STAND. COM. REP. NO. 1166-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1695

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Finance, to which was referred H.B. No. 1695, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE FUEL,"

begs leave to report as follows:

The purpose of this measure is to amend the Renewable Fuels Production Tax Credit by:

(1) Increasing the credit amount and allowing only fuels that meet certain emissions thresholds to be eligible for the credit;

(2) Offering additional credit values for low lifecycle emissions renewable fuels and sustainable aviation fuel;

(3) Allowing taxpayers who previously claimed a tax credit for a single credit period for taxable years beginning before January 1, 2027, to claim another credit for taxable years beginning after December 31, 2026;

(4) Amending various credit cap amounts and the distribution process for available credits; and

(5) Expanding the types of feedstocks that can be used to produce renewable fuels eligible for credits.

Your Committee received testimony in support of this measure from the Hawaiʻi Farm Bureau; Par Hawaii; Hawaiʻi Renewable Fuels Coalition; Alaska Airlines and Hawaiian Airlines; and Pono Pacific.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1695, H.D. 2, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

CHRIS TODD, Chair