STAND. COM. REP. NO. 176

Honolulu, Hawaii

, 2023

RE: H.B. No. 1110

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 1110 entitled:

"A BILL FOR AN ACT RELATING TO THE ROAD USAGE CHARGE PROGRAM,"

begs leave to report as follows:

The purpose of this measure is to create a mileage-based usage charge to replace state motor fuel taxes for electric vehicles.

Your Committee received testimony in support of this measure from the Department of Transportation and Ulupono. Your Committee received comments on this measure from the Hawaii State Energy Office, Tax Foundation of Hawaii, and Tesla.

Your Committee finds that as fuel tax revenues decrease, the Department of Transportation has recommended the adoption of a per-mile road usage charge to provide fair and sustainable funding for the State's road infrastructure.

Your Committee has amended this measure by:

(1) Moving the definition of electric vehicle to a new subsection for clarity and consistency;

(2) Changing the mileage-based road usage charge amount from $70 to $50;

(3) Changing the appropriation to an unspecified amount;

(4) Changing the effective date to June 30, 3000, to encourage further discussion; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $3,000,000 for fiscal year 2023-2024.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1110, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1110, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

CHRIS TODD, Chair