Revised Statutes, to require that diesel fuel sold in the State for use in on-highway diesel-powered motor vehicles contains no less than five per cent biodiesel by volume. The amounts of diesel fuel sold in the State containing no less than five per cent biodiesel shall be in accordance with rules as the director of business, economic development, and tourism deems appropriate.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Biodiesel; Minimum Fuel Requirement; Diesel-powered Motor Vehicles; DBEDT

Description:

Requires the Director of Business, Economic Development, and Tourism to adopt rules to require that diesel fuel sold in the State for use in on-highway diesel-powered motor vehicles contains no less than five per cent biodiesel by volume.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.