Bill

HCR 170

REQUESTING THE DEPARTMENT OF TRANSPORTATION TO CONVENE A WORKING GROUP TO ESTABLISH AND RECOMMEND FEDERAL AND LOCAL SUBSIDIES FOR THE TRANSPORT OF WATERBORNE CARGO AND TO WORK AND CONSULT WITH THE UNITED STATES DEPARTMENT OF TRANSPORTATION, HAWAII'S CONGRESSIONAL DELEGATION, AND THE LEGISLATURE.

2025 Regular Session Introduced by Sue Lee Loy

Directs DOT to convene a working group to design subsidies for waterborne cargo, aiming to lower Hawaii goods costs and boost food security; report by 2026.

Referred to TRN, FIN, referral sheet 22

#dbedt #doa #dot #subsidyprograms #waterbornecarriers #workinggroup

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Bill Summary · HCR 170

Summary of HCR170 (House Concurrent Resolution 170)

Purpose and intent

HCR170 requests the Hawaii Department of Transportation (DOT) to convene a working group to establish and recommend federal, state, and county subsidies for the transport of waterborne cargo. The resolution directs DOT to lead ongoing efforts and consultations with the U.S. Department of Transportation (USDOT), Hawaii’s congressional delegation, and the Legislature. The overarching goal is to reduce the cost of goods in Hawaii by supporting subsidies for interisland and trans-Pacific waterborne cargo, thereby strengthening maritime cargo services and food security.

Background and context

The bill builds on prior work from the Hawaii Water Carriers Working Group, established by S.R. No. 125, S.D. 1 (2020). The group released its final report on December 27, 2021.
Hawaii’s economy and daily life rely heavily on waterborne cargo: more than 80% of goods consumed in Hawaii are imported, with over 98% of that cargo moved by water. The cost of shipping contributes to roughly 7.5% of the cost of goods.
The final report recommended broad subsidies for trans-Pacific and interisland cargo and suggested funding sources from federal, state, and county programs. It also urged the Legislature to direct DOT to convene a working group and to maintain collaboration with USDOT, Hawaii’s congressional delegation, and transportation committees to draft and advance subsidy programs.

Key provisions and duties

The resolution directs DOT to convene a working group to establish and recommend federal, state, and county subsidies for the transport of waterborne cargo.
DOT is tasked with leading a continuing committee to collaborate with:
- USDOT on establishing a federal waterborne cargo subsidies program, including drafting potential legislation.
- Hawaii’s congressional delegation to sponsor federal legislation for a waterborne cargo subsidies program within USDOT.
- Transportation committees of the Hawaii Senate and House, county departments of transportation, and county councils to establish local waterborne cargo subsidies programs (including drafting legislation).
The working group must report back on the status of creating these programs no later than 20 days before the convening of the Regular Session of 2026.

Working group composition

The resolution specifies the following members or designees, with the Director of Transportation serving as Chair:
1. Director of Transportation (or designee)
2. Director of Business, Economic Development, and Tourism (DBEDT) (or designee)
3. Chairperson of the Board of Agriculture (or designee)
4. One Senator (appointed by the President of the Senate)
5. One Representative (appointed by the Speaker of the House)
6. Chairs of the standing transportation committees in both chambers
7. Mayor of each county (or designee)
8. One representative from each water carrier operating in Hawaii (invited by the Chair)

Procedural/timeline aspects

Status: Concurrent resolution; introduced June 1, 2025; referred to TRN (Transportation) and FIN (Finance) on March 14, 2025 (ref. sheet 22); official offer date March 7, 2025.
The bill directs DOT to maintain ongoing consultations and to draft legislation in cooperation with the above parties.
A companion bill is HR 166 (House companion).

Potential impact

Establishing a formal framework for subsidies could reduce logistics costs for waterborne cargo, potentially lowering prices of imported goods in Hawaii and improving food security.
The initiative creates a multi-stakeholder process that could influence future federal, state, and county subsidy programs related to maritime cargo.
As a concurrent resolution, the measure expresses legislative intent and directs state agencies and stakeholders rather than creating new, standalone statutory requirements or funding mechanisms. Implementation would require subsequent legislation and funding decisions.