STAND. COM. REP. NO. 269-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2896
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Transportation and Energy and
Environmental Protection, to which was referred H.B. No. 2896
entitled: 

     "A BILL FOR AN ACT RELATING TO ALTERNATE FUELED VEHICLES,"

beg leave to report as follows:

     The purpose of this bill, as received by your Committee, is
to encourage the use of alternate fuels as energy sources for
motor vehicles.

     Your Committee finds that the State depends primarily on
gasoline and diesel fuel for motor vehicles, and that the
utilization of alternate fuels has the potential for improving
energy efficiency, upgrading air quality, and reducing dependence
on imported oil.  Your Committee further finds that Act 290,
Session Laws of Hawaii 1997, provided financial and regulatory
incentives for the use of electric vehicles.  Your Committee
further finds that other alternate fuels can be utilized, some of
which can be produced from renewable materials available in our
State.

     This bill proposes to extend the incentives offered for
electric vehicles to the use of other alternate fuels to
encourage the purchase or lease of these vehicles.  These
incentives, to be governed by rules adopted by the Department of
Transportation, are to include the issuance of a special license
plate to designate that the vehicle is alternate fueled, waiving
the payment of registration and fees associated with the purchase

 
 
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of special license plates, exempting payment of parking fees,
including those collected through parking meters, and permitting
the use of high occupancy and zipper lanes, regardless of the
usual passenger count restrictions.

     Testimony in support of this measure was received from the
Department of Business, Economic Development, and Tourism.  The
Gas Company expressed strong support of this bill.
 
     As affirmed by the records of votes of the members of your
Committees on Transportation and Energy and Environmental
Protection that are attached to this report, your Committees are
in accord with the intent and purpose of H.B. No. 2896 and
recommend that it pass Second Reading and be referred to the
Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Transportation
                                   and Energy and Environmental
                                   Protection,

                                   
                                   
                                   
                                   
______________________________     ______________________________
HERMINA M. MORITA, Chair           KENNETH T. HIRAKI, Chair