STAND. COM. REP. NO. 1095

Honolulu, Hawaii

RE: H.B. No. 1142

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Transportation and Energy, Economic Development, and Tourism, to which was referred H.B. No. 1142, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish a surcharge on the sale of high-end gasoline-powered vehicles to fund the installation of electric vehicle charging systems; and

(2) Establish an electric vehicle charging systems subaccount within the public utilities commission special fund.

Your Committees received testimony in support of this measure from the City and County of Honolulu Office of Climate Change, Sustainability, and Resiliency; Hawaii Electric Vehicle Association; Tesla, Inc.; Soderholm Bus and Mobility; Ulupono Initiative; American Lung Association; Hawaiian Electric Company; Climate Protectors Hawai'i; Blue Planet Foundation; Environmental Caucus of the Democratic Party of Hawai'i; Kauai Electric Vehicle Association; and eighteen individuals. Your Committees received testimony in opposition to this measure from the Chamber of Commerce Hawaii, Hawaii Automobile Dealers' Association, Cutter Management Company, Alliance for Automotive Innovation, Hawaii Laborers' Union Local 368, and one individual. Your Committees received comments on this measure from the Department of Taxation, Department of Budget and Finance, Public Utilities Commission, State Energy Office, Tax Foundation of Hawaii, Grassroot Institute of Hawaii, and Hawai'i Energy.

Your Committees find that the State is nearly one hundred percent dependent on imported petroleum for its ground transportation needs. Hawaii residents, businesses, and visitors spent over $1.7 billion on gasoline in 2019 and the combustion of that fuel released over ten billion pounds of climate-changing carbon dioxide into the atmosphere. Your Committees also observe that ground transportation is undergoing a seismic shift in the industry as more and more automobile manufacturers transition to all-electric vehicles. Hawaii is woefully unprepared for this transition to all-electric vehicles and it is imperative that the State act with utmost haste to ensure that residents are sufficiently equipped for a future where all new vehicle sales will be electric vehicles. In order to prepare for the influx of electric vehicles, the State needs to ensure that there are sufficient electric vehicle charging stations to meet the anticipated demand. This measure will provide funding to increase the supply of EV charging stations.

Your Committees have amended this measure by:

(1) Removing the vehicle surcharge tax;

(2) Allocating three cents of the barrel tax to fund the electric vehicle charging system rebate program until June 30, 2030; and

(3) 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 Transportation and Energy, Economic Development, and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1142, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1142, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________ GLENN WAKAI, Chair

________________________________ CHRIS LEE, Chair