SB3058

SECTION 1. The legislature finds that the electric vehicle charging system rebate program, established pursuant to Act 142, Session Laws of Hawaii 2019, and amended pursuant to Act 75, Session Laws of Hawaii 2021, provides rebates for the installation of electric vehicle charging systems in priority locations, including for multi-unit dwellings, workplaces, and commercial areas, and in places that serve vehicle fleets. The rebate program has proven to be very successful, with approximately 140 new charging systems installed or in the pipeline that have been facilitated by the availability of these rebates.

The legislature further finds that the life-cycle costs of zero-emission vehicles is lower than internal combustion vehicles, including maintenance and fueling. The legislature further finds that, while access to public transit and other forms of mobility are increasing, according to the National Travel Household Survey Workshop households below the poverty level used privately owned vehicles for almost three-quarters of their trips. Increasing access to zero-emission vehicles allows these families to lower daily and monthly costs while decreasing exposure to vehicle emissions and particulate matter and advancing the State's overall energy and affordability goals.

The legislature further finds concerns over the range of zero-emission vehicles decreasing. According to the United States Department of Energy's Office of Energy Efficiency and Renewable Energy, for the first time, the median range of all of the electric vehicles offered for sale or lease in the United States in 2020 was more than 250 miles per charge. Charging access throughout the State is increasing through the use of federal funds such as the soon to be released Infrastructure Investment and Jobs Act, and state funds allocated through Act 75, Session Laws of Hawaii 2021.

The legislature further finds it is critically important to encourage behavior that promotes lower emissions, reduces congestion, and enhances mobility, while encouraging the adoption of low emission vehicles for private and public use.

The legislature further finds that an important step toward the decarbonization of ground transportation is to support equal access to new technologies and services such as electric vehicles, which decrease the energy intensity of mobility and have the potential to greatly benefit low- to moderate-income and underserved populations who would most benefit from the lower maintenance and life-cycle costs.

The legislature further finds that it is desirable to consolidate rebate programs to reduce administrative costs and confusion on how to access rebates. The public utilities commission is already authorized to contract with a third-party administrator to operate and manage an electric vehicle charging system rebate program.

The purpose of this Act is to establish a rebate program within the public utilities commission for the purchase of zero-emission transportation and to enable low- and moderate-income families greater access to zero-emission vehicles by providing a rebate on the point-of-sale purchase price of zero-emission vehicles.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

"§269-A Low- to moderate-income zero-emission vehicle; rebate program. (a) The public utilities commission, in consultation with zero-emission vehicle stakeholders and the state energy office, shall administer a rebate program that incentivizes the purchase of new or used qualifying vehicles, as provided in this section, and may contract with a third-party administrator pursuant to section 269-73 to operate and manage the rebate program.

(b) The public utilities commission may specify design features for the program, including procedures to prioritize available moneys for specific qualifying vehicles and limitations on the number of rebates available for each type of qualifying vehicle.

(c) Rebates under the program shall be made from moneys credited to or deposited in the zero-emission vehicle subaccount. A rebate may not be made unless there are sufficient moneys available in the subaccount to make the rebate.

(d) The public utilities commission shall prescribe the rebate application procedure for purchasers and lessees.

(e) The rebate amount for qualifying vehicles under the low- to moderate-income zero-emission vehicle rebate program shall be set annually by the administrator of the program.

(f) An applicant may be eligible for a rebate if the applicant meets one of the following criteria:

(1) The applicant is a Hawaii resident who is a member of a household having an income equal to or less than the income threshold set by the administrator of the program; or

(2) The applicant is a nonprofit registered as a 501(c)(3) organization either based in Hawaii or with a current Hawaii-based affiliate, that provides health, dental, social, financial, energy conservation, or other assistive services to low- or moderate-income households in Hawaii. Nonprofits are limited to five rebates per entity per calendar year.

(g) To be eligible for a rebate, a qualifying applicant requesting a rebate under the program shall:

(1) Purchase or lease a qualifying vehicle. A lease must have a minimum term of twenty-four months;

(2) Provide proof of an intent to use the qualifying vehicle primarily on the public highways of this State, which may be satisfied by providing proof of registration of the qualifying vehicle in Hawaii;

(3) Submit an application for a rebate to the administrator of the program within six months after the date of purchase of the qualifying vehicle or six months after the date the lease of the qualifying vehicle begins; and

(4) Retain registration of the qualifying vehicle for a minimum of twenty-four consecutive months after the date of purchase or the date the lease begins.

(h) Rebate recipients may be requested to participate in ongoing research efforts.

(i) The administrator of the program shall work to ensure timely payment of low- to moderate-income zero-emission vehicle rebate program rebates with a goal of paying rebates within sixty days of receiving a completed application with all required supporting documentation for a low- to moderate-income zero-emission vehicle rebate.

(j) An organization that the public utilities commission has hired or contracted with to implement and serve as the administrator of the program may offer expanded financing mechanisms for program participants, including a loan or loan-loss reserve credit enhancement program to increase consumer access to new or used light-duty zero-emission vehicles.

(k) As used in this section:

"Light-duty motor vehicle" shall have the same meaning as that term is defined in section 26—6.

"Light-duty zero-emission vehicle" means a light-duty motor vehicle which is also a zero-emission vehicle.

"Moped" shall have the same meaning as that term is defined in section 291C-1.

"Motor scooter" shall have the same meaning as that term is defined in section 291C-1.

"Motorcycle" shall have the same meaning as that term is defined in section 291C-1.

"Neighborhood Electric Vehicle" shall have the same meaning as that term is defined in section 291C-1.

"New" means a qualifying vehicle that:

(1) Has not previously been sold to any person except a distributor, wholesaler, or dealer for resale, except where the vehicle has not left the dealer's possession after the sale to a consumer;

(2) Has not previously been registered or titled in the name of a consumer except where the vehicle has not left the dealer's possession after the sale to a consumer; and

(3) Has not been driven more than five hundred miles;

"Qualifying vehicle" means a motor vehicle that:

(1) Is a:

(A) New or used light-duty zero-emission vehicle;

(B) New neighborhood electric vehicle;

(D) New zero-emission motor scooter;

(E) New zero-emission moped;

(2) Has a manufacturer's suggested retail price of less than the maximum set by the administrator;

(3) Is covered by a manufacturer's express warranty on the vehicle drive train, including the applicable energy storage system or battery pack, for at least twenty-four months from the date of purchase;

(4) Is certified by the manufacturer to comply with all applicable federal safety standards issued by the National Highway Traffic Safety Administration as of the date of manufacture; and

(5) Is purchased from a vehicle dealer.

"Vehicle dealer" means a "new vehicle dealer" or "used vehicle dealer" as defined in section 437-1.1, or an appropriate entity as identified by the administrator of the program.

"Zero-emission moped" means a moped that:

(1) Has zero evaporative emissions from its fuel system; and

(2) Is powered by electricity.

"Zero-emission motor scooter" means a motor scooter that:

(1) Has zero evaporative emissions from its fuel system; and

(2) Is powered by electricity.

"Zero-emission motorcycle" means a motorcycle that:

(1) Has zero evaporative emissions from its fuel system; and

(2) Is powered by electricity.

"Zero-emission vehicle" shall have the same meaning as that term is defined in section 26—6."

SECTION 3. Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner. The tax shall be $1.05 on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided that of the tax collected pursuant to this subsection:

(1) 5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2;

(2) 4 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;

(3) 8 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169.1; [~~and~~]

(4) 3 cents of the tax on each barrel shall be deposited into the electric vehicle charging system subaccount established pursuant to section 269-33(e)[.]; and

(5) 5 cents of the tax on each barrel shall be deposited into the zero-emission vehicle subaccount established pursuant to section 269-33(f).

The tax imposed by this subsection shall be paid by the distributor of the petroleum product."

SECTION 4. Section 269-33, Hawaii Revised Statutes, is amended to read as follows:

"§269-33 Public utilities commission special fund. (a) There is established in the state treasury a public utilities commission special fund to be administered by the public utilities commission. The proceeds of the fund shall be used by the public utilities commission and the division of consumer advocacy of the department of commerce and consumer affairs for all expenses incurred in the administration of chapters 269, 271, 271G, 269E, and 486J, and for costs incurred by the department of commerce and consumer affairs to fulfill the department's limited oversight and administrative support functions; provided that the expenditures of the public utilities commission shall be in accordance with legislative appropriations. On a quarterly basis, an amount not exceeding thirty per cent of the proceeds remaining in the fund after the deduction for central service expenses, pursuant to section 36-27, shall be allocated by the public utilities commission to the division of consumer advocacy and deposited in the compliance resolution fund established pursuant to section 26-9(o); provided that all moneys allocated by the public utilities commission from the fund to the division of consumer advocacy shall be in accordance with legislative appropriations.

(b) All moneys appropriated to, received, and collected by the public utilities commission that are not otherwise pledged, obligated, or required by law to be placed in any other special fund or expended for any other purpose shall be deposited into the public utilities commission special fund including, but not limited to, all moneys received and collected by the public utilities commission pursuant to sections 92-21, 243-3.5, 269‑28, 269-30, 271-27, 271-36, 271G-19, 269E-6, 269E-14, and 607-5.

(c) The public utilities commission shall submit an update as part of its annual report submitted pursuant to section 269-5 detailing all funds received and all moneys disbursed out of the fund.

(d) All moneys in excess of $1,000,000 remaining on balance in the public utilities commission special fund on
June 30 of each year shall lapse to the credit of the state general fund; provided that this ceiling shall not apply to the [~~subaccount~~] subaccounts established in [~~subsection~~] subsections (e)[.] and (f).

(e) There is established within the public utilities commission special fund an electric vehicle charging system subaccount. The public utilities commission shall expend moneys in the subaccount for the purposes of funding the electric vehicle charging system rebate program established pursuant to sections 269-72 and 269-73. The funds in this subaccount shall not be subject to the special fund ceiling in subsection (d).

(f) There is established within the public utilities commission special fund a zero-emission vehicle subaccount. The public utilities commission shall expend moneys in the subaccount for the purposes of funding pursuant to sections 269-A and 269-73. The funds in this subaccount shall not be subject to the special fund ceiling in subsection (d)."

SECTION 5. Section 269-73, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-73[]] Electric vehicle charging system[;], low- to moderate-income zero-emission vehicle; rebate [~~program;~~] programs; administrator; establishment. (a) The public utilities commission may contract with a third-party administrator to operate and manage any programs established under [~~section~~] sections 269-72[.] and 269-A. The administrator shall not be deemed to be a "governmental body" as defined in section 103D-104; provided that all moneys transferred to the third-party administrator shall have been appropriated by the legislature or shall be from funds provided by the federal government or private funding sources. The administrator shall not expend more than ten per cent of the amounts appropriated for the rebate program or other reasonable percentage determined by the public utilities commission for administration of the programs established under [~~section~~] sections 269-72[.] and 269-A.

(b) The electric vehicle charging system rebate program administrator shall be subject to regulation by the public utilities commission under any provision applicable to a public utility in sections 269-7, 269-8, 269-8.2, 269-8.5, 269-9, 269‑10, 269-13, 269-15, 269-19.5, and 269-28, and shall report to the public utilities commission on a regular basis. Notwithstanding any other provision of law to the contrary, the electric vehicle charging system rebate program administrator shall not be an electric public utility or an electric public utility affiliate.

(c) The low- to moderate-income zero-emission vehicle rebate program administrator shall be subject to regulation by the public utilities commission under any provision applicable to a public utility in sections 269-7, 269-8, 269-8.2, 269-8.5, 269-9, 269‑10, 269-13, 269-15, 269-19.5, and 269-28 and shall report to the public utilities commission on a regular basis. Notwithstanding any other provision of law to the contrary, the low- to moderate-income zero-emission vehicle rebate program administrator shall not be an electric public utility or an electric public utility affiliate."

SECTION 6. In codifying the new section added by section 2 of this Act, the revisor of statutes shall substitute an appropriate section number for the letter used in designating and referring to the new section in this Act.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST

THE SENATE	S.B. NO.	3058
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII