STAND. COM. REP. NO. 1223-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2999

S.D. 1

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 S.B. No. 2999, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO A CLEAN FUEL STANDARD,"

begs leave to report as follows:

The purpose of this measure is to require the Department of Transportation to adopt rules by January 1, 2028, establishing a clean fuel standard for alternative fuels in the State.

Your Committee received testimony in support of this measure from the Department of Transportation; Hawaiʻi Climate Change Mitigation and Adaptation Commission; Pump Cleaner Fuels Hawaiʻi; Neste; Life of the Land; Imua Alliance; Clean Energy; Simonpietri Enterprises LLC; Rivan; Tesla; and one individual. Your Committee received testimony in opposition to this measure from the Green Party of Hawaiʻi; Energy Justice Network; and nine individuals. Your Committee received comments on this measure from Beta Analytic; Par Hawaii; Island Energy Services, LLC; and two individuals.

Your Committee finds that transportation is the State's largest source of lifecycle greenhouse gas emissions and that alternative, cleaner fuel sources can help mitigate the environmental harm associated with this sector. Your Committee further finds that to prompt the use of clean fuels and zero-emission vehicles, other states like California, Oregon, and Washington have successfully implemented programs that reduce the carbon intensity of their transportation fuels. This measure seeks to implement such an initiative in Hawaii, requiring the development of a clean fuel standard for alternative fuels that is designed to reduce greenhouse gas emissions, stimulate economic growth, promote public and environmental health, and support the clean fuel industry.

Your Committee has amended this measure by:

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

(2) 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 S.B. No. 2999, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2999, S.D. 1, H.D. 1, and be referred to your Committee on Transportation.

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

____________________________

NICOLE E. LOWEN, Chair