SR 157: requesting the public utilities commission to make certain judgments, considerations, and decisions when making any determination relating to a generational energy commitment for the State.

SENATE RESOLUTION

requesting the public utilities commission to make certain judgments, considerations, and decisions when making any determination relating to a generational energy commitment for the State.

     WHEREAS, the State must ensure that any consideration of importing natural gas into Hawaii is conducted in a manner that protects ratepayers, advances clean energy goals, and safeguards long-term economic and environmental interests; and

     WHEREAS, proponents of natural gas have asserted that its use would reduce electricity costs and greenhouse gas emissions relative to imported petroleum; and

     WHEREAS, sufficient, transparent, and verifiable evidence has not been provided to substantiate these claims; and

     WHEREAS, long-term investments in natural gas infrastructure may expose ratepayers to significant financial risks, including stranded asset costs, fuel price volatility, and long-term contractual obligations that could inflate electricity costs; and

     WHEREAS, any investment in energy infrastructure for the State is a generational commitment; and

     WHEREAS, the Public Utilities Commission is mandated by law to consider increased renewable energy generation to reduce the State's fossil fuel reliance.  However, proposals that contemplate transitioning to a new renewable fuel supply that is not yet fully market-ready, lacks demonstrated long-term price stability, or depends on uncertain global supply chains may expose Hawaii ratepayers to heightened cost risks and implementation uncertainties; and

     WHEREAS, the Public Utilities Commission has statutory authority to favorably consider costs related to renewable energy as an alternative to fossil fuels.  Nevertheless, the introduction of a renewable fuel supply at prices materially higher than existing or readily available alternatives could result in significant and immediate rate increases, creating rate shock for households and businesses already facing high energy costs, which may disproportionately impact low- and moderate-income households and small businesses, exacerbating economic inequities and undermining public confidence in the State's energy transition; and

     WHEREAS, even if such a transition were focused on one island, it may have significant secondary impacts statewide as the displacement of locally refined petroleum products could reduce or eliminate in-state refining capacity, leading to increased reliance on imported finished fuels overall and disproportionate economic burdens on neighbor island communities that already face elevated fuel and shipping expenses; and

     WHEREAS, Hawaii has established a statutory mandate to achieve one hundred percent renewable portfolio standards by 2045.  However, if compliance with the renewable portfolio standards requires reliance on costly or not-yet-commercially viable fuel pathways, the resulting rate impacts may create pressure to delay, weaken, or otherwise modify the State's statutory renewable portfolio standards.  Such pressure may be amplified by stakeholders with existing or prospective investments in fossil fuel infrastructure who may advocate for extending the use of fossil fuels or revising the 2045 renewable portfolio standard to protect those investments; and

     WHEREAS, substantial new investment in fossil fuel infrastructure may undermine progress toward the State's one hundred percent renewable portfolio goal and divert capital, policy focus, and market signals away from the development of indigenous, renewable energy sources.  Any weakening, delay, or rollback of the State's renewable portfolio standards would undermine long-term energy affordability, environmental protection, and energy independence goals, while increasing exposure to volatile global fossil fuel markets; and

     WHEREAS, it is therefore in the State's interest to ensure that near-term fuel decisions do not create economic or political conditions that could jeopardize achievement of the 2045 renewable portfolio standard; now, therefore,

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, that in making any determination relating to a generational energy commitment for the State, the Public Utilities Commission is requested to:

     (1)  Exercise sound and independent judgment;

     (2)  Carefully consider all relevant information when balancing short-term energy needs and the State’s long-term energy commitments;

     (3)  Use evidenced-based decision-making; and

     (4)  Ensure transparency in the decision-making process; and

     BE IT FURTHER RESOLVED that the Public Utilities Commission is requested to devalue any proposal involving liquefied natural gas that may increase the likelihood of efforts to delay, weaken, or otherwise modify the State's statutory renewable portfolio standards, including the 2045 deadline; and

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of Commerce and Consumer Affairs, Executive Director of the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Chief Energy Officer of the Hawaii State Energy Office, Chairperson of the Public Utilities Commission, and President and Chief Executive Officer of Hawaiian Electric.

Report Title: 

Public Utilities Commission; Liquefied Natural Gas; Cost Approval

SENATE RESOLUTION

requesting the public utilities commission to ensure that certain conditions are met before approving any infrastructure, operations, maintenance, fuel, or other costs relating to supplying and using liquefied natural gas.

     WHEREAS, the State must ensure that any consideration of importing natural gas into Hawaii is conducted in a manner that protects ratepayers, advances clean energy goals, and safeguards long-term economic and environmental interests; and

     WHEREAS, proponents of natural gas have asserted that its use would reduce electricity costs and greenhouse gas emissions relative to imported petroleum; and

     WHEREAS, sufficient, transparent, and verifiable evidence has not been provided to substantiate these claims; and

     WHEREAS, long-term investments in natural gas infrastructure may expose ratepayers to significant financial risks, including stranded asset costs, fuel price volatility, and long-term contractual obligations that could inflate electricity costs; and

     WHEREAS, Hawaii has established a statutory mandate to achieve one hundred percent renewable portfolio standards by 2045; and

     WHEREAS, substantial new investment in fossil fuel infrastructure may undermine progress toward this goal and divert capital, policy focus, and market signals away from the development of indigenous, renewable energy sources; now, therefore,

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, that the Public Utilities Commission is requested to ensure that the following conditions are met before approving any costs of infrastructure, operations, maintenance, fuel, or other costs relating to supplying and using liquefied natural gas:

     (1)  All liquefied natural gas infrastructure costs shall be fully amortized no later than 2045, and utility customers shall not be obligated to pay the costs of any stranded investments;

     (2)  Any power purchase or fuel supply agreement shall not include any volumetric commitments or take-or-pay requirements for fuel supplies and shall include provisions for supplies declining to zero no later than 2045;

     (3)  Any power purchase or fuel supply agreement shall not result in increased costs for customers in the counties of Hawaii, Kauai, or Maui, including costs arising from downstream effects of changing fuel supplies or suppliers for those counties; and

     (4)  Any approval shall include protections for customers from fuel price volatility, including but not limited to provisions for the utility to share in fuel price changes, which shall begin at no less than ten percent and shall increase over time in line with declining fuel supply volumes; and

     BE IT FURTHER RESOLVED that the Public Utilities Commission is requested to deny any costs related to liquefied natural gas if more cost-effective, non-fossil-fuel alternatives are available to a utility or if approving the power purchase or fuel supply agreement would commit a utility to purchasing a greater amount of liquefied natural gas than necessary to accommodate the maximum amount of renewable energy on the grid; and

     BE IT FURTHER RESOLVED that the Public Utilities Commission is requested to consider the effects of approving the use of liquefied natural gas on renewable energy development and deployment, including risks and costs of diverting attention and resources away from maximizing present and future cost savings from renewable energy sources when making determinations of the reasonableness of costs pertaining to electric or gas utility system capital improvements and operations; and

     BE IT FURTHER RESOLVED that the Public Utilities Commission is requested to consider the risks and costs of stranded assets and the risks and costs of reliance on a single fuel supply or monopoly supplier when making determinations of the reasonableness of costs pertaining to electric or gas utility system capital improvements and operations; and

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of Commerce and Consumer Affairs; Executive Director of the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs; Chief Energy Officer of the Hawaii State Energy Office; Chairperson of the Public Utilities Commission; and President and Chief Executive Officer of Hawaiian Electric.

Report Title: 

Public Utilities Commission; Liquefied Natural Gas; Cost Approval