SB457

SECTION 1. The legislature finds that unabated greenhouse gas emissions, and resulting climate change and sea level rise, present an urgent and existential threat to citizens of the State. The State has committed to mitigating the impacts of climate change. Chapter 225P, Hawaii Revised Statutes, established a statewide target to become net carbon negative as quickly as possible but no later than 2045. In addition, the mayors from each county have pledged to reduce the State's dependence on fossil fuels by eliminating fossil fuels from ground transportation by 2045. These efforts, however, must be accelerated.

The purpose of this Act is to advance the State's climate change mitigation commitment by requiring state, county, and private bus operators to upgrade to zero emission buses by 2045.

SECTION 2. Section 51-1, Hawaii Revised Statutes, is amended to read as follows:

"§51-1 Grant of powers. Every county of this State may acquire, condemn, purchase, lease, construct, extend, own, maintain, and operate mass transit systems, including[~~, without being~~], but not limited to[,] motor buses, street railroads, fixed rail facilities such as monorails or subways, whether surface, subsurface, or elevated, taxis, and other forms of transportation for hire for passengers and their personal baggage.

Every county shall have power to provide mass transportation service, whether directly, jointly, or under contract with private parties, without the county or private parties being subject to the jurisdiction and control of the public utilities commission in any manner.

The terms "mass transit" and "mass transportation" mean transportation by bus, or rail or other conveyance, either publicly or privately owned, which provides to the public general or special service (but not including school buses or charter or sightseeing service) on a regular and continuing basis.

Notwithstanding the foregoing, commencing January 1, 2045, any county operating mass transit services pursuant to this chapter shall not use or employ any motor bus unless the motor bus is a zero emissions bus. As used in this section:

"Pollutant" means hydrocarbons, carbon monoxide, carbon dioxide, nitrogen oxides, and lead.

"Zero emission bus" means a motor bus that produces zero exhaust emissions of any pollutant and includes battery electric-powered buses and hydrogen fuel cell-electric powered buses, but does not include any vehicle, locomotive, or car operated exclusively on a rail or rails.

This section shall not be applied so as to impair any contract existing as of the date of enactment of this section, or operative portion thereof, in a manner violative of either the Hawaii State Constitution or Article I, section 10, of the United States Constitution."

SECTION 3. Section 103D-211, Hawaii Revised Statutes, is amended to read as follows:

"§103D-211 Procurement rules. (a) The procurement policy board shall adopt all rules necessary to carry out the purposes of this chapter and to implement its provisions in accordance with chapter 91. The policy board shall not delegate its power to adopt rules.

(b) Regarding the procurement of motor vehicles capable of transporting more than fifteen passengers, the procurement policy board shall promptly adopt all rules necessary to transition to one hundred per cent zero emission buses as quickly as possible, but no later than January 1, 2045.

As used in this subsection:

"Pollutant" means hydrocarbons, carbon monoxide, carbon dioxide, nitrogen oxides, and lead.

"Zero emission bus" means a motor vehicle capable of transporting more than fifteen passengers that produces zero exhaust emissions of any pollutant and includes battery- electric powered buses and hydrogen fuel cell-electric powered buses, but does not include any vehicle, locomotive, or car operated exclusively on a rail or rails.

[~~(b)~~] (c) No rule shall change any commitment, right, or obligation of the State or of a contractor under a contract in existence on the effective date of such rule."

SECTION 4. Section 271-4, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

""Pollutant" means hydrocarbons, carbon monoxide, carbon dioxide, nitrogen oxides, and lead.

"Zero emission bus" means a motor vehicle capable of transporting more than fifteen passengers that produces zero exhaust emissions of any pollutant and includes battery- electric powered motor vehicles and hydrogen fuel cell-electric powered motor vehicles, but does not include any vehicle, locomotive, or car operated exclusively on a rail or rails."

SECTION 5. Section 271-12, Hawaii Revised Statutes, is amended to read as follows:

"§271-12 Applications for certificates of public convenience and necessity. (a) Except as otherwise provided in this section and in section 271-16, no person shall engage in the business of a common carrier by motor vehicle on any public highway in this State, unless there is in force with respect to [~~such~~] the carrier, a certificate of public convenience and necessity issued by the public utilities commission authorizing such operation.

(b) Applications for certificates shall be made in writing, on paper, or electronically, to the commission, be verified under oath, and shall be in [~~such~~] a form [~~and~~], contain [~~such~~] the information, and be accompanied by proof of service upon interested parties as the commission shall[,] by [~~regulation,~~] rule require.

(c) Subject to section 271-15, a certificate shall be issued to any qualified applicant therefor, authorizing the whole or any part of the operations covered by the application if it is found that the applicant is fit, willing, and able [~~properly~~] to properly perform the service proposed and to conform to this chapter and the requirements[,] and rules[~~, and regulations~~] of the commission thereunder, and that the proposed service, to the extent to be authorized by the certificate, is or will be required by the present or future public convenience and necessity; otherwise the application shall be denied. The commission shall not issue any certificate covering the transportation of more than fifteen passengers for any period after December 31, 2044, unless the commission finds that all of the motor vehicles covered by the certificate are zero emission buses.

(d) Any certificate issued under this section covering the transportation of property shall be issued as an irregular route certificate and shall specify the island or islands or portion or portions thereof within which service may be rendered. Any certificate covering the transportation of passengers shall specify the service to be rendered and the routes over which, the fixed termini, if any, between which, and the intermediate and off-route points, if any, at which the motor carrier is authorized to operate, and the certificate may include authority to transport in the same vehicle with the passengers, baggage of passengers, express, and also to transport baggage of passengers in a separate vehicle. There shall, at the time of issuance, and from time to time thereafter, be attached to the exercise of the privileges granted by the certificate [~~such~~] the reasonable terms, conditions, and limitations [as] that the public convenience and necessity may from time to time require, including terms, conditions, and limitations as to the extensions of the service territory or route or routes of the carriers, and [~~such~~] the terms and conditions [as] that are necessary to carry out, with respect to the operations of the carrier, the requirements established by the commission under sections 271-9(a)(1) and 271-9(a)(4)[,]; provided that the terms, conditions, or limitations shall not restrict the right of the carrier to add to [~~his or~~] its equipment and facilities in the service territory or over the routes or between the termini as the development of business and the demands of the public shall require.

(e) Any common carrier by motor vehicle transporting passengers under any such certificate may occasionally deviate from the route over which and the fixed termini between which it is authorized to operate under the certificate under [~~such~~] rules [~~and regulations as~~] that the commission may prescribe."

SECTION 6. Section 271-13, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Subject to section 271-15, a permit shall be issued to any qualified applicant therefor, authorizing in whole or in part the operations covered by the application, if it is found that the applicant is fit, willing, and able to properly perform the service of a contract carrier by motor vehicle, and to conform to this chapter and the [~~lawful~~] requirements and rules of the commission thereunder, and that the proposed operation to the extent authorized by the permit will be consistent with the public interest and the transportation policy declared in this chapter; otherwise, the application shall be denied. In determining whether issuance of a permit will be consistent with the public interest and the transportation policy, the commission shall consider the number of shippers to be served by the applicant, the nature of the service proposed, whether the proposed service can be or is being properly performed by existing common carriers, the effect that granting the permit would have upon the services of the protesting carriers, the effect that denying the permit would have upon the applicant's proposed shipper or shippers, and the changing character of shipper requirements; provided that a permit shall not be issued in any case where it has been established that an existing common carrier is properly performing the proposed service. The commission shall specify in the permit the business of the contract carrier covered thereby and the scope thereof, and it shall attach to it at the time of issuance, and from time to time thereafter the reasonable terms, conditions, and limitations consistent with the character of the holder of the permit as a contract carrier, including terms, conditions, and limitations respecting the person or persons, their names, the number or class thereof for which the contract carrier may perform transportation service, as may be necessary to assure that the business is that of a contract carrier and within the scope of the permit, and to carry out with respect to the operation of the carrier the requirements established by the commission under sections 271-9(a)(2) and 271-9(a)(4). Any permit covering the transportation of passengers may include authority to transport, in the same vehicle with the passengers, baggage of passengers and also authority to transport baggage of passengers in a separate vehicle; provided that within the scope of the permit and any terms, conditions, or limitations attached thereto, the carrier shall have the right to substitute or add to its equipment and facilities as the development of its business may require; and provided further that no motor carrier shall commence operations under any contract carrier authority granted under this section until it has filed with the commission a certified copy or an electronic copy of a written contract or contracts executed with the shipper or shippers for whom the service is authorized in the permit to be provided, the contract or contracts to be bilateral and impose specific obligations upon both carrier and shipper or shippers, and to set forth all terms and conditions of any transportation agreement obtaining between the motor carrier and the shipper or shippers. The commission shall not issue any permit covering the transportation of more than fifteen passengers for any period after December 31, 2044, unless the commission finds that all of the motor vehicles covered by the permit are zero emission buses."

SECTION 7. Section 271-19, Hawaii Revised Statutes, is amended to read as follows:

"§271-19 Suspension, change, and revocation of certificates and permits. (a) Certificates and permits shall be effective from the date specified therein, and shall remain in effect until suspended or terminated as herein provided. Any certificate or permit, upon application of the holder thereof, in the discretion of the public utilities commission, may be amended or revoked, in whole or in part. The commission, upon complaint or upon its own initiative, after notice and hearing, may suspend or revoke any certificate or permit, in part or in whole, if the holder thereof is found to be in violation of any of the provisions of this chapter; provided that:

(1) A motor carrier's right to engage in transportation by virtue of any certificate or permit may be suspended by the commission immediately without hearing or other proceedings upon the carrier's failure to comply, and until the carrier complies with sections 271-21(a), 271-22(a), 271-17 or Act 20, Special Session Laws of Hawaii 1977, or with any lawful order of the commission; and

(2) The commission shall revoke the certificate or permit of a holder that knowingly and wilfully engages the services of a driver not licensed under part XIII of chapter 286.

(b) Upon written request by a motor carrier and for good cause shown, the public utilities commission may place an active certificate or permit in an inactive status. The certificate or permit may be placed on an inactive status for a period not exceeding twelve months. Prior to the termination of the approved inactive period, the certificate or permit must be reactivated or it shall be declared abandoned and the certificate or permit revoked. The certificate or permit may be reactivated at any time within the approved period by fulfilling the requirements for renewal, including the payment of the appropriate fees. No request for inactive status, the cumulative period of which is in excess of two years, shall be granted by the commission. Unless good cause is shown, no request to transfer a certificate or permit which is on inactive status shall be approved by the commission.

(c) No person whose certificate or permit is revoked shall be eligible to apply for a new certificate or permit until the expiration of two years; provided that a person whose certificate or permit is revoked for knowingly and wilfully engaging the services of a driver not licensed under part XIII of chapter 286 shall not be eligible to apply for a new certificate or permit until the expiration of five years.

(d) A certificate or permit shall be revoked upon the voluntary dissolution of the corporation or partnership in whose name the certificate or permit has been issued. Upon verification with the department of commerce and consumer affairs on the voluntary dissolution of a corporation or partnership, the commission shall issue an order with its findings and revoke the certificate or permit held by the registered certificate or permit holder.

(e) Commencing January 1, 2045, any certificate or permit covering the transportation of more than fifteen passengers in a motor vehicle that is not a zero emission bus shall be void without prior notice or action by the commission."

SECTION 8. Section 302A-407, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Any school bus contract between the State and the contractor shall include a provision requiring the contractor to equip the contractor's vehicles with the signs and visual signals described in section 291C-95(d) and (g). The contract shall also include other provisions as may be deemed necessary by the State for the safety of school bus passengers and shall include provisions requiring compliance with the rules and standards described in section 286-181. Commencing July 1, 2023, the State shall not enter into any school bus contract for a term that extends past January 1, 2045, unless the bus that is the subject of the contract is a zero emission bus. Commencing January 1, 2045, the State shall not enter into any school bus contract unless the bus that is the subject of the contract is a zero emission bus.

As used in this subsection:

"Pollutant" means hydrocarbons, carbon monoxide, carbon dioxide, nitrogen oxides, and lead.

"Zero emission bus" means a motor bus that produces zero exhaust emissions of any pollutant and includes battery- electric powered buses and hydrogen fuel cell-electric powered buses, but does not include any vehicle, locomotive, or car operated exclusively on a rail or rails."

SECTION 9. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 10. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 12. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	457
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII