HOUSE OF REPRESENTATIVES

H.B. NO.

552

THIRTY-FIRST LEGISLATURE, 2021

H.D. 1

STATE OF HAWAII

S.D. 2

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE ENVIRONMENT.

 

 

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

 


SECTION 1. The legislature finds that the use of fossil fuels is the State's primary contributor to greenhouse gas emissions. These emissions cause climate change, which poses a serious threat to the State's economic well-being, public health, infrastructure, and environment. The State's dependence on fossil fuels also drains the economy of billions of dollars each year, makes residents vulnerable to the volatility of oil prices, and puts residents at increased risk in the event of a natural disaster. Thus, Act 15, Session Laws of Hawaii 2018, was enacted to establish a goal for the State to become carbon neutral by 2045.

The legislature further finds that the transportation sector accounts for the use of over two-thirds of the oil imported into the State. The legislature notes that, for ground transportation, electric vehicles provide a viable, cost‑effective alternative to vehicles that run on fossil fuels. For state-owned transportation fleets, the transition to electric vehicles will bring with it considerable cost savings because of lower costs to operate and maintain these vehicles. With the impacts of the coronavirus 2019 pandemic on the state budget, it is imperative that the State take advantage of all opportunities for savings, and the electrification of state fleets to the extent possible is one of these opportunities.

The purpose of this Act is to:

(1) Establish procurement policy requirements for medium- and heavy-duty motor vehicles;

(2) Begin the transition to one hundred per cent clean ground transportation in the State by establishing a goal for the State to lead by example by transitioning to one hundred per cent of state-owned, light duty vehicles powered by renewable energy sources by 2030; and

(3) Promote the State's energy goals by authorizing the spending of capitol improvement project moneys on green infrastructure.

SECTION 2. Chapter 225P, Hawaii Revised Statutes, is amended by adding a new section to part IV to be appropriately designated and to read as follows:

"225P-    Climate change mitigation. (a) It shall be the goal of the State to reduce emissions that cause climate change and build energy efficiencies across all sectors, including decarbonizing the transportation sector.

(b) There is established a clean ground transportation goal of having forty per cent of state-owned light-duty vehicles powered by renewable energy sources by December 31, 2025, and a clean ground transportation goal of one hundred per cent of state-owned light-duty vehicles powered by renewable energy sources by December 31, 2030. Each state agency shall manage that agency's respective vehicle fleet to achieve the clean ground transportation goals established in section 196-9 and decarbonization goals established in chapter 225.

(c) Each state and county agency may include as part of that agency's capital improvement projects trees and plants having lifespans longer than twenty years, to meet the goals of reducing that agency's carbon footprint and the State's decarbonization and sustainability goals."

SECTION 3. Section 26-6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The department shall:

(1) Preaudit and conduct after-the-fact audits of the financial accounts of all state departments to determine the legality of expenditures and the accuracy of accounts;

(2) Report to the governor and to each regular session of the legislature as to the finances of each department of the State;

(3) Administer the state risk management program;

(4) Establish and manage motor pools;

(5) Manage the preservation and disposal of all records of the State;

(6) Undertake the program of centralized engineering and office leasing services, including operation and maintenance and lease buyback processing pursuant to subsection (d) of public buildings, for departments of the State;

(7) Undertake the functions of the state surveyor;

(8) Establish accounting and internal control systems;

(9) Under the direction of the chief information officer, provide centralized computer information management and processing services;

(10) Establish a program to provide a means for public access to public information and develop an information network for state government; [and]

(11) Assume administrative responsibility for the office of information practices[.]; and

(12) Require that all new light-duty motor vehicles that are passenger cars purchased for the State's vehicle fleets be zero-emission vehicles and authorize an exemption for new fleet vehicle procurements if the zero-emissions vehicles are demonstrated to be cost-prohibitive on a lifecycle basis or unsuitable for the vehicle's planned purpose.

For the purposes of this subsection:

"Light-duty motor vehicle" shall have the same meaning as contained in title 10 Code Federal Regulations part 490.

"Passenger car" shall have the same meaning as contained in title 49 Code of Federal Regulations section 571.3.

"Zero-emission vehicle" shall have the same meaning as contained in title 40 Code of Federal Regulations section 88.102-94."

SECTION 4. Section 37-62, Hawaii Revised Statutes, is amended to read as follows:

"37-62 Definitions. Unless otherwise clear from the context, as used in this part:

"Agency" means any executive department, independent commission, board, agency, authority, bureau, office, or other establishment of the state government (except the legislature and the judiciary), or any quasi-public institution which is supported in whole or in part by state funds.

"Annual required contribution" means the State's required contribution to the employees' retirement system or Hawaii employer-union health benefits trust fund, as applicable, that is sufficient to cover:

(1) The normal cost, which is the cost of other post-employment benefits attributable to the current year of service; and

(2) An amortization payment, which is a catch-up payment for past service costs to fund the unfunded actuarial accrued liability over the next thirty years.

"Bond categories" means types of bonds and includes general obligation bonds, reimbursable general obligation bonds, and revenue bonds.

"Bond fund" means the fund used to account for the proceeds of bond issues and expenditures therefrom.

"Bond receipts" means the proceeds from the issuance of governmental bonds.

"Capital expenditures" means payments to contractors and payments for other items related to the construction of a capital improvement project.

"Capital investment costs" means costs, beyond the research and development phase, associated with capital improvements, including the acquisition and development of land[,]; the design and construction of new facilities, including green infrastructure; and the making of renovations or additions to existing facilities[.], including green infrastructure. Capital investment costs for a program are the sum of the program's capital improvement project costs.

"Casual hire position" means an hourly-paid temporary position, the services of which are required intermittently.

"Certificate of participation" means any certificate evidencing a participation right or a proportionate interest in any financing agreement or the right to receive proportionate payments from the State or a state agency due under any financing agreement.

"Construction costs" means the costs involved in building and landscaping capital facilities, including any consultant or staff services required and built-in equipment. "Construction costs" includes costs associated with green infrastructure.

"Cost categories" means the major types of costs and includes research and development, capital investment, and operating.

"Cost elements" means the major subdivisions of a cost category. The category "capital investment" includes plan, land acquisition, design, construction, and equipment and furnishing. The categories "research and development" and "operating" include personal services, current lease payments, other current expenses, equipment, and motor vehicles.

"Crosswalk" means a reconciliation of the program structure with the structure used for accounting [and/or] or appropriations[.], or both.

"Debt service" means interest and principal repayments on moneys borrowed.

"Departmental earnings" means the amounts collected by governmental agencies for services provided and products or property sold; rentals collected for use of public property; fees, fines, forfeitures, and penalties assessed; and other related types of charges.

"Design costs" means the costs related to the preparation of architectural drawings for capital improvements through its various stages from schematic to final construction drawings. [It] "Design costs" does not include costs associated with the identification of needs, determining alternative ways of meeting needs, and prescription of standards for capital improvements.

"Effectiveness measure" means the criterion for measuring the degree to which the objective sought is attained.

"Federal aid interstate" means funds received or reasonably anticipated to be received from the federal government for the purpose of constructing the interstate highway system in the State.

"Federal aid primary" means funds received or reasonably anticipated to be received from the federal government for the purpose of constructing primary roadways.

"Federal aid secondary" means funds received or reasonably anticipated to be received from the federal government for the purpose of constructing secondary roadways.

"Federal aid urban" means funds received or reasonably anticipated to be received from the federal government for the purpose of constructing roads in urban areas.

"Federal funds" means financial aid received or reasonably anticipated to be received from the federal government.

"Financing agreement" means any lease purchase agreement, installment sale agreement, loan agreement, line of credit, or any other agreement to finance the improvement, use, or acquisition of real or personal property that is or will be owned or operated by the State or any agency or to refinance any [such] previously executed financing agreement including certificates of participation relating thereto.

"Full cost" means the total cost of a program, system, or capability, including research and development costs, capital investment costs, and operating costs.

"Full-time equivalent position" means a position, the occupant of which is employed for a normal workweek of at least forty hours or its equivalent.

"Funded ratio" means the ratio of net assets to net liabilities of the employees' retirement system or Hawaii employer-union health benefits trust fund, as applicable, as determined by actuarial valuation.

"Funding period" means the number of years in the future that will be required to fully fund the unfunded actuarial accrued liability of the employees' retirement system or Hawaii employer-union health benefits trust fund, as applicable, based upon actuarial assumptions and no assumed future actuarial gains or losses.

"General fund" means the fund used to account for all transactions [which] that are not accounted for in another fund.

"General obligation bonds" means bonds, notes, or other instruments of indebtedness for the payment of the principal and interest of which the full faith and credit of the State are pledged.

"General obligation reimbursable bonds" means general obligation bonds issued for a public undertaking, improvement, or system from which revenues, or user taxes, or a combination of both, may be derived for the payment of the principal and interest as reimbursement to the general fund and for which reimbursement is required by law, and, in the case of general obligation bonds issued by the State for a political subdivision, general obligation bonds for which the payment of the principal and interest as reimbursement to the general fund is required by law to be made from the revenue of the political subdivision.

"Green infrastructure" means the range of measures that use plant, tree, or soil systems; permeable pavement or other permeable surfaces or substrates; stormwater harvest and reuse; or landscaping to store, infiltrate, or evapotranspirate water, with an expected life span of no less than twenty years and are designed to reduce carbon footprints, temperatures, urban heat island temperatures, and storm water flow to sewer systems or surface waters to meet the State's climate and sustainability goals.

"Inter-departmental transfers" means funds [which] that will be used by a program but will be appropriated to a different program.

"Land acquisition costs" means the costs of obtaining lands, including any consultant or staff services costs attributable to that acquisition.

"Lease payments" means payments made by the State or any agency under any financing agreement.

"Means of financing" means the various sources from which funds are available and includes the general fund, special fund, revolving fund, general obligation bonds, reimbursable general obligation bonds, revenue bonds, federal aid interstate highway fund, federal aid primary road fund, federal aid secondary road fund, federal aid urban fund, other federal funds, private contributions, county funds, trust funds, and other funds.

"Nonadd" means a program [which] that is listed with an objective or a program grouping, but the cost of which is not to be included in the total cost of that objective or program grouping because it is included in some other objective or program group.

"Nontax revenue sources" means sources other than taxes from which revenues are produced and includes departmental earnings of various kinds, reimbursements of principal on general obligation bonds issued for state agencies and counties, federal receipts [which] that are restricted in their use to specified purposes, and other federal receipts.

"Objective" means a statement of the end result, product, or condition desired, for the accomplishment of which a course of action is to be taken.

"Operating costs" means recurring costs of operating, supporting, and maintaining authorized programs, including costs for personnel salaries and wages, employee fringe benefits, lease payments, supplies, materials, equipment, and motor vehicles.

"Permanent position" means a position, the existence of which has no time limitation.

"Phases of capital improvement project" means land acquisition, design, construction, and occupancy.

"Plan costs" means the costs related to preparation of a general plan, functional plan, master plan, advance plan, or preliminary plan, including feasibility studies.

"Planning" means that process by which government objectives are formulated; measures by which effectiveness in attaining the objectives are identified; alternatives by which objectives may be attained are determined; the full cost, effectiveness, and benefit implications of each alternative are determined; the assumptions, risks, and uncertainties of the future are clarified; and cost and effectiveness and benefit tradeoffs of the alternatives are identified.

"Position" means a specific job, whether occupied or vacant, consisting of all duties and responsibilities assigned or delegated by competent authority, requiring the full- or part-time employment of one person.

"Position ceiling" means the maximum number of permanent and temporary full-time equivalent positions that an expending agency is authorized for a particular program.

"Program" means a combination of resources and activities designed to achieve an objective or objectives.

"Program size" means the magnitude of a program, [such as] including the number of persons serviced by the program, the amount of a commodity, the time delays, the volume of service in relation to population or area, etc.

"Program size indicator" means a measure to indicate the magnitude of a program.

"Program structure" means a display of programs [which] that are grouped in accordance with the objectives to be achieved, or the functions to be performed.

"Programming" means that process by which government's long-range program and financial plans are scheduled for implementation over a six-year period and which specifies what programs are to be implemented, how they are to be implemented, when they are to be implemented, and what the costs of [such] the implementation are.

"Reimbursable general obligation bonds" means general obligation bonds issued for a public undertaking, improvement, or system from which revenues[,] or user taxes, or a combination of both, may be derived for the payment of the principal and interest as reimbursement to the general fund and for which reimbursement is required by law, and, in the case of general obligation bonds issued by the State for a political subdivision, general obligation bonds for which the payment of the principal and interest as reimbursement to the general fund is required by law to be made from the revenue of the political subdivision.

"Research and development costs" means costs primarily associated with the development of a new program, system, or capability to the point where capital [and/or] or operating costs, or both, are required to introduce the program, system, or capability into operational use.

"Resource categories" means types of resources and includes tax revenues, departmental earnings, and federal receipts.

"Revenue bonds" means all bonds payable from the revenues, or user taxes, or any combination of both, of a public undertaking, improvement, system, or loan program and any loan made thereunder and secured as may be provided by law.

"Revolving fund" means a fund from which is paid the cost of goods and services rendered or furnished to or by a state agency and which is replenished through charges made for the goods or services or through transfers from other accounts or funds.

"Special funds" means funds [which] that are dedicated or set aside by law for a specified object or purpose, but excluding revolving funds and trust funds.

"Taxes" and "tax revenue sources" mean each specific kind of tax.

"Tax revenues" means the amounts collected from compulsory charges, in the form of taxes, levied by the State for the purpose of financing services performed for the common public benefit.

"Temporary position" means a position, the existence of which has a time limitation, or a position that is not otherwise a permanent position.

"Trust fund" means a fund in which designated persons or classes of persons have a vested beneficial interest or equitable ownership, or which was created or established by a gift, grant, contribution, devise, or bequest that limits the use of the fund to designated objects or purposes.

"Unfunded actuarial accrued liability" means the portion of the actuarial accrued liability, including the present value of benefits presently being paid to retirees, that exceeds the value of current assets.

"Vicing position" means a temporary position created to backfill for an incumbent who is on an extended period of authorized leave of absence."

SECTION 5. Section 103D-412, Hawaii Revised Statutes, is amended to read as follows:

"103D-412 [Light-duty,] Light-, medium-, and heavy-duty motor vehicle requirements. (a) The procurement policy for all agencies purchasing or leasing [light-duty] light-, medium, and heavy-duty motor vehicles shall be to seek vehicles that reduce dependence on [petroleum for transportation energy.] petroleum-based fuels and meet the needs of the agency, if feasible and cost-effective.

(b) Beginning January 1, 2010, all state and county entities, when purchasing new light-, medium-, or heavy-duty vehicles, shall seek vehicles with reduced dependence on petroleum-based fuels that meet the needs of the agency. Priority for selecting vehicles shall be as follows:

(1) [Electric] Zero-emission vehicles or plug-in hybrid electric vehicles [and fuel cell electric vehicles];

(2) Other alternative [fuel] fueled vehicles;

(3) Hybrid electric vehicles; and

(4) Vehicles that are 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 their class.

(c) No vehicle shall be larger than necessary for that vehicle's intended functions.

[(c)] (d) For the purposes of this section:

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

["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 fueled vehicle" shall have the same meaning as contained in title 10 Code of Federal Regulations section 490.2. "Alternative fueled vehicles" includes vehicles designed to operate on liquid or gaseous fuels produced from renewable feedstocks, including organic wastes, or from water using electricity from renewable energy sources.

"Covered fleet" [has] shall have the same meaning as contained in title 10 Code of Federal Regulations [Part] part 490 [Subpart] subpart C.

"Excluded vehicles" [has] shall have the same meaning as [provided] contained in title 10 Code of Federal Regulations section 490.3.

["Fuel cell electric vehicle" means a zero-emission electric vehicle that uses a fuel cell to convert hydrogen gas and oxygen into electricity that is used in a vehicle powertrain for propulsion.]

"Hybrid electric vehicle" shall have the same meaning as contained in title 40 Code of Federal Regulations section 86.1803-01.

"Light-duty motor vehicle" [has] shall have the same meaning as contained in title 10 Code of Federal Regulations [Part] part 490[, not including any vehicle incapable of traveling on highways or any vehicle with a gross vehicle weight rating greater than eight thousand five hundred pounds].

"Plug-in hybrid electric vehicle" shall have the same meaning as contained in title 40 Code of Federal Regulations section 86.1803-01.

"Zero-emission vehicle" shall have the same meaning as contained in title 40 Code of Federal Regulations section 88.102-94.

[(d)] (e) 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; provided that 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 costs shall be based on projections from the United States Energy Information Administration.

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

[(f)] (g) Nothing in this section is intended to interfere with the ability of a covered fleet to comply with the vehicle purchase mandates required by 10 Code of Federal Regulations Part 490 Subpart C."

SECTION 6. Section 196-9, Hawaii Revised Statutes, is amended by amending subsection (c) 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 biodiesel blends, as applicable to agencies with diesel fuel purchases;

(6) Promote efficient operation of vehicles[;], including efficient planning of charging station locations and day time charging for electric 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 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] including 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

(G) Electric vehicle charger use;

(9) Beginning with fiscal year 2005-2006 as the baseline with respect to each agency that operates a fleet of thirty or more vehicles, 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[.]; and

(E) Data on electric vehicle charger usage by fleet; and

(10) Plan and coordinate vehicle acquisition to meet the following clean ground transportation goals:

(A) Forty per cent of light-duty motor vehicles of each fleet shall be powered by renewable sources by December 31, 2025; and

(B) One hundred per cent of light-duty motor vehicles of each fleet shall be powered by renewable sources by December 31, 2030."

SECTION 7. Section 196-42, Hawaii Revised Statutes, is amended to read as follows:

"196-42 State support for achieving alternate fuels standards[.] and clean ground transportation goals. (a) The State shall facilitate the development of alternate fuels and support the attainment of a statewide alternate fuels standard of ten per cent of highway fuel demand to be provided by alternate fuels by 2010, fifteen per cent by 2015, twenty per cent by 2020, and thirty per cent by 2030. For purposes of the alternate fuels standard, ethanol produced from cellulosic materials shall be considered the equivalent of two and one-half gallons of noncellulosic ethanol. "Alternate fuels" shall have the same meaning as contained in 10 Code of Federal Regulations Part 490; provided that it shall also include liquid or gaseous fuels produced from renewable feedstocks such as organic wastes, or from water using electricity from renewable energy sources.

(b) The State shall support the attainment of the clean ground transportation goals established in section 225P-   (b)."

SECTION 8. Section 196-72, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The chief energy officer shall have:

(1) Experience, knowledge, and expertise in policy, programs, or services related to energy efficiency, renewable energy, clean transportation, and energy resiliency related activities and development; and

(2) Experience in a supervisory or administrative capacity[.]; and

(3) Lead efforts to incorporate energy efficiency, renewable energy, energy resiliency, and clean transportation to reduce costs and achieve clean energy goals throughout all public facilities."

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2050.


 


 

Report Title:

Clean Ground Transportation Goals; Fleet Procurement; Road Construction; Carbon Footprint Reduction

 

Description:

Establishes clean ground transportation goals for state agencies on a staggered basis until achieving a 100% light-duty motor vehicle clean fleet by 12/31/2030. Establishes procurement policy requirements for medium- and heavy-duty motor vehicles. Allows state and county agencies to include trees and plants having lifespans longer than twenty years as a part of capital improvement projects. Requires that all new light-duty passenger vehicles purchased for the state's fleet are zero-emission vehicles and permits the department of accounting and general services to authorize an exemption for new fleet vehicle procurement. Conforms various definitions to the Code of Federal Regulations. Defines "green infrastructure". Revises definitions for "capital investment costs" and "construction "costs" to allow for the inclusion of costs related to green infrastructure in capital improvement projects. Provides for electric vehicle charging and clean ground transportation goals in the State's planning and budget preparation and program implementation goals. Requires the Hawaii state energy office to lead the efforts to incorporate energy efficiency, renewable energy, energy resiliency, and clean transportation to reduce costs and achieve clean energy goals across all public facilities. Effective 7/1/2050. (SD2)

 

 

 

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