Proposed barrel tax hike would increase already high cost of living

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the House Committee on Transportation on Feb. 17, 2026.
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Feb 17, 2026, 9:30 a.m.
Hawaii State Capitol
Conference Room 430 and Videoconference

To: House Committee on Transportation
       Rep. Darius K. Kila, Chair
       Rep. Tyson K. Miyake, Vice Chair

From: Grassroot Institute of Hawaii
            Ted Kefalas, Director of Strategic Campaigns

TESTIMONY IN OPPOSITION TO HB1620 HD1 — RELATING TO TAXATION

Aloha Chairs, Vice Chairs and other members of the Committees,

The Grassroot Institute of Hawaii opposes HB1620 HD1, which would increase the environmental response, energy and food security tax from $1.05 per barrel of petroleum to an undetermined amount.

Hawaii’s residents and businesses cannot afford new taxes, tax increases, fees or surcharges. Any increase in the tax rates for petroleum products will only contribute to the high cost of living, especially the state’s high energy and gas prices.

Hawaii residents already pay the highest electricity prices in the country,[1] and the islands that depend heavily on petroleum to provide grid-scale electricity — especially Lanai, Molokai and Oahu — would be hit hardest by the increase proposed in this legislation.[2]

Thank you for the opportunity to testify.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] “Hawaii,” U.S. Energy Information Administration, May 15, 2025.
[2] Leon R. Roose, Marc Matsuura and Damon Schmidt, “Fundamentals of Energy Transition in the Pacific Island Countries and Territories,” GridSTART, Oct. 24, 2025, pp. 8-9.

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