STAND. COM. REP. NO. 550-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1620

H.D. 2

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. 1620, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Increase the environmental response, energy, and food security tax and the amount collected from the tax that is deposited into the Electric Vehicle Charging System Subaccount; and

(2) Transfer funds from the Hydrogen Fueling System Subaccount to the Electric Vehicle Charging System Subaccount.

Your Committee received testimony in support of this measure from the Public Utilities Commission; Carbon Cashback Hawaiʻi; Kauai Climate Action Coalition; Earthjustice; Our Children's Trust; 350Hawaii.org; Climate Protectors Hawaiʻi; Hawaii Electric Vehicle Association; Imua Alliance; and numerous individuals. Your Committee received testimony in opposition to this measure from the Grassroot Institute of Hawaii. Your Committee received comments on this measure from the Department of Taxation; Department of the Attorney General; Hawaii State Energy Office; and Tax Foundation of Hawaii.

Your Committee finds that Hawaii's transition to a clean energy economy depends in large part on the rapid electrification of the transportation sector and the availability of reliable, accessible electric vehicle charging infrastructure statewide. Although the Electric Vehicle Charging System Rebate Program has successfully supported the installation of hundreds of charging systems since its establishment, demand for infrastructure continues to outpace supply, creating a significant barrier to broader electric vehicle adoption, particularly for renters, condominium residents, and lower-income communities. By increasing the environmental response, energy, and food security tax, dedicating additional revenues to the Electric Vehicle Charging System Subaccount, and transferring funds from the Hydrogen Fueling System Subaccount to strengthen and expand the rebate program, this measure accelerates the build-out of electric vehicle charging infrastructure, reducing the State's dependence on imported fossil fuels and advancing the State's climate goals.

Your Committee has amended this measure by specifying that the Public Utilities Commission shall effectuate the transfer of funds from the Hydrogen Fueling System Subaccount to the Electric Vehicle Charging System Subaccount on July 1, 2026.

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. 1620, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1620, H.D. 2.

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

____________________________

DARIUS KILA, Chair