SB3309

SECTION 1. Hawaii has one of the most aggressive clean energy goals in the nation and was the first to commit to a one hundred per cent renewable energy goal. The State aims for a zero emissions clean energy economy "as quickly as practicable, but no later than 2045" with a fifty per cent reduction from 2005 levels by 2030 pursuant to Act 15, Session Laws of Hawaii 2018. Hawaii was also the first state in the nation to declare a climate emergency in the regular session of 2021 through Senate Concurrent Resolution No. 44, S.D. 1, H.D. 1, that also called for a statewide commitment to a decarbonized economy. To help achieve the State's renewable energy goal, recent legislation has been enacted to establish that one hundred per cent of the State's light-duty fleet is fueled by renewable energy by 2035.

Legislation has recognized that the use of fossil fuels is the State's primary contributor to greenhouse gas emissions which causes climate change and poses a serious threat to the State's economic well-being, public health, infrastructure, environment, and way of life. The legislature notes that for ground transportation, electric vehicles provide a viable, cost effective alternative to vehicles that run on fossil fuels, which are responsible for over two-thirds of the oil imported into the State. The legislature further finds that electric vehicles will play an integral role in Hawaii's clean energy future and in meeting the goals set for the State in reducing its greenhouse gas emissions, particularly as electrical generation in Hawaii transitions more completely to renewable energy sources.

The legislature further finds that current charging facilities for electric vehicles far lag Hawaii's needs and fall short of supporting the State's goal of zero emissions by 2045. The State must accelerate a transition to cleaner transportation to reach its carbon emissions reduction goals. Additionally, the legislature finds that, as the State progresses toward a fully decarbonized economy, the challenges of addressing hard-to-decarbonize sectors will also increase. To achieve the goal of a fully decarbonized economy, the State needs to plan ahead and understand the steps necessary to create a carbon-negative economy by 2045, as required by Act 15, Session Laws of Hawaii 2018. The legislature also finds that significant investment in clean energy technology and infrastructure will be required to achieve the State's goals of energy self-sufficiency, energy security, and energy diversification.

The purpose of this Act is to facilitate the transition to one hundred per cent clean energy in Hawaii by:

(1) Creating a funding program that incentivizes electric vehicle charging systems and infrastructure development;

(2) Increasing the amount of petroleum tax to be deposited into the electric vehicle charging system account; and

(3) Allowing for funding from the electrical vehicle charging system subaccount to the electric vehicle charging systems and infrastructure program.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§269-A Electric vehicle charging systems and infrastructure; funding program. (a) The public utilities commission shall administer a funding program that incentivizes the installation, maintenance, and upgrade of electric vehicle charging systems and infrastructure throughout the State of Hawaii to achieve and maintain a zero emissions clean energy economy. The public utilities commission may contract with a third-party administrator pursuant to section 269-B to operate and manage the funding program.

(b) Funding shall be made available to applicants for the purposes of developing, maintaining, and upgrading electric vehicle charging systems, infrastructure, related technologies, and related grid services.

(c) Funding shall be subject to available funds and the program administrator shall not approve additional funding for the remainder of the fiscal year after program funds have been fully exhausted.

(d) The public utilities commission, or its designated program administrator shall:

(1) Prepare any forms that may be necessary for an applicant to claim funding pursuant to this section; and

(2) Require each applicant to furnish reasonable information to ascertain the validity of the claim, including but not limited to documentation necessary to demonstrate that the installation, maintenance, and upgrade for which the rebate is claimed is eligible.

(e) In administering the funding program, the public utilities commission shall give consideration to the following guidelines:

(1) Priority shall be given to electric vehicle charging systems that are publicly available; serve multiple tenants, employees, or customers; serve electric vehicle fleets; support the visitor industry in transitioning to clean transportation; or serve low-income, moderate-income, underserved, or environmental justice communities;

(2) Funding shall enhance broader public clean energy and grid resiliency goals by supporting deployment of electric vehicle charging systems that can regulate their time of use, be networked and co-optimized with other electric vehicle charging systems and clean transportation options, and otherwise provide grid services or other benefits to the utility and electric grid; and

(3) The program administrator may propose new or modified guidelines to be considered in addition to those specified in this subsection and may make programmatic adjustments due to market changes, technological advancements, and levels of participation to ensure the prudent use of taxpayer funds to effectively manage the program budget.

(f) Eligible recipients receiving funds through the funding program shall use funds in accordance with the requirements of this section. Installations funded by the funding program shall be performed by experienced and qualified persons.

(g) For purposes of this section:

"Applicant" means an individual; nonprofit or for-profit corporation; local, state, or federal government agency; public utility; homeowner association; or any other eligible entity as defined under rules adopted for the electric vehicle charging system funding program.

"Electric vehicle charging system" has the same meaning as "electric vehicle supply equipment" as defined in article 625.2 of the National Electrical Code, as amended.

"Person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate, or other entity.

§269-B Electric vehicle charging systems and infrastructure; administrator. (a) The public utilities commission may contract with a third-party administrator to operate and manage the funding program established under section 269-A. 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 fifteen per cent of the amounts appropriated for the funding program or other reasonable percentage determined by the public utilities commission for administration of the program established under section 269-A; provided that program administration expenses may include marketing and outreach expenses to increase program participation, if needed; provided further that not more than ten per cent of the amounts appropriated for the funding program may be expended on non-marketing and outreach programs or administration of the program.

(b) The 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."

SECTION 3. 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) 4 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;

(3) 5 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169.1;

(4) [3] 10 cents of the tax on each barrel shall be deposited into the electric vehicle charging system subaccount established pursuant to section 269-33(e); and

(5) 3 cents of the tax on each barrel shall be deposited into the hydrogen fueling system subaccount established pursuant to section 269-33(f).

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

SECTION 4. Section 269-33, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) There is established within the public utilities commission special fund an electric vehicle charging system subaccount. The public utilities commission shall expend up to forty per cent of the moneys in the subaccount for the purposes of funding the electric vehicle charging system rebate program established pursuant to sections 269-72 and 269-73[.], and up to sixty per cent of the moneys in the subaccount for the purposes of funding the electric vehicle charging systems and infrastructure funding program pursuant to section 269-A. The funds in this subaccount shall not be subject to the special fund ceiling in subsection (d)."

SECTION 5. In codifying the new sections added by section 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3309
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII