2026 Legislative Priority

Minimum B5 Fuel Requirement for Hawaiʻi Highway Fuel

“Hawaiʻi’s heavy dependence on imported petroleum threatens the State’s energy security, economic stability, and national security interests in the Pacific region. Locally produced biodiesel provides an immediately deployable, renewable, energy-dense fuel that reduces reliance on foreign crude oil and increases the State’s resilience against global supply disruptions, both of which have strategic local community and military importance.”

This urgent summary statement appears in Senate Bill 2255 and House Bill 2423, which have been introduced in the 2026 State of Hawai’i Legislature to propose B5 – 5% biodiesel blended in the state’s diesel highway transportation fuel. 

Pacific Biodiesel strongly supports B5 for on-road transportation fuel in Hawai’i

We are acutely aware of the important role our local biodiesel plays as a domestic energy source to support our state’s energy resilience, military readiness and circular economy. A minimal B5 blend can make significant impact in the continued expansion of biodiesel production for our state. 

Read testimony by Pacific Biodiesel Founder Bob King in support of the proposed legislation for B5 for Hawaiʻi. If you would like give testimony in support of these bills, below are key messages and informative facts for your reference. We will also post testimony letters from our company as we submit those to the Legislature committees. To learn how and where you can submit testimony, go to the Hawaiʻi State Legislature website.

• B5 is 5% biodiesel blended with 95% petroleum diesel (fossil diesel). 
• B5 is a minimal blend (considered a benign fuel additive) and requires no special labeling at the pump.
• B5 is accepted by ALL vehicle manufacturers for use in any diesel engine.
  • “All known engine on-road and off-road vehicle OEMs have approved the use of biodiesel blends up to B5 as long as the biodiesel meets the ASTM D6751 specification.” – NREL Biodiesel Handling & Use Guide.
• B5 can be used in existing diesel vehicles and existing liquid fuel infrastructure.
  • Hawaiʻi currently has production capacity to provide B5.
  • A high-volume fuel blending rack is online at the in-state diesel refinery. 
• B5 enables Hawaiʻi to immediately reduce greenhouse gas emissions in its transportation sector and expedite the replacement of fossil diesel. As an example:
  • In 2024, 44 million gallons of fossil diesel highway fuel was used statewide.
  • Of that amount, 5% biodiesel (B5) would equate to 2.2 million gallons of biodiesel.
  • 2.2 million gallons of biodiesel prevents 46.2 MILLION LBS of CO2/year or 20,952 metric tons of CO2

Why Biodiesel?

ENERGY SECURITY:  Hawai’i is a strategic location for the U.S. military. Biodiesel is an energy-dense domestically manufactured alternative fuel supply that promotes energy security in Hawaiʻi and supports USA national security.

• Local Biodiesel production ensures a reliable, readily available local supply of biofuel at key Department of Defense force projection locations in Hawaiʻi and the Indo-Pacific region to help protect United States national security and military preparedness. 
• Local Biodiesel reduces reliance on imported fossil fuel, especially from dangerous sources (according to the Hawaiʻi State Energy Office, Hawaiʻi imports a majority of its crude oil from Russia-backed Libya).*
• Biodiesel produced from Hawaiʻi-sourced agriculture feedstock can feasibly scale to 16 million gallons annually by 2040; this total vertical integration to grow and produce advanced biofuel epitomizes energy security! 

CIRCULAR ECONOMY:  Community-based Biodiesel supports Hawaiʻi’s circular economy by utilizing local resources, creating local jobs (and career pathways for keiki), supporting local farming and food production, and keeping revenue in the local economy.

• Pacific Biodiesel is demonstrating a model of regenerative agriculture and renewable energy in Hawaiʻi that supports energy security, bolsters food security, and grows Hawaiʻi’s circular economy. Our community-based biodiesel production model also includes culinary oils, meal for animal feed, and co-products from biodiesel production such as glycerin and potassium sulfate, a fertilizer for local agriculture. 
• Biodiesel is an advanced biofuel that is produced from feedstock including recycled restaurant used cooking oil (UCO) and tallow.
  • Hawaiʻi restaurants and food service companies generate millions of gallons of UCO each year. 
  • If not for local biodiesel production, this waste would otherwise go down the drain or into landfills, causing environmental hazards and expensive maintenance issues at municipal wastewater treatment plants.
  • For every gallon of UCO recycled, nearly one gallon of Biodiesel is locally produced.
• Biodiesel is also produced from plant oils from agriculture.
  • In Hawaiʻi, biodiesel is produced from oilseed cover crops like sunflowers in rotation with other food crops, supporting diversified agriculture and bolstering food security in Hawaiʻi. 
• With Pacific Biodiesel’s significant expansion of agriculture operations to Kaua’i in 2024, the company has exponentially scaled up farming for food and biofuel on hundreds of acres in Kaumakani on formerly fallow ag land. 
  • Harvested seeds are utilized to produce culinary oils and meal for animal feed; rotational crops like feed corn supply livestock feed and have potential to be milled into corn meal. Upland rice is another potential rotational food crop.
  • Pacific Biodiesel is the only agriculture operation in Hawai’i that runs on 100% biodiesel. Coupled with the natural carbon sequestration by the crops, this further differentiates biodiesel as a climate-friendly biofuel.
  • Last summer, Pacific Biodiesel delivered to Hawaiian Electric its first 6,500-gallon container of biodiesel produced directly from sunflower oil processed from seeds harvested from the company’s regenerative farming operation in Kaumakani.
• Local Biodiesel production creates high paying local jobs and diversifies our economy, reducing risk. Economic benefits also include: 
  • $.90 out of every $1.00 spent purchasing locally produced biodiesel from local used cooking oil stays in Hawaiʻi, circulating in our economy.
  • For every gallon of biodiesel sold, the State collects about $.15 in GET and another $.15 in State income tax from our Hawaii employees.
• Biodiesel protects our environment. 
  • Pure Biodiesel reduces harmful greenhouse gas emissions by 86% compared to petroleum diesel.
  • Biodiesel is safer to store and handle compared to petroleum diesel.
  • Biodiesel is non-toxic, biodegradable, eliminates risk from environmentally hazardous fossil fuel spills, and is rated non-flammable.

100% RENEWABLE ELECTRICITY:  Solar, wind, and biofuels work together to help Hawaiʻi achieve its mandate for electricity generation from 100% renewable sources by 2045.

• Biodiesel is a critical component of Hawaiʻi’s renewable energy portfolio. 
  • As an energy-dense liquid fuel, biodiesel is an important firm renewable source that backs up intermittent renewables on the grid like wind and solar, helping to support greater energy security, reliability and resilience in our island state.
  • Easily stored, biodiesel is a reliable resource for emergency power generation when wind and solar are not available.
• Pacific Biodiesel currently produces 6 million gallons of distilled biodiesel each year, equal to more than 220 MWh Per Day of 100% renewable energy for the state.
  • By 2040, Pacific Biodiesel refineries in Hawai’i will be locally producing 16 million gallons of biodiesel annually from 100% Hawaii-sourced feedstock, including plant oils from local agriculture operations.

FUELING CLEAN TRANSPORTATION:  Local Biodiesel helps move the State significantly toward its renewable transportation goals.

• As Hawaiʻi embraces electric vehicles, it is important to recognize that a large portion of our transportation infrastructure will remain dependent on traditional fossil fuel, leading to an electrification gap. 
  • Advanced biofuels can help to fill that gap and bring immediate greenhouse gas reductions for the hard-to-electrify sectors – like large trucks, buses, and boats where new electric vehicle technology is extremely expensive, not widely available and lacks the same payload as diesel engines. 
  • The added costs for EV technology in these sectors would be passed on to consumers in even higher prices for shipping which results in higher prices for products.
• As options like electrification and hydrogen are emerging, B5 enables Hawaiʻi’s heavy duty fleets to immediately begin to reduce their greenhouse gas emissions. 
  • B5 may add only pennies to the price of local fuel, similar to the typical fluctuations in diesel fuel prices.
  • B5 does not disadvantage any commercial fleets because all vehicles would be using the same fuel.
• “Zero emission” is the buzz phrase with electrification – but the focus should be to reduce lifecycle carbon emissions, which means all of the emissions created by manufacturing and using that vehicle, rather than just focusing on what comes out of the tailpipe. 
  • Today, especially in advanced diesel engines, biodiesel that’s locally produced from recycled used cooking oil is by far the lowest lifecycle greenhouse gas transportation fuel available in Hawaiʻi. 
  • A recent lifecycle analysis report by University of Southern California shows biodiesel buses in Hawaiʻi result in 48% less energy, 89% less water, 41% fewer GHG emissions and 7% total lower cost of ownership, compared to electric buses.**

SUCCESS IN OTHER STATES: B5 is a proven, low-risk policy to achieve reduction in greenhouse gas emissions and other environmental benefits. Several states have a successful track record with B5 and other high biodiesel blends.

• Minnesota
  • First and longest-running U.S. biodiesel mandate, continuous since 2005 (≈20+ years)
  • Seasonal minimum biodiesel blending; currently B5 in winter, B10 early spring, and B20 in summer
  • Mandate increases: B5 in 2009, B10 in 2014, B20 in 2018
• Oregon
  • Mandate enacted: mid-2000sCurrent blend: B5 statewide
  • Current blend: B5 statewide
  • Renewable diesel qualifies for compliance
• Pennsylvania
  • Mandate enacted: 2008
  • Current blend: B2 minimum
  • Higher blends (B5, B10, B20) triggered by in-state production thresholds
• Washington:
  • Mandate enacted: 2006
  • Current blend: 2% biodiesel or renewable diesel
  • Statutory pathway to B5 when supply conditions are met
• California
  • 100% Renewable Biofuel is the standard on California roads
  • Biodiesel + Renewable Diesel (B20/R80) now comprises nearly 75% of California’s diesel fuel supply

*Hawaiʻi State Energy Office, https://energy.hawaii.gov/fuel-imports-dashboard/

**“Comparative Analysis of Life Cycle Assessment – Electric versus Biodiesel Buses in Hawaii” (April 2024), University of Southern California