HB1620

SECTION 1. The legislature finds that the electric vehicle charging system rebate program, established pursuant to Act 142, Session Laws of Hawaii 2019, provides rebates for the installation of electric vehicle charging systems in priority locations, including multi-unit dwellings, workplaces, and commercial areas, and in places that serve vehicle fleets. After the initial funding provided in 2019 was depleted, the legislature recognized the need for a sustainable source of funding and dedicated a small portion of the environmental response, energy, and food security tax, also known as the "barrel tax," to fund the electric vehicle charging system rebate program through an electric vehicle charging system subaccount. This program has proven very successful for its initial limited size and scale, facilitating the installation of over four hundred fifty new charging systems in the State.

The legislature further finds that the need for electric vehicle charging infrastructure only continues to increase, which in turn is widening the shortfall in infrastructure available to meet this need. Public incentives must dramatically increase to fill this growing gap and meet further needs going forward. Hawaii is currently among the leading states in the nation in the rate of electric vehicle adoption but among the last in the availability of public electric vehicle charging infrastructure.

The legislature additionally finds that the availability and accessibility of electric vehicle charging infrastructure support the economy, protect the environment and climate, and promote affordability and livability in the State. The ongoing shift from fossil fuel vehicles to electric vehicles in the Hawaii market enables families to save on their cost of living by giving them more affordable transportation options without onerous gas bills. It also benefits the local economy by reducing the massive drain of funds out of the State to pay for imported fossil fuels. The lack of charging availability, however, is a major barrier for consumers to shift to electric vehicles. A robust and comprehensive electric vehicle charging network is particularly needed to bring equity to the market and to make electric vehicles a viable choice for everyone, including renters, condominium residents, and lower-income households and communities.

The 2025 energy security and waste reduction plan that the Hawaii department of transportation developed under the landmark Navahine settlement agreement recognizes the need to dramatically scale up the electrification of transportation to meet legal mandates to decarbonize the statewide transportation system. The plan also recognizes that building out Hawaii's electric vehicle charging infrastructure is an integral part of the recommended "multifaceted approach" to drive progress on this front.

The purpose of this Act is to expand the electric vehicle charging system rebate program and accelerate the build-out of necessary electric vehicle charging infrastructure by increasing:

(1) The environmental response, energy, and food security tax; and

(2) The amount collected from the tax that is deposited into the electric vehicle charging system subaccount.

SECTION 2. 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~~] $1.15 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] 13 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 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1620
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII