STAND. COM. REP. NO. 357

Honolulu, Hawaii

RE: S.B. No. 409

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred S.B. No. 409 entitled:

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

begs leave to report as follows:

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

Your Committee received testimony in support of this measure from the Department of Transportation and Hawaii Transportation Association. Your Committee received testimony in opposition to this measure from Alliance of Automobile Manufacturers, Global Automakers, Ulupono Initiative, Blue Planet Foundation, Hawaii Automobile Dealers' Association, and five individuals. Your Committee received comments on this measure from the Hawaiian Electric Company Inc. and Tesla.

Your Committee finds that electric vehicles, hybrid vehicles, and other alternative fuel vehicles provide many benefits for the environment. Your Committee believes that more residents will switch to an electric, hybrid, or alternative fuel vehicle in the near future. However, because electric vehicles, hybrid vehicles, and other alternative fuel vehicles use either less or no fuel, they are not subject to, or pay less in, fuel taxes. Fuel taxes are an important source of revenue for the Department of Transportation to fund the repair and maintenance of Hawaii's roads. As these types of vehicles still inflict wear and tear on public roads, this measure ensures that all vehicle owners share responsibility and contribute to the upkeep of Hawaii's highway infrastructure.

Your Committee has amended this measure by:

(1) Including plug-in electric hybrid vehicles, alternative fuel vehicles, and hybrid vehicles in the types of vehicles subject to the annual vehicle registration surcharge;

(2) Clarifying that the annual vehicle registration surcharge shall only apply to electric vehicles, plug-in hybrid vehicles, alternative fuel vehicles, and hybrid vehicles manufactured after 2018;

(3) Inserting a surcharge fee of $15; and

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

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 S.B. No. 409, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 409, S.D. 1, and be referred to your Committee on Ways and Means.

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

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LORRAINE R. INOUYE, Chair