HB 2423

HOUSE OF REPRESENTATIVES
H.B. NO.
2423
THIRTY-THIRD LEGISLATURE, 2026
H.D. 3
STATE OF HAWAII
S.D. 1
A BILL FOR AN ACT
RELATING TO BIODIESEL.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
���� SECTION 1.� The legislature finds that Hawaii's heavy
dependence on imported petroleum threatens the State's energy security,
economic stability, and national security interests in the Pacific region.� Locally produced biodiesel provides an
immediately deployable, renewable, energy-dense fuel that reduces reliance on
foreign crude oil and increases the State's resilience against global supply
disruptions, which have strategic local community and military importance.� Biodiesel production can expand using locally
sourced feedstocks from agriculture and recycled materials, strengthening the
State's circular economy and supporting high-quality local jobs, regenerative
farming, and food-security co-products.
���� The legislature further finds that
biodiesel is essential to Hawaii's clean energy and transportation goals.� Biodiesel is safe, biodegradable, and
compatible with existing diesel engines and infrastructure without equipment
modifications.� It provides firm,
dispatchable renewable energy to support the electric grid when solar and wind
resources are unavailable and offers significant greenhouse gas reductions for
expensive and hard-to-electrify vehicles, such as trucks, buses, and marine
vessels.� Replacing even five per cent of
the State's transportation diesel with biodiesel would prevent significant
carbon emissions while keeping fuel dollars circulating within the State's
economy.� In addition, this change would
impact fuel cost by fewer than three cents per retail gallon, which falls
within the typical weekly fluctuations of diesel fuel prices.
���� The legislature additionally finds
that a minimum biodiesel fuel requirement would help reduce fossil diesel
usage, support biodiesel production and agricultural feedstocks, and help
biodiesel become a critical component of the State's energy portfolio.
���� Accordingly, the purpose of this Act
is to require the director of business, economic development, and tourism to
implement a requirement that diesel fuel sold in counties with a population of more
than two hundred thousand but less than three hundred thousand persons for use
in on-highway diesel-powered motor vehicles contains no less than five per cent
biodiesel by volume, except in circumstances where the supply of biodiesel is
insufficient.
���� SECTION 2.� Chapter 486J, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:
���� "�486J-   � Biodiesel; fuel requirement; on-highway diesel-powered
motor vehicles; rules.� (a)� The director shall adopt rules in accordance
with chapter 91 to require that, no later than January 1, 2028, diesel fuel
sold in any county with a population of more than two hundred thousand but less
than three hundred thousand persons for use in on-highway diesel-powered motor
vehicles contains no less than five per cent biodiesel by volume; provided that
the rules shall allow for the use of renewable diesel in on-highway
diesel-powered motor vehicles if the supply of biodiesel is insufficient.
���� (b)� The amounts of diesel fuel sold in the any
county with a population of more than two hundred thousand but less than three
hundred thousand persons containing no less than five per cent biodiesel shall
be in accordance with rules as the director deems appropriate.
���� (c)� Any distributor or any other person violating
the requirements of this section shall be subject to a fine of no less than $2
per gallon of nonconforming fuel, up to a maximum of $10,000 per infraction.
���� (d)� The director shall adopt rules in accordance
with chapter 91 for the administration of and enforcement of this section.
���� (e)� As used in this section,
"biodiesel" means liquid fuel produced from organic sources such as:
���� (1)� Agricultural
residues;
���� (2)� Animal residues
and wastes;
���� (3)� Biomass crops;
���� (4)� Food wastes
such as cooking oil or grease;
���� (5)� Oil crops
including sunflower oil, canola oil, and soybean oil; and
���� (6)� Sewage and
landfill wastes,
that comply with ASTM International standard
D6751."
���� SECTION 3.� (a)� The
department of business, economic development, and tourism shall submit a report
to the legislature no later than twenty days prior to the convening of the
regular session of 2027.� The report shall include a comprehensive
rollout plan for the requirements for diesel fuel sold in certain counties established
pursuant to section 486J-   , Hawaii Revised Statutes, that addresses
the timeline, fiscal, and administrative structure of the rollout plan, any coordination
mechanism concerns, and any necessary statutory or regulatory adjustments.
���� (b)�
The director of business, economic development, and tourism shall:
���� (1)� Consult with the
department of transportation during the development and implementation of the
requirements of section 486J-   , Hawaii Revised Statutes, to
ensure operational coordination; and
���� (2)� Present the
comprehensive rollout plan to the public no later than one hundred twenty days
prior to the implementation of the requirements of section 486J-   ,
Hawaii Revised Statutes.
���� SECTION 4.� New statutory material is underscored.
���� SECTION 5.� This Act shall take effect on July 1, 3050.
Report Title:
DBEDT;
DOT; Biodiesel; Minimum Fuel Requirement; On-Highway Diesel-Powered Motor
Vehicles; Report
Description:
Requires
the Director of Business, Economic Development, and Tourism to implement a
requirement that, no later than January 1, 2028, diesel fuel sold in certain
counties for use in on-highway diesel-powered motor vehicles contains no less
than five per cent biodiesel by volume, except in circumstances where the
supply of biodiesel is insufficient.�
Requires the Department of Business, Economic Development, and Tourism
to submit a report to the Legislature, including a comprehensive rollout plan.� Requires the Director of Business, Economic
Development, and Tourism to consult with the Department of Transportation during
the development and implementation of the biodiesel requirements and present
DBEDT's comprehensive rollout plan to the public.� Effective 7/1/3050.� (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.