STAND. COM. REP. NO. 3100

Honolulu, Hawaii

RE: S.B. No. 3158

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3158, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose and intent of this measure is to establish a rebate program for purchases of electric vehicles, electric bicycles, mopeds, and motorcycles.

More specifically, this measure:

(1) Requires the Department of Transportation to administer a rebate program to provide incentives for the purchase of electric vehicles, electric bicycles, mopeds, and motorcycles, subject to certain conditions;

(2) Authorizes the Department of Transportation to contract with a third-party administrator to operate and manage the rebate program;

(3) Establishes the electric vehicle, electric bicycle, moped, and motorcycle rebate special fund;

(4) Requires that a portion of the environmental response, energy, and food security tax be deposited into the electric vehicle, electric bicycle, moped, and motorcycle rebate special fund; and

(5) Appropriates a portion of the funds received by the State from the federal Infrastructure Investment and Jobs Act for the electric vehicle, electric bicycle, moped, and motorcycle rebate program.

Your Committee received written comments in support of this measure from the Department of Transportation, Hawaii State Energy Office, 350Hawaii, Alliance for Automotive Innovation, Big Island Electric Vehicle Association, Blue Planet Foundation, Climate Protectors Hawaii, Hawaii Bicycling League, Hawaii EV Association, Hawaiian Electric Company, KauaiEV, Ulupono Initiative, and numerous individuals.

Your Committee received written comments on this measure from the Department of Budget and Finance and Hawaii Automobile Dealers Association.

Your Committee finds that by incentivizing the proliferation of electrically powered conveyances in the State, this measure will help to ensure that the State meets its statutory target of sequestering more greenhouse gases than emitted by 2045.

Your Committee has amended this measure by:

(1) Limiting the scope of the rebate program to electric bicycles and electric mopeds;

(2) Requiring that, for a period of five years, three cents of the environmental response, energy, and food security tax assessed on each barrel of petroleum product be deposited into the electric bicycle and electric moped rebate special fund instead of the electric vehicle charging system subaccount of the public utilities commission special fund;

(3) Appropriating out of the moneys received by the State from the federal Infrastructure Investment and Jobs Act an unspecified amount to be deposited into the electric vehicle charging system subaccount of the public utilities commission special fund; and

(4) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3158, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3158, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair