STAND. COM. REP. NO. 227

Honolulu, Hawaii

, 2019

RE: H.B. No. 1585

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Energy & Environmental Protection and Transportation, to which was referred H.B. No. 1585 entitled:

"A BILL FOR AN ACT RELATING TO THE ENVIRONMENT,"

beg leave to report as follows:

The purpose of this measure is to:

(1) Create a program that offers rebates for the installation of new electric vehicle charging systems or the upgrade of existing electric vehicle charging systems;

(2) Create the Electric Vehicle Charging Station Rebate Program Special Fund, to be funded from a portion of the revenue from the environmental response, energy, and food security tax;

(3) Amend the distribution of revenue from the environmental response, energy, and food security tax; and

(4) Prohibit the use of moneys from the energy security special fund to support the state energy office.

The Hawaiian Electric Company, Maui Electric Company, Hawai‘i Electric Light Company, Tesla, Alliance of Automobile Manufacturers, Blue Planet Foundation, Energy Research Systems, Ulupono Initiative, Retail Merchants of Hawaii, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Hawaii Automobile Dealers' Association, and a few individuals supported this measure. The Department of Transportation supported the intent of this measure. A concerned individual opposed this measure. The Department of Business, Economic Development & Tourism, Department of Taxation, Department of Budget and Finance, Department of Health, The Chamber of Commerce Hawaii, Building Industry Association of Hawaii, and Tax Foundation of Hawaii provided comments.

Your Committees have amended this measure by:

(1) Clarifying that the Department of Business, Economic Development & Tourism shall administer the rebate program and may contract with a third party to administer the rebate program;

(2) Clarifying the requirements for the installed or upgraded electric vehicle charging systems, including where the systems shall be located, what the systems are required to have, and its prohibited uses;

(3) Creating a tiered system of the rebate distribution to provide a rebate percentage and cap based on the type of electric vehicle charging system installed or upgraded;

(4) Changing to the maximum total rebate issued per fiscal year to $1,000,000;

(5) Deleting the language which amended the distribution of revenue from the environmental response, energy, and food security tax and prohibited the use of moneys from the Energy Security Special Fund to support the State Energy Office;

(6) Amending the purposes of what the Energy Security Special Fund may be used for;

(7) Changing its effective date to July 1, 2100, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Energy & Environmental Protection and Transportation that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1585, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1585, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committees on Energy & Environmental Protection and Transportation,

____________________________ HENRY J.C. AQUINO, Chair

____________________________ NICOLE E. LOWEN, Chair