H.B. 1023 Summary

• Modifies Hawaii's renewable portfolio standard by requiring electric utilities to purchase at least 20,000,000 gallons of renewable biofuels annually by 2045, with incentives for lower lifecycle greenhouse gas emissions.

• Establishes that biofuels must have lifecycle greenhouse gas emissions below 100 kilograms of carbon dioxide equivalent per million British thermal units to qualify as renewable energy.

• Requires utilities to purchase renewable electrical energy from at least 2,000 megawatts of customer-sited, grid-connected generation that can be dispatched when needed, removing previous 50-kilowatt capacity limits.

• Directs the Public Utilities Commission to establish capacity payments ensuring a minimum 15% anticipated reserve margin is met by generators achieving over 60% annual capacity factor using renewable or decarbonized electrical energy.

• Repeals the maximum 50-kilowatt capacity limitation for eligible customer-generators and requires utilities to report renewable portfolio standard progress by island.

• Effective July 1, 2026.