Open Letter to House Speaker Scott Saiki

Act for working families and a thriving Hawai‘i

February 22, 2023

Dear House Speaker Scott Saiki,

In 2021, the Hawai‘i State Legislature declared a climate emergency.  In addressing any emergency, it is essential to keep all significant options to address the crisis on the table. 

Therefore, it seems imprudent that the legislature may once again take off the table a policy that over 3,600 economists, including 28 Nobel Laureates and 15 former chairs of the Council of Economic Advisers, view as the most effective policy to address climate change - pricing carbon. 

The aforementioned economists signed a statement that begins with, “A carbon tax offers the most cost-effective lever to reduce carbon emissions at the scale and speed that is necessary. By correcting a well-known market failure, a carbon tax will send a powerful price signal that harnesses the invisible hand of the marketplace to steer economic actors towards a low-carbon future.” 

In other words, the statement requests that we stop subsidizing fossil fuels and begin including the cost of the environmental damage they cause, including local air pollution, sea level rise, weather extremes, and coral bleaching, in their price.

The statement concludes: “To maximize the fairness and political viability of a rising carbon tax, all the revenue should be returned directly to U.S. citizens through equal lump-sum rebates. Most American families, including the most vulnerable, will benefit financially by receiving more in “carbon dividends” than they pay in increased energy prices.”

Though this statement applies to a U.S. carbon cashback policy, the two UH studies – one commissioned by the legislature and one by the Tax Review Commission – fully support this economists’ statement.  That is, if Hawai‘i were to increase the barrel tax to reflect a carbon tax of $50, rising to $70 (in 2012 dollars), and return all the revenues to people in equal shares, the majority of low- and middle-income households would financially benefit. With this policy, the average low-income household will be better off by $900 yearly and the average middle-income household by $500.

Critically, implementing HB1146 would be a powerful signal for the rest of the nation to adopt carbon pricing. Just as we have led other states to adopt policies like the 100% Renewable Portfolio Standard, Hawai‘i can, once again, lead the way. Once a national carbon cashback is implemented, Hawai‘i can adjust its carbon pricing policy to optimize its impact on our people, economy, and environment.

The climate crisis is only getting worse and Hawai‘i remains one of the world’s leading carbon emitters per capita.  Hawai’i has disregarded the advice of the world's leading climate scientists and economists for years by refusing to implement a carbon tax. Every year this policy is delayed, the consequences of the climate crisis become exponentially worse.

Therefore, we, the undersigned, strongly urge you, as Speaker of the House, to keep HB1146 (Carbon Cashback, introduced by 14 Representatives, including you, and passed Second Reading as amended in HD1) alive by re-referring it to the Finance committee and then to work with your colleagues in the Senate to pass this bill this legislative session. 

Mahalo for your attention to our deep concerns and the well-being of our environment and the residents of Hawai‘i. 

Sincerely,

Key Signatories

• Makena Coffman, PhD - Director, Institute for Sustainability and Resilience

• Noel Morin - Greater Pacific Northwest Coordinator, CCL

• Paul Bernstein, PhD – Economist with UHERO

• Richard Ha - Founder, DaRubbahSlippahGroup

• Dr. Ruth E. Robison - President, United Nations Association - USA - Hawai’i Island Chapter

• Stephen Taylor - PhD, Professor of Physical Oceanography

• Sumner La Croix, PhD - Professor Emeritus in Economics

• Ulupono Initiative

All Signatories

• Alexis Erum - Assistant Professor of Social Science, Kauai Community College

• Alice Luck - Concerned resident

• Andrew Bushnell - Kapaa - Professor Emeritus

• Audrey L. - High school student

• Barbara Best - Concerned resident

• Barbara Lund - Concerned resident

• Barry Solomon, PhD - Member, Maui Climate Action Advisory Committee

• Carissa Cabrera - Concerned resident

• Caroline Azelski - Concerned resident

• Charles Cox - Concerned resident

• Charley Ice - Retired Hydrologist, Commission on Water Resource Management

• Chase G. - High School Student - Honolulu

• Chisato T. - High school student

• Chris Medrano - Concerned resident

• Christine Daleiden - Concerned resident

• Cynthia Conrad - Concerned resident

• David Goodbody - Concerned resident

• David Kennard - Concerned resident

• David Jantz - Concerned resident

• Debbie Milliken, PhD - Biological Oceanography

• Douglas Hagan - Citizens’ Climate Lobby - Maui Chapter leader

• Doug Perrine - Concerned resident

• Dyson Chee - Concerned resident

• Elle S - High School Student - Honolulu

• Eric Lindborg MD - Concerned resident

• Fiona Rowles - Concerned resident

• Frank Stanton, PhD - Concerned resident

• Fredrick Sands - Concerned resident

• Helen Cox, PhD - Retired Chancellor, Kauai Community College

• Jana Fraser - Concerned resident

• Jane Schmitt - Concerned resident

• Janet Berreman - Concerned resident

• Jay Smith - Concerned resident

• Jaymen Laupola - Senior Program Officer at the East-West Center

• Jeff Mikulina - Longtime Sustainability Advocate

• JoAnn Yukimura - Former Kauai County Mayor and Council Member

• John Harder - Founder, Zero Waste Kauai

• John Kawamoto - Concerned resident

• John Latkiewicz, PhD - Formerly with Small Business Development Center

• John Naylor - Concerned resident

• John Wassell - Concerned resident

• Joshua Cooper - Hawai'i Institute for Human Rights 

• Judy Dalton - Concerned resident

• Julio Magalhaes, PhD - Retired NASA planetary climate scientist

• Dr. Keola Downing - Concerned resident

• Kim Coco Iwamoto - Chamber of Sustainable Commerce

• Keith Neal - Principal, Energy Transitions

• Kitty Calhoun - Concerned resident

• Linda Harmon - Concerned resident

• Logan L. - High school student

• Makena Coffman, PhD - Director, Institute for Sustainability and Resilience

• Mark Ombrello, PhD - Assistant Professor of History

• Mark White - Concerned resident

• Mary Lu Kelley - Kauai Climate Action Coalition

• Matt Geyer - Social Justice Council of First Unitarian Church of Honolulu

• Michael Carroll - Maui Pacific Solar, Inc.

• Michaela Nartia - Director of Administration (Re-use Hawaii), Honolulu

• Melissa Barker - Kauai Climate Action Coalition

• Mike Lewis - Concerned resident

• Molly Whiteley - State Coordinator, Citizens’ Climate Lobby Hawaii

• Nancy Budd - Retired attorney and concerned resident

• Nancy Romaine - Vocational Rehabilitation Counselor with the state Division of Vocational Rehabilitation

• Nanea Lo - Concerned resident Papakōlea, Hawaii Island

• Nate Hix - Director, Living Wage Hawai'i

• Noel Morin - Greater Pacific Northwest Coordinator, CCL

• Dr. Paul Bernstein - Researcher at UHERO

• Rachel Roper-Noonan - Concerned resident

• Richard Ha - Founder, DaRubbahSlippahGroup

• Robert Pearsall - Former Aide to Senator Wakai

• Roberta Baker - Concerned resident

• Ronald Reilly  - Hawaii State Coordinator, Citizens' Climate Lobby - Hawaii

• Russell Ruderman - Business Leader

• Ruta Jordans - Concerned resident

• Dr. Ruth E. Robison - President, United Nations Association - USA - Hawai’i Island Chapter

• Sam Pintz - Energy/environment consultant

• Sandra Herndon - Concerned resident

• Sarah Moore - Concerned resident

• Sarah Roper - Concerned resident

• Sergio Alcubilla - Hawai'i Worker Center

• Sonja Kass - President, Kauai EV

• Sophie P. - High school student

• Steph Pintz - Concerned resident

• Steve Parsons - Realtor

• Stephen Taylor - PhD, Professor of Physical Oceanography

• Steve Slater - Concerned resident

• Sumner La Croix, PhD - Economics Professor Emeritus

• Susan Goodbody Murphy - Concerned resident

• Tamara L. - High school student

• Terry Tico - Concerned resident

• Thomas Brandt - Concerned resident

• Thomas Graham - Concerned resident

• Ulupono Initiative

• Virginia Tincher - Citizens’ Climate Lobby - Oahu Chapter Leader

• Vollie Scott - Concerned resident