Committee narrows biodiesel mandate to Hawaii island and advances HB 2423 with implementation changes

On March 24, 2026 the Senate committee advanced HB 2423 HD3—legislation that would establish a biodiesel (or renewable diesel when biodiesel is unavailable) blend benchmark—after testimony from industry, state energy staff and multiple supporters.

Robert King, founder and president of Pacific Biodiesel Technologies, told the committee the bill would provide a predictable, small‑scale (5%) on‑road blend that helps stabilize plant operations and local markets. King said Hawaii production capacity on the Big Island is roughly 6 million gallons per year with about 4 million gallons produced last year; the bill’s projected demand (described in testimony) was approximately 2.2 million gallons, which King argued is within local capacity and would not require imports for the proposed island‑focused mandate.

Committee members pressed witnesses on enforcement and measurement. Witnesses explained compliance would rely on distributor reporting of diesel sales and biodiesel purchases, and that testing can verify blend percentages; they described accounting approaches other states have used. Senators raised concerns about whether the mandate would apply only to on‑road highway vehicles (witnesses said yes) and about market effects: if some sellers absorbed higher costs while competitors did not, trucking companies could be disadvantaged when bidding for contracts.

Members compared biodiesel to prior ethanol mandates, noting past problems with ethanol policy; witnesses differentiated biodiesel’s chemistry and operational experience (citing B5/B20 use in other states) and highlighted biodiesel’s benefits for engine lubricity, waste reduction and local jobs. Testimony also covered finance and state involvement: witnesses said an estimated $9 million appropriation supported a Kauai farm cooperation and that the plant cost about $20 million (with roughly $1 million described as state investment); they also said only about one‑third of earned tax credits are actually used by investors.

For decision making, the committee recommended an SD1 amendment to make the bill apply only to the island of Hawaii and to redirect the effective date to July 1, 2030 (as reflected in the committee’s redocketing language). The recommendation passed in a recorded vote with several senators voting aye and others excused or recording reservations.

The committee report will reflect DOF/industry comments on enforcement, availability of biodiesel versus renewable diesel, and market impacts. With the island‑limited SD1, sponsors say the proposal is intended to support local production while limiting statewide supply and competitive concerns.