SB 21: PUC; Water Carriers; Tariffs; Water Carrier Inflationary Cost Index; Automatic Adjustment Mechanism; Rate Adjustments
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-03-20
Current Status:
Failed
(2026-04-17: Re-Referred to TRS, CPN.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Authorizes the Public Utilities Commission to establish, no later than 7/1/2026, a Water Carrier Inflationary Cost Index automatic adjustment mechanism and waive or exempt any water carrier from any requirement under the Hawaii Water Carrier Act. Effective 7/1/3000. (HD2)
Authorizes the Public Utilities Commission to establish a Water Carrier Inflationary Cost Index Automatic Adjustment Mechanism and grant exemptions to any water carrier from any requirement under the Hawaii Water Carrier Act. Effective 7/1/3000. (HD1)
Authorizes the Public Utilities Commission to establish a Water Carrier Inflationary Cost Index Automatic Adjustment Mechanism to address, among other things, inflation and regulatory lag. Authorizes the Public Utilities Commission to grant exemptions to any water carrier from any requirement under the Hawaii Water Carrier Act. Defines "automatic adjustment mechanism". Effective 7/1/2050. (SD2)
Establishes a Water Carrier Inflationary Cost Index Automatic Adjustment Mechanism. Authorizes the Public Utilities Commission to grant exemptions to any water carrier from any requirement under the Hawaii Water Carrier Act. Defines "automatic adjustment mechanism". Effective 7/1/2050. (SD1)
Establishes a Water Carrier Inflationary Cost Index Mechanism. Authorizes the Public Utilities Commission to grant exemptions to any water carrier from any requirement under the Hawaii Water Carrier Act. Defines "automatic adjustment mechanism".
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THE SENATE |
S.B. NO. |
21 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 2 |
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A BILL FOR AN ACT
RELATING TO WATER CARRIERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§271G- Automatic adjustment mechanisms; water carrier inflationary cost index automatic adjustment mechanism. (a) No later than July 1, 2026, for each water carrier subject to this chapter, the commission may establish automatic adjustment mechanisms to address, among other things, inflation and regulatory lag and, at a minimum, a water carrier inflationary cost index automatic adjustment mechanism. The water carrier inflationary cost index automatic adjustment mechanism shall create an automatic rate adjustment that is tied to the annual per cent change in a Product Price Index, as determined by the commission. In doing so, the commission shall consider applicable inflation indexes, including those reported by the Bureau of Economic Analysis of the United States Department of Commerce.
(b) The water carrier inflationary cost index automatic adjustment mechanism shall:
(1) Be applied on an annual basis, regardless of whether the factor is a positive or negative per cent change;
(2) Be capped at plus or minus five per cent per year; and
(3) Be applied at an ongoing three-year cadence, with the water carrier inflationary cost index automatic adjustment mechanism being applied annually for two consecutive years, with the third year requiring a general rate case."
SECTION 2. Section 271G-5, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Automatic adjustment mechanism" means any rate adjustment mechanism that allows a water carrier to change rates between rate cases."
SECTION 3. Section 271G-17, Hawaii Revised Statutes, is amended to read as follows:
"§271G-17 Tariffs of water
carriers. (a) Every water carrier shall file with the [public
utilities] commission, and print, and keep open to public inspection,
tariffs showing all the rates, fares, and charges for transportation, and all
services in connection therewith, of passengers or property. The rates, fares, and charges shall be stated
in terms of lawful money of the United States.
The tariffs required by this section shall be published, filed, and
posted in [such] the form and manner, and shall contain [such]
information as the commission by [regulations] rules shall
prescribe[; and the]. The
commission may reject any tariff filed with it [which] that is
not in consonance with this section and with the [regulations.] rules. Any tariff so rejected by the commission
shall be void and its use shall be unlawful.
(b)
No change shall be made in any rate, fare, charge, or classification, or
any rule, regulation, or practice affecting the rate, fare, charge, or
classification, or the value of the service thereunder, specified in any
effective tariff of a water carrier, except after forty-five days' notice of
the proposed change filed and posted in accordance with subsection (a);
provided that changes to [a fuel] an automatic adjustment mechanism
surcharge approved by the commission may be made after thirty days' notice of
the proposed change filed and posted in accordance with subsection (a). The notice shall plainly state the change
proposed to be made and the time when it will take effect. The commission may in its discretion and for
good cause shown allow the change upon notice less than that [herein]
specified in this section or modify the requirements of this section
with respect to posting and filing of tariffs either in particular instances or
by general order applicable to special or peculiar circumstances or conditions.
(c) No water carrier shall engage in the transportation of passengers or property unless the rates, fares, and charges upon which the same are transported by the carrier have been filed and published in accordance with this chapter.
(d)
Whenever there is filed with the commission any schedule stating a new
rate, fare, or charge, for the transportation of passengers or property by a
water carrier or any rule, regulation, or practice affecting [such] the
rate, fare, or charge, or the value of the service thereunder, the carrier may
on its own initiative, or shall by order of the commission served [prior to]
before the effective date of the schedule, concurrently file a pro forma
statement of account [which] that shall be prepared under the
same form and in the same manner as prescribed by the commission's uniform
system of accounts.
The commission may upon complaint of any interested person or upon its own initiative at once and, if it so orders, without answer or other formal pleading by the interested carrier or carriers, but upon reasonable notice, enter upon a hearing concerning the lawfulness of the rate, fare, or charge, or the rule, regulation, or practice, and pending the hearing and the decision thereon the commission, by delivering to the carrier or carriers affected thereby a statement in writing of its reasons therefor, may suspend the operation of the schedule and defer the use of the rate, fare, or charge, or the rule, regulation, or practice. From the date of ordering a hearing to investigate the lawfulness of the rate, fare, or charge, the commission shall have up to six months to complete its investigation. If the commission fails to issue a final order within the six-month period then the changes proposed by the carrier shall go into effect. At any hearing involving a change in a rate, fare, charge, or classification, or in a rule, regulation, or practice, the burden of proof shall be upon the carrier to show that the proposed changed rate, fare, charge, classification, rule, regulation, or practice, is just and reasonable.
(e)
When a rate increase application is filed, the commission may in its
discretion and after public notice, and upon showing by a water carrier of
probable entitlement and financial need, authorize temporary increases in
rates, fares, and charges; provided that the commission shall by order require
the carrier to keep accurate account in detail of all amounts received by
reason of [such] the increase, specifying by whom and in whose
behalf [such] the amounts are paid, and upon completion of the
hearing and decision by further order require the interested carrier to refund,
with interest, to the persons in whose behalf [such] the amounts
were paid, [such] the portion of [such] the
increased rates or charges by its decision shall be found not justified. The interest to be paid shall be the rate of
return authorized in the last general rate case proceedings.
(f) Notwithstanding subsections (a) to (e), any request to establish an automatic adjustment mechanism made by a water carrier shall be submitted as a forty‑five-day tariff transmittal filing or as part of a rate case application. The commission shall have broad discretion in its application of any aspect of this section or its applicable rules as it may relate to any request to establish or modify any automatic adjustment mechanism made by a water carrier.
(g) Notwithstanding any provision of this chapter or any law, decision, order, or rule to the contrary, the commission, sua sponte or upon the application of a water carrier, may waive or exempt a water carrier from any or all requirements of this chapter or any applicable decision, order, rule, or other law upon a determination or demonstration that any requirement or requirements should not be applied to water carriers or are otherwise unjust, unreasonable, or not in the public interest."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 3000.
Report Title:
PUC; Water Carriers; Tariffs; Water Carrier Inflationary Cost Index; Automatic Adjustment Mechanism; Rate Adjustments
Description:
Authorizes the Public Utilities Commission to establish, no later than 7/1/2026, a Water Carrier Inflationary Cost Index automatic adjustment mechanism and waive or exempt any water carrier from any requirement under the Hawaii Water Carrier Act. Effective 7/1/3000. (HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
21 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
|
|
STATE OF HAWAII |
H.D. 1 |
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|
|
|
|
|
|
||
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A BILL FOR AN ACT
RELATING TO WATER CARRIERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§271G- Water carrier inflationary cost index automatic adjustment mechanism. (a) No later than January 1, 2026, for each water carrier subject to this chapter, the commission may establish automatic adjustment mechanisms to address, among other things, inflation and regulatory lag and, at a minimum, a water carrier inflationary cost index automatic adjustment mechanism. The water carrier inflationary cost index automatic adjustment mechanism shall create an automatic rate adjustment that is tied to the annual per cent change in the Gross Domestic Product Price Index as reported by the Bureau of Economic Analysis of the United States Department of Commerce.
(b) The water carrier inflationary cost index automatic adjustment mechanism shall:
(1) Be applied on an annual basis, regardless of whether the factor is a positive or negative per cent change;
(2) Be capped at plus or minus five per cent per year; and
(3) Be applied at an ongoing three-year cadence, with the water carrier inflationary cost index automatic adjustment mechanism being applied annually for two consecutive years, with the third year requiring a general rate case."
SECTION 2. Section 271G-5, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Automatic adjustment mechanism" means any rate adjustment mechanism that allows a water carrier to change rates between rate cases."
SECTION 3. Section 271G-17, Hawaii Revised Statutes, is amended to read as follows:
"§271G-17 Tariffs of water
carriers. (a) Every water carrier shall file with the [public
utilities] commission, and print, and keep open to public inspection,
tariffs showing all the rates, fares, and charges for transportation, and all
services in connection therewith, of passengers or property. The rates, fares, and charges shall be stated
in terms of lawful money of the United States.
The tariffs required by this section shall be published, filed, and
posted in [such] the form and manner, and shall contain [such]
information as the commission by regulations shall prescribe[; and the]. The commission may reject any tariff
filed with it [which] that is not in consonance with this section
and with the regulations. Any tariff so
rejected by the commission shall be void and its use shall be unlawful.
(b)
No change shall be made in any rate, fare, charge, or classification, or
any rule, regulation, or practice affecting the rate, fare, charge, or
classification, or the value of the service thereunder, specified in any
effective tariff of a water carrier, except after forty-five days' notice of
the proposed change filed and posted in accordance with subsection (a);
provided that changes to [a fuel] an automatic adjustment mechanism
surcharge approved by the commission may be made after thirty days' notice of
the proposed change filed and posted in accordance with subsection (a). The notice shall plainly state the change
proposed to be made and the time when it will take effect. The commission may in its discretion and for
good cause shown allow the change upon notice less than that herein specified
or modify the requirements of this section with respect to posting and filing
of tariffs either in particular instances or by general order applicable to
special or peculiar circumstances or conditions.
(c) No water carrier shall engage in the transportation of passengers or property unless the rates, fares, and charges upon which the same are transported by the carrier have been filed and published in accordance with this chapter.
(d)
Whenever there is filed with the commission any schedule stating a new
rate, fare, or charge, for the transportation of passengers or property by a
water carrier or any rule, regulation, or practice affecting [such] the
rate, fare, or charge, or the value of the service thereunder, the carrier may
on its own initiative, or shall by order of the commission served [prior to]
before the effective date of the schedule, concurrently file a pro forma
statement of account [which] that shall be prepared under the
same form and in the same manner as prescribed by the commission's uniform
system of accounts.
The commission may upon complaint of any interested person or upon its own initiative at once and, if it so orders, without answer or other formal pleading by the interested carrier or carriers, but upon reasonable notice, enter upon a hearing concerning the lawfulness of the rate, fare, or charge, or the rule, regulation, or practice, and pending the hearing and the decision thereon the commission, by delivering to the carrier or carriers affected thereby a statement in writing of its reasons therefor, may suspend the operation of the schedule and defer the use of the rate, fare, or charge, or the rule, regulation, or practice. From the date of ordering a hearing to investigate the lawfulness of the rate, fare, or charge, the commission shall have up to six months to complete its investigation. If the commission fails to issue a final order within the six-month period then the changes proposed by the carrier shall go into effect. At any hearing involving a change in a rate, fare, charge, or classification, or in a rule, regulation, or practice, the burden of proof shall be upon the carrier to show that the proposed changed rate, fare, charge, classification, rule, regulation, or practice, is just and reasonable.
(e)
When a rate increase application is filed, the commission may in its
discretion and after public notice, and upon showing by a water carrier of
probable entitlement and financial need, authorize temporary increases in
rates, fares, and charges; provided that the commission shall by order require
the carrier to keep accurate account in detail of all amounts received by
reason of [such] the increase, specifying by whom and in whose
behalf [such] the amounts are paid, and upon completion of the
hearing and decision by further order require the interested carrier to refund,
with interest, to the persons in whose behalf [such] the amounts
were paid, [such] the portion of [such] the
increased rates or charges by its decision shall be found not justified. The interest to be paid shall be the rate of
return authorized in the last general rate case proceedings.
(f) Notwithstanding subsections (a) to (e), any request to establish an automatic adjustment mechanism made by a water carrier shall be submitted as a forty‑five-day tariff transmittal filing, and the filing shall not constitute a rate increase application or request for a general rate increase. The commission shall have broad discretion in its application of any aspect of this section or its applicable rules as it may relate to any request to establish or modify any automatic adjustment mechanism made by a water carrier.
(g) Notwithstanding any provision of this chapter or any law, decision, order, or rule to the contrary, the commission, sua sponte or upon the application of a water carrier, may waive or exempt a water carrier from any or all requirements of this chapter or any applicable decision, order, rule, or other law upon a determination or demonstration that any requirement or requirements should not be applied to water carriers or are otherwise unjust, unreasonable, or not in the public interest."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 3000.
Report Title:
PUC; Water Carriers; Tariffs; Water Carrier Inflationary Cost Index; Automatic Adjustment; Mechanism; Rate Adjustments
Description:
Authorizes the Public Utilities Commission to establish a Water Carrier Inflationary Cost Index Automatic Adjustment Mechanism and grant exemptions to any water carrier from any requirement under the Hawaii Water Carrier Act. 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.
|
THE SENATE |
S.B. NO. |
21 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO WATER CARRIERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§271G- Water carrier inflationary cost index automatic adjustment mechanism. (a) On or before January 1, 2026, for each water carrier subject to this chapter, the commission may establish automatic adjustment mechanisms to address, among other things, inflation and regulatory lag and, at a minimum, a water carrier inflationary cost index automatic adjustment mechanism. The water carrier inflationary cost index automatic adjustment mechanism shall create an automatic rate adjustment that is tied to the annual per cent change in the Gross Domestic Product Price Index as reported by the Bureau of Economic Analysis of the United States Department of Commerce.
(b) The water carrier inflationary cost index automatic adjustment mechanism shall:
(1) Be applied on an annual basis, regardless of whether the factor is a positive or negative per cent change; and
(2) Be capped at plus or minus five per cent per year."
SECTION 2. Section 271G-5, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Automatic adjustment mechanism" means any rate adjustment mechanism that allows a water carrier to change rates between rate cases."
SECTION 3. Section 271G-17, Hawaii Revised Statutes, is amended to read as follows:
"§271G-17 Tariffs of water
carriers. (a) Every water carrier shall file with the [public
utilities] commission, and print, and keep open to public inspection,
tariffs showing all the rates, fares, and charges for transportation, and all
services in connection therewith, of passengers or property. The rates, fares, and charges shall be stated
in terms of lawful money of the United States.
The tariffs required by this section shall be published, filed, and
posted in [such] the form and manner, and shall contain [such]
information as the commission by regulations shall prescribe; and the
commission may reject any tariff filed with it [which] that is
not in consonance with this section and with the regulations. Any tariff so rejected by the commission
shall be void and its use shall be unlawful.
(b)
No change shall be made in any rate, fare, charge, or classification, or
any rule, regulation, or practice affecting the rate, fare, charge, or
classification, or the value of the service thereunder, specified in any
effective tariff of a water carrier, except after forty-five days' notice of
the proposed change filed and posted in accordance with subsection (a);
provided that changes to [a fuel] an automatic adjustment mechanism
surcharge approved by the commission may be made after thirty days' notice of
the proposed change filed and posted in accordance with subsection (a). The notice shall plainly state the change
proposed to be made and the time when it will take effect. The commission may in its discretion and for
good cause shown allow the change upon notice less than that herein specified
or modify the requirements of this section with respect to posting and filing
of tariffs either in particular instances or by general order applicable to
special or peculiar circumstances or conditions.
(c) No water carrier shall engage in the transportation of passengers or property unless the rates, fares, and charges upon which the same are transported by the carrier have been filed and published in accordance with this chapter.
(d)
Whenever there is filed with the commission any schedule stating a new
rate, fare, or charge, for the transportation of passengers or property by a
water carrier or any rule, regulation, or practice affecting [such] the
rate, fare, or charge, or the value of the service thereunder, the carrier may
on its own initiative, or shall by order of the commission served [prior to]
before the effective date of the schedule, concurrently file a pro forma
statement of account [which] that shall be prepared under the
same form and in the same manner as prescribed by the commission's uniform
system of accounts.
The commission may upon complaint of any interested person or upon its own initiative at once and, if it so orders, without answer or other formal pleading by the interested carrier or carriers, but upon reasonable notice, enter upon a hearing concerning the lawfulness of the rate, fare, or charge, or the rule, regulation, or practice, and pending the hearing and the decision thereon the commission, by delivering to the carrier or carriers affected thereby a statement in writing of its reasons therefor, may suspend the operation of the schedule and defer the use of the rate, fare, or charge, or the rule, regulation, or practice. From the date of ordering a hearing to investigate the lawfulness of the rate, fare, or charge, the commission shall have up to six months to complete its investigation. If the commission fails to issue a final order within the six-month period then the changes proposed by the carrier shall go into effect. At any hearing involving a change in a rate, fare, charge, or classification, or in a rule, regulation, or practice, the burden of proof shall be upon the carrier to show that the proposed changed rate, fare, charge, classification, rule, regulation, or practice, is just and reasonable.
(e)
When a rate increase application is filed, the commission may in its
discretion and after public notice, and upon showing by a water carrier of
probable entitlement and financial need, authorize temporary increases in
rates, fares, and charges; provided that the commission shall by order require
the carrier to keep accurate account in detail of all amounts received by
reason of [such] the increase, specifying by whom and in whose
behalf [such] the amounts are paid, and upon completion of the
hearing and decision by further order require the interested carrier to refund,
with interest, to the persons in whose behalf [such] the amounts
were paid, [such] the portion of [such] the
increased rates or charges by its decision shall be found not justified. The interest to be paid shall be the rate of
return authorized in the last general rate case proceedings.
(f) Notwithstanding the preceding provisions of this section, any request to establish an automatic adjustment mechanism made by a water carrier shall be submitted as a forty‑five-day tariff transmittal filing, and the filing shall not constitute a rate increase application or request for a general rate increase. The commission shall have broad discretion in its application of any aspect of this section or its applicable rules as it may relate to any request to establish or modify any automatic adjustment mechanism made by a water carrier.
(g) Notwithstanding any provision of this chapter or any law, decision, order, or rule to the contrary, the commission, sua sponte or upon the application of a water carrier, may waive or exempt a water carrier from any or all requirements of this chapter or any applicable decision, order, rule, or other law upon a determination or demonstration that any requirement or requirements should not be applied to water carriers or are otherwise unjust, unreasonable, or not in the public interest."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050.
Report Title:
PUC; Water Carriers; Tariffs; Water Carrier Inflationary Cost Index; Automatic Adjustment; Mechanism; Rate Adjustments
Description:
Authorizes the Public Utilities Commission to establish a Water Carrier Inflationary Cost Index Automatic Adjustment Mechanism to address, among other things, inflation and regulatory lag. Authorizes the Public Utilities Commission to grant exemptions to any water carrier from any requirement under the Hawaii Water Carrier Act. Defines "automatic adjustment mechanism". Effective 7/1/2050. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
21 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO WATER CARRIERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§271G- Water carrier inflationary cost index automatic adjustment mechanism. (a) On or before January 1, 2026, for each water carrier subject to this chapter, the commission shall establish automatic adjustment mechanisms to address, among other things, inflation and regulatory lag and, at a minimum, a water carrier inflationary cost index automatic adjustment mechanism. The water carrier inflationary cost index automatic adjustment mechanism shall create an automatic rate adjustment that is tied to the annual per cent change in the Gross Domestic Product Price Index as reported by the Bureau of Economic Analysis of the United States Department of Commerce.
(b) The water carrier inflationary cost index automatic adjustment mechanism shall:
(1) Be applied on an annual basis, regardless of whether the factor is a positive or negative per cent change; and
(2) Be capped at plus or minus five per cent per year."
SECTION 2. Section 271G-5, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Automatic adjustment mechanism" means any rate adjustment mechanism that allows a water carrier to change rates between rate cases."
SECTION 3. Section 271G-17, Hawaii Revised Statutes, is amended to read as follows:
"§271G-17 Tariffs of water
carriers. (a) Every water carrier shall file with the
public utilities commission, and print, and keep open to public inspection,
tariffs showing all the rates, fares, and charges for transportation, and all
services in connection therewith, of passengers or property. The rates, fares, and charges shall be stated
in terms of lawful money of the United States.
The tariffs required by this section shall be published, filed, and
posted in [such] that form and manner, and shall contain [such]
information as the commission by regulations shall prescribe; and the
commission may reject any tariff filed with it which is not in consonance with
this section and with the regulations.
Any tariff so rejected by the commission shall be void and its use shall
be unlawful.
(b)
No change shall be made in any rate, fare, charge, or classification, or
any rule, regulation, or practice affecting the rate, fare, charge, or
classification, or the value of the service thereunder, specified in any
effective tariff of a water carrier, except after forty-five days' notice of
the proposed change filed and posted in accordance with subsection (a);
provided that changes to [a fuel] an automatic adjustment mechanism
surcharge approved by the commission may be made after thirty days' notice of
the proposed change filed and posted in accordance with subsection (a). The notice shall plainly state the change
proposed to be made and the time when it will take effect. The commission may in its discretion and for
good cause shown allow the change upon notice less than that herein specified
or modify the requirements of this section with respect to posting and filing
of tariffs either in particular instances or by general order applicable to
special or peculiar circumstances or conditions.
(c) No water carrier shall engage in the transportation of passengers or property unless the rates, fares, and charges upon which the same are transported by the carrier have been filed and published in accordance with this chapter.
(d)
Whenever there is filed with the commission any schedule stating a new
rate, fare, or charge, for the transportation of passengers or property by a
water carrier or any rule, regulation, or practice affecting [such] the
rate, fare, or charge, or the value of the service thereunder, the carrier may
on its own initiative, or shall by order of the commission served prior to the
effective date of the schedule, concurrently file a pro forma statement of
account which shall be prepared under the same form and in the same manner as
prescribed by the commission's uniform system of accounts.
The commission may upon complaint of any interested person or upon its own initiative at once and, if it so orders, without answer or other formal pleading by the interested carrier or carriers, but upon reasonable notice, enter upon a hearing concerning the lawfulness of the rate, fare, or charge, or the rule, regulation, or practice, and pending the hearing and the decision thereon the commission, by delivering to the carrier or carriers affected thereby a statement in writing of its reasons therefor, may suspend the operation of the schedule and defer the use of the rate, fare, or charge, or the rule, regulation, or practice. From the date of ordering a hearing to investigate the lawfulness of the rate, fare, or charge, the commission shall have up to six months to complete its investigation. If the commission fails to issue a final order within the six-month period then the changes proposed by the carrier shall go into effect. At any hearing involving a change in a rate, fare, charge, or classification, or in a rule, regulation, or practice, the burden of proof shall be upon the carrier to show that the proposed changed rate, fare, charge, classification, rule, regulation, or practice, is just and reasonable.
(e)
When a rate increase application is filed, the commission may in its
discretion and after public notice, and upon showing by a water carrier of
probable entitlement and financial need, authorize temporary increases in
rates, fares, and charges; provided that the commission shall by order require
the carrier to keep accurate account in detail of all amounts received by
reason of [such] the increase, specifying by whom and in whose
behalf [such] the amounts are paid, and upon completion of the
hearing and decision by further order require the interested carrier to refund,
with interest, to the persons in whose behalf [such] the amounts
were paid, [such] the portion of [such] the
increased rates or charges by its decision shall be found not justified. The interest to be paid shall be the rate of
return authorized in the last general rate case proceedings.
(f) Notwithstanding the preceding provisions of this section, any request to establish an automatic adjustment mechanism made by a water carrier shall be submitted as a forty‑five-day tariff transmittal filing, and the filing shall not constitute a rate increase application or request for a general rate increase. The commission shall have broad discretion in its application of any aspect of this section or its applicable rules as it may relate to any request to establish or modify any automatic adjustment mechanism made by a water carrier.
(g) Notwithstanding any provision of this chapter or any law, decision, order, or rule to the contrary, the commission, sua sponte or upon the application of a water carrier, may waive or exempt a water carrier from any or all requirements of this chapter or any applicable decision, order, rule, or other law upon a determination or demonstration that any requirement or requirements should not be applied to water carriers or are otherwise unjust, unreasonable, or not in the public interest."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050.
Report Title:
PUC; Water Carriers; Tariffs; Water Carrier Inflationary Cost Index; Automatic Adjustment; Mechanism; Rate Adjustments
Description:
Establishes a Water Carrier Inflationary Cost Index Automatic Adjustment Mechanism. Authorizes the Public Utilities Commission to grant exemptions to any water carrier from any requirement under the Hawaii Water Carrier Act. Defines "automatic adjustment mechanism". Effective 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
21 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to water carriers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§271G- Water carrier inflationary cost index mechanism. (a) On or before January 1, 2026, for each water carrier subject to this chapter, the commission shall establish automatic adjustment mechanisms to address, among other things, inflation and regulatory lag and, at a minimum, a water carrier inflationary cost index automatic adjustment mechanism. The water carrier inflationary cost index automatic adjustment mechanism shall create an automatic rate adjustment that is tied to the annual per cent change in the Gross Domestic Product Price Index as reported by the Bureau of Economic Analysis of the United States Department of Commerce.
(b) The water carrier inflationary cost index automatic adjustment mechanism shall:
(1) Be applied on an annual basis, regardless of whether the factor is a positive or negative per cent change; and
(2) Be capped at plus or minus five per cent per year."
SECTION 2. Section 271G-5, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Automatic adjustment mechanism" means any rate adjustment mechanism that allows a water carrier to change rates between rate cases."
SECTION 3. Section 271G-17, Hawaii Revised Statutes, is amended to read as follows:
"§271G-17 Tariffs of water
carriers. (a) Every water carrier shall file with the
public utilities commission, and print, and keep open to public inspection,
tariffs showing all the rates, fares, and charges for transportation, and all
services in connection therewith, of passengers or property. The rates, fares, and charges shall be stated
in terms of lawful money of the United States.
The tariffs required by this section shall be published, filed, and
posted in [such] that form and manner, and shall contain [such]
information as the commission by regulations shall prescribe; and the
commission may reject any tariff filed with it which is not in consonance with
this section and with the regulations.
Any tariff so rejected by the commission shall be void and its use shall
be unlawful.
(b)
No change shall be made in any rate, fare, charge, or classification, or
any rule, regulation, or practice affecting the rate, fare, charge, or
classification, or the value of the service thereunder, specified in any
effective tariff of a water carrier, except after forty-five days' notice of
the proposed change filed and posted in accordance with subsection (a);
provided that changes to [a fuel] an automatic adjustment mechanism
surcharge approved by the commission may be made after thirty days' notice of
the proposed change filed and posted in accordance with subsection (a). The notice shall plainly state the change
proposed to be made and the time when it will take effect. The commission may in its discretion and for
good cause shown allow the change upon notice less than that herein specified
or modify the requirements of this section with respect to posting and filing
of tariffs either in particular instances or by general order applicable to
special or peculiar circumstances or conditions.
(c) No water carrier shall engage in the transportation of passengers or property unless the rates, fares, and charges upon which the same are transported by the carrier have been filed and published in accordance with this chapter.
(d)
Whenever there is filed with the commission any schedule stating a new
rate, fare, or charge, for the transportation of passengers or property by a
water carrier or any rule, regulation, or practice affecting [such] the
rate, fare, or charge, or the value of the service thereunder, the carrier may
on its own initiative, or shall by order of the commission served prior to the
effective date of the schedule, concurrently file a pro forma statement of
account which shall be prepared under the same form and in the same manner as
prescribed by the commission's uniform system of accounts.
The commission may upon complaint of any interested person or upon its own initiative at once and, if it so orders, without answer or other formal pleading by the interested carrier or carriers, but upon reasonable notice, enter upon a hearing concerning the lawfulness of the rate, fare, or charge, or the rule, regulation, or practice, and pending the hearing and the decision thereon the commission, by delivering to the carrier or carriers affected thereby a statement in writing of its reasons therefor, may suspend the operation of the schedule and defer the use of the rate, fare, or charge, or the rule, regulation, or practice. From the date of ordering a hearing to investigate the lawfulness of the rate, fare, or charge, the commission shall have up to six months to complete its investigation. If the commission fails to issue a final order within the six-month period then the changes proposed by the carrier shall go into effect. At any hearing involving a change in a rate, fare, charge, or classification, or in a rule, regulation, or practice, the burden of proof shall be upon the carrier to show that the proposed changed rate, fare, charge, classification, rule, regulation, or practice, is just and reasonable.
(e)
When a rate increase application is filed, the commission may in its
discretion and after public notice, and upon showing by a water carrier of
probable entitlement and financial need, authorize temporary increases in
rates, fares, and charges; provided that the commission shall by order require
the carrier to keep accurate account in detail of all amounts received by
reason of [such] the increase, specifying by whom and in whose
behalf [such] the amounts are paid, and upon completion of the
hearing and decision by further order require the interested carrier to refund,
with interest, to the persons in whose behalf [such] the amounts
were paid, [such] the portion of [such] the
increased rates or charges by its decision shall be found not justified. The interest to be paid shall be the rate of
return authorized in the last general rate case proceedings.
(f) Notwithstanding the preceding provisions of this section, any request to establish an automatic adjustment mechanism made by a water carrier shall be submitted as a forty‑five-day tariff transmittal filing, and the filing shall not constitute a rate increase application or request for a general rate increase. The commission shall have broad discretion in its application of any aspect of this section or its applicable rules as it may relate to any request to establish or modify any automatic adjustment mechanism made by a water carrier.
(g) Notwithstanding any provision of this chapter or any law, decision, order, or rule to the contrary, the commission, sua sponte or upon the application of a water carrier, may waive or exempt a water carrier from any or all requirements of this chapter or any applicable decision, order, rule, or other law upon a determination or demonstration that any requirement or requirements should not be applied to water carriers or are otherwise unjust, unreasonable, or not in the public interest."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
PUC; Water Carriers; Tariffs; Water Carrier Inflationary Cost Index Mechanism; Rate Adjustments
Description:
Establishes a Water Carrier Inflationary Cost Index Mechanism. Authorizes the Public Utilities Commission to grant exemptions to any water carrier from any requirement under the Hawaii Water Carrier Act. Defines "automatic adjustment mechanism".
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
|
Status
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|---|---|
| Apr 17, 2026 | Re-Referred to TRS, CPN. |
| Apr 2, 2026 | Received notice of the discharge of all House Conferees (Hse. Com. No. 457). |
| Apr 1, 2026 | House Conferee(s) discharged. |
| Mar 20, 2026 | Received notice of all Senate conferees being discharged (Sen. Com. No. 409). |
| Mar 20, 2026 | Senate Conferee(s) discharged. |
| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Apr 25, 2025 | Conference committee meeting to reconvene on 04-25-25 5:15 PM; Conference Room 225. |
| Apr 25, 2025 | Conference Committee Meeting will reconvene on Friday, 04-25-25 at 3:30PM in Conference Room 411. |
| Apr 25, 2025 | Conference Committee Meeting will reconvene on Friday, 04-25-25 at 2:00PM in Conference Room 411. |
| Apr 25, 2025 | Conference Committee Meeting will reconvene on Friday, 04-25-25 at 12:30PM in Conference Room 329. |
| Apr 25, 2025 | Conference Committee Meeting will reconvene on Friday, 04-25-25 at 11:30AM in Conference Room 329. |
| Apr 24, 2025 | Conference committee meeting to reconvene on 04-25-25 9:30AM; Conference Room 329. |
| Apr 23, 2025 | Conference committee meeting to reconvene on 04-24-25 10:30AM; Conference Room 329. |
| Apr 22, 2025 | Conference committee meeting to reconvene on 04-23-25 10:30AM; Conference Room 329. |
| Apr 21, 2025 | Conference committee meeting scheduled for 04-22-25 10:30AM; Conference Room 329. |
| Apr 21, 2025 | Received notice of appointment of House conferees (Hse. Com. No. 754). |
| Apr 17, 2025 | House Conferees Appointed: Kila, Matayoshi, Morikawa Co-Chairs; Grandinetti, Muraoka. |
| Apr 15, 2025 | Received notice of Senate conferees (Sen. Com. No. 789). |
| Apr 15, 2025 | Senate Conferees Appointed: Lee, C. Chairs; Keohokalole Co-Chair; Inouye, DeCorte. |
| Apr 4, 2025 | Received notice of disagreement (Sen. Com. No. 590). |
| Apr 4, 2025 | Senate disagrees with House amendments. |
| Apr 4, 2025 | Received from House (Hse. Com. No. 453). |
| Apr 3, 2025 | Passed Third Reading with none voting aye with reservations; Representative(s) Amato, Iwamoto, Lowen voting no (3) and Representative(s) Cochran, Woodson excused (2). Transmitted to Senate. |
| Apr 3, 2025 | Reported from FIN (Stand. Com. Rep. No. 1925), recommending passage on Third Reading. |
| Mar 27, 2025 | The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 13 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 3 Excused: Representative(s) Hussey, Alcos, Ward. |
| Mar 24, 2025 | Bill scheduled to be heard by FIN on Thursday, 03-27-25 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. |
| Mar 21, 2025 | Report adopted; referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; Representative(s) Amato voting no (1) and Representative(s) Cochran, Garrett, Kapela, Kitagawa, Ward excused (5). |
| Mar 21, 2025 | Reported from CPC (Stand. Com. Rep. No. 1499) as amended in HD 2, recommending referral to FIN. |
| Mar 18, 2025 | The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Ichiyama, Kong, Lowen, Marten; Ayes with reservations: Representative(s) Iwamoto; Noes: none; and 2 Excused: Representative(s) Tam, Pierick. |
| Mar 14, 2025 | Bill scheduled to be heard by CPC on Tuesday, 03-18-25 2:05PM in House conference room 329 VIA VIDEOCONFERENCE. |
| Mar 13, 2025 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; Representative(s) Amato voting no (1) and Representative(s) Cochran, Holt, Ward, Woodson excused (4). |
| Mar 13, 2025 | Reported from TRN (Stand. Com. Rep. No. 1200) as amended in HD 1, recommending passage on Second Reading and referral to CPC. |
| Mar 11, 2025 | The committee on TRN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Kila, Grandinetti, Evslin, Kitagawa, La Chica, Miyake, Muraoka, Pierick; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Cochran. |
| Mar 7, 2025 | Bill scheduled to be heard by TRN on Tuesday, 03-11-25 9:00AM in House conference room 430 VIA VIDEOCONFERENCE. |
| Mar 6, 2025 | Referred to TRN, CPC, FIN, referral sheet 19 |
| Mar 6, 2025 | Pass First Reading |
| Mar 4, 2025 | Received from Senate (Sen. Com. No. 65) in amended form (SD 2). |
| Mar 4, 2025 | Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Feb 27, 2025 | 48 Hrs. Notice 03-04-25. |
| Feb 27, 2025 | Reported from CPN (Stand. Com. Rep. No. 747) with recommendation of passage on Third Reading, as amended (SD 2). |
| Feb 20, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Richards. |
| Feb 14, 2025 | The committee(s) on CPN will hold a public decision making on 02-20-25 9:30AM; Conference Room 229 & Videoconference. |
| Feb 11, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to CPN. |
| Feb 11, 2025 | Reported from TCA (Stand. Com. Rep. No. 251) with recommendation of passage on Second Reading, as amended (SD 1) and referral to CPN. |
| Feb 6, 2025 | The committee(s) on TCA recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in TCA were as follows: 4 Aye(s): Senator(s) Lee, C., Elefante, Kanuha, DeCorte; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Inouye. |
| Feb 3, 2025 | The committee(s) on TCA has scheduled a public hearing on 02-06-25 3:00PM; Conference Room 224 & Videoconference. |
| Jan 16, 2025 | Referred to TCA, CPN. |
| Jan 15, 2025 | Introduced and passed First Reading. |
| Jan 8, 2025 | Pending Introduction. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Apr 3, 2025 | Third Reading | House Floor |
Passed |
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| Mar 27, 2025 | The committee on FIN recommend that the measure be PASSED, UNAMENDED | House Standing Committee on Finance |
Passed |
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| Mar 18, 2025 | The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Consumer Protection & Commerce |
Passed |
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| Mar 11, 2025 | The committee on TRN recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Transportation |
Passed |
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| Mar 4, 2025 | Third Reading | Senate Floor |
Passed |
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| Feb 20, 2025 | The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Commerce and Consumer Protection |
Passed |
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| Feb 6, 2025 | The committee(s) on TCA recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Transportation and Culture and the Arts |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| Chamber of Commerce Hawaii | ** Support | |
| Department of Transportation | ** Support | |
| Department of Transportation | ** Support | |
| DSR Logistics Co | ** Support | |
| Hawaii Crop Improvement Association | ** Support | |
| Hawaiʻi Harbors Users Group | ** Support | |
| Hawaiʻi Harbors Users Group | ** Support | |
| Hone Heke Corporation | ** Support | |
| Hono Heke Corporation, dba Expeditions Ferry | ** Support | |
| Hono Heke Corporation, dba Expeditions Ferry | ** Support | |
| Lanaʻi Oil Company | ** Support | |
| Lānaʻi Oil Company, Inc. | ** Support | |
| Matson Navigation Company, Inc. | ** Support | |
| Mayor of the County of Kauaʻi | ** Support | |
| Office of the Mayor of the County of Kauaʻi | ** Support | |
| Pacific Transfer LLC | ** Against | |
| Public Utilities Commission | ** Against | |
| Young Brothers, LLC | ** Support |
STAND. COM. REP. NO. 1925
Honolulu, Hawaii
, 2025
RE: S.B. No. 21
S.D. 2
H.D. 2
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Finance, to which was referred S.B. No. 21, S.D. 2, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO WATER CARRIERS,"
begs leave to report as follows:
Your Committee received testimony in support of this measure from the Department of Transportation; Hawaii Crop Improvement Association; Hawaiʻi Harbors Users Group; Young Brothers, LLC; Chamber of Commerce Hawaii; Hone Heke Corporation; and one individual. Your Committee received testimony in opposition to this measure from the Public Utilities Commission. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Department of Agriculture; Hawaii Cattlemen's Council, Inc.; and Hawaiʻi Farm Bureau.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 21, S.D. 2, H.D. 2, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ KYLE T. YAMASHITA, Chair |
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STAND. COM. REP. NO. 1499
Honolulu, Hawaii
, 2025
RE: S.B. No. 21
S.D. 2
H.D. 2
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 21, S.D. 2, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO WATER CARRIERS,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Authorize the Public Utilities Commission to establish, no later than January 1, 2026, an automatic adjustment mechanism, including a Water Carrier Inflationary Cost Index automatic adjustment mechanism; and
(2) Authorize the Public Utilities Commission to waive or exempt a water carrier from the Hawaii Water Carrier Act.
Your Committee received testimony in support of this measure from the Department of Transportation; Young Brothers, LLC; Chamber of Commerce Hawaii; Lānaʻi Oil Company, Inc.; Hono Heke Corporation, dba Expeditions Ferry; Hawaiʻi Harbors Users Group; and one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Department of Agriculture; and Public Utilities Commission.
Your Committee finds that water carriers engage in the transportation of persons or property by water. These carriers play a crucial role in sustaining each island's economy and community by, among other things, moving essential goods between islands.
Your Committee further finds that water carriers are not immune from existing inflationary pressures. While cargo volumes for these carriers have stagnated, the costs of operation have increased, leading to an ongoing struggle to establish and maintain financial sustainability. This is further exacerbated by the regulatory lag to address increasing costs. This measure authorizes the Public Utilities Commission to develop a mechanism that will flexibly address the increasing costs of these much-needed carriers.
Your Committee has amended this measure by:
(1) Changing the date for when the Public Utilities Commission is authorized to establish automatic adjustment mechanisms from January 1, 2026, to July 1, 2026;
(2) Clarifying that the automatic rate adjustment created by the water carrier inflationary cost index automatic adjustment mechanism is tied to the annual percent change in a Product Price Index, as determined by the Public Utilities Commission, instead of the Gross Domestic Product Price Index;
(3) Requiring the Public Utilities Commission to consider applicable inflation indexes when determining the Product Price index;
(4) Clarifying that any request to establish an automatic adjustment mechanism can be submitted as part of a rate case application and deleting language that would have specified that the filing does not constitute a rate increase application or request for a general rate increase; and
(5) 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 Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 21, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 21, S.D. 2, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
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____________________________ SCOT Z. MATAYOSHI, Chair |
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STAND. COM. REP. NO. 1200
Honolulu, Hawaii
, 2025
RE: S.B. No. 21
S.D. 2
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 Transportation, to which was referred S.B. No. 21, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO WATER CARRIERS,"
begs leave to report as follows:
The purpose of this measure is to authorize the Public Utilities Commission to:
(1) Establish a water carrier inflationary cost index automatic adjustment mechanism; and
(2) Waive or exempt a water carrier from the Hawaii Water Carrier Act.
Your Committee received testimony in support of this measure from the Department of Transportation; Chamber of Commerce Hawaii; Lanaʻi Oil Company; Young Brothers, LLC; and Hawaiʻi Harbors Users Group. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Department of Agriculture; and Public Utilities Commission.
Your Committee finds that water carriers in Hawaii face significant challenges due to inflation and regulatory lag, which hinder their ability to maintain efficient and affordable transportation services for passengers and goods. These challenges are exacerbated by the lack of a streamlined mechanism for timely rate adjustments in response to fluctuating economic conditions. This measure will allow water carriers to make annual rate adjustments to promote financial stability and service reliability.
Your Committee has amended this measure by:
(1) Specifying that the water carrier inflationary cost index automatic adjustment mechanism be applied at an ongoing three-year cadence, where for two consecutive years the automatic adjustment mechanism is applied and for the third year an adjustment is conducted through the general rate case process;
(2) Changing the effective date to July 1, 3000, to encourage further discussion; and
(3) 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 Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 21, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 21, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.
Respectfully submitted on behalf of the members of the Committee on Transportation,
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____________________________ DARIUS KILA, Chair |
STAND. COM. REP. NO. 747
Honolulu, Hawaii
RE: S.B. No. 21
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 21, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO WATER CARRIERS,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Establish a Water Carrier Inflationary Cost Index Automatic Adjustment Mechanism;
(2) Authorize the Public Utilities Commission to grant exemptions to any water carrier from any requirement under the Hawaii Water Carrier Act; and
(3) Define "automatic adjustment mechanism".
Your Committee received testimony in support of this measure from the Department of Transportation; Mayor of the County of Kauaʻi; Matson Navigation Company, Inc.; Young Brothers, LLC; Chamber of Commerce Hawaii; Hawaiʻi Harbors Users Group; and Hono Heke Corporation, dba Expeditions Ferry.
Your Committee received testimony in opposition to this measure from one individual.
Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs, Department of Agriculture, and Public Utilities Commission.
Your Committee finds that water carrier rate adjustments typically require a formal rate case be submitted to, and approved by, the Public Utilities Commission, which is often a lengthy process. Additionally, rates are not typically adjusted annually and result in large increases when there are lags between rate cases. This measure provides a mechanism to fill the gap between water carrier rate cases and to keep pace with inflation without the need to undergo a formal rate case approval process. Your Committee notes the concern raised by the Public Utilities Commission regarding the potential for a compounding effect on rates and impact on customers if annual inflationary adjustments of approved rates were required. Amendments to this measure are therefore necessary to address this concern.
Accordingly, your Committee has amended this measure by:
(1) Inserting language that allows, rather than requires, the Public Utilities Commission to establish a water carrier inflationary cost index automatic adjustment mechanism; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 21, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 21, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,
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________________________________ JARRETT KEOHOKALOLE, Chair |
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STAND. COM. REP. NO. 251
Honolulu, Hawaii
RE: S.B. No. 21
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Transportation and Culture and the Arts, to which was referred S.B. No. 21 entitled:
"A BILL FOR AN ACT RELATING TO WATER CARRIERS,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Establish a Water Carrier Inflationary Cost Index Mechanism;
(2) Authorize the Public Utilities Commission to grant exemptions to any water carrier from any requirement under the Hawaii Water Carrier Act; and
(3) Define "automatic adjustment mechanism".
Your Committee received testimony in support of this measure from the Department of Transportation; Office of the Mayor of the County of Kauaʻi; Young Brothers LLC; Matson Navigation Company, Inc.; Hawaiʻi Harbors Users Group; and DSR Logistics Co.
Your Committee received testimony in opposition to this measure from Pacific Transfer LLC.
Your Committee received comments on this measure from the Department of Agriculture, Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, and Public Utilities Commission.
Your Committee finds that water carrier rates often lag behind inflation because rate adjustments require that a formal rate case be approved by the Public Utilities Commission, which is a time consuming process. Consequently, rates are not typically adjusted annually and the lags between rate cases necessitate large increases when the rate cases are considered. Accordingly, this measure creates a mechanism that allows water carrier rates to keep pace with inflation without the need for a formal rate case.
Your Committee has amended this measure by:
(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Transportation and Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 21, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 21, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.
Respectfully submitted on behalf of the members of the Committee on Transportation and Culture and the Arts,
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________________________________ CHRIS LEE, Chair |
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Discussed in Hearing
28SEC
Conference Committee
6MIN
House Standing Committee on Finance
11MIN
House Standing Committee on Consumer Protection & Commerce
11MIN
House Standing Committee on Judiciary & Hawaiian Affairs
1MIN
Senate Standing Committee on Transportation and Culture and the Arts
Bill Author
Bill Co-Author(s):