Carbon Pricing in Hawaii
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.
Hawaii’s Carbon Cashback bill - HB2278 - did not make it to the finish line… this time.
Despite broad support, including from a significant number of local leaders, and passage in the House, HB2278 failed to be heard by the Senate Energy, Economic Development, Tourism, and Ways and Means committees. This is disappointing and disheartening, given the need for urgent climate action.
That said, the good turnout for Carbon Cashback has raised awareness of the role of this policy in reducing our emissions in an equitable way. There were several LTEs and Op-Eds published in support of the measure, a good deal of supportive testimony*, public discussions, and even an open letter of support signed by constituents, leaders, and organizations across the state.
Importantly, we also saw increased collaboration across our environmental and climate action groups. This allowed for mutual support of our bills and even more backing for Carbon Cashback.
Mahalo to everyone who worked hard to secure support for HB2278. We could not have gotten this far without your effort and dedication. While we did not make it to the finish line, we got close and will be much better prepared for the next round.
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.
Faith Action for Community Equity, 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 the bill.
Talking Points, Facts, and Frequently Asked Questions
We’ve compiled information to help clarify the carbon pricing and address questions raised about Carbon Cashback. Check out our Talking Points for information that can help you better understand and share the rationale and benefits of the Carbon Cashback policy.
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.
