HB1901

SECTION 1. The legislature finds that noise and air pollution from two-stroke engines can be extremely detrimental to residents' quality of life and overall health. According to the United States Centers for Disease Control and Prevention, gas-powered lawn mowers and leaf blowers operate at approximately eighty to eighty-five decibels and can cause hearing damage after just two hours of exposure. According to a 2015 study on data from the United States Environmental Protection Agency, two-stroke engines are a major source of volatile organic compounds and criteria pollutants, such as carbon monoxide, nitrogen oxides, and carbon dioxide. Other drawbacks to using two-stroke engines include the risk of fire and gasoline spills, which can cause harmful environmental impacts.

The legislature further finds that other jurisdictions have restricted using certain types of machines powered by two-stroke engines. For example, in 2020, Larchmont village in Westchester county, New York, became the first place in the northeastern United States to ban gas-powered leaf blowers. In 2021, California passed a state law banning small off-road, gas-powered engines.

The legislature additionally finds that typical machines powered by a two-stroke engine that are used in Hawaii on a daily basis include weed whackers, leaf blowers, chainsaws, motor scooters, mopeds, and jet skis. After the initial cost of switching from two-stroke to electric engines, electric engines can actually be less costly to use, because they typically cost less to operate and maintain than their gasoline counterparts.

Therefore, the purpose of this Act is to reduce noise and air pollution in Hawaii by:

(1) Prohibiting the sale of new two-stroke engines or new machines or vehicles operated by a two-stroke engine in 2024; and

(2) Creating a loan program to facilitate the transition from two-stroke engines to electric engines.

SECTION 2. Chapter 342B, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part

TWO-STROKE ENGINES; ELECTRIC ENGINE LOAN PROGRAM

§342B-A Two-stroke engines; prohibition. (a) As used in this part:

"Department" means the department of health.

"Director" means the director of health.

"Moped" has the same meaning as in section 286-2.

"Motor scooter" has the same meaning as in section 286-2.

"Two-stroke engine" means a type of internal combustion engine that completes a power cycle with two strokes of the piston during one power cycle.

"Vehicle" means a moped, motor scooter, or motor-powered boat.

(b) Beginning on January 1, 2024, no person shall sell or offer for sale in the State:

(1) A new two-stroke engine; or

(2) A new machine or vehicle operated by a two-stroke engine.

§342B-B Electric engine loan program. (a) There is established the electric engine loan program, which shall be administered by the director in accordance with the spirit and intent of this part.

(b) The department may make loans to individuals or businesses that:

(1) Surrender to the State, or a designated representative of the State:

(A) An existing two-stroke engine; or

(B) An existing machine or vehicle operated by a two-stroke engine; and

(2) Purchase:

(A) A new electric engine; or

(B) A new, similar machine or vehicle operated by an electric engine.

(1) Prescribe the qualifications for eligibility of applicants for loans;

(2) Establish preferences and priorities in determining eligibility for loans;

(3) Establish the conditions, consistent with the purposes of this part, for the granting of loans;

(4) Provide for inspection, at reasonable hours, of the machine or vehicle and records and books of an individual or business that has applied for or has been granted a loan and to require the submission of periodic reports; and

(5) Adopt rules pursuant to chapter 91 to implement this part.

(d) The loans may be made in conjunction with loans made by other financial institutions, including private entities and federal agencies. Where the loans made by the department are secured, such security may be subordinated to the loans made by other financial institutions, when subordination is required in order to obtain loans from the financial institutions. The necessity for and the extent of security required in any loan shall be determined by the director; provided that:

(1) No loan shall exceed $ ;

(2) No loan shall be made for a term exceeding ten years;

(3) Each loan shall bear simple interest at the rate of per cent per year;

(4) The commencement date for the repayment of the first installment on the principal of each loan may be deferred by the director, but in no event shall such initial payment be deferred in excess of two years; and

(5) In the event the State repossesses any machine or vehicle operated by an electric engine financed under this program, the machine or vehicle operated by an electric engine shall not be resold to the individual to whom the loan has been made, or to anyone with a financial interest in the machine or vehicle operated by an electric engine.

(e) No later than twenty days prior to the convening of each regular session, the department shall submit to the legislature a report concerning the loan program, including any findings, recommendations, and proposed legislation.

§342B-C Electric engine loan program revolving fund. (a) There is established within the state treasury the electric engine loan program revolving fund, which shall consist of all moneys appropriated to the fund by the legislature, received as repayments of loans, payments of interest or fees, and all other moneys received by the fund from any other source.

(b) Moneys from the fund shall be expended by the department to make loans through the electric engine loan program. The department may use all appropriations and other moneys in the revolving fund not appropriated for a designated purpose to make loans through the electric engine loan program."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 to be deposited into the electric engine loan program revolving fund established by section 342B-C, Hawaii Revised Statutes.

The sum appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 4. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 6. This Act shall take effect upon its approval; provided that section 3 of this Act shall take effect on July 1, 2022.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1901
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII