SB3158 SD1

SECTION 1. The legislature finds that the single greatest factor of the increasing cost of living in Hawaii is the rising cost of transportation. Due to increasingly expensive fossil fuels and a lack of cheaper transit options, Hawaii residents already pay among the highest cost to commute in the country. In January 2022, the United States Bureau of Labor Statistics reported that auto-related costs were an astonishing twenty-three per cent higher in December 2021, than a year earlier, accelerating a trend of increasing transit costs contributing to Hawaii's rising cost of living.

The legislature further finds that climate change caused by carbon emissions from burning fossil fuels poses a serious threat to the economic well-being, public health, natural resources, and environment of Hawaii. The State has committed to eliminating fossil fuels from the electricity and ground transportation sectors, abiding by the Paris Climate Accord's goal to limit the amount of global warming to less than 1.5 degrees Celsius and achieving negative carbon emissions for Hawaii by 2045. The legislature finds that meeting the State's clean energy goals and commitments necessitates the rapid transition to electric vehicles that utilize local, renewable energy sources.

The legislature further finds that electric bicycles are significantly more cost effective and better for the environment than gas powered motor vehicles and can effectively get many Hawaii residents to locations as conveniently as gas powered motor vehicles.

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

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

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

(b) Subject to subsection (c), rebates shall be distributed as follows:

(1) Each eligible purchase of an electric vehicle shall receive up to $ ; and

(2) Each eligible purchase of an electric bicycle, moped, or motorcycle shall receive 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 fifty per cent of the amount issued shall be to rebate electric vehicle purchases and fifty per cent of the amount issued shall be to rebate electric bicycle, electric moped, or electric motorcycle purchases; provided that the electric vehicles, electric bicycle, and motorcycle special fund contains sufficient moneys 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 vehicle or electric bicycle, moped, or motorcycle.

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

(f) Applicants shall submit applications to the department of transportation within twelve months of the date of purchase to claim a rebate from the electric vehicle charging system 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 vehicle and electric bicycle 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 vehicle and electric bicycle rebate program. 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 department of transportation for administration of the electric vehicle and electric bicycle rebate program.

(j) There is established within the state treasury an electric vehicle, electric bicycle, moped, and motorcycle rebate special fund, which shall consist of:

(1) The portion of the environmental response, energy, and food security tax specified under section 243-3.5;

(2) Moneys appropriated to the fund by the legislature; and

(3) All interest attributable to investment of money deposited in the fund.

Moneys from the special fund may be expended by the department of transportation for the electric vehicle, electric bicycle, moped, and motorcycle 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 vehicle, electric bicycle, moped, and motorcycle rebate special fund established pursuant to 196- .

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

SECTION 4. There is appropriated out of the funds received by the State from the Infrastructure Investment and Jobs Act, Public Law 117-58, also known as the Bipartisan Infrastructure Law, the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 for the electric vehicle, electric bicycle, moped, and motorcycle program.

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

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.

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