HI SB1323

Requires the Public Utilities Commission to direct public utilities that supply gas to acquire biogas generated from nonfossil fuel sources.

Establishes renewable gas portfolio standards requiring utilities to source increasing percentages of gas from renewable sources: 15% by December 31, 2015; 25% by December 31, 2020; 50% by December 31, 2025; and 100% by December 31, 2030.

Defines biogas as gaseous fuels from organic sources including biomass crops, agricultural residues, food wastes, animal wastes, sewage, and landfill waste.

Requires the Public Utilities Commission to establish a rate-setting methodology for biogas that removes linkage to fossil fuel prices and allows for inflation adjustments.

Authorizes the Public Utilities Commission to impose penalties on utilities that fail to meet renewable gas portfolio standards, with discretionary waivers allowed for circumstances beyond the utility's reasonable control.