RELATING TO ENERGY.

HB1568

HOUSE OF REPRESENTATIVES

H.B. NO.

1568

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to ENERGY
.

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

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SECTION
1.
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The legislature finds that global gas
production rose to a new high in 2024, increasing by two per cent from
2023.
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The United States, already the
world's largest gas producer, broke new production records in 2024, due to the
rapid expansion of the global liquefied natural gas trade.
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Liquefied natural gas is a natural gas that
has been cooled to a liquid state, making it easier to transport.
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Once the liquefied natural gas reaches its
destination, it can be warmed back into gas and used to generate electricity or
provide heating.
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Despite being viewed as
a "bridge fuel" and a greener alternative to coal, liquefied natural
gas poses serious environmental risks due to its full lifecycle emissions.
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The legislature further finds that the State
should not follow the national trend in liquefied natural gas usage and should
instead turn to other, greener options to meet energy demands.

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Liquefied
natural gas is made up of mostly methane, which can leak through the extraction,
transportation, and regasification process, increasing emissions and air
pollutants.
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The infrastructure needed to
sustain liquefied natural gas also poses its own environmental risks.
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Liquefied natural gas terminals are
facilities that store and process liquefied natural gas, often located near
coastal areas for water access to import and export ships.
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These facilities are often massive in scale
and can require significant industrialization of coastal areas, threatening ecosystems
and posing a health and safety risk to nearby communities.

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The
legislature also finds that the State should not rely on liquefied natural gas as
a significant energy source as it poses serious economic risks and undermines
the State's goals for renewable energy and grid resilience.
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Long-term contracts between public utilities
and liquefied natural gas suppliers would increase the State's reliance on energy
imports and expose the State to the highly volatile liquefied natural gas market,
ultimately burdening ratepayers.
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The liquefied
natural gas trade is prone to disruption because of offshore shipping and
marine terminal interruptions, cold chain vulnerability, and reliance on highly
specialized regasification infrastructure, making it an unreliable energy
source.

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The
legislature additionally finds that the State should be prioritizing
opportunities for energy democratization and encouraging community-owned and
distributed energy systems.
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Investment
in the renewable energy economy is vital for the State's clean energy future
and would be undermined by further investment in liquefied natural gas and
other fossil fuels.

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The
legislature further finds that the State has a constitutional obligation to
protect Hawaii's natural resources for the benefit of present and future
generations.
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This commitment is
reflected in a series of legislative actions undertaken to promote
environmental sustainability.
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Hawaii was
the first state in the country to adopt a one hundred per cent renewable energy
requirement for electricity by 2045 through the passage of Act 97, Session Laws
of Hawaii 2015.
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Hawaii has also pledged
to achieve carbon neutrality by 2045 through the passage of Act 15, Session
Laws of Hawaii 2018, another first in the nation.
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The legislature further finds that a ban on liquefied
natural gas would align with the State's previous steps towards a clean energy
future and ensure the health, safety, and economic stability of residents.

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Accordingly,
the purpose of this Act is to:

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(1)
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Prohibit, after June 30, 2026:

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(A)
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The importation or storage of liquefied
natural gas;

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(B)
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The construction, expansion, or operation of
liquefied natural gas infrastructure; and

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(C)
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State agencies or counties from issuing a
permit or lease that enables the development or expansion of liquefied natural
gas;

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(2)
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Authorize the public utilities commission and
department of health to adopt rules for the enforcement and compliance of the
prohibition;

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(3)
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Repeal a provision from the Hawaii State
Planning Act making it a policy of the State to use liquefied natural gas as a
transitional, limited-term replacement of petroleum; and

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(4)
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Prohibit, after June 30, 2026, the approval of
a new or renewed purchase agreement that proposes to supply a utility with
liquefied natural gas and the modification of an existing liquefied natural gas
purchase agreement that proposes to extend the term or increase the amount of
liquefied natural gas that is supplied under the existing agreement.

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SECTION
2.
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Chapter 196, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:

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"
�196-
�
Liquefied natural gas; prohibition.
�
(a)
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Beginning after June 30, 2026:

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(1)
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The importation or storage of liquefied
natural gas shall be prohibited;

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(2)
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The construction, expansion, or operation
of liquefied natural gas infrastructure shall be prohibited; and

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(3)
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No state agency or county shall issue a
permit or lease that enables the development or expansion of liquefied natural
gas.

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(b)
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This section shall not apply to any existing emergency
backup generator powered by propane; provided that no liquefied natural gas is
used to power the emergency backup generator.

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(c)
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The commission and department of health may
adopt rules to enforce and ensure compliance with this section.

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(d)
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For the purposes of this section:

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"Liquefied
natural gas" means a natural gas, consisting primarily of methane, that
has been cooled to a liquid state for shipping and storage.

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"Liquefied
natural gas infrastructure" means any import terminal, regasification facility,
pipeline, or storage unit used to transport, receive, regasify, liquefy, or
distribute liquefied natural gas.
"

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SECTION
3
.
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Section 226-18, Hawaii Revised Statutes, is
amended by amending subsection (c) to read as follows:

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"(c)
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To further achieve the energy objectives, it
shall be the policy of this State to:

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(1)
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Support research
and development as well as promote the use of renewable energy sources;

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(2)
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Ensure that the
combination of energy supplies and energy-saving systems is sufficient to
support the demands of growth;

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(3)
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Base decisions of
least-cost supply-side and demand-side energy resource options on a comparison
of their total costs and benefits when a least-cost is determined by a
reasonably comprehensive, quantitative, and qualitative accounting of their
long-term, direct and indirect economic, environmental, social, cultural, and
public health costs and benefits;

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(4)
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Promote all
cost-effective conservation of power and fuel supplies through measures,
including:

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(A)
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Development of
cost-effective demand-side management programs;

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(B)
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Education;

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(C)
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Adoption of
energy-efficient practices and technologies; and

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(D)
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Increasing energy
efficiency and decreasing energy use in public infrastructure;

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(5)
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Ensure, to the
extent that new supply-side resources are needed, that the development or
expansion of energy systems uses the least-cost energy supply option and
maximizes efficient technologies;

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(6)
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Support research,
development, demonstration, and use of energy efficiency, load management, and
other demand-side management programs, practices, and technologies;

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(7)
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Promote alternate
fuels and transportation energy efficiency;

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(8)
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Support actions
that reduce, avoid, or sequester greenhouse gases in utility, transportation,
and industrial sector applications;

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(9)
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Support actions
that reduce, avoid, or sequester Hawaii's greenhouse gas emissions through
agriculture and forestry initiatives;

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(10)
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Provide priority
handling and processing for all state and county permits required for renewable
energy projects;
and

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[
(11)
�
Ensure that
liquefied natural gas is used only as a cost-effective transitional,
limited-term replacement of petroleum for electricity generation and does not
impede the development and use of other cost-effective renewable energy
sources; and

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(12)
]

(11)
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Promote the development of indigenous
geothermal energy resources that are located on public trust land as an
affordable and reliable source of firm power for Hawaii."

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SECTION
4
.
�
Section 269-48, Hawaii Revised Statutes, is
amended to read as follows:

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"
[
[
]
�269-48[
]
]
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Coal power purchase agreements;
liquefied
natural gas purchase agreements;
prohibited.
�
(a)
�
Beginning after June 30, 2020, the
public utilities commission shall not approve:

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(1)
�
Any new or renewed
power purchase agreement that proposes to burn or consume coal to generate
electricity; or

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(2)
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A modification of
a coal power purchase agreement that proposes to extend the term or increase
the amount of generation that is allowed to be produced under the existing
agreement.

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(b)
�
Beginning after June 30, 2026, the public
utilities commission shall not approve:

����
(1)
�
Any new or renewed purchase agreement
that proposes to supply a utility with liquefied natural
gas
; or

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(2)
�
Any modification of an existing liquefied
natural gas purchase agreement that proposes to extend the term or increase the
amount of liquefied natural gas that is supplied under the existing agreement.

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For the
purposes of this subsection, "liquefied natural gas" has the same
meaning as in section 196- .
"

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SECTION 5.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION 6.
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This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

Liquefied
Natural Gas; Infrastructure; Permits; Leases; Counties; Purchase Agreements; Prohibition;
Hawaii State Planning Act; Public Utilities Commission; Department of Health

Description:

Prohibits,
after 6/30/2026, the importation or storage of liquefied natural gas; the construction,
expansion, or operation of liquefied natural gas infrastructure; and state
agencies or counties from issuing a permit or lease that enables the
development or expansion of liquefied natural gas, with certain
exemptions.
�
Authorizes the Public
Utilities Commission and Department of Health to adopt rules for the enforcement
and compliance of the prohibition.
�

Repeals a provision from the Hawaii State Planning Act making it a
policy of the State to use liquefied natural gas as a transitional, limited-term
replacement of petroleum.
�
Prohibits,
after 6/30/2026,
the approval of a new or renewed
purchase agreement
that proposes to supply a utility with liquefied natural
gas and
the modification of an existing liquefied
natural gas purchase agreement that proposes to extend the term or increase the
amount of
liquefied natural gas that is supplied under the existing
agreement.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.