Hawaii Carbon Cashback
Carbon Cashback Bills
Four Carbon Cashback bills were introduced in the Hawaii Legislature. As of February 22, there is only one that has a chance of continuing - HB1146, which
“Establishes a carbon emissions tax credit. Expands the environmental response, energy, and food security tax to include carbon emissions. Applies to taxable years beginning after 12/31/2023. Requires the Office of Planning and Sustainable Development, in consultation with the Department of Taxation, to recommend updates to the tax per fuel and corresponding tax credits.”
Visit our action page for information on how you can help encourage a re-referral of HB1146 which will keep this bill alive.
The other three bills that are now dead include:
SB1060 - KEITH-AGARAN, AQUINO, MCKELVEY, RHOADS, Kidani, Moriwaki
Environmental Response, Energy, Carbon Emissions, and Food Security Tax; Tax Credit
Establishes a carbon emissions tax credit. Expands the environmental response, energy, and food security tax to include carbon emissions. Applies to taxable years beginning after 12/31/2023.
SB1004 - RHOADS, CHANG, KEITH-AGARAN, KEOHOKALOLE, LEE, MCKELVEY, SHIMABUKURO
Environmental Response, Energy, Carbon Emissions, and Food Security Tax; Tax Credit; Office of Planning and Sustainable Development
Establishes a carbon emissions tax credit. Expands the environmental response, energy, and food security tax to include carbon emissions. Applies to taxable years beginning after 12/31/2023. Requires the Office of Planning and Sustainable Development, in consultation with the Department of Taxation, to recommend updates to the tax per fuel and corresponding tax credits.
HB1498- Saiki (Introduced by request of another party)
Environmental Response, Energy, Carbon Emissions, and Food Security Tax; Tax Credit
Establishes a carbon emissions tax credit. Expands the environmental response, energy, and food security tax to include carbon emissions. Applies to taxable years beginning after 12/31/2023.
Mahalo to all who have supported these bills!
Carbon Cashback
Carbon Cashback is a policy designed to reduce emissions in an equitable manner by taxing fossil fuels and returning most of the revenue to Hawaii’s residents through a refundable tax credit.
Citizens’ Climate Lobby Hawaii and other environmental groups are in STRONG SUPPORT of Carbon Cashback and encourage anyone interested in policies that will effectively reduce carbon emissions while protecting our low-moderate income households to support this policy.
Talking Points, Facts, and Frequently Asked Questions
We’ve compiled information to help clarify the carbon pricing and address questions about Carbon Cashback. Check out our Talking Points and Frequently Asked Questions for information that can help you better understand and share the rationale and benefits of the Carbon Cashback policy.
A price on carbon pollution will create the incentive to reduce our consumption of fossil fuel, increase demand for more sustainable energy and transportation, and reduce Hawaii’s carbon emissions.
Why price carbon in Hawaii?
In Hawaii, local leaders have recognized the potential of carbon pricing. To better understand its potential, the State Legislature commissioned a study to determine the impact and viability of implementing a carbon fee. The study includes a finding that “In the year 2045, emissions are 13% below 2045 baseline levels and 40% below 2019 levels.” Furthermore, the economy would not be harmed, as there would be only “small impacts on Hawai‘i’s overall economy.”
The study also mentioned the progressive nature of a carbon fee and dividend policy.
“… it provides more than proportional benefits to lower-income households. Making the policy progressive can be done through dividend payments of equal shares across households or payments more specifically targeting lower-income households.”
More recently, the Hawaii Tax Review Commission included carbon pricing as #1 on their list of recommendations in their 2020-2022 report. Their recommendation:
“Impose a carbon tax to incentivize moving away from carbon-based fuels and adopting clean energy. We recommend that the majority of the proceeds be rebated as a cashback to the residents of Hawaiʻi, with a disproportionate distribution to low-income households.”
How will carbon pricing affect Hawaii?
This video by Faith Action explains how a local carbon pricing and dividend policy can play an important role in helping Hawaii address its carbon emissions without creating a financial burden on residents.
‘Talking story’
CCL Hawaii leader, Sara Bower, joined Think Tech Hawaii Code Green host Howard Wiig to ‘talk story’ about carbon pricing on May 9, 2022.
If you agree that life, property and nature are worth preserving (and are hurt by CO2 because it produces climate change), then a carbon tax can be a good thing because it could make us choose items that are “carbon-free” and so, a lifestyle that encourages the preservation of the things we value—healthy people, markets and ecosystems. - Annu Hittle
Annu Hittle, former Hawaii State Climate Change Mitigation and Adaptation Coordinator, testified in support of SB 3150, a carbon pricing bill introduced in the Hawaii State Legislature in 2020. She published a post that summarized the importance of carbon pricing. Her message is timeless.
Read her post here.
