HB 1459: RELATING TO SUSTAINABLE AVIATION FUEL.

A BILL FOR AN ACT

RELATING TO SUSTAINABLE AVIATION FUEL.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that aviation accounts for the majority of the State's carbon pollution.  As an island state dependent on air travel for connectivity, Hawaii must take steps to reduce aviation-related emissions to meet the State's commitment to achieving a net-negative carbon economy by 2045.  Sustainable aviation fuel offers a viable pathway to reduce the environmental impact of air travel while supporting innovation and economic development in Hawaii's clean energy sector.  Furthermore, local agricultural producers, entrepreneurs, and refineries have made significant investments in research, facilities, and infrastructure to develop locally produced sustainable aviation fuel.

     The purpose of this Act is to require commercial airlines operating intrastate flights in the State to utilize at least ten per cent sustainable aviation fuel in intrastate airline flights beginning January 1, 2030.

     SECTION 2.  Chapter 261E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§261E-     Sustainable aviation fuel; requirements; intrastate flights.  (a)  Beginning January 1, 2030, any commercial airline operating intrastate airline flights in the State shall utilize at least ten per cent sustainable aviation fuel in intrastate airline flights operated in the State.

     (b)  Nothing in this section shall preclude airlines from qualifying for tax incentives or grants under state programs promoting clean energy and greenhouse gas reductions.

     (c)  The department of transportation, in consultation with the Hawaii state energy office, shall adopt rules pursuant to chapter 91 to implement this section; provided that the rules include:

     (1)  Procedures for monitoring and reporting fuel usage and sustainable aviation fuel compliance;

     (2)  Certification processes for sustainable aviation fuel; and

     (3)  Penalties for noncompliance.

     (d)  The department of transportation shall submit an annual report to the legislature, no later than twenty days prior to the convening of each regular session, on the progress of sustainable aviation fuel adoption, compliance rates, economic impacts, and recommendations for further legislative action.

     (e)  For the purposes of this section, "sustainable aviation fuel" means liquid fuel that:

     (1)  Consists of synthesized hydrocarbons and meets the requirements of the American Society for Testing and Materials International Standard D7566 or D1655; and

     (2)  Is derived from biomass resources, waste streams, renewable or zero carbon energy sources, or gaseous carbon oxides."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

DOT; Sustainable Aviation Fuel; Commercial Airlines; Intrastate Travel

Description:

Requires commercial airlines operating intrastate flights in the State to utilize at least ten per cent sustainable aviation fuel in intrastate airline flights beginning 1/1/2030.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to sustainable aviation fuel.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that aviation accounts for the majority of the State's carbon pollution.  As an island state dependent on air travel for connectivity, Hawaii must take steps to reduce aviation-related emissions to meet the State's commitment to achieving a net-negative carbon economy by 2045.  Sustainable aviation fuel offers a viable pathway to reduce the environmental impact of air travel while supporting innovation and economic development in Hawaii's clean energy sector.  Furthermore, local agricultural, entrepreneurs, and refinery interests have made significant investments in research, facilities, and infrastructure to develop locally produced sustainable aviation fuel.

     The purpose of this Act is to establish requirements for the use of sustainable aviation fuel in all intrastate flights to advance Hawaii's climate goals, enhance energy security, and position Hawaii as a leader in the adoption of sustainable aviation practices.

     SECTION 2.  Chapter 261E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§261E-     Sustainable aviation fuel; requirements; intrastate flights.  (a)  Beginning January 1, 2030, any commercial airline operating intrastate airline flights in the State shall utilize at least ten per cent of sustainable aviation fuel in their intrastate airline flights operated in the State.

     (b)  The requirement of subsection (a) shall increase annually on January 1 of every year by five percentage point until January 1, 2045, at which time one hundred per cent of sustainable aviation fuel shall be required for airlines operating intrastate airline flights within the State.

     (c)  The department of transportation shall collaborate with relevant federal agencies, airlines, fuel producers, and stakeholders to:

     (1)  Support the development and deployment of sustainable aviation fuel production facilities within the State;

     (2)  Identify funding opportunities to subsidize sustainable aviation fuel production and usage; and

     (3)  Advocate for federal programs or policies that advance sustainable aviation fuel adoption.

     (d)  Nothing in this section shall preclude airlines from qualifying for tax incentives or grants under state programs promoting clean energy and greenhouse gas reductions.

     (e)  The department of transportation shall adopt rules pursuant to chapter 91 to implement this section; provided that the rules include:

     (1)  Procedures for monitoring and reporting fuel usage and sustainable aviation fuel compliance;

     (2)  Certification processes for sustainable aviation fuel;

     (3)  Penalties for noncompliance; and

     (4)  Incentives to promote the development and use of sustainable aviation fuels in the State.

     (f)  The department of transportation shall submit an annual report to the legislature, no later than twenty days prior to the convening of each regular session, on the progress of sustainable aviation fuel adoption, compliance rates, economic impacts, and recommendations for further legislative action.

     (g)  For the purposes of this section, "sustainable aviation fuel" means ASTM International D7566-compliant renewable aviation turbine fuel derived from biofuels, as defined in section 269-91, and with a greenhouse gas lifecycle carbon intensity lower than the baseline for jet fuel defined by the International Civil Aviation Organization."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to support the development of sustainable aviation fuel production and provide incentives for compliance with the requirements of this Act.

     The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2025.

Report Title:

DOT; Sustainable Aviation Fuel; Airlines; Intrastate Travel; Appropriation

Description:

Sets standards for sustainable aviation fuel adoption for intrastate travel airlines by certain times.  Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  228

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1459

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1459 entitled:

"A BILL FOR AN ACT RELATING TO SUSTAINABLE AVIATION FUEL,"

begs leave to report as follows:

     The purpose of this measure is to establish requirements for commercial airlines to utilize at least ten per cent sustainable aviation fuel in intrastate flights beginning January 1, 2030, to be increased annually by five per cent until January 1, 2045, at which time one hundred per cent sustainable aviation fuel will be required.

     Your Committee received testimony in support of this measure from Coalition Earth; Blue Planet Foundation; Biotechnology Innovation Organization; and one individual.  Your Committee received testimony in opposition to this measure from Alaska x Hawaiian Airlines; Environmental Caucus of the Democratic Party of Hawaiʻi; Energy Justice Network; and Airlines for America.  Your Committee received comments on this measure from the Department of the Attorney General and Twelve Benefit Corporation.

     Your Committee finds that sustainable aviation fuel offers a promising alternative to conventional fuels and can help minimize carbon emissions while fostering economic growth in the clean energy sector.  This measure helps increase sustainable aviation fuel usage by requiring commercial airlines to utilize at least ten per cent sustainable aviation fuel in intrastate airline flights by January 1, 2030.

     Your Committee has amended this measure by:

     (1)  Removing the annual five per cent increases for sustainable aviation fuel usage and the requirement for one hundred per cent sustainable aviation fuel usage;

     (2)  Removing the requirement that the Department of Transportation collaborate with various entities for the development and funding of sustainable aviation fuel;

     (3)  Requiring the Department of Transportation to adopt rules in consultation with the Hawaii State Energy Office;

     (4)  Removing the requirement that the Department of Transportation adopt rules to incentivize the development and use of sustainable aviation fuels;

     (5)  Amending the definition of "sustainable aviation fuel" to mean liquid fuels that consist of synthesized hydrocarbons, meet certain standards, and are derived from biomass resources, waste streams, renewable or zero carbon energy sources, or gaseous carbon oxides;

     (6)  Removing the appropriation;

     (7)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (8)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1459, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1459, H.D. 1, and be referred to your Committee on Transportation.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,