Report Title:

Hawaii Clean Energy Initiative; Transportation

 

Description:

Establishes transportation energy initiatives necessary for the transition of Hawaii′s transportation energy sector from almost completely dependent on petroleum towards the use of efficient, stable, secure, renewable, non-petroleum energy sources by 2030.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1054

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO HAWAII'S CLEAN ENERGY INITIATIVE IN TRANSPORTATION ENERGY.

 

 

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

 


PART I

     SECTION 1.  The Hawaii Clean Energy Initiative set goals for energy efficiency; renewable and indigenous electricity production; energy delivery and improvements to the electrical grid; and diversification of energy sources for transportation to enable energy efficiency and renewable energy resources to meet seventy per cent of Hawaii's energy demand by 2030.

     Hawaii's transportation systems are nearly completely dependent on petroleum-based fuels for their operation.  The purpose of this Act is to begin the transformation of Hawaii's transportation sector from almost completely dependent on petroleum towards the use of efficient, stable, secure, renewable, non-petroleum energy sources through the establishment of:

     (1)  Transportation energy infrastructure capable of supporting vehicles using alternative transportation energy sources, including electricity and biofuels;

     (2)  Incentives to accelerate transformation to non-petroleum energy sources;

     (3)  Requirements for transportation energy diversification; and

     (4)  Plans and analysis.

PART II

TRANSPORTATION ENERGY INFRASTRUCTURE

     SECTION 2.  Section 226-18, Hawaii Revised Statutes, is amended to read as follows:

     "§226-18  Objectives and policies for facility systems--energy.  (a)  Planning for the State's facility systems with regard to energy shall be directed toward the achievement of the following objectives, giving due consideration to all:

     (1)  Dependable, efficient, and economical statewide energy systems capable of supporting the needs of the people;

     (2)  Increased energy self-sufficiency where the ratio of indigenous to imported energy use is increased;

     (3)  Greater energy security and diversification in the face of threats to Hawaii's energy supplies and systems; and

     (4)  Reduction, avoidance, or sequestration of greenhouse gas emissions from energy supply and use.

     (b)  To achieve the energy objectives, it shall be the policy of this State to ensure the short- and long-term provision of adequate, reasonably priced, and dependable energy services to accommodate demand.

     (c)  To further achieve the energy objectives, it shall be the policy of this State to:

     (1)  Support research and development as well as promote the use of renewable energy sources;

     (2)  Ensure that the combination of energy supplies and energy-saving systems is sufficient to support the demands of growth;

     (3)  Base decisions of least-cost supply-side and demand-side energy resource options on a comparison of their total costs and benefits when a least-cost is determined by a reasonably comprehensive, quantitative, and qualitative accounting of their long-term, direct and indirect economic, environmental, social, cultural, and public health costs and benefits;

     (4)  Promote all cost-effective conservation of power and fuel supplies through measures, including:

         (A)  Development of cost-effective demand-side management programs;

         (B)  Education; and

         (C)  Adoption of energy-efficient practices and technologies;

     (5)  Ensure, to the extent that new supply-side resources are needed, that the development or expansion of energy systems uses the least-cost energy supply option and maximizes efficient technologies;

     (6)  Support research, development, [and] demonstration, and utilization of energy efficiency, load management, and other demand-side management programs, practices, and technologies;

     (7)  Promote alternate fuels and transportation energy efficiency [by encouraging diversification of transportation modes and infrastructure];

     (8)  Support actions that reduce, avoid, or sequester greenhouse gases in utility, transportation, and industrial sector applications;

     (9)  Support actions that reduce, avoid, or sequester Hawaii's greenhouse gas emissions through agriculture and forestry initiatives; and

    (10)  Provide priority handling and processing for all state and county permits required for renewable energy projects."

     SECTION 3.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§235-__  Electric vehicle charging; income tax credit.  (a)  There shall be allowed to each taxpayer subject to the taxes imposed by this chapter a tax credit for code compliant electric vehicle charging infrastructure installed and placed in service in the State that shall be deductible from the taxpayer's net income tax liability.  The tax credit may be claimed for the taxable year in which the code compliant electric vehicle charging system is placed in service in the State.

     (b)  The amount of the credit shall be seventy per cent of the cost of the electric vehicle charging system or $500 per electric vehicle charge point of the system, whichever is less.  The cost of the electric vehicle charging system includes all costs to acquire, construct and install the electric vehicle charging system that are required to be capitalized under section 263 of the Internal Revenue Code to the electric vehicle charging system.  The cost of the electric vehicle charging system does not include costs that are properly allocable to land or to a building and its structural components, including, but not limited to costs related to the acquisition of land on which the electric vehicle charging system is located, expenses for permits, legal fees, project management, or engineering to the extent such expenses are related to the land.

     (c)  If a deduction is taken under section 179 of the Internal Revenue Code, no tax credit shall be allowed for that portion of the cost for which the deduction is taken.

     (d)  The basis of eligible property for depreciation or accelerated cost recovery system purposes for state income taxes shall be reduced by the amount of credit allowable and claimed.  In the alternative, the taxpayer shall treat the amount of the credit allowable and claimed as a taxable income item for the taxable year in which it is properly recognized under the method of accounting used to compute taxable income.

     (e)  The costs used to compute this tax credit may not be used to compute any other tax credit.

     (f)  For the purposes of this section:

     "Electric vehicle charge point" means the part of the electric vehicle charging system that delivers electricity from a source outside an electric vehicle into one electric vehicle.

     "Electric vehicle charging system" means a system that is designed in compliance with Article 625 of the National Electrical Code and delivers electricity from a source outside an electric vehicle into one or more electric vehicles.  An electric vehicle charging system may include several charge points simultaneously connecting several electric vehicles to the system.

     (g)  The director of taxation shall prepare any forms that may be necessary to claim a tax credit under this section.  The director may also require the taxpayer to furnish reasonable information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

     (h)  If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.  Every claim, including amended claims, for a tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed.  Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

     (i)  This tax credit applies to electric vehicle charging systems placed in service after July 1, 2009 and before January 1, 2016."

     SECTION 4.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§235-__  Alternative fuel refueling; income tax credit.  (a)  There shall be allowed to each taxpayer subject to the taxes imposed by this chapter a tax credit for any alternative fuel refueling infrastructure installed and placed in service in the State that shall be deductible from the taxpayer's net income tax liability.  The tax credit may be claimed for the taxable year in which the alternative fuel refueling infrastructure is placed in service.

     (b)  The amount of the credit shall be thirty per cent of the cost of the alternative fuel refueling infrastructure or $10,000, whichever is less.  The cost of the alternative fuel refueling infrastructure includes all costs to acquire, construct and install the alternative fuel refueling infrastructure that are required to be capitalized under section 263 of the Internal Revenue Code to the alternative fuel refueling infrastructure.  The cost of the alternative fuel refueling infrastructure does not include costs that are properly allocable to land or to a building and its structural components, including, but not limited to costs related to the acquisition of land on which the alternative fuel refueling infrastructure is located, expenses for permits, legal fees, project management, or engineering to the extent such expenses are related to the land.

     (c)  If a deduction is taken under section 179 of the Internal Revenue Code, no tax credit shall be allowed for that portion of the cost for which the deduction is taken.

     (d)  The basis of eligible property for depreciation or accelerated cost recovery system purposes for state income taxes shall be reduced by the amount of credit allowable and claimed.  In the alternative, the taxpayer shall treat the amount of the credit allowable and claimed as a taxable income item for the taxable year in which it is properly recognized under the method of accounting used to compute taxable income.

     (e)  The costs used to compute this tax credit may not be used to compute any other tax credit.

     (f)  Recapture provisions shall conform with the recapture provisions applied to "alternative fuel refueling property" credits described in section 30C of the Internal Revenue Code.

     (g)  For the purposes of this section:

     "Alternative fuel refueling infrastructure" means equipment for the storage and dispensing of alternative fuels for the refueling of alternative fuel vehicles, and shall conform with the definition of "alternative fuel refueling property" contained in section 30C of the Internal Revenue Code.

     (h)  The director of taxation shall prepare any forms that may be necessary to claim a tax credit under this section.  The director may also require the taxpayer to furnish reasonable information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

     (i)  If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.  Every claim, including amended claims, for a tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed.  Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

     (j)  This tax credit applies to alternative fuel refueling infrastructure placed in service after July 1, 2009 and before January 1, 2016."

     SECTION 5.  The Hawaii Revised Statutes is amended by adding a new section to be appropriately designated and to read as follows:

     "§   -__  Designation of parking spaces for electric vehicles.  All commercial and public parking lots with at least 100 parking spaces shall designate at least one prime (near the entrance) spot exclusively for electric vehicles.  An additional electric vehicle parking location shall be required for each additional 100 parking spaces in the lot; the additional spaces shall be located either near the building entrance or near electrical service, at the discretion of the facility manager.  Such spaces shall be designated, clearly marked, and enforced by December 31, 2010.

     For the purposes of this section, "electric vehicle" means an electric vehicle or neighborhood electric vehicle with an electric vehicle ("EV") license plate."

     SECTION 6.  Chapter 291, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§291-__  Parking spaces reserved for electric vehicles; penalties.  (a)  Beginning January 1, 2011, any person who parks a non-electric vehicle in a space designated and marked as reserved for electric vehicles shall receive a warning.

     (b)  Beginning July 1, 2011, any person who parks a non-electric vehicle in a space designated and marked as reserved for electric vehicles shall be guilty of a traffic infraction under chapter 291D and shall be fined not less than $50 nor more than $100 and pay any costs incurred by the court related to assessing the fine.

     (c)  Any citation issued under this chapter may be mailed to the violator pursuant to section 291C-165(b)."

     SECTION 7.  The Hawaii Revised Statutes is amended by adding a new section to be appropriately designated and to read as follows:

     "§   -__  Requirement for electric vehicle charging capability.  Electric vehicle charging capability shall be required on all new single family housing units constructed after January 1, 2015.  Charging capability shall follow standards adopted by SAE International."

     SECTION 8.  Section 269-1, Hawaii Revised Statutes, is amended by amending the definition of "public utility" to read as follows:

""Public utility":

(1)  Includes every person who may own, control, operate, or manage as owner, lessee, trustee, receiver, or otherwise, whether under a franchise, charter, license, articles of association, or otherwise, any plant or equipment, or any part thereof, directly or indirectly for public use, for the transportation of passengers or freight, or the conveyance or transmission of telecommunications messages, or the furnishing of facilities for the transmission of intelligence by electricity by land or water or air within the State, or between points within the State, or for the production, conveyance, transmission, delivery, or furnishing of light, power, heat, cold, water, gas, or oil, or for the storage or warehousing of goods, or the disposal of sewage; provided that the term shall include:

(A)  Any person insofar as that person owns or operates a private sewer company or sewer facility; and

(B)  Any telecommunications carrier or telecommunications common carrier;

(2)  Shall not include:

(A)  Any person insofar as that person owns or operates an aerial transportation enterprise;

(B)  Persons owning or operating taxicabs, as defined in this section;

(C)  Common carriers transporting only freight on the public highways, unless operating within localities or along routes or between points that the public utilities commission finds to be inadequately serviced without regulation under this chapter;

(D)  Persons engaged in the business of warehousing or storage unless the commission finds that regulation thereof is necessary in the public interest;

(E)  The business of any carrier by water to the extent that the carrier enters into private contracts for towage, salvage, hauling, or carriage between points within the State and the carriage is not pursuant to either an established schedule or an undertaking to perform carriage services on behalf of the public generally;

(F)  The business of any carrier by water, substantially engaged in interstate or foreign commerce, transporting passengers on luxury cruises between points within the State or on luxury round-trip cruises returning to the point of departure;

(G)  Any person who:

  (i)  Controls, operates, or manages plants or facilities for the production, transmission, or furnishing of power primarily or entirely from non-fossil fuel sources; [and]

 (ii)  Provides, sells, or transmits all of that power, except such power as is used in its own internal operations, directly to a public utility for transmission to the public; and

(iii)  Owns, controls, operates, or manages plants or facilities primarily used to charge or discharge a vehicle battery, the purpose of which is to provide the power for vehicle propulsion;

(H)  A telecommunications provider only to the extent determined by the commission pursuant to section 269-16.9;

(I)  Any person who controls, operates, or manages plants or facilities developed pursuant to chapter 167 for conveying, distributing, and transmitting water for irrigation and such other purposes that shall be held for public use and purpose;

(J)  Any person who owns, controls, operates, or manages plants or facilities for the reclamation of wastewater; provided that:

  (i)  The services of the facility shall be provided pursuant to a service contract between the person and a state or county agency and at least ten per cent of the wastewater processed is used directly by the State or county which has entered into the service contract;

 (ii)  The primary function of the facility shall be the processing of secondary treated wastewater that has been produced by a municipal wastewater treatment facility that is owned by a state or county agency;

(iii)  The facility shall not make sales of water to residential customers;

 (iv)  The facility may distribute and sell recycled or reclaimed water to entities not covered by a state or county service contract; provided that, in the absence of regulatory oversight and direct competition, the distribution and sale of recycled or reclaimed water shall be voluntary and its pricing fair and reasonable.  For purposes of this subparagraph, "recycled water" and "reclaimed water" mean treated wastewater that by design is intended or used for a beneficial purpose; and

  (v)  The facility shall not be engaged, either directly or indirectly, in the processing of food wastes; and

(K)  Any person who owns, controls, operates, or manages any seawater air conditioning district cooling project; provided that at least fifty per cent of the energy required for the seawater air conditioning district cooling system is provided by a renewable energy resource, such as cold, deep seawater."

PART III

TRANSPORTATION ENERGY INCENTIVES

     SECTION 9.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§237-__  Exemption of sale or lease of certain vehicles.  (a) Beginning January 1, 2010, and expiring December 31, 2015, there shall be exempted from the measure of the taxes imposed by this chapter all of the gross proceeds arising from the sale or lease of new or used light duty motor vehicles classified as alternative fuel vehicles and fuel economy leader vehicles.

     (b)  As used in this section:

     "Alternative fuel" means alcohol fuels; mixtures containing eighty-five per cent or more by volume of alcohols with gasoline or other fuels; natural gas; liquefied petroleum gas; hydrogen; biodiesel; mixtures containing twenty per cent or more by volume of biodiesel with diesel or other fuels; other fuels derived from biological materials; and electricity provided by off-board energy sources.

     "Alternative fuel vehicle" means a vehicle capable of operating on an alternative fuel.

     "Fuel economy leader vehicle" means a vehicle that is identified by the United States Environmental Protection Agency as a "fuel economy leader" in its class and model year.

     "Light duty motor vehicle" has the same meaning as contained in 10 Code of Federal Regulations Part 490. It does not include any vehicle incapable of traveling on highways or any vehicle with a gross vehicle weight rating greater than 8,500 pounds."

     SECTION 10.  Section 238-9.5, Hawaii Revised Statutes, is amended to read as follows:

     "§238-9.5  Motor vehicle importation; report by dealers; proof of payment.  (a)  Every dealer, as defined in section 437-1.1, shall submit a report to the director, on or before the last day of each calendar month, for all motor vehicles delivered by the dealer in the prior month as a courtesy delivery.  The report shall contain the name and address of the dealer making the courtesy delivery, name and address of the seller of the vehicle, type of motor vehicle, the landed value of the vehicle, the name and address of the purchaser or importer, the date of importation, and other information relevant to the courtesy delivery as requested by the director.

     As used in this section, "courtesy delivery" means the preparation for delivery and the delivery by a dealer of a motor vehicle imported into the State by a person who purchased the motor vehicle from an out-of-state motor vehicle manufacturer or an out-of-state dealer and does not apply to motor vehicles sold by the in-state dealer.

     (b)  The director of taxation shall prepare forms necessary for individuals importing motor vehicles into the State to prove payment of, or exemption from, [the] any use tax necessary to register the motor vehicle."

     SECTION 11.  Section 286-41, Hawaii Revised Statutes, is amended to read as follows:

     "§286-41  Application for registration; full faith and credit to current certificates; this part not applicable to certain equipment.  (a)  Every owner of a motor vehicle which is to be operated upon the public highways shall, for each vehicle owned, except as herein otherwise provided, apply to the director of finance of the county where the vehicle is to be operated, for the registration thereof.  If a vehicle is moved to another county and is to be operated upon the public highways of that county, the existing certificate of registration shall be valid until its expiration date, at which time the owner shall apply to the director of finance of the county in which the vehicle is then located for the registration of the vehicle, whether or not the owner is domiciled in the county or the owner's principal place of business is in that county, except that this provision shall not apply to vehicles which are temporarily transferred to another county for a period of not more than three months.

     (b)  Application for the registration of a vehicle shall be made upon the appropriate form furnished by the director of finance and shall contain the name, occupation, and address of the owner and legal owner; and, if the applicant is a member of the United States naval or military forces, the applicant shall give the organization and station.  All applications shall also contain a description of the vehicle, including the name of the maker, the type of fuel for the use of which it is adapted (e.g., gasoline, diesel oil, liquefied petroleum gas), the serial or motor number, and the date first sold by the manufacturer or dealer, and such further description of the vehicle as is called for in the form, and such other information as may be required by the director of finance, to establish legal ownership.  A person applying for initial registration of a neighborhood electric vehicle shall certify in writing that a notice of the operational restrictions applying to the vehicle as provided in section 291C-134 [are] is contained on a permanent notice attached to or painted on the vehicle in a location that is in clear view of the driver.

     (c)  If the vehicle to be registered is specially constructed, reconstructed, or rebuilt; is a special interest vehicle; or is an imported vehicle, this fact shall be stated in the application and upon the registration of the special interest motor vehicle and imported motor vehicle, which has been registered until that time in any other state or county, and the owner shall surrender to the director of finance the certificates of registration or other evidence of such form of registration as may be in the applicant's possession or control.  The director of finance shall grant full faith and credit to the currently valid certificates of title and registration describing the vehicle, the ownership thereof, and any liens noted thereon, issued by any title state or county in which the vehicle was last registered.  The acceptance by the director of finance of a certificate of title or of registration issued by another state or county, as provided in this subsection, in the absence of knowledge that the certificate is forged, fraudulent, or void, shall be a sufficient determination of the genuineness and regularity of the certificate and of the truth of the recitals therein, and no liability shall be incurred by any officer or employee of the director of finance by reason of so accepting the certificate.

     (d)  The owner of every motor vehicle of the current, previous, and subsequent year model bought out-of-state, subsequently brought into the State, and subject to the use tax under chapter 238 shall provide with the application for registration proof of payment of the use tax pursuant to requirements established by the department of taxation.  No registration certificate shall be issued without proof of payment of the use tax[.] unless the vehicle is an alternative fuel vehicle or fuel economy leader vehicle exempt from the use tax as provided in chapter 238.

     (e)  Notwithstanding any other law to the contrary, the director of finance of the county in which the application for registration is sought shall not require proof of insurance as a condition to satisfy the requirements of this part.  This subsection shall apply only to the initial registration of any motor vehicle.

     (f)  The provisions of this part requiring the registration of motor vehicles shall not apply to:

     (1)  Special mobile equipment;

     (2)  Implements of husbandry temporarily drawn, moved, or otherwise propelled upon the public highways; and

     (3)  Aircraft servicing vehicles which are being used exclusively on lands set aside to the department of transportation for airport purposes.

     (g)  Beginning January 1, 2010, and expiring December 31, 2015, the state portion of the motor vehicle registration fee and other fees, if any, assessed upon or associated with the registration of an electric vehicle in this State, including any state fees associated with the issuance of an electric vehicle license plate, shall be waived.  The counties may also waive fees associated with registration of an electric vehicle."

     SECTION 12.  The Hawaii Revised Statutes is amended by adding a new section to be appropriately designated and to read as follows:

     "§___-__  Transportation energy transformation grant fund.  (a)  There is established a special fund to be designated as the transportation energy transformation grant fund.  Moneys transferred to the transportation energy transformation grant fund may be expended by the director to carry out the director's duties and obligations under this chapter.  Disbursements from the transportation energy transformation grant fund shall not be subject to chapter 42F or 103D.

     (b)  As used in this chapter:

     "Director" means the director of Business, Economic Development, and Tourism.

     "Electric vehicle" has the same meaning as contained in Title 26, Section 30, of the Internal Revenue Code, for 'new qualified plug-in electric drive motor vehicle,' and means a motor vehicle, including a plug-in hybrid electric vehicle:

     (1)  Which draws propulsion using a traction battery with at least 4 kilowatt hours of capacity;

     (2)  Which uses an off-board source of energy to recharge such battery;

     (3)  The original use of which commences with the taxpayer; and

     (4)  Which is acquired for use or lease by the taxpayer and not for resale.

     "Fleet" means more than fifty light duty motor vehicles in the state owned or operated by related entities.

     "Integrated intelligently with the electrical grid" means that the demand of the vehicle for electricity from the grid is controlled to reduce the electrical demand on the grid during peak demand times and maximize the use of renewable energy sources or use of renewable energy potentially available off peak that would otherwise be curtailed.

     (c)  The transportation energy transformation grant fund may be used by the director to make transportation energy transformation grants authorized under this chapter.  The transportation energy transformation grant fund shall also be used by the director to pay for any administrative and operational costs, including personnel costs and marketing costs, associated with a transportation energy transformation grant program.  Any law to the contrary notwithstanding, the director may use the moneys in the transportation energy transformation grant fund to employ or retain, by contract or otherwise, without regard to chapters 76 and 78, necessary professional, expert, managerial, technical, and support personnel to implement and carry out the purposes of this article.

     (d)  Before June 30 of each calendar year, fifty per cent of the grants shall be reserved for non fleet vehicles and no more than ten per cent of the grants may be provided to any one fleet. 

     (e)  Subject to the availability of funds and the standards in this chapter, grants for approved electric vehicles shall be provided to purchasers of electric vehicles intended to be integrated intelligently with the electrical grid and licensed for use on Hawaii's highways, as follows: 

     (1)  Beginning January 1, 2010, and expiring December 31, 2010: up to $4000 per vehicle; limited to the first 500 vehicles.

     (2)  Beginning January 1, 2011, and expiring December 31, 2011: up to $3500 per vehicle; limited to the first 1000 vehicles.

     (3)  Beginning January 1, 2012, and expiring December 31, 2013: up to $2500 per vehicle; limited to the first 2000 vehicles per year.

     (4)  Beginning January 1, 2014, and expiring December 31, 2015: up to $2000 per vehicle; limited to the first 2500 vehicles per year.

     (5)  Beginning January 1, 2016, and expiring December 31, 2021: up to $500 per vehicle; limited to the first 10000 vehicles per year.

     (f)  The description, specifications, guidelines, and requirements for intelligent integration with the electrical grid shall be further developed and determined by the director by rule.  The director may amend, narrow, or expand the definitions, descriptions, specifications, and requirements of intelligent integration.

     (g)  A grant may be made to an applicant only if the applicant:

     (1)  Has met the descriptions, specifications, guidelines, and requirements established by the director for the grant program;

     (2)  Has filed a completed application form, as determined solely by the director, together with all supporting documentation required by the director;

     (3)  Has, in the case of a fleet, filed completed grant applications together for all vehicles in the fleet;

     (4)  Has completed the purchase or lease, licensing, and registration of the vehicle, prior to applying for the grant;

     (5)  Has provided any other information deemed necessary by the director; and

     (6)  Has met all additional requirements needed to implement the grant program as determined by the director.

     (h)  The director shall include information on the transportation energy transformation grant fund and statistical information on program participation in the department's annual report to the governor and the legislature."

     SECTION 13.  There is appropriated out of the general revenues of the State of Hawaii the sum of $3,750,000, or so much thereof as may be necessary, for fiscal year 2009-2010, to develop and implement the transportation energy transformation grant fund.  The sum appropriated shall be expended by the department of Business, Economic Development, and Tourism.  The appropriation shall not lapse at the end of the fiscal period for which the appropriation is made; provided that any unexpended and unencumbered money as of June 30, 2012, shall lapse as of that date.

     SECTION 14.  Section 235-110.3, Hawaii Revised Statutes, is amended to read as follows:

     "§235-110.3  [Ethanol] Biofuel facility tax credit.  (a) Each year during the credit period, there shall be allowed to each taxpayer subject to the taxes imposed by this chapter, [an ethanol] a biofuel facility tax credit that shall be applied to the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

     For each qualified [ethanol] biofuel production facility, the annual dollar amount of the [ethanol] biofuel facility tax credit during the eight-year period shall be equal to thirty per cent of its nameplate capacity if the nameplate capacity is greater than five hundred thousand [but less than fifteen million] gallons.  A taxpayer may claim this credit for the first fifteen million gallons of capacity of each qualifying [ethanol] biofuel facility; provided that:

     (1)  The claim for this credit by any taxpayer of a qualifying [ethanol] biofuel production facility shall not exceed one hundred per cent of the total of all investments made by the taxpayer in the qualifying [ethanol] biofuel production facility prior to and during the credit period;

     (2)  The qualifying [ethanol] biofuel production facility operated at a level of production of at least seventy-five per cent of its nameplate capacity on an annualized basis;

     (3)  The qualifying [ethanol] biofuel production facility is in production on or before January 1, 2017; and

     (4)  No taxpayer that claims the credit under this section shall claim any other tax credit under this chapter for the same taxable year.

     (b)  As used in this section:

     "Biofuel" means ethanol, biodiesel, diesel, jet fuel, or other liquid fuel meeting the relevant fuel specifications of ASTM International (formerly ASTM, the American Society for Testing and Materials).

     "Credit period" means a maximum period of eight years beginning from the first taxable year in which the qualifying [ethanol] biofuel production facility begins production even if actual production is not at seventy-five per cent of nameplate capacity.

     "Investment" means a nonrefundable capital expenditure related to the development and construction of any qualifying [ethanol] biofuel production facility, including processing equipment, waste treatment systems, pipelines, and liquid storage tanks at the facility or remote locations, including expansions or modifications.  Capital expenditures shall be those direct and certain indirect costs determined in accordance with section 263A of the Internal Revenue Code, relating to uniform capitalization costs, but shall not include expenses for compensation paid to officers of the taxpayer, pension and other related costs, rent for land, the costs of repairing and maintaining the equipment or facilities, training of operating personnel, utility costs during construction, property taxes, costs relating to negotiation of commercial agreements not related to development or construction, or service costs that can be identified specifically with a service department or function or that directly benefit or are incurred by reason of a service department or function.  For the purposes of determining a capital expenditure under this section, the provisions of section 263A of the Internal Revenue Code shall apply as it read on March 1, 2004.  For purposes of this section, investment excludes land costs and includes any investment for which the taxpayer is at risk, as that term is used in section 465 of the Internal Revenue Code (with respect to deductions limited to amount at risk).

     "Nameplate capacity" means the qualifying [ethanol] biofuel production facility's production design capacity, in gallons of [motor fuel grade ethanol] biofuel per year.

     "Net income tax liability" means net income tax liability reduced by all other credits allowed under this chapter.

     "Qualifying [ethanol] biofuel production" means [ethanol] biofuel produced from renewable, organic feedstocks, or waste materials, including municipal solid waste.  All qualifying production shall be fermented, distilled, gasified, or produced by physical chemical conversion methods such as reformation and catalytic conversion and dehydrated at the facility.

     "Qualifying [ethanol] biofuel production facility" or "facility" means a facility located in Hawaii which produces [motor] fuel grade [ethanol meeting the minimum specifications by the American Society of Testing and Materials standard D-4806, as amended.] biofuel.

     (c)  In the case of a taxable year in which the cumulative claims for the credit by the taxpayer of a qualifying [ethanol] biofuel production facility exceeds the cumulative investment made in the qualifying [ethanol] biofuel production facility by the taxpayer, only that portion that does not exceed the cumulative investment shall be claimed and allowed.

     (d)  The department of business, economic development, and tourism shall:

     (1)  Maintain records of the total amount of investment made by each taxpayer in a facility;

     (2)  Verify the amount of the qualifying investment;

     (3)  Total all qualifying and cumulative investments that the department of business, economic development, and tourism certifies; and

     (4)  Certify the total amount of the tax credit for each taxable year and the cumulative amount of the tax credit during the credit period.

     Upon each determination, the department of business, economic development, and tourism shall issue a certificate to the taxpayer verifying the qualifying investment amounts, the credit amount certified for each taxable year, and the cumulative amount of the tax credit during the credit period.  The taxpayer shall file the certificate with the taxpayer's tax return with the department of taxation.  Notwithstanding the department of business, economic development, and tourism's certification authority under this section, the director of taxation may audit and adjust certification to conform to the facts.

     If in any year, the annual amount of certified credits reaches $12,000,000 in the aggregate, the department of business, economic development, and tourism shall immediately discontinue certifying credits and notify the department of taxation.  In no instance shall the total amount of certified credits exceed $12,000,000 per year.  Notwithstanding any other law to the contrary, this information shall be available for public inspection and dissemination under chapter 92F.

     (e)  If the credit under this section exceeds the taxpayer's income tax liability, the excess of credit over liability shall be refunded to the taxpayer; provided that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.  All claims for a credit under this section must be properly filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed.  Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

     (f)  If a qualifying [ethanol] biofuel production facility or an interest therein is acquired by a taxpayer prior to the expiration of the credit period, the credit allowable under subsection (a) for any period after such acquisition shall be equal to the credit that would have been allowable under subsection (a) to the prior taxpayer had the taxpayer not disposed of the interest.  If an interest is disposed of during any year for which the credit is allowable under subsection (a), the credit shall be allowable between the parties on the basis of the number of days during the year the interest was held by each taxpayer.  In no case shall the credit allowed under subsection (a) be allowed after the expiration of the credit period.

     [(g)  Once the total nameplate capacities of qualifying ethanol production facilities built within the State reaches or exceeds a level of forty million gallons per year, credits under this section shall not be allowed for new ethanol production facilities.  If a new facility's production capacity would cause the statewide ethanol production capacity to exceed forty million gallons per year, only the ethanol production capacity that does not exceed the statewide forty million gallon per year level shall be eligible for the credit.]

     [(h)] (g)  Prior to construction of any new qualifying [ethanol] biofuel production facility, the taxpayer shall provide written notice of the taxpayer's intention to begin construction of a qualifying [ethanol] biofuel production facility.  The information shall be provided to the department of taxation and the department of business, economic development, and tourism on forms provided by the department of business, economic development, and tourism, and shall include information on the taxpayer, facility location, facility production capacity, anticipated production start date, and the taxpayer's contact information.  Notwithstanding any other law to the contrary, this information shall be available for public inspection and dissemination under chapter 92F.

     [(i)] (h)  The taxpayer shall provide written notice to the director of taxation and the director of business, economic development, and tourism within thirty days following the start of production.  The notice shall include the production start date and expected [ethanol] biofuel fuel production for the next twenty-four months.  Notwithstanding any other law to the contrary, this information shall be available for public inspection and dissemination under chapter 92F.

     [(j)] (i)  If a qualifying [ethanol] biofuel production facility fails to achieve an average annual production of at least seventy-five per cent of its nameplate capacity for two consecutive years, the stated capacity of that facility may be revised by the director of business, economic development, and tourism to reflect actual production for the purposes of determining [statewide production capacity under subsection (g) and] allowable credits for that facility under subsection (a).  Notwithstanding any other law to the contrary, this information shall be available for public inspection and dissemination under chapter 92F.

     [(k)] (j)  Each calendar year during the credit period, the taxpayer shall provide information to the director of business, economic development, and tourism on the [number of] gallons [of ethanol] and type of biofuel produced and sold during the previous calendar year, how much was sold in Hawaii versus overseas, percentage of Hawaii-grown feedstocks and other feedstocks used for [ethanol] biofuel production, the number of employees of the facility, and the projected [number of] gallons [of ethanol] and type of biofuel production for the succeeding year.

     [(l)] (k)  In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for every qualifying [ethanol] biofuel production facility.  The cost upon which the tax credit is computed shall be determined at the entity level.  Distribution and share of credit shall be determined pursuant to section 235-110.7(a).

     [(m)] (l)  Following each year in which a credit under this section has been claimed, the director of business, economic development, and tourism shall [submit a written] include in its annual report to the governor and legislature [regarding the production and sale of ethanol.  The report shall include] the following:

     (1)  The number, location, and nameplate capacities of qualifying [ethanol] biofuel production facilities in the State;

     (2)  The total number of gallons of [ethanol] biofuel produced and sold during the previous year; and

     (3)  The projected number of gallons of [ethanol] biofuel production for the succeeding year.

     [(n)] (m)  The director of taxation shall prepare forms that may be necessary to claim a credit under this section.  Notwithstanding the department of business, economic development, and tourism's certification authority under this section, the director may audit and adjust certification to conform to the facts.  The director may also require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91."

     SECTION 15.  Section 251-2, Hawaii Revised Statutes, is amended to read as follows:

     "§251-2  Rental motor vehicle and tour vehicle surcharge tax.  (a)  There is levied and shall be assessed and collected each month a rental motor vehicle surcharge tax of $2 a day, except that for the period of September 1, 1999, to August 31, 2011, the tax shall be $3 a day, or any portion of a day that a rental motor vehicle is rented or leased.  The rental motor vehicle surcharge tax shall be levied upon the lessor; provided that the tax shall not be levied on the lessor if:

     (1)  The lessor is renting the vehicle to replace a vehicle of the lessee that is being repaired; and

     (2)  A record of the repair order for the vehicle is retained either by the lessor for two years for verification purposes or by a motor vehicle repair dealer for two years as provided in section 437B-16.

     (b)  There is levied and shall be assessed and collected each month a tour vehicle surcharge tax of:

     (1)  $65 for each tour vehicle used or partially used during the month that falls into the over twenty-five passenger seat category; and

     (2)  $15 for each tour vehicle used or partially used during the month that falls into the eight to twenty-five passenger seat category.

     The tour vehicle surcharge tax shall be levied upon the tour vehicle operator.

     (c)  For the period of January 1, 2010, through December 31, 2015, up to two hundred alternative fueled light duty motor vehicles per rental car fleet shall be exempt from the rental motor vehicle surcharge tax. 

     (d)  For the purposes of this section:

     "Alternative fuel" means alcohol fuels; mixtures containing eighty-five per cent or more by volume of alcohols with gasoline or other fuels; natural gas; liquefied petroleum gas; hydrogen; biodiesel; mixtures containing twenty per cent or more by volume of biodiesel with diesel or other fuels; other fuels derived from biological materials; and electricity provided by off-board energy sources.

     "Alternative fuel vehicle" means a vehicle capable of operating on an alternative fuel.

     "Light duty motor vehicle" has the same meaning as contained in 10 Code of Federal Regulations Part 490.  It does not include any vehicle incapable of traveling on highways or any vehicle with a gross vehicle weight rating greater than 8,500 pounds.

"Related entities" has the same meaning as defined by section 237-23.5.

     "Rental car fleet" refers to all vehicles in the State owned or operated by related entities."

PART IV

TRANSPORTATION ENERGY REQUIREMENTS

     SECTION 16.  Section 103D-412, Hawaii Revised Statutes, is amended to read as follows:

     "§103D-412  [Energy-efficient vehicles.] Light duty motor vehicle requirements.  (a)  The procurement policy for all agencies purchasing or leasing light duty motor vehicles shall be to [obtain energy-efficient vehicles.  All covered fleets are directed to procure increasing percentages of energy-efficient vehicles as part of their annual vehicle acquisition plans, which shall be as follows:

(1)  In the fiscal year beginning July 1, 2006, at least twenty per cent of newly purchased light-duty vehicles acquired by each covered fleet shall be energy-efficient vehicles;

(2)  In the fiscal year beginning July 1, 2007, at least thirty per cent of newly purchased light-duty vehicles acquired by each covered fleet shall be energy-efficient vehicles;

(3)  In the fiscal year beginning July 1, 2008, at least forty per cent of newly purchased light-duty vehicles acquired by each covered fleet shall be energy-efficient vehicles; and

(4)  For each subsequent fiscal year, the percentage of energy-efficient vehicles newly purchased shall be five percentage points higher than the previous year, until at least seventy-five per cent of each covered fleet's newly purchased, light-duty vehicles are energy-efficient vehicles.]

reduce dependence on petroleum for transportation energy.

Beginning January 1, 2010, all state and county entities shall, when purchasing new vehicles, seek vehicles with reduced dependence on petroleum-based fuels, in the following descending order of priority:

     (1)  The agency shall first evaluate any available electric or plug-in hybrid electric vehicle and, if it meets the needs of the agency, such vehicle shall be selected.

     (2)  If an electric or plug-in hybrid electric vehicle that meets the needs of the agency is not available, the agency may select a hydrogen or fuel cell vehicle.

     (3)  If a hydrogen or fuel cell vehicle that meets the needs of the agency is not available, the agency may select an alternative fuel vehicle.

     (4)  If an alternative fuel vehicle that meets the needs of the agency is not available, the agency may select a hybrid electric vehicle.

     (5)  If a hybrid electric vehicle that meets the needs of the agency is not available, the agency shall select a vehicle that is identified by the United States Environmental Protection Agency in its annual "Fuel Economy Leaders" report as being among the top performers for fuel economy in its class.

     (b)  For the purposes of this section:

     "Agency" means a state agency, office, or department.

     "Alternative fuel" [has the same meaning as contained in 10 Code of Federal Regulations Part 490] means alcohol fuels; mixtures containing eighty-five per cent or more by volume of alcohols with gasoline or other fuels; natural gas; liquefied petroleum gas; hydrogen; biodiesel; mixtures containing twenty per cent or more by volume of biodiesel with diesel or other fuels; other fuels derived from biological materials; and electricity provided by off-board energy sources.

     "Covered fleet" has the same meaning as contained in 10 Code of Federal Regulations Part 490 Subpart C.

     ["Energy-efficient vehicle" means a vehicle that:

(1)  Is capable of using an alternative fuel;

(2)  Is powered primarily through the use of an electric battery or battery pack that stores energy produced by an electric motor through regenerative braking to assist in vehicle operation;

(3)  Is propelled by power derived from one or more cells converting chemical energy directly into electricity by combining oxygen with hydrogen fuel that is stored on board the vehicle in any form;

(4)  Draws propulsion energy from onboard sources of stored energy generated from an internal combustion or heat engine using combustible fuel and a rechargeable energy storage system; or

(5)  Is on the list of "Most Energy Efficient Vehicles" in its class or is in the top one-fifth of the most energy-efficient vehicles in its class available in Hawaii as shown by vehicle fuel efficiency lists, rankings, or reports maintained by the United States Environmental Protection Agency.]

     "Excluded vehicles" has the same meaning as provided in 10 Code of Federal Regulations Section 490.3.

     ["Light-duty vehicle"] "Light duty motor vehicle" has the same meaning as contained in 10 Code of Federal Regulations Part 490.  It does not include any vehicle incapable of traveling on highways or any vehicle with a gross vehicle weight rating greater than 8,500 pounds.

     [(c)  Agencies may offset energy-efficient vehicle purchase requirements by successfully demonstrating percentage improvements in overall light-duty vehicle fleet mileage economy.  The offsets shall be measured against the fleet average miles per gallon of petroleum-based gasoline and diesel fuel, using the fiscal year beginning July 1, 2006, as a baseline, on a percentage-by-percentage basis.

     (d)  Agencies that use biodiesel fuel may offset the vehicle purchase requirements of this section at the rate of one vehicle for each four hundred fifty gallons of neat biodiesel fuel used.  Neat biodiesel fuel is one hundred per cent biodiesel (B100) by volume.]

     [(e)] (c)  Agencies may apply to the chief procurement officer for exemptions from the requirements of this section to the extent that the vehicles required by this section are not available or do not meet the specific needs of the agency.  Life cycle vehicle and fuel costs may be included in the determination of whether a particular vehicle meets the needs of the agency.  Estimates of future fuel prices shall be based on projections from the United States Energy Information Administration.

     [(f)] (d)  Vehicles acquired from another state agency and excluded vehicles are exempt from the requirements of this section.

     [(g)] (e)  Nothing in this section is intended to interfere with [an agency's] the ability of a covered fleet to comply with [federally-imposed] the vehicle purchase mandates [such as those] required by 10 Code of Federal Regulations Part 490 Subpart C."

     SECTION 17.  Section 196-9(c), Hawaii Revised Statutes, is amended to read as follows:

     "(c)  With regard to motor vehicles and transportation fuel, each agency shall:

     (1)  Comply with Title 10, Code of Federal Regulations, Part 490, Subpart C, "Mandatory State Fleet Program", if applicable;

     (2)  Comply with all applicable state laws regarding vehicle purchases;

     (3)  Once federal and state vehicle purchase mandates have been satisfied, purchase the most fuel-efficient vehicles that meet the needs of their programs; provided that life cycle cost-benefit analysis of vehicle purchases shall include projected fuel costs;

     (4)  Purchase alternative fuels and ethanol blended gasoline when available;

     (5)  [Evaluate a purchase preference for] Purchase biodiesel blends, [as applicable to agencies with diesel fuel purchases;] in accordance with chapter 103D;

     (6)  Promote efficient operation of vehicles;

     (7)  Use the most appropriate minimum octane fuel; [provided that] vehicles shall use 87-octane fuel unless the owner's manual for the vehicle states otherwise or the engine experiences knocking or pinging;

     (8)  [Beginning with fiscal year 2005-2006 as the baseline, collect] Collect and maintain, for [the life of] each vehicle acquired, the following data:

         (A)  Vehicle acquisition cost;

         (B)  United States Environmental Protection Agency rated fuel economy;

         (C)  Vehicle fuel configuration, such as gasoline, diesel, flex-fuel gasoline/E85, and dedicated propane;

         (D)  Actual in-use vehicle mileage;

         (E)  Actual in-use vehicle fuel consumption; and

         (F)  Actual in-use annual average vehicle fuel economy[; and].

     (9)  [Beginning with fiscal year 2005-2006 as the baseline with respect to each] Each agency that operates a fleet of thirty or more vehicles[,] shall collect and maintain, in addition to the data in paragraph (8), the following:

         (A)  Information on the vehicles in the fleet, including vehicle year, make, model, gross vehicle weight rating, and vehicle fuel configuration;

         (B)  Fleet fuel usage, by fuel;

         (C)  Fleet mileage; and

         (D)  Overall annual average fleet fuel economy and average miles per gallon of gasoline and diesel."

     SECTION 18.  Section 103D-1012, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§103D-1012[]]  Biofuel preference.  (a)  Notwithstanding any other law to the contrary, contracts for the purchase of diesel fuel or boiler fuel shall be awarded to the lowest responsible and responsive bidders, with preference given to bids for biofuels or blends of biofuel and petroleum fuel.

     (b)  When purchasing fuel for use in diesel engines, the preference shall be [five cents] twenty per cent per gallon of one hundred per cent [biodiesel.] biomass-based diesel.  For blends containing both [biodiesel] biomass-based diesel and petroleum-based diesel, the preference shall be applied only to the [biodiesel] biomass-based diesel portion of the blend.

     (c)  When purchasing fuel for use in boilers, the preference shall be [five cents] twenty per cent per gallon of one hundred per cent biofuel.  For blends containing both biofuel and petroleum-based boiler fuel, the preference shall be applied only to the biofuel portion of the blend.

     (d)  As used in this section, "biodiesel" means a vegetable oil-based fuel that meets ASTM International standard D6751, "Standard Specification for Biodiesel (B100) Fuel Blend Stock for Distillate Fuels", as amended.

     (e)  As used in this section, "biofuel" means fuel from non-petroleum plant or animal based sources that can be used for the generation of heat or power.

     (f)  As used in this section, "biomass-based diesel" means biodiesel or diesel fuel substitute produced in Hawaii from biomass, provided that the fuel is registered with the Environmental Protection Agency for use in on-road engines and meets ASTM International fuel specifications for use in diesel engines.

     (g)  Beginning January 1, 2012, all state-owned diesel vehicles and equipment are required to be fueled with blends of biomass-based diesel, subject to the availability of the fuel, and so long as the price is no greater than twenty per cent more per gallon than the price of conventional diesel."

     SECTION 19.  Chapter 196, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§196-__  Alternative fuel vehicle requirement for private fleets.  (a)  Beginning January 1, 2015, each fleet operator controlling more than fifty light duty motor vehicles in the State shall, when replacing its light duty motor vehicles or expanding its fleet, acquire increasing percentages of vehicles capable of operating on non-petroleum energy sources, including electric vehicles, flexible fuel vehicles, or other alternative fuel vehicles.  

     (b)  At least four per cent of all new light duty motor vehicles acquired by a fleet operator in the State during calendar year 2015 shall be alternative fuel vehicles.  This percentage shall increase by four per cent per year, reaching sixty-four per cent in the calendar year 2030.

     (c)  For the purposes of this section:

     "Acquire" means to take into possession or control, whether by lease, purchase, or other arrangement.

     "Alternative fuel" means alcohol fuels; mixtures containing eighty-five per cent or more by volume of alcohols with gasoline or other fuels; natural gas; liquefied petroleum gas; hydrogen; biodiesel; mixtures containing twenty per cent or more by volume of biodiesel with diesel or other fuels; other fuels derived from biological materials; and electricity provided by off-board energy sources.

     "Alternative fuel vehicle" means a vehicle capable of operating on an alternative fuel.

     "Electric vehicle" means a vehicle powered by electricity. It does not include a neighborhood electric vehicle or any vehicle that is not designed to obtain electricity from sources outside the vehicle.

     "Fleet operator" means an entity controlling more than fifty light duty motor vehicles for use in a business enterprise, including vehicle rental, but does not include vehicles held for retail sale.

     "Light duty motor vehicle" has the same meaning as contained in 10 Code of Federal Regulations Part 490.  It does not include any vehicle incapable of traveling on highways or any vehicle with a gross vehicle weight rating greater than 8,500 pounds.

     (d)  A fleet operator and its affiliates may aggregate their vehicle purchases.

     (e)  Fleet operators acquiring vehicles earlier than the program start date or in excess of the number of vehicles required will be able to accumulate alternative fuel vehicle credits, which may be traded, sold, or banked for later use in meeting vehicle acquisition requirements.

     (f)  Fleet operators shall file annual reports with the energy resources coordinator. Reports shall be for each calendar year, and shall conform to the format, content, and reporting requirements specified by the energy resources coordinator.  Reports shall be filed by June 30 following the close of the calendar year of the report.

     (g)  Fleet operators may apply to the energy resources coordinator for exemptions from the requirements of this section to the extent that the vehicles required by this section are not available or do not meet the specific needs of the fleet.  To be eligible for an exemption, a fleet operator must be able to demonstrate having made a good faith effort to comply with the requirements.

     (h)  Any fleet operator or any other person violating the requirements of this section may be subject to a fine of up to $1,000 per nonconforming vehicle and up to $50 per day per annual report.

     (i)  The energy resources coordinator, in accordance with chapter 91, shall adopt rules for the administration and enforcement of this section.

PART V

TRANSPORTATION ENERGY PLANS AND STUDIES

     SECTION 20.  The department of accounting and general services shall develop an implementation plan for installation of electric vehicle charging stations at State-owned parking facilities. 

     SECTION 21.  Section 286-172, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Subject to authorization granted by the chief justice with respect to the traffic records of the violations bureaus of the district courts and of the circuit courts, the director of transportation shall furnish information contained in the statewide traffic records system in response to:

     (1)  Any request from a state, a political subdivision of a state, or a federal department or agency, or any other authorized person pursuant to rules adopted by the director of transportation under chapter 91;

     (2)  Any request from a person having a legitimate reason, as determined by the director, as provided under the rules adopted by the director under paragraph (1), to obtain the information for verification of vehicle ownership, traffic safety programs, or for research or statistical reports; [or]

     (3)  Any request from the energy resources coordinator, to track the number and type of vehicles in use and the effectiveness of efforts to increase the efficiency and diversify the fuel needs of Hawaii′s transportation sector; or

    [(3)] (4)  Any request from a person required or authorized by law to give written notice by mail to owners of vehicles."

     SECTION 22.  Section 92F-19, Hawaii Revised Statutes, is amended to read as follows:

     "§92F-19  Limitations on disclosure of government records to other agencies.  (a)  No agency may disclose or authorize disclosure of government records to any other agency unless the disclosure is:

     (1)  Necessary for the performance of the requesting agency's duties and functions and is also:

         (A)  Compatible with the purpose for which the information was collected or obtained; or

         (B)  Consistent with the conditions or reasonable expectations of use and disclosure under which the information was provided;

     (2)  To the state archives for the purposes of historical preservation, administrative maintenance, or destruction;

     (3)  To another agency, another state, or the federal government, or foreign law enforcement agency or authority, if the disclosure is:

         (A)  For the purpose of a civil or criminal law enforcement activity authorized by law; and

         (B)  Pursuant to:

              (i)  A written agreement or written request, or

             (ii)  A verbal request, made under exigent circumstances, by an officer or employee of the requesting agency whose identity has been verified, provided that such request is promptly confirmed in writing;

     (4)  To a criminal law enforcement agency of this State, another state, or the federal government, or a foreign criminal law enforcement agency or authority, if the information is limited to an individual's name and other identifying particulars, including present and past places of employment;

     (5)  To a foreign government pursuant to an executive agreement, compact, treaty, or statute;

     (6)  To the legislature, or a county council, or any committee or subcommittee thereof;

     (7)  Pursuant to an order of a court of competent jurisdiction;

     (8)  To authorized officials of another agency, another state, or the federal government for the purpose of auditing or monitoring an agency program that receives federal, state, or county funding;

     (9)  To the offices of the legislative auditor, the legislative reference bureau, or the ombudsman of this State for the performance of their respective functions;

    (10)  To the department of human resources development, county personnel agencies, or line agency personnel offices for the performance of their respective duties and functions, including employee recruitment and examination, classification and compensation reviews, the administration and auditing of personnel transactions, the administration of training and safety, workers' compensation, and employee benefits and assistance programs, and for labor relations purposes;

    (11)  To the department of business, economic development, and tourism for the performance of their statutory responsibilities; or

   [(11)] (12)  Otherwise subject to disclosure under this chapter.

     (b)  An agency receiving government records pursuant to subsection (a) shall be subject to the same restrictions on disclosure of the records as the originating agency."

     SECTION 23.  Section 226-17, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  To achieve the transportation objectives, it shall be the policy of this State to:

     (1)  Design, program, and develop a multi-modal system in conformance with desired growth and physical development as stated in this chapter;

     (2)  Coordinate state, county, federal, and private transportation activities and programs toward the achievement of statewide objectives;

     (3)  Encourage a reasonable distribution of financial responsibilities for transportation among participating governmental and private parties;

     (4)  Provide for improved accessibility to shipping, docking, and storage facilities;

     (5)  Promote a reasonable level and variety of mass transportation services that adequately meet statewide and community needs;

     (6)  Encourage transportation systems that serve to accommodate present and future development needs of communities;

     (7)  Encourage a variety of carriers to offer increased opportunities and advantages to interisland movement of people and goods;

     (8)  Increase the capacities of airport and harbor systems and support facilities to effectively accommodate transshipment and storage needs;

     (9)  Encourage the development of transportation systems and programs which would assist statewide economic growth and diversification;

    (10)  Encourage the design and development of transportation systems sensitive to the needs of affected communities and the quality of Hawaii's natural environment;

    (11)  Encourage safe and convenient use of low-cost, energy-efficient, non-polluting means of transportation;

    (12)  Coordinate intergovernmental land use and transportation planning activities to ensure the timely delivery of supporting transportation infrastructure in order to accommodate planned growth objectives; and

    (13)  [Encourage diversification of transportation modes and infrastructure] Include transportation energy demand estimates in statewide and county-wide long-range land transportation plans that utilize travel demand forecasting models in order to promote alternate fuels and energy efficiency."

     SECTION 24.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 25.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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By Request