STAND. COM. REP. NO. 414

Honolulu, Hawaii

RE: S.B. No. 996

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Transportation and Energy, Economic Development, and Tourism, to which was referred S.B. No. 996 entitled:

"A BILL FOR AN ACT RELATING TO ZERO-EMISSION VEHICLES,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require rental motor vehicle lessors to incorporate zero-emission vehicles into their fleets; and

(2) Establish a Hawaii zero-emissions vehicle infrastructure special fund and grant program.

Your Committees received testimony in support of this measure from ChargePoint, Inc.; Hawaiian Electric Company Inc.; Blue Planet Foundation; O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i; Our Revolution Hawaii; 350Hawaii.org; and one individual. Your Committees received testimony in opposition to this measure from the Department of Transportation and Enterprise Holdings. Your Committees received comments on this measure from the Department of Budget and Finance.

Your Committees find that climate change caused by greenhouse gas emissions from burning fossil fuels poses a serious threat to the economic well-being, public health, natural resources, and environment of Hawaii. Your Committees further find that the predominance of the rental car market in Hawaii makes it a key sector to target for emissions reductions in order for Hawaii to be carbon free by 2045. Your Committees also find that the volume and model types of battery electric vehicles coming into the market are expected to dramatically increase in the next five to seven years. This measure will move Hawaii toward being a carbon-free state by requiring lessors of motor vehicles to incorporate zero-emission vehicles into their fleet.

Your Committees have amended this measure by extending the dates of when lessors of rental motor vehicles shall be required to incorporate zero-emission vehicles into their fleets.

As affirmed by the records of votes of the members of your Committees on Transportation and Energy, Economic Development, and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 996, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 996, 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 Energy, Economic Development, and Tourism,

________________________________ GLENN WAKAI, Chair

________________________________ LORRAINE R. INOUYE, Chair