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GM 1138

Informing the Legislature that on May 26, 2026, the Governor signed the following bill into law: SB3154 SD2 HD2 CD1 (ACT 038).

2026 Regular Session

Hawaii DOT may assume federal NEPA duties for transportation projects, streamlining reviews while a limited sovereign-immunity waiver exposes the state to NEPA-related liability.

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Bill Summary · GM 1138

Summary of SB3154 CD1 (Act 038) – Hawaii, 2026

Purpose and intent

  • The bill authorizes the Hawaii Department of Transportation (DOT) to participate in the National Environmental Policy Act (NEPA) Assignment Program, applying federal environmental review requirements to transportation projects within Hawaii.
  • It aims to streamline project delivery for highway, railroad, public transportation, or multimodal projects while maintaining environmental protections.
  • A limited waiver of state sovereign immunity is provided to comply with federal requirements when participating in the NEPA Assignment Program.

Key provisions and changes

  • Section 1: Legislative findings and purposes

    • States that DOT participation in NEPA Assignment under title 23 U.S.C. sections 326 and 327 will streamline project delivery without sacrificing environmental protections.
    • Establishes two primary goals: 1) Authorize DOT to participate in the NEPA Assignment Program. 2) Provide a limited waiver of Hawaii’s sovereign immunity to meet federal requirements for participation.

  • Section 2: Amended Hawaii Revised Statutes (HRS) § 26-19 (Department of Transportation)

    • Transfers and consolidates authority over transportation facilities and planning to the DOT.
    • Establishes DOT duties to plan, develop, promote, and coordinate transportation systems management programs (e.g., alternate work/school hours, bicycling, ridesharing).
    • Authorizes DOT to develop and promote ridesharing programs (carpool, vanpool) and to contract with private entities to manage such programs.
    • Transfers functions from the former Department of Public Works (highways) to DOT.
    • Abolishes the Hawaii Aeronautics Commission, the Board of Harbor Commissioners, and the Highway Commission (effective July 1, 1961 in the statute’s history; the crucial effect is to consolidate functions under DOT).
    • Grants DOT broader property authority:
    • DOT may acquire real, personal, or mixed property for purposes including climate mitigation/adaptation, noise/visual buffers, or transportation projects (as described).
    • DOT may own, hold, rehabilitate, sell, lease, encumber, or dispose of property acquired under these provisions.
    • Condemnation authority is available when necessary for property acquisition, with limitations that future public use requires DOT consent, and related land transfers can occur with governor approval.
    • DOT may assume responsibilities of the federal government under NEPA and other federal environmental laws for designated transportation projects:
    • Assume NEPA duties under 23 U.S.C. §§ 326, 327.
    • Enter into agreements with the U.S. Department of Transportation (USDOT) to designate categorical exclusions and participate in the federal project delivery program.
    • Adopt rules to implement these provisions under Hawaii’s Chapter 91 and align with federal environmental standards as the state’s standards for the program.
    • Sovereign immunity waiver (federal/claims context):
    • Abolishes/waives sovereign immunity to suits in federal court and liability exposure to the extent of liability under 23 U.S.C. §§ 326 or 327.
    • Requires the DOT to execute a memorandum of understanding (MOU) with USDOT accepting federal jurisdiction when a lawsuit arises from compliance with the DOT’s NEPA responsibilities; the MOU must be in effect at the time of the underlying act/omission.

  • Section 3: Clarifies new statutory material (underlined in draft)

  • Section 4: Effective date

    • The act takes effect upon approval by the Governor.

Who is affected

  • Hawaii Department of Transportation (primary implementer and administrator of the program).
  • State government and other state agencies involved in transportation planning, environmental review, and land use.
  • Private entities involved in ridesharing programs (potential contractors for managing carpool/vanpool initiatives).
  • Affected residents and communities due to streamlined project delivery, potential environmental review adjustments, and changes to land acquisition and use processes.
  • Federal government (USDOT) as a partner in the NEPA Assignment Program, with implications for jurisdiction in certain environmental matters and potential federal-court proceedings under the MOU.

Procedural and timeline notes

  • The bill authorizes participation in NEPA Assignment and related programmatic steps; it does not specify a detailed project-by-project timeline but sets the framework for DOT to assume federal NEPA responsibilities.
  • It provides a mechanism (MOU with USDOT) to establish federal jurisdiction for certain lawsuits arising from compliance with the program.
  • Effective date: upon the Governor’s signature (Act 038, signed May 26, 2026).

Potential impact

  • Environmental review for highway, railroad, public transportation, and multimodal projects could be conducted more efficiently at the state level, reducing duplication and potentially shortening project timelines.
  • Hawaii gains greater control over the environmental review process for transportation projects, aligning state standards with federal requirements where appropriate.
  • Limited sovereign immunity waiver anchors state liability exposure to the scope of federal NEPA-related liability under 23 U.S.C. §§ 326/327.
  • Expanded DOT authority over land acquisition and property management supports climate, noise-buffer, and project needs, with condemnation powers where necessary.

Compiled from official sources — confirm details with the bill’s official record.

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