STAND. COM. REP. NO. 1224

Honolulu, Hawaii

RE: H.B. No. 424

H.D. 1

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 Government Operations and Commerce and Consumer Protection, to which was referred H.B. No. 424, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT OF CONTRACTS FOR VEHICLE RENTAL,"

beg leave to report as follows:

The purpose and intent of this measure is to require all agencies of the State, when renting a vehicle to conduct official government business, to adopt a preference for renting electric vehicles or hybrid vehicles.

Your Committees received testimony in support of this measure from the Hawaii State Energy Office, County of Kaua‘i Office of Economic Development, Hawaiian Electric Company, Climate Protectors Hawaii, Kauai Climate Action Coalition, Enterprise Holdings, Environmental Justice Task Force of Faith Action for Community Equity, Our Revolution Hawaii, 350.org, and nine individuals.

Your Committees find that to meet the State's goal of one hundred percent renewable energy by 2045, it is essential to reduce carbon emissions by beginning the conversion of the State's motor pools to zero-emission vehicles (ZEVs) as soon as practicable. This measure encourages and incentivizes the demand for electric and hybrid vehicle rentals for government use and provides rental car contractors with a guaranteed market, which they can also use to test visitor demand. According to testimony received by your Committees, increased use of electric and hybrid vehicles in Hawaii may also facilitate the rollout of needed infrastructure to support ZEVs, such as electric vehicle charging stations, in the State.

Your Committees have amended this measure by:

(1) Requiring agencies to exercise the policy preference for renting electric vehicles or hybrid vehicles when the rental rate for the electric vehicle or hybrid vehicle is comparable to that of a conventional vehicle of similar class; and

(2) 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 Government Operations and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 424, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 424, 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 Government Operations and Commerce and Consumer Protection,

________________________________ ROSALYN H. BAKER, Chair

________________________________ SHARON MORIWAKI, Chair