STAND. COM. REP. NO. 1618-26

Honolulu, Hawaii

, 2026

RE: H.R. No. 197

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.R. No. 197 entitled:

"HOUSE RESOLUTION REQUESTING THE PUBLIC UTILITIES COMMISSION TO ENSURE THAT CERTAIN CONDITIONS ARE MET BEFORE APPROVING ANY INFRASTRUCTURE, OPERATIONS, MAINTENANCE, FUEL, OR OTHER COSTS RELATING TO SUPPLYING AND USING LIQUEFIED NATURAL GAS,"

begs leave to report as follows:

The purpose of this measure is to request the Public Utilities Commission to:

(1) Ensure that certain conditions are met before approving any infrastructure, operations, maintenance, fuel, or other costs relating to supplying and using liquefied natural gas;

(2) Deny any costs related to liquefied natural gas under certain conditions;

(3) Consider the effects of approving the use of liquefied natural gas on renewable energy development and deployment; and

(4) Consider the risks and costs of stranded assets and risks and costs of reliance on a single fuel supply or monopoly supplier when making certain determinations.

Your Committee received testimony in support of this measure from Climate Protectors Hawaiʻi; Imua Alliance; Environmental Caucus of the Democratic Party of Hawaiʻi; and two individuals. Your Committee received testimony in opposition to this measure from JERA Americas and two individuals. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Hawaiʻi State Energy Office; Public Utilities Commission; and Earthjustice.

Your Committee finds that the State must ensure that any consideration of importing natural gas into Hawaii is conducted in a manner that protects ratepayers and advances clean energy goals. Your Committee further finds that long-term investments in natural gas infrastructure may expose ratepayers to significant financial risks, including stranded asset costs and fuel price volatility. This measure requests the Public Utilities Commission to ensure that approval of costs relating to supply and use of liquefied natural gas are conditioned upon certain factors relating to protection of ratepayers and prioritization of non-fossil-fuel alternatives.

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 concurs with the intent and purpose of H.R. No. 197 and recommends that it 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