THE SENATE

S.B. NO.

1534

THIRTY-SECOND LEGISLATURE, 2023

S.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TRANSPORTATION.

 

 

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

 


SECTION 1. The legislature finds that as fuel tax revenues decrease, the department of transportation recommends the adoption of a per-mile road usage charge system to provide sustainable funding for the State's road infrastructure. The legislature also finds that with its existing vehicle inspection program, Hawaii is well-positioned to transition to a per-mile road usage charge system at low administrative costs. The legislature additionally finds that replacing the registration surcharge on electric vehicles with a mileage-based road user fee is a minimally disruptive first step to transition the State to a per-mile road usage charge system as recommended by the department of transportation. With the increase in public support for fuel-efficient electric and alternative fuel vehicles, the shift to fees based on vehicle miles traveled is fair to all drivers within the State and ensures that the owners of alternative fuel vehicles pay a fair share of Hawaii's roadway maintenance costs.

The legislature further finds that it is important to not incentivize the department of transportation to increase overall commuting and vehicle miles traveled to boost revenues from road usage fees, which would increase cost and reduce quality of life for residents. Therefore, a concerted strategy must be developed and implemented to enable commuters to reduce overall vehicle miles traveled and provide commuters who do not drive themselves with more affordable options, including efficient public transit, electric mobility, bicycling, and walking, which will improve outcomes and reduce the number of cars on the road, traffic, and costs.

Therefore, the purpose of this Act is to:

(1) Ensure fairness for everyone using public roads, and sufficient revenues to maintain public roads, by replacing the $50 annual fee for electric vehicles with a mileage-based road user fee; and

(2) Ensure a lower cost of transportation for all residents by repealing the state highway safety council and establishing a Hawaii highway safety and modernization council to establish goals, metrics, benchmarks, and strategies to reduce vehicle miles traveled and the cost of transportation.

SECTION 2. Chapter 249, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"249- State mileage-based road usage charge. (a) Beginning July 1, 2025, in addition to all other fees and taxes levied by this chapter, vehicles described in subsection (c) shall be subject to a state mileage-based road usage charge. The state mileage-based road usage charge shall be calculated by the director of finance at the rate of cents per mile traveled; multiplied by the number of miles traveled; less the estimated amount of paid state motor fuel taxes that correspond with the number of miles traveled, as shall be determined by departmental administrative rulemaking process. The number of miles traveled shall be calculated as the difference between the vehicle's two most recent odometer readings, as noted on the vehicle's certificate of inspection issued pursuant to section 28626(e). The state mileage-based road usage charge shall not be less than zero dollars. For the first registration renewal of new motor vehicles for which no certificate of inspection is required, the state mileage-based road usage charge assessed shall be $70, and this amount shall be subtracted from the calculation of the state mileage-based road usage charge for that vehicle's second registration renewal.

(b) The state mileage-based road usage charge shall be paid each year following the vehicle's most recent inspection together with all other taxes and fees levied by this chapter on a staggered basis as established by each county as authorized by section 286-51 to ensure that the state mileage-based road usage charge is due and payable at the same time and shall be collected together with the county registration fee. The state mileage-based road usage charge shall be deemed delinquent if not paid with the county registration fee. The respective county shall collect the state mileage-based road usage charge together with the applicable county vehicle weight tax and shall transfer the moneys collected under this section to the state director of finance for deposit into the state highway fund established under section 248-8.

(c) Vehicles subject to the state mileage-based road usage charge described in subsection (a) shall include all electric vehicles registered in the State except for any vehicles that qualify for any of the exemptions in sections 249-4, 249-5.5, 249-6, and 249-6.5. For the purposes of this section, "electric vehicle" means a vehicle having four or more wheels, a gross vehicle weight rating less than or equal to ten thousand pounds, and the capability to operate legally at a speed of more than thirty-five miles per hour, and that draws propulsion energy exclusively from a battery that can be recharged from an external source of electricity.

(d) Until June 30, 2028, owners of electric vehicles as defined in subsection (c) may elect to pay a $70 registration surcharge in lieu of the state mileage-based road usage charge.

(e) The department of transportation shall develop a long‑term mileage-based road usage charge implementation plan that includes findings, recommendations, implementation phase schedules, and proposed legislation for deployment of a state mileage-based road usage charge program to encompass all passenger vehicles and light duty trucks by December 31, 2033. This plan shall also include recommendations on how to ensure compatibility with deployment of mileage-based road usage charge by any county. This plan shall be completed and submitted to the legislature no later than twenty days prior to the convening of the regular session of 2026.

(f) The department of transportation shall develop rules pursuant to chapter 91 for establishing and administering the state mileage-based road usage charge."

SECTION 3. Chapter 286, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"286- Hawaii highway safety and modernization council. (a) There is established the Hawaii highway safety and modernization council. The council shall be placed in the department of transportation for administrative purposes.

(b) The Hawaii highway safety and modernization council shall consist of:

(1) The following or their designated representatives:

(A) The chairpersons of the senate and house of representatives standing committees having jurisdiction over transportation, who shall serve as co-chairpersons;

(B) The chief justice;

(C) The attorney general;

(D) The director of health;

(E) The superintendent of education;

(F) The chairperson and executive director of the charter school commission;

(G) The chairperson of the university of Hawaii at Manoa department of urban and regional planning;

(H) The co-chairpersons of the Hawaii climate change mitigation and adaptation commission;

(I) The director of the office of planning and sustainable development;

(J) The chief energy officer of the Hawaii state energy office;

(K) The highways administrator of the department of transportation; and

(L) The chairperson of each county highway safety council established under section 286-6; and

(2) Not more than twelve other persons who shall be appointed by the governor for a three-year term as follows:

(A) One member from an organization representing senior citizens;

(B) One member from an organization representing bicyclists;

(C) One member from an organization having a focus on micro-mobility;

(D) One member from an organization having a focus on transportation, planning, and improvement;

(E) One member from an organization having a focus on reducing the cost of transportation for low‑income communities;

(F) One member from an organization representing labor and construction;

(G) One member from an organization representing trucking and cargo carriers;

(H) One member from an organization having a focus on the electrification of transportation;

(I) One member from an organization having a focus on expanding trees, foliage, and reducing urban heat; and

(J) Up to three members on the basis of their interest in transportation safety, modernization, and related state goals.

(c) The members of the council shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(d) The Hawaii highway safety and modernization council shall develop goals, metrics, benchmarks, and strategies to reduce the cost of transportation and vehicle miles traveled, improve safety, and achieve other state goals related to ground transportation.

(e) The state highway safety council shall advise the governor on matters relating to the programs and activities of the State in the field of highway safety."

SECTION 4. Section 249-31, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) All vehicles and motor vehicles in the State as defined in section 249-1, including antique motor vehicles, except as otherwise provided in sections 249-4, 249-6, and 249‑31.5, shall be subject to a $46 annual vehicle registration fee; provided that [electric vehicles and] alternative fuel vehicles shall pay an annual vehicle registration surcharge fee of $50, which shall be assessed and collected beginning with the first registration renewal for every [electric vehicle and] alternative fuel vehicle and shall be deposited into the state highway fund established under section 248-8. The fee shall be paid each year together with all other taxes and fees levied by this chapter on a staggered basis as established by each county as authorized by section 286-51, and the state registration for that county shall likewise be staggered so that the state registration fee is due and payable at the same time and shall be collected together with the county fee. The state registration fee shall be deemed delinquent if not paid with the county registration fee. The respective counties shall collect this fee together with the vehicle registration tax collected for the county and shall transfer the moneys collected under this section to the State.

For the purposes of this subsection, "alternative fuel vehicle" means a vehicle powered by a non-petroleum-based fuel. "Alternative fuel vehicle" does not include an electric, electricity-recharged, or hybrid electric motor vehicle."

SECTION 5. Section 286-26, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) Upon application for a certificate of inspection to be issued for a vehicle or moped, an inspection as prescribed by the director under subsection (g) shall be conducted on the vehicle or moped, and if the vehicle or moped is found to be in a safe operating condition, a certificate of inspection shall be issued upon payment of a fee to be determined by the director. The certificate shall state the effective date, the termination date, the name of the issuing insurance carrier, and the policy number of the motor vehicle insurance identification card for the inspected motor vehicle as specified by section 431:10C-107 or state the information contained in the proof of insurance card as specified by section 431:10G-106. For an electric vehicle, the certificate shall also state the odometer reading of the vehicle on the date that the vehicle was inspected. A sticker, authorized by the director, shall be affixed to the vehicle or moped at the time a certificate of inspection is issued. An inspection sticker which has been lost, stolen, or destroyed shall be replaced without reinspection by the inspection station that issued the original inspection sticker upon presentation of the current certificate of inspection; provided that the current certificate of inspection and inspection sticker shall not have expired at the time the replacement is requested. The director shall adopt rules to determine the fee for replacement of lost, stolen, or destroyed inspection stickers.

As used in this subsection, "electric vehicle" means a vehicle that draws propulsion energy from a battery having at least four kilowatt hours of energy storage capacity that can be recharged from an external source of electricity."

SECTION 6. Section 286-41, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(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, [such as] including gasoline, diesel oil, liquefied petroleum gas[;], or electricity; the serial or motor number; the date first sold by the manufacturer or dealer; a further description of the vehicle as is called for in the form; and 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 contained on a permanent notice attached to or painted on the vehicle in a location that is in clear view of the driver."

SECTION 7. Section 286-5, Hawaii Revised Statutes, is repealed.

["286-5 State highway safety council. There is established the Hawaii highway safety council. The director of transportation shall serve as its chairperson. The following or their designated representatives shall be members of the council: the chief justice, the attorney general, the director of health, the superintendent of education, the president of the University of Hawaii, the chairperson of each of the county highway safety councils established under section 286-6, and not more than twenty other persons who shall be appointed by the governor on the basis of their interest in highway safety.

The state highway safety council shall advise the governor on matters relating to the programs and activities of the State in the field of highway safety.

The members of the council shall serve without pay but shall be entitled to reimbursement for necessary expenses while attending meetings and while in discharge of their duties."]

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2050; provided that sections 2, 4, 5, and 6 of this Act shall take effect on January 1, 2025.



 

Report Title:

Department of Transportation; Electric Vehicles; Alternative Fuel Vehicle; Mileage-Based Road User Fee; Hawaii Highway Safety and Modernization Council

 

Description:

Replaces the $50 annual vehicle registration surcharge for electric vehicles with a capped mileage-based road user fee for certain electric vehicles. Establishes the Hawaii Highway Safety and Modernization Council and repeals the State Highway Safety Council, effective 7/1/2050. Provides that implementation of mileage-based road user fees take effect 1/1/2025. (SD2)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.