Hawaii’s Energy Lawsuit Against Oil and Gas Companies

For a long time, California has been seen as the prime example of environmental overreach, but now that title seems to be shifting to Hawaii. Situated about 4,400 miles from the West Coast, Hawaii doesn’t have its own oil reserves and depends on imports to support its tourism, power its electrical grid, and sustain daily life.

Interestingly, even with this heavy reliance on oil, Hawaii is aggressively pursuing lawsuits against energy companies. Attorney General Anne Lopez, along with officials from Honolulu and Maui, is taking the oil and gas industry to court, seeking billions of dollars in damages for alleged climate-related harm. These lawsuits are highlighting potential political corruption within Hawaii’s legal framework and are calling for a federal investigation into the state’s energy sector.

One notable aspect of the lawsuits is the exclusion of Par Pacific and its subsidiary, Par Hawaii, the main provider of gasoline and jet fuel in the state. Donations from its executives to local Democratic leaders, including Governor Josh Green, raise eyebrows. However, the state’s narrative suggests that it’s refiners, and therefore energy consumers, who are primarily responsible for emissions that harm the environment.

Moreover, courts in other strongly Democratic areas have previously dismissed similar lawsuits based on the principle that setting emissions standards should be a federal responsibility.

Compounding this narrative is the fact that various climate justice groups have close ties to judges and experts involved in this litigation. Such connections are causing some to question the neutrality of the state judiciary in these cases.

High-profile judges in Hawaii, including some linked to the Honolulu case, are working with the Environmental Law Institute (ELI) and its Climate Justice Project, which raises concerns about potential bias. ELI reportedly shares donors and staff with a law firm that represents various local governments in their climate-related suits against energy companies.

Despite these connections, three justices from the Hawaii Supreme Court participated in an ELI event, with one of them, Chief Justice Mark Rectenwald, guiding clerks on how to interpret scientific evidence in climate litigation. He has even provided support to experts involved in parallel lawsuits against the energy sector.

After the Hawaii Supreme Court decided not to dismiss the Honolulu case, a lower court allowed plaintiffs’ attorneys to further investigate energy companies. Critics argue that the proceedings should have paused until the U.S. Supreme Court clarifies whether these types of claims should be heard in federal or state courts. A similar situation is currently unfolding in the Supreme Court case of Suncor Energy v. Boulder County.

Elsewhere in the nation, judges in states like California and New Jersey have placed pauses on climate lawsuits for logical reasons. Although the Supreme Court receives thousands of cases annually, it only addresses a small number, creating uncertainty about what standards they might set if they do take on such a case.

The city of Honolulu appears to be racing against time to compile extensive documentation and sworn testimonies from hundreds of executives to support their claims before any potential legal limitations are put in place. A special court officer has mandated that the energy company sift through 75 years of records related to their global energy production and sales.

This extensive documentation process is burdensome and is unlikely to demonstrate any consumer deception. For legal claims to stick, companies would need to obscure information, but the reality is that consumers have been aware of global warming concerns for decades yet continue to rely on fossil fuels at levels similar to those from decades ago.

More transparency about climate change could be beneficial, but it’s debatable whether it would shift the demand for energy. People still want energy for heating, cooling, electronic devices, and even for vacations in places like Hawaii, raising questions about the state’s broader relationship with oil and gas producers.