RELATING TO A CLEAN ENERGY ECONOMY.

SB2903

THE SENATE

S.B. NO.

2903

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to A clean energy economy
.

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 affordability is an essential component of climate
policy and that strategies to reduce greenhouse gas emissions must consider
cost-effectiveness and impacts on ratepayers, taxpayers, households, and the
broader economy, while also maintaining reliable and resilient energy systems.
�
Fossil fueled electricity generation
constitutes a significant source of greenhouse gas emissions and therefore
represents a critical focus f
or emissions-reduction efforts,
while also considering the impact on customer energy costs and system
reliability.

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The
legislature further finds that climate change is driven by the cumulative
concentration of global greenhouse gases in the atmosphere and that carbon
dioxide is a globally mixed pollutant.
�
As
recognized by the Intergovernmental Panel on Climate Change, the climate
benefit of greenhouse gas mitigation and carbon sequestration depends on the
net global reduction in emissions and atmospheric concentrations, regardless of
the geographic location where sequestration or removal occurs; provided that
such reductions are real, measurable, additional, and durable.

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The
legislature further finds that, taken as a whole, the office of planning and
sustainable development, in its 2019 report, "Feasibility and Implications
of Establishing a Carbon Offset Program for the State of Hawaii", reflects
that that although local sequestration projects may provide important
co-benefits, including ecosystem services, cultural value, and local economic
activity, the scale of available local sequestration opportunities is limited
and may be insufficient on its own to achieve the State's long-term greenhouse
gas reduction goals, suggesting that access to broader sequestration
opportunities may be necessary and should be encouraged to achieve
cost-effective mitigation.

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The legislature further finds that
greenhouse gas emissions are inherently interstate and global in nature, and
that courts have recognized regulation of greenhouse gas emissions as a matter
of federal concern due to their interstate and global effects.
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Carbon sequestration and removal, as the
corollary to greenhouse gas emissions, similarly operate on a global
atmospheric basis.
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High-quality local
sequestration projects can deliver ecosystem, cultural, and community benefits,
while access to global sequestration opportunities can help reduce overall
costs and accelerate progress toward climate goals, making local and global
sequestration efforts complimentary.

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The legislature further finds that chapter
225P, Hawaii Revised Statutes (chapter 225P), establishes an aspirational
target for achieving a clean economy.
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As
one of the statewide planning chapters, chapter 225P is not to be construed as
a mandate.
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In fact, implementation of
chapter 225P in a manner that promotes or requires local sequestration over
functionally equivalent interstate or global sequestration, given that global
carbon sequestration and removal is a corollary to global greenhouse gas
emissions may raise concerns under the Dormant Commerce Clause (article 1,
section 8) of the United States Constitution because it facially discriminates
against out-of-state sequestration services and credits and favors in-state
economic actors at the expense of interstate competitors.

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The legislature further finds that a
2025 climate report issued by the
Council on
Strategic Risks
has concluded that climate change presents systemic
risks to both civilian and military communities in the State, driven by global
atmospheric conditions and global emissions trends.
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These assessments underscore that climate
impacts are not confined by state boundaries and that effective mitigation
depends on reducing cumulative global greenhouse gas concentrations.
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Accordingly, the legislature believes that recognition
of greenhouse gas sequestration should reflect its equivalent climate benefit
regardless of geographic location, particularly where such recognition supports
cost-effective, resilient, and timely emissions-reduction strategies.

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The legislature also recognizes that the
inclusion
of a representative from the Hawaii state energy office would strengthen the Hawaii
climate change mitigation and adaptation commission's ability to evaluate
mitigation and sequestration strategies in a coordinated and informed manner
that recognizes the benefit of global opportunities.
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While each state agency has been asked to
consider the
impact of their agency's internal plans, departmental decisions, and strategies
on the State's ability to achieve the goals of a clean economy, there has been
no reporting of such consideration given.

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Therefore, the purpose of this Act is to:

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(1)
�
Include
the chief energy officer of the Hawaii state energy office as a member of the H
awaii climate change mitigation and adaptation commission;

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(2)
�
Ensure that the State's
zero emissions clean economy aspirational target

encourages both local and global sequestration;

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(3)
�
Require each state agency to review the
impacts of its internal plans as they relate to the purpose and goals of the
Hawaii climate change mitigation and adaptation commission; and

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(4)
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Require the Hawaii state energy office to
submit reports regarding each agency's findings towards incrementally advancing
the purpose and goals of the Hawaii climate change mitigation and adaptation
commission.

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SECTION
2
.
�
Section 225P-1, Hawaii Revised Statutes, is
amended to read as follows:

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"�225P-1
�
Purpose.
�

The purpose of this chapter is to address the effects of climate
change to protect the State's economy, environment, health, and way of
life.
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This chapter establishes the
framework for the State to:

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(1)
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Adapt to the inevitable impacts of
global warming and climate change, including rising sea levels, temperatures,
and other risk factors; and

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(2)
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Mitigate its greenhouse gas emissions [
by
sequestering
]
through the local and global sequestration of
more
atmospheric carbon and greenhouse gases than the State produces as quickly as
practicable, but no later than 2045."

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SECTION
3
.
�
Section 225P-3, Hawaii Revised Statutes, is
amended by amending subsection (c) to read as follows:

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"
(c)
�
The
commission

shall include the following members:

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(1)
�
The chairs of the standing
committees
of the legislature with
subject matter jurisdiction encompassing environmental protection and land use;

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(2)
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The chairperson of the board of land
and natural resources or the chairperson's designee, who shall be the co-chair
of the
commission
;

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(3)
�
The director of the office of planning
and sustainable development or the director's designee, who shall be the
co-chair of the
commission
;

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(4)
�
The director of business, economic
development, and tourism or the director's designee;

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(5)
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The chairperson of the board of
directors of the Hawaii tourism authority or the chairperson's designee;

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(6)
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The chairperson of the board of
agriculture and biosecurity or the chairperson's designee;

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(7)
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The chief executive officer of the
office of Hawaiian affairs or the officer's designee;

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(8)
�
The chairperson of the Hawaiian homes
commission or the chairperson's designee;

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(9)
�
The director of transportation or the
director's designee;

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(10)
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The director of health or the director's
designee;

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(11)
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The adjutant general or the adjutant
general's designee;

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(12)
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The chairperson of the board of
education or the chairperson's designee;

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(13)
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The directors of each of the county
planning departments, or the directors' designees; [
and
]

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(14)
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The manager of the coastal zone
management program[
.
]
; and

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(15)
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The chief energy officer of the Hawaii
state
energy office.
"

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SECTION
4
.
�
Section 225P-5, Hawaii Revised Statutes, is
amended to read as follows:

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"
�225P-5
�
Zero emissions clean
economy target.
�
(a)
�
Considering both atmospheric carbon and
greenhouse gas emissions as well as offsets from the local
and global
sequestration
of atmospheric carbon and greenhouse gases through long-term sinks and
reservoirs, a statewide target is hereby established to sequester more
atmospheric carbon and greenhouse gases than emitted within the State as
quickly as practicable, but no later than 2045; provided that the statewide
target includes a greenhouse gas emissions limit, to be achieved no later than
2030, of at least fifty per cent below the level of the statewide greenhouse
gas emissions in 2005.

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(b)
�

The Hawaii climate change mitigation and adaptation commission shall
endeavor to achieve the goals of this section.
�

After January 1, 2020, agency plans, decisions, and strategies shall
give consideration to the impact of those plans, decisions, and strategies on
the State's ability to achieve the goals in this section, weighed appropriately
against their primary purpose.

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(c)
�

Each agency of the State shall
review the impacts of
its
internal plans, departmental decisions, and strategies showing
incremental advancement towards the goals in this section and submit the
findings to the Hawaii state energy office.

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(d)
�
The Hawaii state energy office shall submit a
summary report describing each agency's findings towards incrementally advancing
the goals of this section to the governor and legislature, no later than twenty
days prior to the convening of the regular session of 2027 and every five years
thereafter.
"

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SECTION 5.
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There is appropriated out of the energy security special fund the sum of
$100,000 or so much thereof as may be necessary for fiscal year 2026-2027 for
the Hawaii state energy office to summarize each state agency's progress toward
contributing to the achievement of the state goals pursuant to section 4 of
this Act.

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The sum appropriated shall be expended by
the Hawaii state energy office for the purposes of this Act.

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SECTION 6.
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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 7.
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This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

HSEO;
HCCMAC; GHG Sequestration; Climate Change; Reports; Appropriation

Description:

Includes
the Chief Energy Officer of the Hawaii State Energy Office as a member of the
Hawaii Climate Change Mitigation and Adaptation Commission.
�
Ensures that the State's zero emissions clean
economy aspirational target encourages both local and global sequestration.
�
Requires each state agency to review the
impacts of its internal plans as they relate to the purpose and goals of the Commission.
�
Requires HSEO to submit summary reports to
the Governor and Legislature.
�
Appropriates
funds.

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not legislation or evidence of legislative intent.