REPORT TITLE:
Feebates; Motor Vehicles


DESCRIPTION:
Establishes a fee-rebate, or "feebate" program with respect to
the purchase of new passenger vehicles in order to reduce energy
consumption and lower air pollution, consisting of a revenue
neutral fuel efficiency surcharge and credit program based on the
federal fuel economy ratings of the new vehicle.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2328
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO MOTOR VEHICLES.



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

 1      SECTION 1.  The legislature finds that fuel efficient
 
 2 vehicles may reduce energy consumption and lower air pollution,
 
 3 thereby improving the State's environment and dependence on
 
 4 imported fuels.  One way to encourage people to purchase more
 
 5 fuel efficient vehicles is through fee-rebate programs, known as
 
 6 "feebates", in which a surcharge is paid for the purchase of a
 
 7 "gas guzzling" vehicle, while a rebate is awarded for the
 
 8 purchase of a fuel efficient vehicle.
 
 9      The legislature further finds that a feebate program is for
 
10 the most part revenue neutral, in that the surcharge on gas
 
11 guzzler vehicles is used to pay the rebates on fuel efficient
 
12 vehicles.  A legislative appropriation in the first year of the
 
13 feebate program will help to offset county administrative
 
14 expenses and situations in which the rebate exceeds the fee.  The
 
15 legislature realizes that some consumers may decide that the
 
16 benefits associated with larger, less efficient vehicles outweigh
 
17 the energy savings of more compact vehicles.  Nevertheless, the
 
18 legislature finds that a feebate program will positively impact
 
19 the environment by contributing to an overall reduction of
 

 
Page 2                                                     2328
                                     H.B. NO.           
                                                        
                                                        


 1 emissions, thereby benefiting vehicle owners and non-owners alike
 
 2 through improved air quality, as well as extending the domestic
 
 3 supply of energy, improving energy security, and saving fuel
 
 4 costs for consumers.  The purpose of this Act is therefore to
 
 5 implement a county feebate program for new noncommercial
 
 6 passenger vehicles.
 
 7      SECTION 2.  Chapter 286, Hawaii Revised Statutes, is amended
 
 8 by adding a new section to part III to be appropriately
 
 9 designated and to read as follows:
 
10      "§286-    Fuel efficiency surcharge and credit program.  (a)
 
11 As used in this section, unless the context clearly requires
 
12 otherwise:
 
13      "Fuel economy" has the meaning stated in section 4064 of the
 
14 Internal Revenue Code as determined and adjusted by the United
 
15 States Environmental Protection Agency to account for the
 
16 difference between controlled laboratory conditions and actual
 
17 road driving.
 
18      "Model type" and "model year" have the meaning stated in
 
19 section 4064 of the Internal Revenue Code.
 
20      "New motor vehicle dealer" has the same meaning as defined
 
21 in section 286-53(i)(2).
 
22      "New passenger car" means a passenger car as defined in
 

 
 
 
Page 3                                                     2328
                                     H.B. NO.           
                                                        
                                                        


 1 section 286-2 that is also a new motor vehicle as defined in
 
 2 section 286-53(i)(1) and which is used for noncommercial
 
 3 purposes.
 
 4      (b)  A fuel efficiency surcharge or fuel efficiency credit
 
 5 shall be imposed under this section based on the fuel economy
 
 6 rating of the model type of the new passenger car.
 
 7      (c)  (1)  Subject to paragraph (2), for new passenger cars
 
 8           having a model year of 2001 or thereafter, a one-time
 
 9           fuel efficiency surcharge shall be imposed by the
 
10           county director of finance on all such passenger cars
 
11           that have a fuel economy rating that is less than
 
12           twenty-seven miles per gallon.  The surcharge shall be
 
13           applied to fees assessed for the registration or
 
14           renewal of registration of all such passenger cars.
 
15           The fuel efficiency surcharge shall be an amount equal
 
16           to the product of multiplying:
 
17           (A)  $50; and
 
18           (B)  The nearest whole number of miles per gallon that
 
19                the fuel economy rating of the model type of the
 
20                automobile is less than twenty-seven miles per
 
21                gallon.
 
22      (2)  The surcharge imposed under paragraph (1) may not
 

 
 
 
Page 4                                                     2328
                                     H.B. NO.           
                                                        
                                                        


 1           exceed $200.
 
 2      (3)  Subject to paragraph (4), for new passenger cars having
 
 3           a model year of 2001 and thereafter, a one-time fuel
 
 4           efficiency credit shall be granted by the county
 
 5           director of finance for all passenger cars that have a
 
 6           fuel economy rating that is greater than thirty-five
 
 7           miles per gallon.  The fuel efficiency credit shall be
 
 8           an amount equal to the product of multiplying:
 
 9           (A)  $50; and
 
10           (B)  The nearest whole number of miles per gallon that
 
11                the fuel economy rating of the model type of the
 
12                automobile is greater than thirty-five miles per
 
13                gallon.
 
14      (4)  The credit granted under paragraph (3) may not exceed
 
15           $200.
 
16      (d)  The proceeds collected under this section shall be
 
17 deposited in the feebate revolving fund established pursuant to
 
18 section 286-   and shall be disbursed in accordance with this
 
19 section.  The proceeds collected from the fuel efficiency
 
20 surcharge imposed under this section shall be used to fund the
 
21 fuel efficiency credits granted under this section.
 
22      (e)  There is established in the state treasury a fund to be
 

 
 
 
Page 5                                                     2328
                                     H.B. NO.           
                                                        
                                                        


 1 known as the feebate revolving fund to be administered by the
 
 2 director.  The revolving fund shall be administered, operated,
 
 3 and maintained to remain available in perpetuity for the purpose
 
 4 of implementing the fuel efficiency surcharge and rebate program
 
 5 established under this section.  There shall be deposited in the
 
 6 revolving fund the fuel efficiency surcharges imposed under this
 
 7 section, appropriations by the legislature to the revolving fund,
 
 8 and all other moneys allotted or directed to the revolving fund
 
 9 from other sources.  Moneys in the revolving fund shall be used
 
10 to fund the fuel efficiency credits granted under this section
 
11 and for reasonable administrative expenses.
 
12      (f)  A new motor vehicle dealer, with respect to a new
 
13 passenger car offered for sale in this State, shall inform
 
14 consumers of the fuel efficiency surcharge and credit program
 
15 under this section pursuant to forms adopted by the department.
 
16 The notice shall specify the provisions of this section
 
17 applicable to the new passenger car, including the vehicle's fuel
 
18 economy rating and the fuel efficiency surcharge or credit.
 
19      (g)  The department shall adopt rules pursuant to chapter 91
 
20 to implement and operate the fuel efficiency surcharge and credit
 
21 program under this section."
 
22      SECTION 3.  There is appropriated out of the general
 

 
 
 
Page 6                                                     2328
                                     H.B. NO.           
                                                        
                                                        


 1 revenues of the State of Hawaii the following sums, or so much
 
 2 thereof as may be necessary for fiscal year 2000-2001, to assist
 
 3 the counties in implementing this Act:
 
 4      City and county of Honolulu                       $         
 
 5      County of Kauai                                   $         
 
 6      County of Maui                                    $         
 
 7      County of Hawaii                                  $         
 
 8           Total                                        $         
 
 9      SECTION 4.  The sums appropriated shall constitute the
 
10 State's share of the cost of mandated programs under article
 
11 VIII, section 5, of the state constitution.
 
12      SECTION 5.  New statutory material is underscored.
 
13      SECTION 6.  This Act shall take effect upon its approval.
 
14 
 
15                              INTRODUCED BY:______________________