STAND. COM. REP. NO. 1024

Honolulu, Hawaii

RE: S.B. No. 1534

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1534, 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 help the State adapt to the increased adoption of new modes of transportation.

More specifically, this measure:

(1) Replaces the $50 annual vehicle registration surcharge fee with a state mileage-based road usage charge for certain electric vehicles; and

(2) Repeals the existing State Highway Safety Council and establishes a new Hawaii Highway Safety and Modernization Council.

Your Committee received written comments in support of this measure from the Hawaii State Energy Office, Hawaii EV Association, Kauai Climate ACTION Coalition, Ulupono Initiative, and numerous individuals.

Your Committee received written comments in opposition to this measure from one individual.

Your Committee received written comments on this measure from the Big Island Electric Vehicle Association, Climate Protectors Hawaii, and Tax Foundation of Hawaii.

Your Committee finds that the establishment of a state mileage-based road usage charge for certain electric vehicles will help to address fuel tax revenue decreases by creating a more sustainable source of funding for the State's roadway maintenance costs.

Your Committee has amended this measure by:

(1) Deleting the requirement that the state arborist serve as a member of the Hawaii Highway Safety and Modernization Council;

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(3) Making technical nonsubstantive amendments 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. 1534, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1534, 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