HawaiiSB 26942025–2026 Regular Session (Year 2)SenateWALLET

RELATING TO WATER CARRIERS.

Sponsored By: Lorraine R. Inouye (Democratic)

Signed by Governor

Summary

Requires the Public Utilities Commission to establish automatic adjustment mechanisms to address economic factors sua sponte or on application by a water carrier. Requires the Public Utilities Commission to establish a water carrier inflationary cost index automatic adjustment mechanism. Authorizes the Public Utilities Commission to waive or exempt any water carrier from any requirement under the Hawaii Water Carrier Act. Sunsets 7/1/2029. Effective 7/1/2050. (HD2)

PUCWater CarriersTariffsWater Carrier Inflationary Cost IndexAutomatic Adjustment MechanismRate AdjustmentsTRN, CPC, FIN

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Farm customers avoid automatic rate changes

Starting July 1, 2026, customers eligible for preferential agricultural water rates are exempt from these automatic rate-adjustment mechanisms. The exemption lasts through July 1, 2033.

Water carriers can seek rule waivers

Starting July 1, 2026, a water carrier can ask the commission to waive any or all requirements under the Water Carrier Act or related rules and orders. The commission must find that a requirement should not apply to water carriers or is unjust, unreasonable, or not in the public interest. This authority ends July 1, 2033.

Shipping rates can change with costs

Starting July 1, 2026, the commission must establish automatic rate-adjustment rules for water carriers. Rates can rise or fall as economic costs change. For property carriers, the cost index tracks annual wharfage-rate increases and cannot exceed 5% per year. Applications are required each year through June 30, 2029; from July 1, 2029, through June 30, 2033, applications are optional in the first, second, and fourth years. Property carriers must also file proposed rates in the third year of each period, even if they seek no rate change. Approved surcharge changes can take effect after 30 days’ notice instead of 45 days. The rules end July 1, 2033.

Sponsors & Cosponsors

Sponsor

  • Lorraine R. Inouye

    Democratic • Senate

Cosponsors

  • Rachele Lamosao

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 186 • No: 31

House vote • 5/6/2026

House Floor Vote

Yes: 35 • No: 15

Senate vote • 5/1/2026

The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS....

Yes: 5 • No: 0

House vote • 5/1/2026

The Conference Committee recommends that the measure be Passed, with Amendments....

Yes: 3 • No: 0

House vote • 4/14/2026

House Floor Vote

Yes: 37 • No: 13

House vote • 4/9/2026

The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The ...

Yes: 9 • No: 2

House vote • 3/30/2026

Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC...

Yes: 46 • No: 0

House vote • 3/27/2026

The committee on TRN recommend that the measure be PASSED, WITH AMENDMENTS. The ...

Yes: 6 • No: 0

Senate vote • 3/10/2026

Senate Floor Vote

Yes: 25 • No: 0

Senate vote • 3/3/2026

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 12 • No: 0

Senate vote • 2/18/2026

The committee(s) on TRS recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 4 • No: 1

Senate vote • 2/18/2026

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 4 • No: 0

Bill Text

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