HI HB1023

Redefines "biofuels" to require lifecycle greenhouse gas emissions below 100 kilograms of CO2 equivalent per million BTUs, excluding high-carbon fuels like those derived from beef tallow linked to Amazon deforestation

Requires electric utilities to purchase at least 20 million gallons of renewable biofuels annually by 2045, with additional incentives for lower-emission fuel contracts

Mandates purchase of renewable electrical energy from at least 2,000 megawatts of customer-sited, grid-connected distributed generation that can be dispatched when needed

Establishes capacity payment requirements to ensure anticipated reserve margins of at least 15% are met by generators achieving over 60% annual capacity factor using renewable or decarbonized energy

Repeals the 50-kilowatt cap on eligible customer-generators and requires electric utilities to report progress toward renewable portfolio standards by island rather than aggregate totals

Takes effect July 1, 2026