SCR 166

THE SENATE
S.C.R. NO.
166
THIRTY-THIRD LEGISLATURE, 2026
S.D. 1
STATE OF HAWAII
H.D. 1
SENATE CONCURRENT
RESOLUTION
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.
���� 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
���� WHEREAS,
proponents of natural gas have asserted that its use would reduce electricity
costs and greenhouse gas emissions relative to imported petroleum; and
���� WHEREAS,
sufficient, transparent, and verifiable evidence has not been provided to
substantiate these claims; and
���� 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
���� WHEREAS, any
investment in energy infrastructure for the State is a generational commitment;
and
���� WHEREAS, the Public
Utilities Commission is mandated by law to consider increased renewable energy
generation to reduce the State's fossil fuel reliance.� However, proposals that contemplate
transitioning to a new renewable fuel supply that is not yet fully
market-ready, lacks demonstrated long-term price stability, or depends on
uncertain global supply chains may expose Hawaii ratepayers to heightened cost
risks and implementation uncertainties; and
���� WHEREAS, the Public
Utilities Commission has statutory authority to favorably consider costs
related to renewable energy as an alternative to fossil fuels.� Nevertheless, the introduction of a renewable
fuel supply at prices materially higher than existing or readily available
alternatives could result in significant and immediate rate increases, creating
rate shock for households and businesses already facing high energy costs,
which may disproportionately impact low- and moderate-income households and
small businesses, exacerbating economic inequities and undermining public
confidence in the State's energy transition; and
���� WHEREAS, even
if such a transition were focused on one island, it may have significant
secondary impacts statewide as the displacement of locally refined petroleum
products could reduce or eliminate in-state refining capacity, leading to
increased reliance on imported finished fuels overall and disproportionate
economic burdens on neighbor island communities that already face elevated fuel
and shipping expenses; and
���� WHEREAS,
Hawaii has established a statutory mandate to achieve one hundred percent
renewable portfolio standards by 2045.�
However, if compliance with the renewable portfolio standards requires
reliance on costly or not-yet-commercially viable fuel pathways, the resulting
rate impacts may create pressure to delay, weaken, or otherwise modify the
State's statutory renewable portfolio standards.� Such pressure may be amplified by
stakeholders with existing or prospective investments in fossil fuel
infrastructure who may advocate for extending the use of fossil fuels or
revising the 2045 renewable portfolio standard to protect those investments;
and
���� WHEREAS,
substantial new investment in fossil fuel infrastructure may undermine progress
toward the State's one hundred percent renewable portfolio goal and divert
capital, policy focus, and market signals away from the development of
indigenous, renewable energy sources.� Any
weakening, delay, or rollback of the State's renewable portfolio standards
would undermine long-term energy affordability, environmental protection, and
energy independence goals, while increasing exposure to volatile global fossil
fuel markets; and
���� WHEREAS, it
is therefore in the State's interest to ensure that near-term fuel decisions do
not create economic or political conditions that could jeopardize achievement
of the 2045 renewable portfolio standard; now, therefore,
���� BE IT
RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii,
Regular Session of 2026, the House of Representatives concurring, that in
making any determination relating to a generational energy commitment for the
State, the Public Utilities Commission is requested to:
���� (1)� Exercise sound and independent judgment;
���� (2)� Carefully consider all relevant information
when balancing short-term energy needs and the State�s long-term energy
commitments;
���� (3)� Use evidenced-based decision-making; and
���� (4)� Ensure transparency in the decision-making process;
and
���� BE IT FURTHER
RESOLVED that the Public Utilities Commission is requested to evaluate any
proposal involving liquefied natural gas or other imported fuels with direct
consideration of its potential effects on, or delays, to the State's statutory
renewable portfolio standards, including the 2045 deadline; and
���� BE IT FURTHER
RESOLVED that certified copies of this Concurrent 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.
Report Title:�
Public
Utilities Commission; Liquefied Natural Gas; Cost Approval