THE SENATE S.B. NO. 1340 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT RELATING TO THE ZERO EMISSIONS CLEAN ECONOMY TARGET. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: THE SENATE S.B. NO. 1340 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII THE SENATE S.B. NO. 1340 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT RELATING TO THE ZERO EMISSIONS CLEAN ECONOMY TARGET. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION 1. The legislature finds that the climate crisis is the overriding challenge of the twenty-first century, presenting significant threats to the environment, public health, and economic stability of the State of Hawaii. In 2024, the state department of transportation reached an unprecedented settlement of the Navahine v. Department of Transportation constitutional climate lawsuit, which underscores the State's commitment to addressing climate change through responsible governance and innovative solutions. The settlement further underscores the importance of ensuring that future generations and youth will inherit a life-sustaining climate with access to the same diversity and cultural resources enjoyed by previous generations. The legislature recognized in Act 32, Session Laws of Hawaii 2017, that on December 12, 2015, one hundred ninety-five countries at the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change adopted an agreement addressing greenhouse gas emissions mitigation, adaptation, and finance starting in the year 2020, known as the Paris Agreement. Act 32 further documented the State's commitment to implement the goals of the Paris Agreement, demonstrating the State's proactive stance in contributing to global climate mitigation efforts change by systematically reducing greenhouse gas emissions. Furthermore, the United States has set ambitious nationally determined contributions under the Paris Agreement, aiming to significantly reduce national greenhouse gas emissions. The legislature finds that the current overarching targets established within section 225P-5, Hawaii Revised Statutes, are consistent with the nationally determined contributions, but can be strengthened by providing more specificity and clarity. In December 2023, the Hawaii state energy office completed the first Pathways to Decarbonization report to estimate sector and category-level projections of greenhouse gas emissions necessary to reach the overarching emissions target established by Act 238, Session Laws of Hawaii 2022. Through this work, sector-specific targets can be derived, providing a clearer roadmap for achieving comprehensive emissions reductions across all sectors of the State's economy. Therefore, to ensure that Hawaii continues to lead by example in the fight against climate change and to safeguard the well-being of current and future generations, the legislature finds it necessary to further refine and improve the State's zero emissions clean economy target. The purpose of this Act is to provide needed clarifications on the applicability and scope of section 225P-5, Hawaii Revised Statutes. The proposed amendments clarify current emissions reduction goals and define critical terms used in climate mitigation. Further, the purpose of this Act is to establish a total or gross emissions target as well as sector-specific targets to reinforce action in the relevant emitting sectors further strengthening the transition to a sustainable, low-carbon economy. Amendments to the statute are consistent with the legislature's original intent. SECTION 2. Section 225P-2, Hawaii Revised Statutes, is amended by adding new definitions to be appropriately inserted and to read as follows: ""Anthropogenic greenhouse gas emissions" means the release of greenhouse gases into the atmosphere as a direct result of human activities. Sources of anthropogenic greenhouse gas emissions include but are not limited to fuel combustion, industrial operations, deforestation, agricultural practices, and waste management. "Carbon sink" means any process, activity, or mechanism that removes a greenhouse gas, an aerosol, or a precursor of a greenhouse gas from the atmosphere. "Emission leakage" means the net increase of anthropogenic greenhouse gas emissions occurring outside an established inventory system boundary, resulting from efforts to reduce greenhouse gas emissions in one location or sector that lead to an increase in emissions in another location or sector. "Greenhouse gas" means any gas in the atmosphere that traps or emits heat and results in increasing the Earth's surface temperatures. These greenhouse gases include gases such as carbon dioxide, methane, nitrous oxide, and fluorinated gases. "Greenhouse gas emission" means the production or release of greenhouse gases from human activities including but not limited to the burning of carbon-based fuels, the release of gases from certain chemical reactions, the release and leakage of refrigerants, the application of fertilizer, or the clearing of forests. "Greenhouse gas emitting category" or "category" means the various economic sub-classifications within each sector as defined by the Intergovernmental Panel on Climate Change, the United Nations body for assessing the science related to climate change. "Greenhouse gas emitting sector" or "sector" means the various economic classifications that contribute to greenhouse gas emissions including the energy, transport, buildings, industry, agriculture, forestry, and waste management sectors as determined by the Intergovernmental Panel on Climate Change. "Greenhouse gas inventory" or "inventory" means the statewide greenhouse gas emissions inventory report published by the state department of health as required by section 342B-71. "Greenhouse gas reservoir" means a physical unit or component of the biosphere, geosphere, or hydrosphere with the capability to store, accumulate, or release a greenhouse gas removed from the atmosphere by a greenhouse gas sink, or a greenhouse gas captured from a greenhouse gas emission source. "Net greenhouse gas emission" means the estimated balance between the emissions produced or released into the atmosphere, subtracted from the emissions sequestered through natural and technological processes, or the sum of emissions sources and emissions sinks. "Total greenhouse gas emissions" means the aggregated total emissions from all economic sectors expressed in units of mass by carbon dioxide equivalent. For this chapter, emissions accounted for shall include those emissions from human-made, or anthropogenic sources. Total greenhouse gas emissions do not include offsets or sinks." SECTION 3. Section 225P-5, Hawaii Revised Statutes, is amended to read as follows: "§225P-5 Zero emissions clean economy target. (a) Considering [both atmospheric carbon and] all in-state anthropogenic greenhouse gas emissions as well as [offsets] carbon sink capacity from the local in-state sequestration of atmospheric carbon [and greenhouse gases] through long-term carbon sinks and reservoirs, a statewide net greenhouse gas emission target is hereby established to sequester more atmospheric carbon and greenhouse gases than anthropogenically emitted within the State as quickly as practicable, but no later than 2045; provided that the statewide target includes a net greenhouse gas emissions limit, to be achieved no later than 2030, of at least fifty per cent below the level of the statewide net greenhouse gas emissions in 2005[.], as determined by the state greenhouse gas inventory. (b) Total greenhouse gas emissions shall be reduced by ninety per cent below the level of statewide total greenhouse gas emissions in 2005, as quickly as practicable, but no later than 2045. Sector and category-specific targets are further established in key emitting categories as follows, using 2005 as the baseline year: (1) Total greenhouse gas emissions from stationary combustion shall be reduced by: (A) Fifty per cent by 2030; (B) Eighty per cent by 2035; (C) Ninety per cent by 2040; and (D) Ninety-five per cent by 2045. (2) Total greenhouse gas emissions from ground transportation shall be reduced by: (A) Forty per cent by 2030; (B) Seventy per cent by 2035; (C) Ninety per cent by 2040; and (D) Ninety-five per cent by 2045. The commission shall work with stakeholders to inform the development of science-based targets in other economic sectors and categories and targets shall be published in the commission's annual report. The commission shall work with members to help ensure the members' actions avoid emissions leakage resulting from policies, projects, and programs implemented to achieve the targets. [(b)] (c) The [Hawaii climate change mitigation and adaptation] commission shall [endeavor to] provide policy and program guidance to the governmental and non-governmental agencies on the actions needed to achieve the goals of this section. (d) After January 1, [2020,] 2026, all state agencies preparing plans, making decisions, including procurement decisions, and developing strategies shall [give consideration to] consider the impact of those plans, decisions, and strategies on the State's ability to achieve the [goals] targets outlined in [this section,] section 225P-5(a) and (b), weighed appropriately against their primary purpose. (e) Members of the commission shall submit to the commission and include within their annual reports to the legislature, as applicable, a summary of actions taken, or not taken, to help the State meet the established clean economy targets. The commission shall develop a standardized reporting template to facilitate reporting for commission members." SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ BY REQUEST SECTION 1. The legislature finds that the climate crisis is the overriding challenge of the twenty-first century, presenting significant threats to the environment, public health, and economic stability of the State of Hawaii. In 2024, the state department of transportation reached an unprecedented settlement of the Navahine v. Department of Transportation constitutional climate lawsuit, which underscores the State's commitment to addressing climate change through responsible governance and innovative solutions. The settlement further underscores the importance of ensuring that future generations and youth will inherit a life-sustaining climate with access to the same diversity and cultural resources enjoyed by previous generations. The legislature recognized in Act 32, Session Laws of Hawaii 2017, that on December 12, 2015, one hundred ninety-five countries at the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change adopted an agreement addressing greenhouse gas emissions mitigation, adaptation, and finance starting in the year 2020, known as the Paris Agreement. Act 32 further documented the State's commitment to implement the goals of the Paris Agreement, demonstrating the State's proactive stance in contributing to global climate mitigation efforts change by systematically reducing greenhouse gas emissions. Furthermore, the United States has set ambitious nationally determined contributions under the Paris Agreement, aiming to significantly reduce national greenhouse gas emissions. The legislature finds that the current overarching targets established within section 225P-5, Hawaii Revised Statutes, are consistent with the nationally determined contributions, but can be strengthened by providing more specificity and clarity. In December 2023, the Hawaii state energy office completed the first Pathways to Decarbonization report to estimate sector and category-level projections of greenhouse gas emissions necessary to reach the overarching emissions target established by Act 238, Session Laws of Hawaii 2022. Through this work, sector-specific targets can be derived, providing a clearer roadmap for achieving comprehensive emissions reductions across all sectors of the State's economy. Therefore, to ensure that Hawaii continues to lead by example in the fight against climate change and to safeguard the well-being of current and future generations, the legislature finds it necessary to further refine and improve the State's zero emissions clean economy target. The purpose of this Act is to provide needed clarifications on the applicability and scope of section 225P-5, Hawaii Revised Statutes. The proposed amendments clarify current emissions reduction goals and define critical terms used in climate mitigation. Further, the purpose of this Act is to establish a total or gross emissions target as well as sector-specific targets to reinforce action in the relevant emitting sectors further strengthening the transition to a sustainable, low-carbon economy. Amendments to the statute are consistent with the legislature's original intent. SECTION 2. Section 225P-2, Hawaii Revised Statutes, is amended by adding new definitions to be appropriately inserted and to read as follows: ""Anthropogenic greenhouse gas emissions" means the release of greenhouse gases into the atmosphere as a direct result of human activities. Sources of anthropogenic greenhouse gas emissions include but are not limited to fuel combustion, industrial operations, deforestation, agricultural practices, and waste management. "Carbon sink" means any process, activity, or mechanism that removes a greenhouse gas, an aerosol, or a precursor of a greenhouse gas from the atmosphere. "Emission leakage" means the net increase of anthropogenic greenhouse gas emissions occurring outside an established inventory system boundary, resulting from efforts to reduce greenhouse gas emissions in one location or sector that lead to an increase in emissions in another location or sector. "Greenhouse gas" means any gas in the atmosphere that traps or emits heat and results in increasing the Earth's surface temperatures. These greenhouse gases include gases such as carbon dioxide, methane, nitrous oxide, and fluorinated gases. "Greenhouse gas emission" means the production or release of greenhouse gases from human activities including but not limited to the burning of carbon-based fuels, the release of gases from certain chemical reactions, the release and leakage of refrigerants, the application of fertilizer, or the clearing of forests. "Greenhouse gas emitting category" or "category" means the various economic sub-classifications within each sector as defined by the Intergovernmental Panel on Climate Change, the United Nations body for assessing the science related to climate change. "Greenhouse gas emitting sector" or "sector" means the various economic classifications that contribute to greenhouse gas emissions including the energy, transport, buildings, industry, agriculture, forestry, and waste management sectors as determined by the Intergovernmental Panel on Climate Change. "Greenhouse gas inventory" or "inventory" means the statewide greenhouse gas emissions inventory report published by the state department of health as required by section 342B-71. "Greenhouse gas reservoir" means a physical unit or component of the biosphere, geosphere, or hydrosphere with the capability to store, accumulate, or release a greenhouse gas removed from the atmosphere by a greenhouse gas sink, or a greenhouse gas captured from a greenhouse gas emission source. "Net greenhouse gas emission" means the estimated balance between the emissions produced or released into the atmosphere, subtracted from the emissions sequestered through natural and technological processes, or the sum of emissions sources and emissions sinks. "Total greenhouse gas emissions" means the aggregated total emissions from all economic sectors expressed in units of mass by carbon dioxide equivalent. For this chapter, emissions accounted for shall include those emissions from human-made, or anthropogenic sources. Total greenhouse gas emissions do not include offsets or sinks." SECTION 3. Section 225P-5, Hawaii Revised Statutes, is amended to read as follows: "§225P-5 Zero emissions clean economy target. (a) Considering [both atmospheric carbon and] all in-state anthropogenic greenhouse gas emissions as well as [offsets] carbon sink capacity from the local in-state sequestration of atmospheric carbon [and greenhouse gases] through long-term carbon sinks and reservoirs, a statewide net greenhouse gas emission target is hereby established to sequester more atmospheric carbon and greenhouse gases than anthropogenically emitted within the State as quickly as practicable, but no later than 2045; provided that the statewide target includes a net greenhouse gas emissions limit, to be achieved no later than 2030, of at least fifty per cent below the level of the statewide net greenhouse gas emissions in 2005[.], as determined by the state greenhouse gas inventory. (b) Total greenhouse gas emissions shall be reduced by ninety per cent below the level of statewide total greenhouse gas emissions in 2005, as quickly as practicable, but no later than 2045. Sector and category-specific targets are further established in key emitting categories as follows, using 2005 as the baseline year: (1) Total greenhouse gas emissions from stationary combustion shall be reduced by: (A) Fifty per cent by 2030; (B) Eighty per cent by 2035; (C) Ninety per cent by 2040; and (D) Ninety-five per cent by 2045. (2) Total greenhouse gas emissions from ground transportation shall be reduced by: (A) Forty per cent by 2030; (B) Seventy per cent by 2035; (C) Ninety per cent by 2040; and (D) Ninety-five per cent by 2045. The commission shall work with stakeholders to inform the development of science-based targets in other economic sectors and categories and targets shall be published in the commission's annual report. The commission shall work with members to help ensure the members' actions avoid emissions leakage resulting from policies, projects, and programs implemented to achieve the targets. [(b)] (c) The [Hawaii climate change mitigation and adaptation] commission shall [endeavor to] provide policy and program guidance to the governmental and non-governmental agencies on the actions needed to achieve the goals of this section. (d) After January 1, [2020,] 2026, all state agencies preparing plans, making decisions, including procurement decisions, and developing strategies shall [give consideration to] consider the impact of those plans, decisions, and strategies on the State's ability to achieve the [goals] targets outlined in [this section,] section 225P-5(a) and (b), weighed appropriately against their primary purpose. (e) Members of the commission shall submit to the commission and include within their annual reports to the legislature, as applicable, a summary of actions taken, or not taken, to help the State meet the established clean economy targets. The commission shall develop a standardized reporting template to facilitate reporting for commission members." SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ BY REQUEST INTRODUCED BY: _____________________________ BY REQUEST Report Title: Greenhouse Gas; Carbon; Hawaii Climate Change Mitigation and Adaptation Commission; Hawaii State Energy Office Description: Provides needed clarifications on the applicability and scope of section 225P-5, HRS. Clarifies current emissions reduction goals and defines critical terms used in climate mitigation. Establishes a total or gross emissions target as well as sector-specific targets to reinforce action in the relevant emitting sectors further strengthening the transition to a sustainable, low-carbon economy. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. Report Title: Greenhouse Gas; Carbon; Hawaii Climate Change Mitigation and Adaptation Commission; Hawaii State Energy Office Description: Provides needed clarifications on the applicability and scope of section 225P-5, HRS. Clarifies current emissions reduction goals and defines critical terms used in climate mitigation. Establishes a total or gross emissions target as well as sector-specific targets to reinforce action in the relevant emitting sectors further strengthening the transition to a sustainable, low-carbon economy. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.