Report Title:

Dedicated alternate fueled vehicles

 

Description:

Encourages the use of alternative fuels in the State by giving dedicated alternate fuel vehicles incentives similar to those given to electric vehicles under Act 290, SLH 1997, and makes definitions consistent with National Energy Policy Act.

(HB1272 HD2)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1272

TWENTY-FIRST LEGISLATURE, 2001

H.D. 2

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO ALTERNATE FUELED VEHICLES.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the State relies primarily on gasoline and diesel for its ground transportation. Most of the gasoline and diesel fuel consumed in the State is produced from imported oil. The legislature further finds that the State must develop and implement additional mechanisms to more efficiently use the oil brought into the State, thereby reducing the overall amount of imported oil needed.

In 1992, the federal government enacted the National Energy Policy Act (EPACT). This federal law requires that certain fleets located in metropolitan areas, such as Honolulu, purchase "alternate fueled vehicles." Some of these alternate fuels can be made from renewable materials available in the State. Under EPACT, alternate fuels include methanol and denatured ethanol as alcohol, natural gas, liquefied petroleum gas (propane), hydrogen, coal-derived liquid fuel, and fuels derived from biological materials and electricity (including solar energy).

The legislature recognizes that many advances have already been made in the field of transportation. There are many opportunities in ground transportation for greater energy efficiency and fuel substitution. The emergence of alternate fueled vehicles has the potential to improve energy efficiency and air quality and significantly reduce our dependency on gasoline and diesel fuel.

The passage of Act 290, Session Laws of Hawaii (SLH) 1997, recognized the need to help encourage the use of electric vehicles by providing incentives. The legislature finds that the incentives for electric vehicles provided in Act 290, SLH 1997, should be extended to other dedicated alternate fueled vehicles.

The purpose of this Act is to:

(1) Improve the transportation of people and goods through the expanded use of alternative fuels by undertaking a program of financial and regulatory incentives designed to promote the purchase or lease of dedicated alternative fueled vehicles;

(2) Provide the benefits to the state economy of lessened dependence on imported petroleum products and the more efficient use of the oil brought into the State through greater reliance on vehicles that utilize alternate fuels as a source of energy; and

(3) Preserve and enhance air quality by encouraging the widespread use of vehicles that have cleaner emissions.

SECTION 2. It is the policy of the State to support the development and widespread consumer acceptance of alternate fuels within the State. This policy is intended to accelerate the use of a substantial amount of alternate fuels in the State to attain significant reductions in air pollution, improve energy efficiency in transportation, and reduce the State’s dependence on imported oil or petroleum products. Exempting dedicated alternate fueled vehicles from various requirements applicable to conventional vehicles may encourage operators to choose alternative fuels.

SECTION 3. As used in this Act, "dedicated alternate fueled vehicle" means any vehicle that is designed and engineered to operate solely on an alternate fuel defined in the National Energy Policy Act including methanol and denatured ethanol as alcohol fuels (alcohol mixes that contain no less than seventy per cent of the alcohol fuel), natural gas (compressed or liquefied), liquefied petroleum gas (propane), hydrogen, coal-derived liquid fuel, and fuels derived from biological materials except for fuels covered by Act 290, Session Laws of Hawaii 1997.

SECTION 4. The department of transportation shall:

(1) Establish and adopt rules pursuant to chapter 91, Hawaii Revised Statutes, for the registration of a dedicated alternate fueled vehicle in this State; and

(2) Establish and issue a special license plate to designate that the vehicle to which the license plate is affixed is a dedicated alternate fueled vehicle.

SECTION 5. A dedicated alternate fueled vehicle on which a license plate described in section 4 is affixed shall be exempt from high occupancy vehicle restrictions or other similar control measures.

SECTION 6. For a period of five years from the effective date of this Act, the motor vehicle registration fee and other fees, if any, assessed upon or associated with the registration of a dedicated alternate fueled vehicle in this State, including any fees associated with the issuance of a license plate described in section 4, shall be waived; provided that the department of transportation shall review the incentive program every two years to determine the proper level of incentives for continuation of the program.

SECTION 7. This Act shall take effect on July 1, 2001.