March 25, 2026, 9:50 a.m.
Hawaii State Capitol
Conference Room 229 and Videoconference
To: Senate Committee on Commerce and Consumer Protection
Sen. Jarrett Keohokalole, Chair
Sen. Carol Fukunaga, Vice Chair
Senate Committee on Transportation
Sen. Lorraine R. Inouye, Chair
Sen. Brandon J.C. Elefante, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: TESTIMONY OPPOSING HB2386 HD2 — RELATING TO WATER CARRIERS
Aloha Chairs, Vice Chairs and other Committee Members,
The Grassroot Institute of Hawaii opposes HB2386 HD2, which would allow automatic price adjustments for water carriers.
Ideally, local water carriers would operate in an open market and be able to respond to changing conditions in a competitive context. However, interisland shipping in Hawaii is not an open market, and the Public Utilities Commission must act as a check on escalating shipping costs. At present, the PUC’s role exists in part to address the concerns of local businesses and consumers regarding shipping rates.
Under the circumstances, automatic price increases would be harmful to local businesses and could contribute to the ever-rising cost of living and price of doing business in Hawaii. While the system as a whole might need reform, automatic price increases are not the answer.
Thank you for the opportunity to testify.
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
1050 Bishop St. #508 | Honolulu, HI 96813 | 808-864-1776 | info@grassrootinstitute.org
