STAND. COM. REP. NO. 1491

Honolulu, Hawaii

RE: H.B. No. 1585

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Transportation, to which was referred H.B. No. 1585, H.D. 1, entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Create a program within the Department of Business, Economic Development, and Tourism 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 system rebate program special fund; and

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

Your Committees received testimony in support of this measure from the Blue Planet Foundation; Hawaiian Electric Companies; Alliance of Automobile Manufacturers; Retail Merchants of Hawaii; Tesla; ABC Stores; Organizing for Action; Building Industry Association of Hawaii; 350 Hawaii; Ulupono Initiative; Hawaii Automobile Dealers' Association; We Are One, Inc.; and ten individuals. Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism; Department of Budget and Finance; Tax Foundation of Hawaii; and Chamber of Commerce Hawaii.

Your Committees find that more than two-thirds of the fossil fuel imported into the State is used for transportation. Therefore, your Committees find that the State must accelerate the transition to cleaner transportation to reach its carbon emissions reduction goals. 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. This measure creates an electric vehicle charging system rebate program to provide incentives for individuals, businesses, and agencies to implement electric vehicle charging system infrastructure, thereby promoting the growth of electric vehicle use in Hawaii, which will lessen the State's reliance on fossil fuels.

Your Committees have amended this measure by:

(1) Specifying that the Public Utilities Commission, instead of the Department of Business, Economic Development, and Tourism will administer the electric vehicle charging system rebate program, in consultation with stakeholders and the Hawaii State Energy Office;

(2) Specifying that, in addition to individuals, non-profit and for-profit corporations, public agencies, homeowner associations, and other entities are also eligible to secure rebates and amending the rebate eligibility requirements;

(3) Replacing the term "level three station" with "direct current fast charging system";

(4) Removing language that would have authorized the Department of Business, Economic Development, and Tourism to adopt rules to effectuate the rebate program;

(5) Inserting language to require the Public Utilities Commission, in administering the rebate program, to consider specified guidelines; and

(6) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

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

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Transportation,

________________________________ LORRAINE R. INOUYE, Chair

________________________________ GLENN WAKAI, Chair