STAND. COM. REP. NO. 2230
Honolulu, Hawaii
RE: S.B. No. 2691
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Transportation, to which was referred S.B. No. 2691 entitled:
"A BILL FOR AN ACT RELATING TO TRANSPORTATION AFFORDABILITY,"
begs leave to report as follows:
The purpose and intent 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; and
(3) Establish a transportation affordability and energy security tax.
Your Committee received testimony in support of this measure from the Department of Transportation, Hawaiʻi Climate Change Mitigation and Adaptation Commission, Office of Economic Development of the County of Kauaʻi, Earthjustice, Imua Alliance, Ulupono Initiative, Climate Protectors Hawaiʻi, Carbon Cashback Hawaiʻi, Our Children's Trust, 350Hawaii.org, Hawaiʻi Youth Transportation Council, and twenty-six individuals.
Your Committee received testimony in opposition to this measure from one individual.
Your Committee received comments on this measure from the Department of Taxation, Hawaiʻi State Energy Office, Tax Foundation of Hawaii, and SanHi Government Strategies.
Your Committee finds that low- and moderate-income households, especially in rural areas, are disproportionately affected by the high and rising costs of fossil fuel vehicles. Switching to electric vehicles would save these households thousands of dollars annually. However, these households cannot afford the upfront costs of purchasing an electric vehicle. Your Committee further finds that gasoline consumption by light-duty vehicles alone constitute for almost one quarter of the State's emissions. This measure will establish a rebate program targeted at low- and moderate-income households to allow them to purchase electric light-duty vehicles and benefit from saving on gasoline expenditures while reducing pollution in the State.
Your Committee notes the concerns raised by Earthjustice that this measure in its current form requires simplification and further specification to facilitate the administration of the Clean Vehicle Rebate Program, Clean Vehicle Special Fund, and transportation affordability and energy security tax. Your Committee further notes the concerns raised by the Department of Taxation that requiring the allocation of the transportation affordability and energy security tax to the Clean Vehicle Special Fund creates administrative difficulties and the Department requires sufficient time to make the necessary form, instruction, and system changes required by this measure. Your Committee also notes the concerns raised by the Tax Foundation of Hawaii that this measure, in its current form, excludes trucks, vans, and SUVs from the tax and therefore may encourage consumers to purchase these vehicles instead of electric light-duty vehicles. Your Committee additionally notes the concern raised that the tax imposed by this measure on the gross proceeds light-duty motor vehicles powered solely by gasoline, diesel, or gasoline and diesel blends may shift the cost burden to acquire a more expensive electric vehicle to owners of gasoline- or diesel-powered vehicles. Therefore, amendments to the measure are necessary to address these concerns.
Your
Committee has amended this measure by:
(1) Specifying
that the rebate shall be applied to the manufacturer's suggested retail price
at the point of sale by participating dealers;
(2) Deleting
language that would have established a requirement for eligible applicants of
the rebate program to have a household income of up to two hundred percent of
the area median income as determined by the United States Department of Housing
and Urban Development;
(3) Clarifying
that rebates offered for used vehicles shall not apply to vehicles that have
received a rebate for a new vehicle in the past twenty-four months before the
purchase as a used vehicle;
(4) Deleting
language that would have required the Department of Transportation to disclose
whether a vehicle has previously received a rebate for a used vehicle purchase
or lease upon request by a dealer;
(5) Increasing
the additional rebate offered to purchasers and lessees in low- and
moderate-income households from $1,000 to $3,000;
(6) Deleting
language that would have allocated revenues from the transportation
affordability and energy security tax to the Clean Vehicle Special Fund;
(7) Deleting
language that would have established a transportation affordability and energy
security tax;
(8) Inserting
blank appropriations into and out of the Clean Vehicle Special Fund for the
Department of Transportation to establish the Clean Vehicle Rebate Program;
(9) Inserting
an effective date of January 1, 2027; and
(10) Making technical, nonsubstantive amendments
for the purposes of clarity and consistency.
Your Committee notes that this measure, as amended, contains unspecified appropriation amounts. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting the appropriate amounts.
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 S.B. No. 2691, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2691, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Transportation,
|
|
|
________________________________ LORRAINE R. INOUYE, Chair |
|
|
|
|