SB 3326

THE SENATE
S.B. NO.
3326
THIRTY-THIRD LEGISLATURE, 2026
S.D. 2
STATE OF HAWAII
H.D. 2
A BILL FOR AN ACT
RELATING TO ENERGY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
���� SECTION 1.� The legislature finds that Hawaii faces the
highest cost of living in the nation, with energy prices playing a significant
role in driving that burden for residents and businesses alike. �The State's continued reliance on imported
fuels leaves it acutely exposed to sudden and significant price fluctuations
driven by forces beyond its control, including global conflicts, shifting
international political dynamics, and natural disasters. �These external pressures can rapidly increase
the cost of fuel imports, placing immediate and substantial financial strain on
Hawaii's households and economy.
���� The
legislature further finds that at the same time, the development of local
renewable energy resources has already demonstrated a pathway toward greater
affordability and stability. �Renewable
projects are now among the lowest-cost sources of electricity on the grid, and
the cost of technologies, such as solar generation and battery storage, has
declined dramatically over the past decade while continuing to improve in
performance, duration, and scalability. �Advances in long-duration energy storage,
including those using more abundant and cost-effective materials, further
expand the potential for reliable, scalable, locally sourced energy.
���� The
legislature additionally finds that other jurisdictions, including California,
have shown that large-scale deployment of renewable energy and advanced storage
can improve grid reliability while reducing exposure to volatile fuel markets. �Hawaii's laws and policies similarly direct
state energy planning to increase energy security and self-sufficiency by
reducing and ultimately eliminating dependence on imported fuels for electrical
generation.
���� Act 97, Session Laws of Hawaii 2015,
established a requirement of one hundred per cent renewable energy by 2045 in
recognition that Hawaii's dependence on imported fuel drains billions of
dollars annually from the State's economy and that transitioning to local
renewable resources is essential to long-term affordability and economic
stability. �In addition, prior decisions
of the public utilities commission and the courts have emphasized the State's
obligation to protect ratepayers from imprudent costs and to pursue least-cost,
least-risk energy strategies.
���� Despite this direction, the legislature
finds that recent analyses of future energy pathways have raised substantial
concerns regarding the assumptions, methodologies, and treatment of costs. �Questions have emerged as to whether certain
analyses have omitted key cost components, made unsupportable assumptions, or
failed to meaningfully evaluate renewable alternatives. �Some studies have narrowly focused on fuel
substitution rather than undertaking a comprehensive assessment of all viable
pathways, potentially overlooking options that could deliver greater cost
savings and reduced financial risk.
���� Hawaii's ongoing dependence on imported
fuels continues to expose residents to price volatility, increasing costs for
families and businesses while exporting billions of dollars annually from the
State's economy. �In light of these
challenges and opportunities, the legislature finds that a thorough and
independent evaluation of the full range of available energy pathways is a
necessary undertaking.
���� Accordingly, the purpose of this Act is to
require the public utilities commission to conduct a comprehensive, independent
analysis to identify the energy pathways that will best reduce costs and
minimize financial risk for Hawaii residents while meeting the State's
established energy goals.
���� SECTION 2.�
(a)� The public utilities
commission shall open a docketed proceeding no later than September 1, 2026, to
conduct a comprehensive, objective, and independent analysis of the State's
energy pathways.
���� (b)� The
analysis shall identify the best potential paths for Hawaii to maximize cost
reduction and minimize financial risk to residents for energy services while
meeting established state energy goals and maintaining reliability for the
period from July 1, 2026, through 2055, including consideration of costs and
savings extending beyond 2045.
���� (c)�
The public utilities commission shall ensure that the analysis:
���� (1)� Evaluates
multiple energy pathways, including but not limited to renewable energy, energy
storage, energy efficiency, and imported fuel scenarios;
���� (2)� Accounts
for total system costs, including capital costs, fuel costs, operating costs,
and long-term ratepayer impacts;
���� (3)� Assesses
exposure to fuel price volatility and other financial risks;
���� (4)� Evaluates
the risk of stranded assets associated with major infrastructure investments;
���� (5)� Incorporates
consideration of reliability and resilience, including performance during
extreme events and natural disasters; and
���� (6)� Is
designed to avoid undue limitations or assumptions that could artificially
constrain the scope of potential solutions.
���� (d)� The
analysis shall, at a minimum, consider the latest strategies, technologies, and
innovations being developed or deployed in Hawaii and in other jurisdictions
that may improve affordability, reduce financial risk, and enhance system
performance, including long-duration energy storage and other emerging
solutions.
���� (e)� The
public utilities commission shall release draft assumptions and preliminary
modeling results for public comment within one hundred eighty days of opening
the proceeding.
���� (f)� The
public utilities commission shall contract with and engage independent experts
as necessary to carry out the purposes of this Act.
���� (g)� The
public utilities commission shall ensure that the methodologies, assumptions,
data inputs, and results of each analysis are transparent and made publicly
available to the extent practicable.
���� (h)�
The public utilities commission shall submit a report of its findings
and recommendations, including any proposed legislation, to the legislature no
later than twenty days prior to the convening of the regular session of 2028.
���� SECTION
3.� This Act shall take effect on July 1,
3000.
Report Title:
PUC; Docketed
Proceeding; Study; Energy Pathways
Description:
Requires the Public Utilities Commission to open a
docketed proceeding no later than 9/1/2026, to conduct a comprehensive,
objective, and independent analysis of the State's energy pathways.� Effective 7/1/3000.� (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.