HB2462

SECTION 1. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

"§269‑ Electric vehicle rebate program; special fund. (a) The public utilities commission, in consultation with electric vehicle stakeholders and the state energy office, shall administer the electric vehicle rebate program to incentivize the purchase of new electric vehicles, as provided in this section, and may contract with a third-party administrator pursuant to section 269‑73 to operate and manage the rebate program.

(b) There is established within the state treasury the electric vehicle rebate special fund into which shall be deposited:

(1) The portion of the environmental response, energy, and food security tax specified under section 243-3.5;

(2) Appropriations made by the legislature;

(3) Gifts, grants, and other public and private funds;

(4) Any federal funds; and

(5) All interest and revenue of receipts derived from the fund.

(1) Provide rebates for the acquisition of new electric vehicles of an amount not to exceed $2,000 per electric vehicle; and

(2) Pay for any administrative, operational, training, and marketing costs associated with providing rebates from the electric vehicle rebate special fund.

(d) Applications for rebates shall be made to the public utilities commission and shall be for the acquisition of one or more new electric vehicles licensed and intended for use on Hawaii's highways; provided that the electric vehicles are:

(1) Intended to be charged primarily by renewable energy sources; or

(2) Able to be integrated intelligently with the electrical grid.

(e) An applicant may be eligible for a rebate under the electric vehicle rebate program if the applicant:

(1) Meets the specifications and requirements established by the public utilities commission;

(2) Files a completed application form, as prescribed by the public utilities commission, together with all supporting documentation required by the public utilities commission;

(3) Completes the purchase or lease, licensing, and registration of one or more new electric vehicles, prior to applying for one or more electric vehicle rebates;

(4) Provides any other information deemed necessary by the public utilities commission; and

(5) Meets any additional requirements as determined by the public utilities commission.

(f) Disbursements from the electric vehicle rebate special fund shall not be subject to chapter 42F.

(g) This section shall apply to new electric vehicles purchased after July 1, 2020.

(h) Applicants shall submit applications to the public utilities commission within twelve months of the date of completion of the purchase or lease, licensing, and registration of an applicable electric vehicle. Failure to apply to the commission within twelve months shall constitute a waiver of the right to claim the rebate.

(i) Nothing in this section shall alter the taxes due on the original purchase of an electric vehicle prior to the application of the rebate. Any rebate received pursuant to the electric vehicle rebate program shall not be considered income for the purposes of state or county taxes.

(j) The public utilities commission shall include information on the electric vehicle rebate special fund and statistical information on participation in the public utilities commission's annual report to the governor pursuant to section 269-5.

(k) As used in this section:

"Electric vehicle" has the same meaning as contained in Section 30D of the Internal Revenue Code for "new qualified plug-in electric drive motor vehicle".

"Integrated intelligently with the electrical grid" means that the demand of the electric vehicle for electricity from the grid is controlled to enable reduction of the vehicle's electrical demand on the grid during peak demand times and to enable maximum use of renewable energy sources, baseload energy sources, or renewable energy potentially available off peak that would otherwise be curtailed."

SECTION 2. Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner. The tax shall be [~~$1.05~~] $ on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided that of the tax collected pursuant to this subsection:

(1) 5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2;

(2) 5 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;

(3) 10 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169.1; [~~and~~]

(4) 15 cents of the tax on each barrel shall be deposited into the agricultural development and food security special fund established under section 141-10[.]; and

(5) cents of the tax on each barrel shall be deposited into the electric vehicle rebate special fund established under section 269- .

The tax imposed by this subsection shall be paid by the distributor of the petroleum product."

SECTION 3. Section 269-73, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-73[]] Electric vehicle charging system; new electric vehicle; rebate program; administrator; establishment. (a) The public utilities commission may contract with a third-party administrator to operate and manage any programs established under section 269-72[.] or 269- . The administrator shall not be deemed to be a "governmental body" as defined in section 103D-104; provided that all moneys transferred to the third-party administrator shall have been appropriated by the legislature or shall be from funds provided by the federal government or private funding sources. The administrator shall not expend more than ten per cent of the amounts appropriated for the rebate [~~program~~] programs or other reasonable percentage determined by the public utilities commission for administration of the programs established under section 269-72[.] or 269- .

(b) The electric vehicle charging system rebate program administrator and the electric vehicle rebate program administrator shall be subject to regulation by the public utilities commission under any provision applicable to a public utility in sections 269-7, 269-8, 269-8.2, 269-8.5, 269-9, 269‑10, 269-13, 269-15, 269-19.5, and 269-28, and shall report to the public utilities commission on a regular basis. Notwithstanding any other provision of law to the contrary, the electric vehicle charging system rebate program administrator and the electric vehicle rebate program administrator shall not be an electric public utility or an electric public utility affiliate."

SECTION 4. There is appropriated out of the electric vehicle rebate special fund the sum of $ or so much thereof as may be necessary for fiscal year 2020-2021 for the electric vehicle rebate program.

The sum appropriated shall be expended by the public utilities commission for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2020.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2462
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII