HB1585 SD1

SECTION 1. The legislature finds that the State of Hawaii has made significant progress in implementing policy to reduce the use of fossil fuels for energy generation. However, more than two-thirds of the fossil fuel imported into the State is used for transportation, which is not included in Hawaii's one hundred per cent renewable energy policy. Therefore, the legislature finds that the State must accelerate a transition to cleaner transportation to reach its carbon emissions reduction goals.

Although the cost of electric vehicles has decreased and continues to drop, the lack of electric vehicle charging systems remains a barrier to the more widespread adoption of electric vehicles. Creating incentives to build out a more robust electric vehicle infrastructure will make electric vehicles a viable option for more consumers, especially those who may not have a rooftop solar system that allows them to charge their electric vehicles at home at a lower cost.

The purpose of this Act is to:

(1) Create a program to be administered by the public utilities commission that offers rebates for the installation of new electric vehicle charging systems or the upgrade of existing electric vehicle charging systems, to be funded by a newly established electric vehicle charging system rebate program special fund; and

(2) Amend the uses for which funds from the energy security special fund may be used.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§269-A Electric vehicle charging system; rebate program; special fund. (a) The public utilities commission, in consultation with electric vehicle stakeholders and the state energy office, shall administer a rebate program that incentivizes the installation or upgrade of an electric vehicle charging system, as provided in this section, and may contract with a third-party administrator pursuant to section 269‑B to operate and manage the rebate program.

(b) An applicant may be eligible for a rebate under the rebate program if the applicant:

(1) Installs a new electric vehicle charging system where none previously existed; or

(2) Upgrades an existing electric vehicle charging system to either:

(A) A level two station with two or more ports that provide electricity to two or more electric vehicles; or

(B) A direct current fast charging system.

(1) Each eligible installation of an electric vehicle charging system shall receive:

(A) per cent of the cost of the installation of a level two station with a single port; provided that the amount of the rebate shall not exceed $ ;

(B) per cent of the cost of the installation of a level two station with two or more ports; provided that the amount of the rebate shall not exceed $ ; and

(C) per cent of the cost of the installation of a direct current fast charging system; provided that the amount of the rebate shall not exceed $ ; and

(2) Each eligible upgrade of an electric vehicle charging system shall receive:

(A) per cent of the cost of the installation to a level two station with two or more ports; and provided that the amount of the rebate shall not exceed $ ; and

(B) per cent of the cost of the upgrade to a direct current fast charging system; provided that the amount of the rebate shall not exceed $ .

(d) The public utilities commission shall not issue more than $1,000,000 in total rebates under this section each fiscal year.

(e) The public utilities commission shall:

(1) Prepare any forms that may be necessary for an applicant to claim a rebate pursuant to this section;

(2) Require each applicant to furnish reasonable information to ascertain the validity of the claim, including but not limited to documentation necessary to demonstrate that the installation or upgrade for which the rebate is claimed is eligible; and

(3) Post on a publicly available website, within regular and reasonable periods of time, the current amounts remaining in the electric vehicle charging system special fund.

(f) This section shall apply to electric vehicle charging systems that are installed or upgraded after December 31, 2019.

(g) Applicants shall submit applications to the public utilities commission within twelve months of the date that the newly installed or upgraded charging system is placed into service to claim a rebate from the electric vehicle charging system rebate program. Failure to apply to the commission within twelve months of the date that the newly installed or upgraded charging system is placed into service shall constitute a waiver of the right to claim the rebate.

(h) Nothing in this section shall alter taxes due on the original purchase or upgrade price of an electric vehicle charging system prior to the application of the rebate. Any rebate received pursuant to the electric vehicle charging system rebate program shall not be considered income for the purposes of state or county taxes.

(i) There is established within the state treasury the electric vehicle charging system rebate program special fund, into which shall be deposited:

(1) Appropriations from the legislature; and

(2) All interest attributable to investment of money deposited into the fund.

(j) Moneys in the electric vehicle charging system rebate program special fund shall be used to:

(1) Make rebate program payments pursuant to this section;

(2) Pay the administrative costs for operating the electric vehicle charging system rebate program; and

(3) Pay the administrative costs for operating the electric vehicle charging system rebate program special fund.

(k) In administering the electric vehicle charging system rebate program, the public utilities commission shall give consideration to the following guidelines:

(1) Priority should be given to electric vehicle charging systems that are publicly available, serve multiple tenants, employees, or customers, or serve electric vehicle fleets;

(2) Electric vehicle charging system rebates should enhance broader public clean energy and grid resiliency goals by supporting deployment of electric vehicle charging systems that can regulate their time of use, be networked and co-optimized with other electric vehicle charging systems, and otherwise provide grid services or other benefits to the utility and electric grid; and

(3) Electric vehicle charging systems that serve a single person, such as a reserved parking stall or single-family residence, should not be eligible for rebates.

(l) As used in this section:

"Applicant" means an individual; non-profit or for-profit corporation; local, state or federal government agency; homeowner association; or any other eligible entity as defined under rules adopted for the electric vehicle charging system rebate program.

"Direct current fast charging system", commonly referred to as "DC fast charging system", means an electric vehicle charging system that utilizes direct current electricity rated at 440 volts or greater.

"Electric vehicle charging system" has the same meaning as in section 196-7.5.

"Level two station" means an electric vehicle charging system that:

(1) Discharges 220 to 240 volt alternating current electricity; and

(2) Meets recognized standards, including standard SAE J1772 of SAE International.

§269-B Electric vehicle charging system; rebate program; administrator; establishment. (a) The public utilities commission may contract with a third-party administrator to operate and manage any programs established under section 269-A. 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 be solely from the electric vehicle charging system rebate program special fund or from funds provided by the federal government or private funding sources. The administrator shall not expend more than ten per cent of the total annual electric vehicle charging system rebate program special fund distribution in any fiscal year, or other reasonable percentage determined by the public utilities commission, for administration of the programs established under section 269-A.

(b) The electric vehicle charging system rebate program administrator shall be subject to regulation by the public utilities commission under any provision applicable to a public utility in sections 269-7, 269-8, 269-8.2, 269-8.5, 269-9, 269‑10, 269-13, 269-15, 269-19.5, and 269-28, and shall report to the public utilities commission on a regular basis. Notwithstanding any other provision of law to the contrary, the electric vehicle charging system rebate program administrator shall not be an electric public utility or an electric public utility affiliate."

SECTION 3. Section 201-12.8, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Subject to legislative appropriation, moneys from the fund may be expended by the department of business, economic development, and tourism for the following purposes and used for no other purposes, except for those set forth in this section:

(1) To support the Hawaii clean energy initiative program[~~, including its energy division, including funding staff positions within the division,~~] and projects that ensure dependable, efficient, and economical energy, promote energy self-sufficiency, resiliency, and provide greater energy security for the State;

[~~(2)~~ ~~To fund the renewable energy facilitator pursuant to section 201-12.5 and any other positions necessary for the purposes of paragraph (1) as determined by the legislature; and~~

~~(3)~~] (2) To support achieving the zero emissions clean energy target set forth in section 225P-5;

(3) To fund the building energy efficiency revolving loan fund established in section 201-20;

(4) To fund incentives to promote the adoption of electric vehicles, to develop electric vehicle charging infrastructure, and to upgrade electrical infrastructure to support the development of electric vehicle charging infrastructure;

(5) To fund, to the extent possible, the greenhouse gas emissions reduction task force, climate change task force, [grants-in-aid to the economic development boards of each county, and grants-in-aid to economic development agencies of each county to meet the stated objectives of the Hawaii clean energy initiative program.] and programs to increase the resiliency of public facilities through renewable energy systems; and

(6) To fund, to the extent possible, the duties of the state building code council in section 107-24, as they relate to the development of energy conservation codes."

SECTION 4. There is appropriated out of the electric vehicle charging system rebate program special fund the sum of $ or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for the purposes authorized in section 2 of this Act.

The sums appropriated shall be expended by the public utilities commission 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 July 1, 2100.

HOUSE OF REPRESENTATIVES	H.B. NO.	1585
THIRTIETH LEGISLATURE, 2019		H.D. 1
STATE OF HAWAII		S.D. 1