STAND. COM. REP. NO. 2484

Honolulu, Hawaii

RE: S.B. No. 2905

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 S.B. No. 2905 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

beg leave to report as follows:

The purpose and intent of this measure is to 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.

Your Committees received testimony in support of this measure from the Public Utilities Commission, Department of Transportation, Imua Alliance, Our Children's Trust, Hawaiʻi Youth Transportation Council, Earthjustice, Climate Protectors Hawaiʻi, Carbon Cashback Hawaii, and three 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 Hawaii State Energy Office, Department of Taxation, and Tax Foundation of Hawaii.

Your Committees find that the Electric Vehicle Charging System Rebate Program, funded through a small portion of the Environmental Response, Energy, and Food Security Tax, also known as the "barrel tax", has seen success in facilitating the expansion of green transportation infrastructure throughout the State. Your Committees further find that recent Department of Transportation projects show that without immediate additional investments and implementation of emission reduction strategies, the State will not meet its legislated emissions targets. By providing further funding for the continued expansion of electric vehicle charging infrastructure, this measure will support the State's commitment to promoting zero-emissions transportation.

Your Committees have amended this measure by:

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

(2) Making a technical, nonsubstantive amendment 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 S.B. No. 2905, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2905, S.D. 1, and be referred to your Committee on 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