SR218

WHEREAS, on August 16, 2022, the 117th United States Congress passed the Inflation Reduction Act of 2022 (Public Law 117-169), which, in part, would make hundreds of billions of dollars available to the states to support their efforts to mitigate climate change; and

WHEREAS, the State and counties are eligible to receive federal funding, which currently includes but is not limited to:

(1) Over $4 billion for the creation of a program that awards grants to state energy offices to develop and implement home energy rebate programs for certain households that have achieved certain energy savings;

(2) Billions of dollars for tax credits to encourage consumers to make purchases, such as new and used clean energy vehicles (in credit amounts of up to $7,500 and $4,000, respectively), and other energy efficient expenditures;

(3) Competitive grants from the newly-created $27 billion Greenhouse Gas Reduction Fund to form the basis for the first national green bank, with sixty percent of funding dedicated to low-income and disadvantaged communities to deploy or benefit from zero-emission technologies, including distributed technologies on residential rooftops, to carry out other greenhouse gas emission reduction activities, and to promote environmental justice;

(4) $5.5 billion for grants, contracts, or financial assistance agreements for disadvantaged communities for up to one hundred percent of the cost of the planning, design, or construction of certain water projects that primarily provide domestic water supplies to communities or households that do not have reliable access to domestic water supplies;

(5) $3 billion for competitive rebates and grants that address air pollution at ports, specifically for:

(A) The purchase or installation of zero-emission port equipment or technology for use at, or to directly serve, one or more ports;

(B) Any relevant planning or permitting in connection with the purchase or installation of zero-emission port equipment or technology; and

(6) A billion-dollar clean heavy-duty vehicle rebate and award program for the:

(A) Replacement of heavy-duty vehicles, such as garbage trucks, transit buses, and school buses, with zero-emission vehicles;

(B) Purchase, installation, operation, and maintenance of infrastructure needed to charge, fuel, or maintain zero-emission vehicles;

(C) Workforce development and training to support the maintenance, charging, fueling, and operation of zero-emission vehicles; and

(D) Planning and technical activities to support the adoption and deployment of zero-emission vehicles; and

WHEREAS, the State should take full advantage of the federal funds being made available through the Inflation Reduction Act, which requires the concerted efforts of county agencies, state agencies, and Hawaii's congressional delegation; now, therefore,

BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2023, that the Director of Finance is requested to convene a working group to optimize drawdowns of federal funds under the Inflation Reduction Act of 2022; and

BE IT FURTHER RESOLVED that the working group:

(1) Consist of members representing all levels of government, as invited by the Director of Finance;

(2) Review the potential for drawing down of federal funds;

(3) Plan for the drawing down of federal funds;

(4) Plan for the use of federal funds;

(5) Account for federal funds that have been drawn down and spent; and

(6) Recommend any legislation that would help secure additional federal funding; and

BE IT FURTHER RESOLVED that the working group is requested to submit a preliminary report of its findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2024, and a final report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2025; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, Director of Finance, Chief Energy Officer, members of Hawaii's congressional delegation, Mayor of each county, and Chair of each county council.

	OFFERED BY:	_____________________________

Report Title:

State; Counties; Working Group; Inflation Reduction Act of 2022

THE SENATE	S.R. NO.	218
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII