STAND. COM. REP. NO. 238

Honolulu, Hawaii

RE: S.B. No. 1120

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Transportation and Culture and the Arts and Agriculture and Environment, to which was referred S.B. No. 1120 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

beg leave to report as follows:

The purpose and intent of this measure is to require the Department of Transportation to adopt rules governing a clean fuel standard for alternative fuels in the State.

Your Committees received testimony in support of this measure from the Oahu Metropolitan Planning Organization, Biotechnology Innovation Organization, Coalition Earth, Twelve Benefit Corporation, Electrify America, Hawaiian Electric, and Neste.

Your Committees received comments on this measure from Par Hawaii, Island Energy Services, and Growth Energy.

Your Committees find that transportation is the State's largest source of lifecycle greenhouse gas emissions and that the tourism industry is the State's largest economic driver and biggest transportation sector consumer. Better management of waste and resources is critical to environmental stewardship, and a clean fuel standard is central to reducing the State's lifecycle greenhouse gas emissions while also protecting the State's economic competitiveness, public health, and the environment. Your Committees believe that additional support is vital for the deployment of clean transportation fuel technologies throughout the State. By requiring the Department of Transportation to adopt rules governing clean fuel standards, this measure seeks to reduce greenhouse gas emissions and air pollution to support the health and prosperity of the State's residents.

Your Committees have amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Transportation and Culture and the Arts and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1120, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1120, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Culture and the Arts and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ CHRIS LEE, Chair