HB1459

HOUSE OF REPRESENTATIVES	H.B. NO.	1459
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

relating to sustainable aviation fuel.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that aviation accounts for the majority of the State's carbon pollution. As an island state dependent on air travel for connectivity, Hawaii must take steps to reduce aviation-related emissions to meet the State's commitment to achieving a net-negative carbon economy by 2045. Sustainable aviation fuel offers a viable pathway to reduce the environmental impact of air travel while supporting innovation and economic development in Hawaii's clean energy sector. Furthermore, local agricultural, entrepreneurs, and refinery interests have made significant investments in research, facilities, and infrastructure to develop locally produced sustainable aviation fuel.

The purpose of this Act is to establish requirements for the use of sustainable aviation fuel in all intrastate flights to advance Hawaii's climate goals, enhance energy security, and position Hawaii as a leader in the adoption of sustainable aviation practices.

SECTION 2. Chapter 261E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§261E- Sustainable aviation fuel; requirements; intrastate flights. (a) Beginning January 1, 2030, any commercial airline operating intrastate airline flights in the State shall utilize at least ten per cent of sustainable aviation fuel in their intrastate airline flights operated in the State.

(b) The requirement of subsection (a) shall increase annually on January 1 of every year by five percentage point until January 1, 2045, at which time one hundred per cent of sustainable aviation fuel shall be required for airlines operating intrastate airline flights within the State.

(c) The department of transportation shall collaborate with relevant federal agencies, airlines, fuel producers, and stakeholders to:

(1) Support the development and deployment of sustainable aviation fuel production facilities within the State;

(2) Identify funding opportunities to subsidize sustainable aviation fuel production and usage; and

(3) Advocate for federal programs or policies that advance sustainable aviation fuel adoption.

(d) Nothing in this section shall preclude airlines from qualifying for tax incentives or grants under state programs promoting clean energy and greenhouse gas reductions.

(e) The department of transportation shall adopt rules pursuant to chapter 91 to implement this section; provided that the rules include:

(1) Procedures for monitoring and reporting fuel usage and sustainable aviation fuel compliance;

(2) Certification processes for sustainable aviation fuel;

(3) Penalties for noncompliance; and

(4) Incentives to promote the development and use of sustainable aviation fuels in the State.

(f) The department of transportation shall submit an annual report to the legislature, no later than twenty days prior to the convening of each regular session, on the progress of sustainable aviation fuel adoption, compliance rates, economic impacts, and recommendations for further legislative action.

(g) For the purposes of this section, "sustainable aviation fuel" means ASTM International D7566-compliant renewable aviation turbine fuel derived from biofuels, as defined in section 269-91, and with a greenhouse gas lifecycle carbon intensity lower than the baseline for jet fuel defined by the International Civil Aviation Organization."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to support the development of sustainable aviation fuel production and provide incentives for compliance with the requirements of this Act.

The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2025.

INTRODUCED BY:

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