HB 338 Hawaii House · 2026 Regular Session

RELATING TO RENEWABLE ENERGY.

Summary

Specifies that adjustments required to compensate for certain unavoidable increases in financing costs, if proven by a producer of nonfossil fuel generated electricity by clear and convincing evidence, are mechanisms for reasonable and appropriate incremental adjustments that the Public Utilities Commission may include in the rate payable to the producer. Effective 7/1/3000. (HD1)

Issues: ✓ Energy ✓ Environment

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

House Passage

Feb 2025

Senate Passage

Governor

Introduced Jan 16, 2025 Last action Dec 8, 2025

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What changed between versions

HB338 → HB338_HD1 · 3 edits

MINOR

This bill was amended to clarify that rate adjustments for renewable energy projects are justified only when they compensate for unavoidable financing cost increases caused by the utility's credit downgrade, rather than being automatically allowed for any premium interest rates. The change strengthens the legal standard by requiring producers to prove these costs with clear and convincing evidence, ensuring consumers do not pay for unnecessary financial risks. Additionally, the effective date was set to a distant future date of July 1, 3000, likely as a placeholder or error.

Scope change

The bill's scope regarding financial risk allocation was narrowed; it now explicitly ties allowable rate adjustments to the utility's specific credit status rather than general market interest rates.

REQUIREMENT

The legal standard for rate adjustments was changed from a general allowance for premium interest rates to a specific requirement that producers must prove the costs are unavoidable due to the utility's credit downgrade.

TIMELINE

The effective date of the Act was changed from immediate approval to July 1, 3000.

SCOPE

The bill's description was updated to reflect the new requirement for clear and convincing evidence regarding financing costs.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Lower · Passed

Report adopted; referred to the committee(s) on FIN with Representative(s) Amato voting aye with reservations; none voting no (0) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).

lower

Feb 14, 2025

Committee

Reported from CPC (Stand. Com. Rep. No. 781), recommending referral to FIN.

lower

Feb 13, 2025

Lower · Passed

The committee on CPC recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 9 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Ichiyama, Iwamoto, Kong, Lowen, Marten, Tam; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Pierick.

lower

Feb 4, 2025

Committee

Reported from EEP (Stand. Com. Rep. No. 105) as amended in HD 1, recommending passage on Second Reading and referral to CPC.

lower

Jan 30, 2025

Lower · Passed

The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Lowen, Perruso, Kahaloa, Kusch, Quinlan; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Ward.

lower

Jan 21, 2025

Committee

Referred to EEP, CPC, FIN, referral sheet 1

lower

Jan 17, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 16, 2025

Introduced

Pending introduction.

lower

1 primary · 0 co-sponsors