SB3158 HD1

SECTION 1. The purpose of this Act is to encourage the purchase and use of electric bicycles and electric mopeds to reduce the cost of living and cost of transportation by creating subsidies for those looking to purchase electric bicycles and electric mopeds.

SECTION 2. Chapter 196, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§196- Electric bicycle and electric moped rebate program; third-party administrator; special fund. (a) The department of transportation shall administer a rebate program that incentivizes the purchase of electric bicycles and electric mopeds and may contract with a third-party administrator pursuant to subsection (i) to operate and manage the rebate program.

(b) Each eligible purchase of an electric bicycle or electric moped shall receive a rebate of up to $ ; provided that no individual shall receive more than $ in total rebates each fiscal year.

(c) The department of transportation shall not issue more than $ in total rebates under this section each fiscal year; provided that the electric bicycle and electric moped subaccount within the highway development special fund pursuant to section 264-122(d) contains sufficient funds to pay the rebates. The department of transportation shall not be liable to pay any refund if sufficient funds are unavailable.

(d) The department of transportation shall:

(1) Prepare any forms that may be necessary for an applicant to claim a rebate pursuant to this section; and

(2) Require each applicant to furnish reasonable information to ascertain the validity of the claim, including but not limited to documentation necessary to demonstrate the purchase of an electric bicycle or electric moped.

(e) This section shall apply to electric bicycles and electric mopeds purchased after July 1, 2022.

(f) Applicants shall submit an application to the department of transportation within twelve months of the date of purchase to claim a rebate from the electric bicycle and electric moped rebate program. Failure to apply within twelve months of the date of purchase shall constitute a waiver of the right to claim the rebate.

(g) Nothing in this section shall alter taxes due on the original purchase. Any rebate received pursuant to this section shall not be considered income for the purposes of state or county taxes.

(h) In administering the electric bicycle and electric moped rebate program, the department of transportation shall give priority to low-income individuals.

(i) The department of transportation may contract with a third-party administrator to operate and manage the electric bicycle and electric moped rebate program. The third-party 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 moneys provided by the federal government or private funding sources. The third-party administrator shall not expend more than ten per cent of the amounts appropriated for the rebate program, or any other reasonable percentage determined by the department of transportation, for administration of the electric bicycle and electric moped rebate program."

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) cents of the tax on each barrel shall be deposited into the electric bicycle and electric moped subaccount established pursuant to section 264-122(d).

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

SECTION 4. Section 264-122, Hawaii Revised Statutes, is amended to read as follows:

"[[]§264-122[]] Highway development special fund. (a) There is established in the state treasury the highway development special fund to be administered by the department, into which shall be deposited:

(1) Transfers of county impact fees assessed under part VIII of chapter 46 and this part to pay for state highway improvements;

(2) Interest from investment of deposits; and

(3) Legislative and county appropriations.

(b) Moneys in the highway development special fund shall be used for the following purposes:

(1) Capital costs of qualifying proposed state highway improvements;

(2) Reevaluation of the need, geographic limitations, amount, and use of impact fees;

(3) Transfers to reimburse other special funds for expenditures which otherwise might have been funded with moneys in the highway development special fund;

(4) Transfers under sections 36-27 and 36-30;

(5) Refunds under section 264-125; and

(6) The department’s costs to implement this part, including but not limited to costs to administer the highway development special fund.

(c) The department may establish accounts in the highway development special fund as necessary to implement this part and rules adopted by the department.

(d) There is established within the highway development special fund an electric bicycle and electric moped subaccount. The portion of the environmental response, energy, and food security tax specified under section 243-3.5 shall be deposited into the subaccount. The department shall expend moneys in the subaccount for the purposes of funding the electric bicycle and electric moped rebate program established pursuant to section 196- ."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on January 1, 2050; provided that section 3 shall be repealed on December 31, 2027, and section 243-3.5(a), Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act.

THE SENATE	S.B. NO.	3158
THIRTY-FIRST LEGISLATURE, 2022		S.D. 2
STATE OF HAWAII		H.D. 1