HOUSE OF REPRESENTATIVES
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO ENERGY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the human-induced global climate crisis requires thoughtful but bold responses on multiple fronts to make Hawaii communities resilient to the impacts of storms, floods, fire, and sea—level rise that threaten the very survivability of these fragile islands. Hawaii has historically played a critical leadership role in the areas of labor, justice, equity, and the environment. In addition to adopting a statewide carbon neutrality goal, Hawaii was the first state in the nation to adopt a one hundred per cent renewable electricity requirement and the first state to commit to the goals of the 2015 Paris Climate Agreement. Hawaii's one hundred per cent renewable electricity goal has been emulated by other states and territories, demonstrating that Hawaii's actions on climate change can influence broader actions beyond the islands' shores.
The legislature further finds that Hawaii is nearly one hundred per cent dependent on imported petroleum for its ground transportation needs. Hawaii residents, businesses, and visitors spent over $1,700,000,000 on gasoline in 2019 and the combustion of that fuel released over ten billion pounds of climate—changing carbon dioxide into the atmosphere. While carbon pollution from Hawaii's energy sector has decreased over the past decade, carbon pollution from Hawaii's ground transportation sector has increased ten per cent. Existing policy measures have not meaningfully reduced carbon pollution from Hawaii's ground transportation sector.
The legislature believes that electric vehicles play an integral role in Hawaii's clean energy future. Electric vehicles are much less expensive to operate per mile than their gasoline counterparts. By using stored electrical energy, electric vehicles can take advantage of intermittent solar, wind, and other clean energy resources. With the continued growth of an intelligent electrical grid, electric vehicles have become an essential component to electricity load and clean energy resource balancing. They also provide clean mobility solutions for Hawaii residents and visitors.
The legislature further finds that, in Hawaii and elsewhere in the world, the lack of adequate vehicle charging infrastructure has become a major barrier to increasing adoption of electric vehicles. The International Energy Agency has found that "the availability of chargers emerged as one of the key factors for contributing to the market penetration of [electric vehicles]." Many parking facilities connected to high density, multi-family dwellings, which are a home to a large share of the Hawaii population, do not accommodate electric vehicle charging stations. Exacerbating the adoption barrier is that more than eighty per cent of electric vehicle owners charge their cars at home or work.
The purpose of this Act is to establish a market—based electric vehicle infrastructure incentive program consisting of one-time surcharges on the purchase of high-end gasoline-powered vehicles for purposes of funding the electric vehicle charging system rebate program established under sections 269—72 and 269‑73, Hawaii Revised Statutes. The program is intended to be self-financing and not increase expenditures from or reduce revenues into the general fund.
SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Electric vehicle infrastructure incentive surcharge. (a) There shall be levied, assessed, and collected an electric vehicle infrastructure incentive surcharge on all gross proceeds and gross income attributable to each sale, taxable under this chapter, of a passenger car or pickup truck powered solely by gasoline that has a published manufacturer's suggested retail price of $60,000 or more.
(b) The electric vehicle infrastructure incentive surcharge shall be equal to one per cent of all gross proceeds and gross income attributable to transactions described in subsection (a). All provisions of this chapter shall apply to the electric vehicle infrastructure incentive surcharge. With respect to the surcharge, the director of taxation shall have all the rights and powers provided under this chapter.
(c) The director of taxation shall revise the general excise tax forms to provide for the clear and separate designation of the imposition and payment of the electric vehicle infrastructure incentive surcharge.
(d) For the purposes of this section:
"Electric vehicle" shall have the same meaning as in section 291—71.
"Passenger car" shall have the same meaning as in section 286—2.
"Pickup truck" shall have the same meaning as in section 291-14(e).
"Published manufacturer's suggested retail price" means the published manufacturer's suggested retail price as set by a vehicle's manufacturer at the time of sale."
SECTION 3. Section 237-31, Hawaii Revised Statutes, is amended to read as follows:
"§237-31 Remittances. All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:
(1) A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund;
(2) A sum from all general excise
tax revenues realized by the State that
is equal to one-half of the total amount of funds appropriated or transferred
out of the hurricane reserve trust fund under sections 4 and 5 of Act 62,
Session Laws of Hawaii 2011, shall be deposited into the hurricane reserve
trust fund in fiscal year 2013-2014 and in fiscal year 2014-2015; provided that
the deposit required in each fiscal year shall be made by October 1 of that
fiscal year; [
(3) All electric vehicle infrastructure incentive surcharges collected pursuant to section 237- , shall be deposited into the public utilities commission special fund established pursuant to section 269-33; provided that the first $500,000 collected shall be deposited into the electric vehicle charging system subaccount established pursuant to section 269-33(e); and
[(3)]] (4) Commencing with fiscal year 2018-2019, a sum
from all general excise tax revenues realized by the State that represents the
difference between the state public employer's annual required contribution for
the separate trust fund established under section 87A-42 and the amount of the
state public employer's contributions into that trust fund shall be deposited
to the credit of the State's annual required contribution into that trust fund
in each fiscal year, as provided in section 87A-42."
SECTION 4. Section 269-33, Hawaii Revised Statutes, is amended to read as follows:
"§269-33 Public utilities commission special fund. (a) There is established in the state treasury a public utilities commission special fund to be administered by the public utilities commission. The proceeds of the fund shall be used by the public utilities commission and the division of consumer advocacy of the department of commerce and consumer affairs for all expenses incurred in the administration of chapters 269, 271, 271G, 269E, and 486J, and for costs incurred by the department of commerce and consumer affairs to fulfill the department's limited oversight and administrative support functions; provided that the expenditures of the public utilities commission shall be in accordance with legislative appropriations. On a quarterly basis, an amount not exceeding thirty per cent of the proceeds remaining in the fund after the deduction for central service expenses, pursuant to section 36‑27, shall be allocated by the public utilities commission to the division of consumer advocacy and deposited in the compliance resolution fund established pursuant to section 26-9(o); provided that all moneys allocated by the public utilities commission from the fund to the division of consumer advocacy shall be in accordance with legislative appropriations.
(b) All moneys appropriated to, received, and collected by the public utilities commission that are not otherwise pledged, obligated, or required by law to be placed in any other special fund or expended for any other purpose shall be deposited into the public utilities commission special fund including, but not limited to, all moneys received and collected by the public utilities commission pursuant to sections 92-21, 237- , 269‑28, 269-30, 271-27, 271-36, 271G-19, 269E-6, 269E-14, and 607-5.
(c) The public utilities commission shall submit an update as part of its annual report submitted pursuant to section 269-5 detailing all funds received and all moneys disbursed out of the fund.
(d) All moneys in excess of $1,000,000 remaining on balance in the public utilities commission special fund on June 30 of each year shall lapse to the credit of the state general fund.
(e) There is established within the public utilities commission special fund an electric vehicle charging system subaccount. The public utilities commission shall expend moneys in the subaccount for the purposes of funding the electric vehicle charging system rebate program established pursuant to sections 269-72 and 269-73."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2050; provided that this Act shall be repealed on June 30, 2030, and sections 237-31 and 269-33, Hawaii Revised Statutes, shall be reenacted in the form in which they read on June 30, 2021.
Electric Vehicle Charging System Rebate Program; New Vehicle Sales
Establishes a surcharge on the sale of high-end gasoline-powered vehicles to fund the installation of electric vehicle charging systems. Establishes an electric vehicle charging system subaccount within the public utilities commission special fund. Sunsets 6/30/2030. Effective 7/1/2050. (HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.