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Senators move renewable gas tariff bill forward, citing need to speed approvals
Summary
Committees passed SB1220 with a defective effective date to require gas utilities to file proposed renewable gas tariffs and for the PUC to establish such tariffs within six months of a filing; supporters said the change expedites decarbonization while critics urged the PUC rate case process be used instead.
The joint Senate committees voted to pass SB1220, a bill requiring gas utilities to submit proposed renewable gas tariffs to the Public Utilities Commission (PUC) by Aug. 31, 2025, and obliging the PUC to establish a tariff within six months of receiving a filing. Lawmakers set a defective effective date to allow further technical checks and interagency coordination.
Why it matters: Proponents said the measure is meant to remove regulatory delay that can stall voluntary renewable gas offerings, arguing an expedited approval timeline will help the state meet climate goals. Opponents and some regulators urged caution, saying the PUC’s rate‑case process already provides consumer protections and cost recovery mechanisms and that the measure needs clearer implementation rules to avoid cross‑subsidies.
Hawaii Gas told committees that a typical rate case can take 18–24 months and cost $2–3 million, and said the bill creates an expedited process without changing the approval standard. A Hawaii Gas witness summarized three safeguards the company favors: the renewable tariff must be voluntary, it cannot increase rates for nonparticipating customers, and the approval standard remains unchanged. The PUC submitted comments seeking clarifications on how renewable tariff applications would be implemented, for example whether a utility must set tariffs for individual customers or could create a single elective tariff structure.
Life of the Land and other intervenors argued the issues are better addressed in an ongoing rate case, or via pilot programs, to ensure costs are recovered from those who choose to buy renewable gas rather than spread across all customers. Committee members said they appreciated both perspectives and adopted a defective date so stakeholders and the PUC can refine implementation details.
Outcome: The committees recorded votes to pass SB1220 with amendments and a defective effective date to 07/01/2050; one senator registered a reservation in committee comments. Committees instructed staff and stakeholders to continue technical discussions about tariff design, cost allocation and pilot options.
