STAND. COM. REP. NO. 3220

Honolulu, Hawaii

RE: H.B. No. 1620

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Agriculture and Environment and Energy and Intergovernmental Affairs, to which was referred H.B. No. 1620, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

beg leave to report as follows:

The purpose and intent 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) Require the Public Utilities Commission to transfer funds from the Hydrogen Fueling System Subaccount to the Electric Vehicle Charging System Subaccount.

Your Committees received testimony in support of this measure from the Public Utilities Commission, Department of Transportation, Office of Hawaiian Affairs, Imua Alliance, Our Children's Trust, Kauai Climate Action Coalition, Carbon Cashback Hawaiʻi, Earthjustice, Climate Protectors Hawaiʻi, and twenty-eight individuals.

Your Committees received testimony in opposition to this measure from the Grassroot Institute of Hawaii.

Your Committees received comments on this measure from the Department of Taxation, Hawaii State Energy Office, and Tax Foundation of Hawaii.

Your Committees find that the Electric Vehicle Charging Station Rebate Program has been successful in deploying and upgrading hundreds of electric vehicle stations across every county of the State. However, the lack of charging infrastructure is a significant barrier to electric vehicle adoption and public incentives must increase to fill this growing gap and to help the State meet its renewable energy goals. Due to an absence of plans that would utilize existing funds in the Hydrogen Fueling System Subaccount, these funds should be transferred to help address this urgent need. This measure would also, in part, increase the tax on barrels of petroleum products to further support the purpose of the Electric Vehicle Charging System Subaccount.

Your Committees note, however, that an increase in the Environmental Response, Energy, and Food Security Tax, or "barrel tax", may not be appropriate at this time with the current increases in petroleum prices globally. Accordingly, amendments to this measure are necessary to address this concern.

Your Committees have amended this measure by:

(1) Deleting language that would have increased the Environmental Response, Energy, and Food Security Tax and the amount collected from the tax that would be deposited into the Electric Vehicle Charging System Subaccount;

(2) Amending section 1 to reflect its amended purpose;

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Agriculture and Environment and Energy and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1620, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1620, H.D. 2, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Environment and Energy and Intergovernmental Affairs,

________________________________ GLENN WAKAI, Chair

________________________________ MIKE GABBARD, Chair