STAND. COM. REP. NO. 2611

Honolulu, Hawaii

RE: S.B. No. 2054

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Agriculture and Environment, to which was referred S.B. No. 2054 entitled:

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

begs leave to report as follows:

The purpose and intent 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; and

(2) Establish a Climate Change Mitigation Special Fund.

Your Committee received testimony in support of this measure from two members of the Maui County Council, Hawai‘i State Association of Counties, Life of the Land, and Ulupono Initiative. Your Committee received testimony in opposition to this measure from the Avis Budget Group, Enterprise Holdings, Maui Hotel & Lodging Association, Hawai‘i Lodging & Tourism Association, and one individual. Your Committee received comments on this measure from the Department of Budget and Finance, Department of Transportation, Department of the Attorney General, Office of Planning and Sustainable Development, and the Tax Foundation of Hawaii.

Your Committee finds that the tourism industry has significant effects on Hawaii's environment and public services. The effects of cars, buses, shuttles, and other road vehicles, which emit carbon, are especially pernicious to the State's environment. This measure imposes a climate change mitigation impact fee for the renting, leasing, or utilizing of tourism-related vehicles to help protect Hawaii's natural environment.

Your Committee has amended this measure by clarifying that all revenues from the fee will be deposited to the credit of the Climate Change Mitigation Special Fund.

As affirmed by the record of votes of the members of your Committee on Agriculture and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2054, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2054, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Agriculture and Environment,

________________________________

MIKE GABBARD, Chair