Hawaiʻi Cuts Green Bank Funding to $50M While Launching Green Fee Advisory Council

Hawaiʻi’s commitment to climate action recently saw a significant budget adjustment for its Green Bank, an entity designed to finance clean energy projects. At the same time, the state initiated a new body focused on long-term sustainable funding.

The Legislature initially approved $100 million for the Hawaiʻi Green Infrastructure Authority, which functions as the state's Green Bank. Governor Josh Green subsequently reduced this allocation to $50 million. This cut aimed to balance the state budget. Separately, in August 2025, Governor Green established the Hawaiʻi Green Fee Advisory Council, appointing Jeff Mikulina as its chair. Mikulina notes that Hawaiʻi has a history of climate leadership, becoming the first U.S. state in 2015 to legally require 100% renewable electricity by 2045. This action set a precedent for other states.

The Governor's action presents a dual narrative for Hawaiʻi’s climate strategy. The reduction in Green Bank funding reflects immediate state budget priorities, limiting the available capital for current clean energy projects by $50 million. Despite this adjustment, the remaining $50 million continues to support the Green Bank's critical mission: to finance clean energy solutions and reduce energy costs for households, particularly those with lower incomes. Simultaneously, the formation of the Hawaiʻi Green Fee Advisory Council signals a forward-looking commitment to developing sustainable funding sources. Under Mikulina’s leadership, this 10-member panel of volunteers will craft specific proposals for a green fee, designed to generate revenue dedicated to climate resilience and environmental protection. Their work, culminating in recommendations for the 2027 fiscal year, aims to solidify Hawaiʻi's long-term financial capacity for climate action. This strategic planning occurs in a state recognized for its pioneering efforts; as Mikulina highlighted, Hawaiʻi led the U.S. in 2015 by legally mandating 100% renewable electricity by 2045.

Observers will now monitor the Green Fee Advisory Council's proposals and the Legislature's response to future climate funding initiatives.