STAND. COM. REP. NO. 1201

Honolulu, Hawaii

, 2025

RE: S.B. No. 1120

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Transportation, to which was referred S.B. No. 1120, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

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

Your Committee received testimony in support of this measure from the Department of Transportation; Oahu Metropolitan Planning Organization; Neste; Biotechnology Innovation Organization; Twelve Benefit Corporation; Infinium Operations, LLC; Amazon; Coalition Earth; Fair Wind Inc.; Island Energy Services, LLC; and one individual. Your Committee received testimony in opposition to this measure from two individuals. Your Committee received comments on this measure from Growth Energy; Par Hawaii; Hawaiian Electric; Alaska Airlines; and Hawaiian Airlines.

Your Committee finds that clean fuel policies drive the adoption of lower carbon transportation technologies, resulting in advanced competition and a diversity of fuel options for consumers. Your Committee further finds that a clean fuel standard would enable the State to meet its decarbonization goals in regard to transportation fuels.

Your Committee notes that alternative fuels technology is an emerging technology in the State and as such, the financial impacts of adoption are not easily discernable and need to be thoroughly studied to ensure its adoption does not impose an unfair financial burden on taxpayers.

Accordingly, your Committee has amended this measure by:

(1) Requiring the Department of Transportation to conduct a feasibility study on implementing clean fuel standards for alternative fuels, including its potential fiscal impact on the State, and requiring a report to the Legislature sixty days before the convening of the Regular Session of 2027;

(2) Requiring the Department of Transportation to start the rule making process on July 1, 2027, and adopt final rules governing a clean fuel standard for alternative fuels by January 1, 2028;

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

(4) 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 Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1120, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1120, S.D. 1, H.D. 1, and be referred to your Committee on Energy & Environmental Protection.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

DARIUS KILA, Chair