HI HB501

Expands preferential utility rate authority to include electricity and freight transport services in addition to water for agricultural activities.

Requires public utilities to submit proposed preferential rates to the Public Utilities Commission (PUC) for approval upon receipt of a bona fide request from customers engaging in agricultural activities on lands within agricultural districts.

Allows the PUC to determine if preferential rates must be subsidized by rates charged to other customers of the public utility.

Directs the PUC to define "qualified agricultural activities" and "bona fide agribusinesses" in consultation with the Department of Agriculture to ensure preferential rates apply only to active, substantial, and gainful agricultural production including crops, livestock, and aquaculture.

Takes effect July 1, 2050.