Hawaii House Energy Committee advances recycling, plastics, noise and carbon bills; creates lithium‑ion battery working group

House Committee on Energy & Environmental Protection members on Feb. 13 took final action on several environmental and energy bills, including creating a Department of Health‑led working group to study recycling for small and medium lithium‑ion batteries and passing bills on single‑use hotel toiletries, noise enforcement, Red Hill coordination, and carbon‑sequestration incentives with amendments.

The measures were taken up after an initial testimony period; the committee recessed for quorum and then reconvened for decision making. Chair and vice chair recommendations carried for all bills acted on Feb. 13; two members were recorded as excused for parts of the meeting.

The committee sent House Bill 332 (recycling) forward with amendments to create a working group chaired by the Department of Health (DOH) to assess the feasibility of recycling small and medium format lithium‑ion batteries and to recommend legislative action. The committee’s report will note that DOH suggested an appropriation of $75,000 for the working group and that the committee may need to refer funding through the deposit beverage container special fund; the committee did not add a finance referral at this time.

On House Bill 256 (environmental protection), the committee adopted a Department of Health amendment clarifying compliance with current federal standards but preserving state authority where federal standards are more stringent. Climate Protectors Hawaii testified in support of preventing federal “backsliding,” and proposed an amendment to reference U.S. EPA draft rules issued Jan. 23, 2024.

House Bill 348 (single‑use plastics) was advanced as introduced. Testimony from Surfrider Foundation emphasized visitor volumes in 2024 (about 9.5 million visitors) and cited hotel industry cost‑savings studies showing bulk dispensers can reduce supply costs (Surfrider and industry examples referenced a 2018 Marriott estimate of roughly $2,000 per hotel per year).

House Bill 810 (noise pollution) — which would establish a private right of action for people aggrieved by violations of FAA and federal law governing helicopter operations — was moved forward as introduced. The record shows one member registered a reservation, but the committee’s recommendation was adopted.

House Bill 505 (Red Hill coordination) was advanced as introduced with written support from the Board of Water Supply and other parties.

House Bill 975 (carbon sequestration incentives) was advanced with amendments suggested by the Office of Planning and Sustainable Development (OPSD) to clarify that the program is not to be used for carbon offsets sold externally and to add statutory guardrails. The committee also agreed to “blank out” specific dollar amounts in the bill text and to note them in the committee report; the committee will defer to DLNR and Department of Agriculture for program operation and monitoring details. Climate commission testimony described program activities including cover crops, agroforestry, composting, reforestation and soil‑core monitoring.

On House Bill 974 (utility revenues / step‑in agreements), the committee adopted a package of amendments that: add a definition of reserve fee and a definition of revenue (including power purchase charges and reserve fees net of taxes and fees); limit duties to the Department of Budget and Finance for revenues tied to step‑in agreements; clarify that step‑in agreements do not pledge the full faith and credit of the state or state monies outside the specified revenues; specify that the trust fund that will hold revenues be established outside the state treasury; require the utility to continue billing and collecting revenues during a default; allow power purchase charges to cover department administrative costs related to the act; provide that funds transfer to a successor utility when the step‑in agreement ends; and require return of remaining reserve‑fee funds (with interest) to customers by a rate credit if the agreement terminates. The committee noted the state consumer advocate’s change in position that a reserve fee may not be constitutionally required, and directed continued discussion about whether the bill’s financing purpose can be accomplished without a customer surcharge.

Votes at a glance House Bill 332 (recycling — lithium‑ion batteries): Passed with amendments — committee will create DOH‑led working group; committee report to note possible $75,000 appropriation (DOH suggestion) and deposit beverage container special fund as a potential source. (Chair and vice chair recorded aye; Representatives Kahalua and Kush recorded aye; Representatives Quinlan and Ward excused.)

House Bill 256 (environmental protection): Passed with DOH amendment to clarify federal compliance language. (Chair and vice chair recorded aye; Representatives Quinlan and Ward excused.)

House Bill 348 (single‑use plastics — hotel toiletries): Passed as is. (Chair and vice chair recorded aye; Representatives Quinlan and Ward excused.)

House Bill 810 (noise — private right of action): Passed as is; one member noted a reservation but the recommendation was adopted. (Chair and vice chair recorded aye; Representative Kush recorded a reservation; Representatives Kunin and Ward excused.)

House Bill 505 (Red Hill coordination): Passed as is. (Chair and vice chair recorded aye; Representatives Quinlan and Ward excused.)

House Bill 975 (carbon sequestration incentives): Passed with OPSD‑suggested amendments to prevent use as tradable offsets; committee will remove dollar amounts from bill text and note them in the report. (Chair and vice chair recorded aye; Representatives Quinlan and Ward excused.)

House Bill 974 (utility revenue / step‑in agreements): Passed with multiple fiscal and legal clarifying amendments (reserve fee and revenue definitions; trust fund outside treasury; limits on state liability; customer refunds on termination). Committee noted the consumer advocate’s revised legal view and directed further discussion. (Chair and vice chair recorded aye; Representatives Quinlan and Ward excused.)

Context and next steps Most measures advanced will be reported out of committee with the committee’s adopted amendments and committee reports will note funding questions or excused members where applicable. The HB 332 working group will prepare recommendations for the legislature on recycling feasibility for small and medium lithium‑ion batteries; the committee’s report will note a possible appropriation and a suggested funding level from DOH. The committee deferred one bill earlier in the meeting (a measure about spacecraft landing oversight) and will return to it later.

Quotes from witnesses and staff are limited to those provided at the hearing. Veil Laramie of the Climate Change Mitigation Adaptation Commission summarized support for HB 975: "We just sent out our testimony in very strong support of this program," and described farmer and land‑manager interest in the pilot program and its monitoring activities.

The committee will transmit its recommendations and adopted amendments to the full House for further consideration.