STAND. COM. REP. NO. 3700

Honolulu, Hawaii

RE: H.B. No. 2423

H.D. 3

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Ways and Means, to which was referred H.B. No. 2423, H.D. 3, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO BIODIESEL,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Director of Business, Economic Development, and Tourism to implement a requirement that, no later than January 1, 2028, diesel fuel sold in certain counties for use in on-highway diesel-powered motor vehicles contains no less than five percent biodiesel by volume, except in circumstances where the supply of biodiesel is insufficient;

(2) Require the Department of Business, Economic Development, and Tourism to submit a report to the Legislature, including a comprehensive rollout plan;

(3) Require the Director of Business, Economic Development, and Tourism to consult with the Department of Transportation during the development and implementation of the biodiesel requirements; and

(4) Present the comprehensive rollout plan to the public.

Your Committees received testimony in support of this measure from Pacific Biodiesel Technologies and one individual.

Your Committees received comments on this measure from the Hawaii State Energy Office.

Your Committees find that diesel fuel that contains five percent biodiesel by volume, known as "B5" in the industry, can help reduce greenhouse gas emissions and reliance on fossil fuels. Your Committees further find that it is possible for fuel wholesalers in the State to integrate "B5" into their diesel fuel without modifications or other difficult logistics. This measure would support the State to meet its statutory climate and clean energy goals, including the commitment to achieving a net-negative greenhouse gas economy and reducing petroleum consumption in the transportation sector.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2423, H.D. 3, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ JARRETT KEOHOKALOLE, Chair