THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO TRANSPORTATION.
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the single greatest factor of the increasing cost of living in Hawaii is the rising cost of transportation. Due to increasingly expensive fossil fuels and a lack of cheaper transit options, Hawaii residents already pay among the highest cost to commute in the country. In January 2022, the United States Bureau of Labor Statistics reported that auto-related costs were an astonishing twenty-three per cent higher in December 2021, than a year earlier, accelerating a trend of increasing transit costs contributing to Hawaii's rising cost of living.
The legislature further finds that climate change caused by carbon emissions from burning fossil fuels poses a serious threat to the economic well-being, public health, natural resources, and environment of Hawaii. The State has committed to eliminating fossil fuels from the electricity and ground transportation sectors, abiding by the Paris Climate Accord's goal to limit the amount of global warming to less than 1.5 degrees Celsius and achieving negative carbon emissions for Hawaii by 2045. The legislature finds that meeting the State's clean energy goals and commitments necessitates the rapid transition to electric vehicles that utilize local, renewable energy sources.
The legislature further finds that electric bicycles are significantly more cost effective and better for the environment than gas powered motor vehicles and can effectively get many Hawaii residents to locations as conveniently as gas powered motor vehicles.
The purpose of this Act is to encourage the purchase and use of electric motor vehicles and bicycles to reduce the cost of living and cost of transportation by creating subsidies for those looking to purchase electric motor vehicles and bicycles.
SECTION 2. Chapter 196, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
vehicle, electric bicycle, moped, and motorcycle rebate program; third-party
administrator; special fund. (a) The department of transportation shall administer
a rebate program that incentivizes the purchase of electric vehicles, electric
bicycles, mopeds, and motorcycles and may contract with a third-party
administrator pursuant to subsection (i) to operate and manage the rebate
(b) Subject to subsection (c), rebates shall be
distributed as follows:
(1) Each eligible purchase
of an electric vehicle shall receive up to $ ;
(2) Each eligible purchase of an
electric bicycle, moped, or motorcycle shall receive up to $ ;
that no individual shall receive more than $
in total rebates each fiscal year.
(c) The department of transportation shall not
issue more than $
in total rebates under this section each fiscal year; provided that fifty per
cent of the amount issued shall be to rebate electric vehicle purchases and
fifty per cent of the amount issued shall be to rebate electric bicycle, electric
moped, or electric motorcycle purchases; provided that the electric vehicles, electric
bicycle, and motorcycle special fund contains sufficient moneys to pay the rebates.
The department of transportation shall not
be liable to pay any refund if sufficient funds are unavailable.
(d) The department of transportation shall:
(1) Prepare any
forms that may be necessary for an applicant to claim a rebate pursuant to this
(2) Require each
applicant to furnish reasonable information to ascertain the validity of the
claim, including but not limited to documentation necessary to demonstrate the purchase
of an electric vehicle or electric bicycle, moped, or motorcycle.
(e) This section shall apply to electric vehicles
and electric bicycles, mopeds, or motorcycles purchased after July 1, 2022.
Applicants shall submit applications to the department of transportation
within twelve months of the date of purchase to claim a rebate from the
electric vehicle charging system rebate program. Failure to apply within twelve months of the
date of purchase shall constitute a waiver of the right to claim the rebate.
(g) Nothing in this section shall alter taxes due
on the original purchase. Any rebate
received pursuant to this section shall not be considered income for the
purposes of state or county taxes.
(h) In administering the electric vehicle and
electric bicycle rebate program, the department of transportation shall give priority
to low-income individuals.
(i) The department of transportation may contract
with a third-party administrator to operate and manage the electric vehicle and
electric bicycle rebate program. The
administrator shall not be deemed to be a "governmental body" as
defined in section 103D-104; provided that all moneys transferred to the
third-party administrator shall have been appropriated by the legislature or
shall be from funds provided by the federal government or private funding
sources. The administrator shall not
expend more than ten per cent of the amounts appropriated for the rebate
program or other reasonable percentage determined by the department of
transportation for administration of the electric vehicle and electric bicycle
(j) There is established within the state
treasury an electric vehicle, electric bicycle, moped, and motorcycle rebate
special fund, which shall consist of:
(1) The portion of the
environmental response, energy, and food security tax specified under section
appropriated to the fund by the legislature; and
(3) All interest
attributable to investment of money deposited in the fund.
Moneys from the special fund may be expended by
the department of transportation for the electric vehicle, electric bicycle, moped,
and motorcycle rebate program."
SECTION 3. Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) In addition to any other taxes provided by law,
subject to the exemptions set forth in section 243-7, there is hereby imposed a
state environmental response, energy, and food security tax on each barrel or
fractional part of a barrel of petroleum product sold by a distributor to any retail
dealer or end user of petroleum product, other than a refiner. The tax shall be $1.05 on each barrel or
fractional part of a barrel of petroleum product that is not aviation fuel;
provided that of the tax collected pursuant to this subsection:
(1) 5 cents of the tax on each barrel shall be deposited
into the environmental response revolving fund established under section 128D-2;
(2) 4 cents of the tax on each barrel shall be
deposited into the energy security special fund established under section 201-12.8;
(3) 8 cents of the tax on each barrel shall be
deposited into the energy systems development special fund established under
section 304A-2169.1; [
and (4)[ ]] 3 cents of the tax on each barrel shall be deposited
into the electric vehicle charging system subaccount established pursuant to section
269-33(e)[ .]; and
(5) cents of the
tax on each barrel shall be deposited into the electric vehicle, electric bicycle,
moped, and motorcycle rebate special fund established pursuant to 196- .
The tax imposed by this subsection shall be paid by the distributor of the petroleum product."
SECTION 4. There is appropriated out of the funds received by the State from the Infrastructure Investment and Jobs Act, Public Law 117-58, also known as the Bipartisan Infrastructure Law, the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 for the electric vehicle, electric bicycle, moped, and motorcycle program.
The sum appropriated shall be expended by the department of transportation for the purposes of this Act.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on January 1, 2050.
Electric Vehicle, Electric Bicycle, Moped, and Motorcycle Rebate Program; Special Fund; Barrel Tax; Appropriation
Establishes the Electric Vehicle, Electric Bicycle, Moped, and Motorcycle Rebate Program and special fund to encourage the purchase and use of electric motor vehicles, bicycles, mopeds, and motorcycles. Allocates a portion of the barrel tax for the rebate program. Makes an appropriation. Effective 1/1/2050. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.