STAND. COM. REP. NO.  474-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2330

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B. No. 2330, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ELECTRIC VEHICLES,"

begs leave to report as follows:

     The purpose of this bill is to promote the use of electric vehicles by:

     (1)  Providing incentives to use electric vehicles including exempting electric vehicles, other than neighborhood electric vehicles, from parking fees, high occupancy vehicle lane restrictions and other traffic control measures, and motor vehicle registration and licensing fees;

     (2)  Requiring these incentives to be reviewed every five years by the Department of Transportation (DOT); and

     (3)  Requiring DOT to submit a report to the Legislature every five years on the effectiveness of these incentives beginning with the Regular Session of 2013.

     DOT, Hawaiian Electric Company, Inc., Maui Electric Company, Ltd., and Hawaii Electric Light Company, Inc., testified in support of this bill.  The High Technology Development Corporation supported the intent of this measure.  The Department of Customer Services of the City and County of Honolulu (DCS) commented on this measure.

     With increasing oil prices and environmental concerns regarding global warming, the use of electric vehicles has been offered as a way to protect Hawaii's environment and reduce the state's dependency on imported oil.  While the use of these vehicles has experienced some growth, adding incentives for their use may encourage consumers to choose electric vehicles.

     While your Committee notes the importance of energy conservation and environmental protection, exempting all electric vehicles from registration fees may have adverse impacts on the state highway fund.  Your Committee also notes that several concerns regarding the implementation of this measure were raised by both DOT and DCS.  Accordingly, your Committee has amended this bill by:

     (1)  Requiring DOT to only establish and adopt rules pursuant to the registration of an electric vehicle in this state, as needed, since registration of these vehicles is currently being done by the counties;

     (2)  Specifying that the director of finance of the county in which the electric vehicle is to be operated, rather than DOT, shall establish and issue license plates to designate the vehicle to which the license plate is attached is electric;

     (3)  Removing the provision excluding "neighborhood electric vehicles" from the provisions of this measure;

     (4)  Specifying that the motor vehicle registration fee exemption shall only apply to neighborhood electric vehicles;

     (5)  Clarifying that the exemption from motor vehicle registration fees for neighborhood electric vehicles is an exemption from all taxes and fees for neighborhood electric vehicles, if any; and

     (6)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2330, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 2330, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

JOSEPH M. SOUKI, Chair