Bill > SB633

This bill establishes a comprehensive carbon emissions reduction strategy for Hawaii by implementing a progressive carbon tax and a corresponding carbon cashback program. The bill incrementally increases the environmental response, energy, carbon emissions, and food security tax on petroleum products and fossil fuels from 2026 to 2036, with tax rates starting at $3.15 per barrel for petroleum and $0.49 per million British thermal units for other fossil fuels, and gradually increasing each year. To mitigate the potential economic impact on lower-income residents, the bill creates a refundable tax credit program that provides financial relief based on household income, with credits ranging from $50 to $350 for single filers and $100 to $600 for other filing categories. The bill also establishes two special funds: the carbon emissions tax and dividend special fund to administer the program and cover administrative costs, and the agricultural development and food security special fund to support agricultural initiatives. Additionally, the legislation requires annual reporting to the legislature about the program's implementation, revenues, and potential future adjustments. The underlying goal is to reduce Hawaii's greenhouse gas emissions while providing economic protection for residents, drawing support from economic research that suggests carbon pricing can effectively decrease fossil fuel consumption.

Agriculture and Natural Resources

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=633&year=2025