STAND. COM. REP. NO. 260-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1568

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1568 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this measure 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 only 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.

Your Committee received testimony in support of this measure from the Free Access Coalition; Clean the Pacific; Pele Lani Farm LLC; Kauai Women's Caucus; Green Party of Hawaiʻi; Life of the Land; Climate Protectors Hawaiʻi; Chamber of Sustainable Commerce; HULI PAC; Sierra Club of Hawaiʻi; Hawaiʻi Alliance for Progressive Action; Sierra Club, Oʻahu Group; Greenpeace Hawaii; 350Hawaii.org; Kupuna for the Moopuna; Imua Alliance; ʻAhahui o Hawaiʻi; Moanalua Gardens Foundation; Polluters Pay Hawaiʻi; Earthjustice; Environmental Caucus of the Democratic Party of Hawaiʻi; Our Hawaiʻi; Blue Planet; Restore the Commons; and numerous individuals. Your Committee received testimony in opposition to this measure from the Department of Commerce and Consumer Affairs; Hawaiʻi State Energy Office; Hawaiʻi Gas; JERA Americas; Practical Policy Institute of Hawaii; Castle & Cooke Homes Hawaiʻi, Inc.; Stanford Carr Development; and nine individuals. Your Committee received comments on this measure from the Public Utilities Commission and Hawaiian Electric.

Your Committee finds that global use and trade of liquefied natural gas are growing despite its environmental risks and lifecycle greenhouse gas emissions. Your Committee further finds that the State should not follow this global trend and should limit any use of liquefied natural gas to what is necessary to meet the State's immediate energy needs. While your Committee recognizes the need to address overreliance on liquefied natural gas, your Committee finds that a total ban would be premature.

Accordingly, your Committee has amended this measure by:

(1) Removing the prohibition on liquefied natural gas, liquefied natural gas infrastructure, purchase agreements proposing to supply a utility with liquefied natural gas, and related provisions;

(2) Inserting provisions prohibiting 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;

(3) Requiring 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;

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

(5) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1568, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1568, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair