STAND. COM. REP. NO. 612

Honolulu, Hawaii

RE: S.B. No. 1480

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Transportation and Culture and the Arts and Energy and Intergovernmental Affairs, to which was referred S.B. No. 1480 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Provide authority for a county to impose a mileage-based road usage charge;

(2) Provide for disposition of funds of county mileage-based road usage charge;

(3) Clarify the disposition of funds of state mileage-based road usage charge;

(4) Repeal the maximum amount a driver will pay in a state mileage-based road usage charge on June 30, 2028;

(5) Establish a default state mileage-based road usage charge rate when missing, incomplete, or incorrect odometer reading information that will prevent the state mileage-based road usage charge from being calculated; and

(6) Establish a state mileage-based road usage charge subaccount to allow for the disbursements or reimbursements back to vehicle owner.

Your Committees received testimony in support of this measure from the Department of Transportation, Hawaiʻi State Energy Office, Office of the Mayor of the County of Kauaʻi, one member of the Hawaiʻi County Council, one member of the Maui County Council, one member of the Honolulu City Council, Department of Customer Services for the City and County of Honolulu, Oahu Metropolitan Planning Organization, Ulupono Initiative, and two individuals.

Your Committees received testimony in opposition to this measure from two individuals.

Your Committees received comments on this measure from the Insurance Division of the Department of Commerce and Consumer Affairs, Tax Foundation of Hawaii, Hawaii Electric Vehicle Association, and Alliance for Automotive Innovation.

Your Committees find that in addition to the state fuel tax, counties rely on their own motor fuel tax to fund the maintenance and repair of county roads and bridges. As county motor fuel tax collection declines due to increasing electric motor vehicle usage, this measure will offset this decline by authorizing the counties to establish a county mileage-based road usage charge for electric vehicles.

Your Committees have amended this measure by:

(1) Allowing the funds in the State Highway Fund to be used for:

(A) Infrastructure and related appurtenances for ground transportation facilities;

(B) The purposes and functions connected with traffic control and preservation of safety upon the public highways and streets; and

(C) Other measures to reduce vehicle miles traveled;

(2) Deleting language that would have established a state mileage-based road usage charge subaccount within the State Highway Fund;

(3) Allowing the funds in the Highway Fund to be used for:

(A) The acquisition, design, construction, improvement, repair, and maintenance of walkways; and

(B) Other measures to reduce vehicle miles traveled;

(4) Deleting language that would have included motor scooters in the definition of "motor vehicle";

(5) Changing the appropriations to unspecified amounts;

(6) Amending section 1 to reflect its amended purpose;

(7) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(8) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Transportation and Culture and the Arts and Energy and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1480, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1480, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Culture and the Arts and Energy and Intergovernmental Affairs,

________________________________ GLENN WAKAI, Chair

________________________________ CHRIS LEE, Chair