Bill Text: HI SB368 | 2023 | Regular Session | Introduced

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Bill Title: Relating To The Environment.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2023-01-25 - Referred to EET/TCA/AEN, WAM. [SB368 Detail]

Download: Hawaii-2023-SB368-Introduced.html

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THE SENATE	S.B. NO.	368
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to the environment.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that the use of fossil fuels is the State's primary contributor to greenhouse gas emissions.  These emissions cause climate change, which poses a serious threat to the State's economic well-being, public health, infrastructure, and environment.  The State's dependence on fossil fuels also drains the economy of billions of dollars each year, makes residents vulnerable to the volatility of oil prices, and puts residents at increased risk in the event of a natural disaster.  Thus, Act 15, Session Laws of Hawaii 2018, was enacted to establish a goal for the State to become carbon neutral by 2045.

     The legislature further finds that the transportation sector accounts for the use of over two thirds of the oil imported into the State.  The legislature notes that, for ground transportation, electric vehicles provide a viable, cost-effective alternative to vehicles that run on fossil fuel.  The legislature demonstrated its support for the use of clean ground transportation alternatives through Act 74, Session Laws of Hawaii 2021, which established clean ground transportation goals for state agencies to achieve a one hundred per cent light-duty motor vehicles zero-emission fleet by the end of 2035.

     The purpose of this Act is to facilitate the transition to one hundred per cent clean ground transportation in the State by:

     (1)  Establishing a zero-emission vehicle fleet purchasing assistance program to support the transition of private fleets to zero-emission vehicles by the end of     ; and

     (2)  Tasking the Hawaii state energy office to work with the department of transportation to design strategies to implement the program.

     SECTION 2.  (a)  There is established a zero-emission vehicle fleet purchasing assistance program within the Hawaii state energy office to make financing tools and nonfinancial supports available to operators of light-, medium-, and heavy-duty vehicle fleets to facilitate these operators in transitioning their fleets to zero-emission vehicles.  The Hawaii state energy office is designated as the agency responsible for developing and administering the program and shall work with the department of transportation to design strategies to implement the program.

     (b)  In developing and administering the program, the Hawaii state energy office shall:

     (1)  Seek input from various stakeholders regarding specified program components to be determined by the Hawaii state energy office, including:

          (A)  Which light-, medium-, and heavy-duty vehicle fleets should be designated as high-priority fleets, taking into consideration the implications for climate change, pollution, environmental justice, and state policy regarding clean air and transportation;

          (B)  The critical barriers impeding light-, medium-, and heavy-duty vehicle fleets in different sectors and of different fleet sizes from transitioning to zero-emission vehicles;

          (C)  The financing tools and nonfinancial supports that should be used to help overcome critical barriers; and

          (D)  How to determine whether the program is successful in meeting its goals;

     (2)  Develop and design, in consultation with other relevant state agencies and considering the input received pursuant to paragraph (1), financing tools and nonfinancial supports that are most appropriate for different sizes of private fleets; and

     (3)  Ensure that the financing tools and nonfinancial supports required to administer the program are available to operators of private fleets by January 1, 2024.

     (c)  The Hawaii state energy office, in consultation with the department of transportation, shall develop a data collection and dissemination strategy for the program to facilitate informed decision-making by other state agencies and private sector financiers.  The strategy developed shall include data necessary to facilitate the financing of zero-emission vehicles to increase the scalability of financial tools and nonfinancial supports.  These data shall include vehicle and battery performance, upfront and operational costs, residual values, operational revenues, and zero-emissions vehicle miles traveled.

     (d)  As used in this section:

     "Financing tools" includes the following:

     (1)  Capital instruments, which are financing instruments that increase access to capital or other resources or reduce the cost of capital, or both, including interest rate reductions, public-backed "soft" loans, grants, bonds, and investment aggregation or warehousing;

     (2)  Risk reduction instruments, which are financing instruments that reduce exposure to risk or uncertainty, including performance guarantees and asset residual value guarantees; and

     (3)  Cost-smoothing instruments, which are financing instruments that reduce and smooth up-front or recurrent costs, or both, including operational leasing, all-inclusive or "wet" leasing, lease-purchase agreements, and on-bill financing.

     "Fleet" means one or more vehicles under common control or ownership.

     "Light-, medium-, and heavy-duty vehicle" includes cars, trucks, buses, and vehicles used for transportation, construction, and earth-moving purposes.

     "Nonfinancial supports" means technical support, including supports for technical management of electric light-, medium-, and heavy-duty vehicles, technical assistance for financing approaches, battery health programs, and creation of residual markets; or policy action, including policy measures to enable financing or encourage fleet transitions.

     "Program" means the zero-emission vehicle fleet purchasing assistance program.

     "Zero-emission vehicle" has the same meaning as contained in title 40 Code of Federal Regulations section 88.102-94.

     SECTION 3.  The Hawaii state energy office shall submit a report of its findings and recommendations, including any proposed legislation, on its progress in establishing a zero-emission vehicle fleet purchasing assistance program to the legislature no later than twenty days prior to the convening of the regular session of 2024.

     SECTION 4.  This Act shall take effect on July 1, 2023.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Clean Ground Transportation; Private Fleets; Zero-Emission Vehicles; Hawaii State Energy Office; Department of Transportation

 

Description:

Establishes a zero-emission vehicle fleet purchasing assistance program within the Hawaii state energy office to support the transition of private fleets to zero-emission vehicles.  Designates the Hawaii state energy office as the agency responsible for developing and administering the program and requires the Hawaii state energy office to work with the department of transportation to design strategies to implement the zero-emission vehicle fleet purchasing assistance program.

 

 

 

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