HB2423 would direct the Director of Business, Economic Development, and Tourism to adopt rules requiring that, by January 1, 2028, diesel fuel sold for use in on-highway diesel-powered motor vehicles in counties with populations between 200,000 and 300,000 contain at least 5% biodiesel by volume. The bill allows renewable diesel to be used if biodiesel supply is insufficient, and it defines biodiesel broadly to include fuel made from agricultural residues, animal wastes, food waste, oil crops, sewage, and landfill wastes, so long as it meets ASTM D6751 standards.
The measure also requires DBEDT to submit a rollout report to the Legislature by early 2027, including timeline, fiscal, administrative, and coordination details, and to consult with the Department of Transportation during development and implementation. DBEDT must also present the rollout plan publicly before implementation. Enforcement would be through rules adopted under chapter 91, with penalties of at least $2 per gallon of nonconforming fuel, up to $10,000 per infraction. The bill is structured as a targeted biodiesel blending mandate for qualifying counties rather than a statewide requirement.
HB2423 would add a new section to chapter 486J, Hawaii Revised Statutes, creating a county-specific biodiesel blending requirement for on-highway diesel fuel and authorizing DBEDT to regulate, administer, and enforce it by rule. It would affect diesel distributors and other persons selling nonconforming fuel in the covered counties, while also creating a reporting and planning obligation for DBEDT and a coordination role for DOT. The bill’s effective date is set far in the future, July 1, 3050, but the operational requirement is intended to begin no later than January 1, 2028, subject to rulemaking and supply availability.
The available voting history suggests generally favorable sentiment toward the bill, with unanimous or near-unanimous committee approvals in the Senate committees listed. The bill advanced through Senate Energy and Intergovernmental Affairs, Economic Development and Technology, Commerce and Consumer Protection, and Ways and Means without recorded opposition in the provided votes. The bill text itself frames biodiesel as a practical, low-cost tool for energy security, emissions reduction, and local economic development, which aligns with the positive committee movement shown in the record.
The main policy issues appear to be implementation and supply reliability rather than whether biodiesel is desirable in principle. The bill explicitly allows renewable diesel if biodiesel supply is insufficient, indicating concern about market availability and operational continuity. The required DBEDT rollout report, public presentation, and consultation with DOT also suggest attention to logistics, fiscal impacts, and coordination with transportation systems. The targeted county threshold may also be a point of debate because it limits the mandate to counties within a specific population range rather than applying it statewide.