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Bill

Bill

SB 2999

RELATING TO A CLEAN FUEL STANDARD.

2026 Regular Session

SB 2999 would mandate Hawaii fuel suppliers reduce transportation fuel carbon intensity through blending requirements or credit purchases, aiming to lower emissions while potentially raising fuel costs initially.

Received notice of passage on Final Reading in House (Hse. Com. No. 888).
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Bill Summary · SB 2999

Legislative bill overview

SB 2999 proposes establishing a clean fuel standard in Hawaii, which would require fuel suppliers to reduce the carbon intensity of transportation fuels sold in the state over time. The bill creates a regulatory framework requiring blending of lower-carbon alternatives with conventional fuels or purchasing of credits from cleaner fuel producers. This is a market-based mechanism similar to California's Low Carbon Fuel Standard.

Why is this important

Hawaii imports nearly all its fuel and has among the highest gas prices nationally, making transportation fuel costs a significant burden for residents and businesses. A clean fuel standard could reduce dependence on imported fossil fuels, potentially lower long-term fuel costs through renewable alternatives, and position Hawaii to meet its clean energy goals. However, implementation costs may be passed to consumers in the short term.

Potential points of contention

  • Consumer cost impact: Fuel suppliers may pass compliance costs to consumers, raising gas prices during the transition period before renewable fuel infrastructure matures
  • Economic competitiveness: Hawaii businesses and residents could face higher transportation costs compared to mainland competitors, potentially affecting economic activity and tourism-dependent industries
  • Implementation feasibility: Hawaii's geographic isolation and limited refinery capacity creates supply chain challenges; the state may struggle to source sufficient clean fuel alternatives to meet standards

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

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