Committee advances B5 biodiesel mandate, Pacific Biodiesel says local production can meet initial demand

The House Committee on Consumer Protection & Commerce voted to advance HB2423 HD2 on March 4, 2026, a bill that would require highway diesel sold in the state to contain no less than 5% biodiesel by volume no later than Jan. 1, 2028.

Manasha Chando of the Hawaii State Energy Office filed comments and was available for questions. Pacific Biodiesel’s representative — speaking for the co‑founders — described the company’s current production and argued the mandate would support local resilience amid global oil market volatility. The witness said Pacific Biodiesel’s nameplate capacity is 5.5 million gallons per year and that production had been over six million gallons in prior years, but that available supply to dedicate to the transportation sector fluctuates. She said the state need for a 5% blend would be roughly 2.2 million gallons per year and that the company could commit to prioritizing transportation supply under a mandate.

Committee members asked detailed capacity and contractual questions about how much of current output is already committed to other customers and what investments would be required to expand refining capacity. Pacific Biodiesel outlined ambitions for a second refinery on Kauai with an eventual 10‑million‑gallon target if feedstock and funding were available.

The chair recommended codifying the mandate into statute (rather than session law), adding enforcement language and allowing renewable diesel as an alternative if biodiesel supply is unavailable. The committee adopted the chair’s recommendation to pass HB2423 HD2 with amendments.