STAND. COM. REP. NO. 216-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2030

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Transportation, to which was referred H.B. No. 2030 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION AFFORDABILITY,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require the Department of Transportation to establish a Clean Vehicle Rebate Program to provide rebates for the purchase or lease of new and used zero-emission vehicles and plug-in hybrid electric vehicles;

(2) Establish the Clean Vehicle Special Fund to support the Clean Vehicle Rebate Program; and

(3) Establish a transportation affordability and energy security tax.

Your Committee received testimony in support of this measure from the Oahu Metropolitan Planning Organization; Ulupono Initiative; Our Children's Trust; Climate Protectors Hawaiʻi; Hawaiʻi Youth Transportation Council; Carbon Cashback Hawaiʻi; 350Hawaii.org; Climate Future Forum; Imua Alliance; Earthjustice; Kauai Climate Action Coalition; and numerous individuals. Your Committee received testimony in opposition to this measure from the Alliance for Automotive Innovation and three individuals. Your Committee received comments on this measure from the Department of Taxation; Hawaiʻi State Energy Office; and Hawaiʻi Automobile Dealers Association.

Your Committee finds that Hawaii's heavy reliance on imported fossil fuels for ground transportation imposes significant economic burdens on local households, particularly in rural and low-income communities, and contributes disproportionately to the State's greenhouse gas emissions. While transitioning to electric vehicles could yield substantial savings and emissions reductions, the upfront cost of electric vehicles remains a key barrier for lower-income families. This measure addresses these challenges by establishing a Clean Vehicle Rebate Program, which expands access to zero-emission and plug-in hybrid vehicles for income-qualified residents and advances environmental equity, supports energy security, and reduces greenhouse gas emissions.

Your Committee notes that this measure contains blank percentage rates for the proposed transportation affordability and energy security tax and that the testimony submitted by Earthjustice contains language relevant for policy discussion purposes.

Your Committee has amended this measure by:

(1) Increasing the rebate amount for new and used plug-in hybrid vehicles;

(2) Clarifying the applicability of the rebate on the manufacturer's suggested retail price;

(3) Expanding eligibility to households earning up to three hundred percent of the area median income, subject to available funding;

(4) Clarifying eligibility requirements for a used vehicle;

(5) Deleting language that would have required, upon request by a dealer, the Department of Transportation to disclose whether a vehicle has previously received a rebate;

(6) Deleting references to "retailers";

(7) Increasing the rebate for low- and moderate-income households;

(8) Specifying that the transportation affordability and energy security tax shall be levied beginning January 1, 2027;

(9) Specifying that the Department of Transportation or Legislature may appropriate additional funds to initiate, administer, or expand the Clean Vehicle Rebate Program;

(10) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

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. 2030, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2030, H.D. 1, and be referred to your Committee on Energy & Environmental Protection.

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

____________________________

DARIUS KILA, Chair