CONFERENCE COMMITTEE REP. NO. 165

Honolulu, Hawaii

, 2019

RE: S.B. No. 409

S.D. 2

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 409, S.D. 2, H.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to establish an annual vehicle registration surcharge fee for electric vehicles and alternative fuel vehicles to be deposited into the state highway fund.

Your Committee on Conference finds that electric vehicles and alternative fuel vehicles are environmentally friendly alternatives of transportation that utilize little to no fossil fuels. Your Committee on Conference further finds that more residents are becoming environmentally conscious and are switching to electric or alternative fuel vehicles. However, while many residents are switching to electric or alternative fuel vehicles, the State is experiencing a reduction in fees collected by fuel taxes as these vehicles do not require fuel. Fuel taxes are an important source of revenue for the State to fund the repair and maintenance of Hawaii's roads. Your Committee on Conference acknowledges the positive impact electric vehicles and alternative fuel vehicles have on the environment, but your Committee on Conference also acknowledges that these vehicles still inflict wear and tear on public roads. This measure reflects a balanced approach to promoting the public's use of electric vehicles and alternative fuel vehicles, while ensuring an adequate source of revenue for highway maintenance.

Your Committee on Conference has amended this measure by:

(1) Inserting a vehicle registration surcharge fee of $50 for electric vehicles and alternative fuel vehicles;

(2) Specifying that the registration surcharge fee shall be assessed and collected beginning with the first registration renewal for every electric vehicle and alternative fuel vehicle; and

(3) Making it effective on January 1, 2020.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 409, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 409, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ HENRY J.C. AQUINO Co-Chair	____________________________ LORRAINE R. INOUYE Chair
____________________________ TY J.K. CULLEN Co-Chair	____________________________ J. KALANI ENGLISH Co-Chair