STAND. COM. REP. NO. 290-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1443

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1443 entitled:

"A BILL FOR AN ACT RELATING TO CLIMATE CHANGE MITIGATION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Assess a climate change mitigation impact fee on every customer who rents, leases, or utilizes a rental motor vehicle;

(2) Establish a Climate Change Mitigation Special Fund; and

(3) Specify that the impact fees collected shall be deposited to the credit of the general fund until June 30, 2024, at which time the impact fees shall be deposited to the credit of the Climate Change Mitigation Special Fund.

Your Committee received testimony in support of this measure from the Maui County Council, one member of the Maui County Council, Ulupono Initiative, Imua Alliance, Hawaii Electric Vehicle Association, Wild Kids, and two individuals. Your Committee received testimony in opposition to this measure from the American Property Casualty Insurance Association, Avis Budget Group, Maui Hotel and Lodging Association, Enterprise Holdings, Hawai‘i Lodging and Tourism Association, and one individual. Your Committee received comments on this measure from the Department of the Attorney General, Department of Budget and Finance, Department of Transportation, and Office of Planning and Sustainable Development.

Your Committee finds that tourism has a significant impact on the State's environment and public services. Specifically, the impacts of cars, buses, shuttles, and other road vehicles, which emit carbon dioxide and other greenhouse gases, contribute to climate change. Establishing fees that have an environmental focus will help manage the impacts of tourism on the health of the environment.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2100, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1443, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1443, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair