Hawaii Carbon Cashback

Support National Carbon Pricing!

​The Hawaii legislature has introduced resolutions calling for the National Congress to enact carbon fee and dividend (carbon cashback).  The House resolutions, HCR124 and HR125, are being heard by the Energy & Environmental Protection Committee on Thursday, March 23, at 930 AM HST, in Conference Room 325 and via Zoom

HCR124 is a House “concurrent” resolution, meaning that the Senate must concur with the House’s resolution. If the Senate does not support the resolution, the House can pass HR125, which is the same resolution without the Senate’s concurrence.

Deadline to submit testimony:  Wednesday, March 22, 2023, 9:30 AM HST

Please help these resolutions pass

Please submit testimony for HCR124 and indicate in your testimony that you “support HCR124/HR125” to give the resolutions the best chance of passing. (You can also submit testimony for HR125 separately.)

NOTE: You’ll be prompted to create an account with the State Legislature if you don’t have one.

When submitting testimony, you can choose one of the following options:

  • In-person and submitting written testimony

  • Remotely via Zoom and submitting written testimony

  • Written testimony only

Testifying in person or remotely via Zoom have a BIG IMPACT.

Sample Testimony for HCR124 and HR125

Example #1

Aloha Chair Lowen, Vice Chair Cochran, and members of the EEP Committee:

I strongly support HCR124 and HR125 because, as the UN has recently warned: “The world is on thin ice.” The signs and damages from climate change surround us. The need to take significant action now to reduce global emissions of greenhouse gases is undeniable. We need meaningful action on a global scale. A national carbon cashback (carbon fee and dividend) policy will address carbon emissions throughout our economy. In addition, if the United States imposes a border carbon adjustment, the policy will incentivize all US trading partners to reduce their emissions. The policy provides the correct financial incentives for businesses and households to reduce their use of fossil fuels. Furthermore, the carbon cashback policy is progressive and protects and even benefits most low- and moderate-income households.

In sum, this policy reduces US emissions, protects the most and more vulnerable households, is revenue neutral (so it requires no government funding), and with a border carbon adjustment, protects US businesses.

I urge you to pass resolutions HCR124 and HR125.

[Your name, area of residence]

Example #2

Aloha Chair Lowen, Vice Chair Cochran, and members of the EEP Committee:

Thank you for this opportunity to testify in strong support of resolutions HCR124 and HR125.  

The story in Hawaii Island papers today - “World on ‘thin ice’ as UN climate report gives a stark warning” - is another urgent call to action from the IPCC. Hawaii is doing many things locally to reduce emissions, and now is our opportunity to send a strong message to the President and Congress to enact carbon fee and dividend legislation. It will strengthen the bills already passed this year to tackle climate change. Pricing emissions reflects the societal costs of burning fossil fuels, and giving the revenue back to Americans protects them during the transition to cleaner technologies.

I urge you to pass resolutions HCR124 and HR125.

[Your name, area of residence]

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.

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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?

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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.

Pricing carbon emissions is an effective way for Hawaii to accelerate its 100% RPS and sustainable transportation goals. Combined with a dividend, it will allow for our households, especially lower-income, to gracefully transition away from fossil-fuel-intensive products. Notably, it will magnify support for national carbon fee and dividend policy.