STAND. COM. REP. NO. 90-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2451

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. 2451 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require each county to implement fare-free access to its public transportation systems; and

(2) Increase the tax on petroleum products to reimburse the counties for providing fare-free transit.

Your Committee received testimony in support of this measure from the Oahu Metropolitan Planning Organization; one member of the Honolulu City Council; Life of the Land; Hawaiʻi Public Health Institute; Hawaiʻi Appleseed Center for Law and Economic Justice; Our Children's Trust; and numerous individuals. Your Committee received testimony in opposition to this measure from two individuals. Your Committee received comments on this measure from the Department of Transportation; Department of Taxation; Hawaii State Energy Office; Tax Foundation of Hawaii; and one individual.

Your Committee finds that eliminating fares on public transportation systems can meaningfully increase ridership, reduce reliance on single-occupancy vehicles, and expand access to essential mobility for residents across all income levels. Additionally, funding fare-free transit through increased taxes on petroleum products appropriately shifts costs toward fossil fuel use while supporting a transition to more sustainable transportation choices. This measure advances the State's clean economy goals by requiring fare-free public transportation statewide and establishing a dedicated funding mechanism to reimburse counties for providing this public benefit.

Your Committee has amended this measure by:

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

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

Your Committee respectfully requests your Committee on Energy & Environmental Protection, should it deliberate on this measure, to consider clarifying the language to allow the counties to receive adjusted amounts of reimbursement, as calculated annually for inflation.

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. 2451, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2451, 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