REQUESTING THE PUBLIC UTILITIES COMMISSION TO MAKE CERTAIN JUDGMENTS, CONSIDERATIONS, AND DECISIONS WHEN MAKING ANY DETERMINATION RELATING TO A GENERATIONAL ENERGY COMMITMENT FOR THE STATE.

SR157

THE SENATE

S.R. NO.

157

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

SENATE RESOLUTION

requesting the public utilities commission to ensure that
certain conditions are met before approving any infrastructure, operations,
maintenance, fuel, or other costs relating to supplying and using liquefied
natural gas
.

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WHEREAS, the
State must ensure that any consideration of importing natural gas into Hawaii
is conducted in a manner that protects ratepayers, advances clean energy goals,
and safeguards long-term economic and environmental interests; and

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WHEREAS, proponents
of natural gas have asserted that its use would reduce electricity costs and
greenhouse gas emissions relative to imported petroleum; and

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WHEREAS, sufficient,
transparent, and verifiable evidence has not been provided to substantiate
these claims; and

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WHEREAS, long-term
investments in natural gas infrastructure may expose ratepayers to significant
financial risks, including stranded asset costs, fuel price volatility, and
long-term contractual obligations that could inflate electricity costs; and

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WHEREAS, Hawaii
has established a statutory mandate to achieve one hundred percent renewable
portfolio standards by 2045; and

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WHEREAS, substantial
new investment in fossil fuel infrastructure may undermine progress toward this
goal and divert capital, policy focus, and market signals away from the
development of indigenous, renewable energy sources; now, therefore,

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BE IT
RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii,
Regular Session of 2026, that the Public Utilities Commission is requested to ensure
that the following conditions are met before approving any costs of
infrastructure, operations, maintenance, fuel, or other costs relating to
supplying and using liquefied natural gas:

����
(1)
�
All liquefied natural gas infrastructure costs
shall be fully amortized no later than 2045, and utility customers shall not be
obligated to pay the costs of any stranded investments;

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(2)
�
Any power purchase or fuel supply agreement
shall not include any volumetric commitments or take-or-pay requirements for
fuel supplies and shall include provisions for supplies declining to zero no
later than 2045;

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(3)
�
Any power purchase or fuel supply agreement
shall not result in increased costs for customers in the counties of Hawaii,
Kauai, or Maui, including costs arising from downstream effects of changing
fuel supplies or suppliers for those counties; and

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(4)
�
Any approval shall include protections for
customers from fuel price volatility, including but not limited to provisions
for the utility to share in fuel price changes, which shall begin at no less
than ten percent and shall increase over time in line with declining fuel
supply volumes; and

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BE IT FURTHER
RESOLVED that the Public Utilities Commission is requested to deny any costs
related to liquefied natural gas if more cost-effective, non-fossil-fuel
alternatives are available to a utility or if approving the power purchase or
fuel supply agreement would commit a utility to purchasing a greater amount of
liquefied natural gas than necessary to accommodate the maximum amount of
renewable energy on the grid; and

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BE IT FURTHER
RESOLVED that the Public Utilities Commission is requested to consider the
effects of approving the use of liquefied natural gas on renewable energy
development and deployment, including risks and costs of diverting attention
and resources away from maximizing present and future cost savings from
renewable energy sources when making determinations of the reasonableness of
costs pertaining to electric or gas utility system capital improvements and
operations; and

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BE IT FURTHER
RESOLVED that the Public Utilities Commission is requested to consider the
risks and costs of stranded assets and the risks and costs of reliance on a
single fuel supply or monopoly supplier when making determinations of the
reasonableness of costs pertaining to electric or gas utility system capital
improvements and operations; and

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BE IT FURTHER
RESOLVED that certified copies of this Resolution be transmitted to the Director
of Commerce and Consumer Affairs; Executive Director of the Division of
Consumer Advocacy of the Department of Commerce and Consumer Affairs; Chief
Energy Officer of the Hawaii State Energy Office; Chairperson of the Public
Utilities Commission; and President and Chief Executive Officer of Hawaiian
Electric.

OFFERED BY:

_____________________________

Report Title:
�

Public
Utilities Commission; Liquefied Natural Gas; Cost Approval