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Committee advances renewable gas tariff bill amid questions about implementation and timing
Summary
Hawaii Gas and supporters urged a streamlined process for a voluntary renewable gas tariff; critics questioned whether the bill would actually increase renewable supply, and witnesses discussed timing, infrastructure and whether the tariff merely labels existing gas as "renewable." The committee voted to pass the measure.
The House Committee on Consumer Protection & Commerce advanced Senate Bill 1220, SD2, HD1 on March 19 after testimony from Hawaii Gas, the Public Utilities Commission and other stakeholders about a proposed voluntary renewable gas tariff.
Hawaii Gas said the bill creates "a more efficient cost-effective process for establishing a renewable gas tariff or rate, eliminating the need for an expensive and time-consuming general rate case" and said it could submit a tariff filing by Aug. 31, 2025. "This bill creates a balanced pathway that protects consumers while expanding their energy choices," a Coalition for Renewable Natural Gas witness told the committee.
Critics pushed back on two fronts. Henry Curtis of Life of the Land said Hawaii Gas already has an active general rate case before the PUC and could have included a tariff there; he added the company had not committed to actually increasing the amount of renewable gas prior to 2030 and called the bill a possible "gimmick" that would allow a voluntary product sale without changing overall system mix.
Committee members asked detailed operational questions: where renewable natural gas would come from, whether the same single pipeline could deliver both "renewable" and standard gas, whether infrastructure existed to segregate supplies, and whether the company planned to ask for a higher charge for the renewable-rate customers. Hawaii Gas representatives said the tariff sets a process; the procurement details and resource sources would be determined in a specific PUC filing and that the company had two projects in RFP stage and expected to seek projects for renewable gases and hydrogen. The PUC said a nine-month timeline in the bill was an "acceptable" accelerated schedule to process a tariff outside of a full rate case.
The committee adopted the chair's recommendation to pass SB1220 unamended. The committee noted concerns and recorded that tariff design and procurement specifics will be addressed in the PUC docketing and review process.
Ending: The bill advances to the next stage; parties will resolve technical procurement and accounting questions in the PUC filing required by the statute.
