Category Archives: Fuel (HRS 243)

SB 1534

SUBJECT: FUEL, MISCELLANEOUS, MOTOR VEHICLE, New Road Usage Charge for Electric Vehicles

BILL NUMBER:  SB 1534

INTRODUCED BY: LEE

EXECUTIVE SUMMARY: Replaces the $50 annual vehicle registration surcharge for electric vehicles with a capped mileage-based road user fee for electric vehicles. Establishes the Hawaiʻi Highway Safety and Modernization Council effective 7/1/2023; provided that implementation of user fees take effect 1/1/2025. Continue reading SB 1534

HB 1052

SUBJECT: FUEL, Earmark Barrel Tax for Climate Impact Special Fund

BILL NUMBER:  HB 1052; SB 1350 [GOV-04]

INTRODUCED BY:  HB by SAIKI, SB by KOUCHI (Governor’s Package)

EXECUTIVE SUMMARY: Establishes the Climate Impact Special Fund, allocates five cents from the Environmental Response, Energy, and Food Security Tax to the Climate Impact Special Fund, and appropriates funds to the Hawaiʻi Climate Change Mitigation and Adaptation Commission to address impacts of climate change and to mitigate further impacts on the State through carbon sequestration and resiliency planning, allocates funds to the sea level rise voluntary relocation fund.

SYNOPSIS:  Adds a new section to chapter 225P, HRS, to establish the climate impact special fund.  Moneys in the fund may be used for:  (1)  The operations of the Hawaii climate change mitigation and adaptation commission; and (2) Activities carried out by the State to address the impact, mitigation, and adaptation of climate change, including but not limited to nature-based solutions; climate smart agriculture; vehicle miles traveled reduction; sea level rise modeling, mapping, planning, adaption, and mitigation; managed retreat; carbon sequestration technologies; electrification of homes, vehicles, and appliances; clean renewable energy technologies; climate change education and outreach; and other activities deemed appropriate by the commission.

Amends section 243-3.5, HRS, to earmark 5 cents per barrel from the barrel tax to go into the fund.

EFFECTIVE DATE: July 1, 2023.

STAFF COMMENTS:  The barrel tax, HRS section 243-3.5, now imposes a tax of $1.05 on each barrel of petroleum product sold to an end user.  It also imposes a tax on 19 cents per million BTU on a fossil fuel other than a petroleum product that is sold to an end user.  It may be through inadvertence that the earmark only reaches barrel taxes on petroleum products and not on other fossil fuels.

The proposed measure would perpetuate the earmarking of barrel tax revenues.  Climate impact mitigation activities may provide some benefit to the State.  But does that justify grabbing a pot of barrel tax money without going through the normal budgeting process that also considers sweltering primary schools, underfunded state pensions, or disaster relief for rain-flooded or lava-burnt counties as well as the economic decimation wrought by COVID-19?

Rather than the continual earmarking of revenues, a direct appropriation of general funds would be preferable. Earmarking revenues from any tax type for a particular purpose decreases transparency and accountability.

Next, it should be remembered that revenues diverted for a special purpose, in this case to stuff in a special fund with a broad mission, will not be counted against the state’s spending ceiling or debt limit and will obscure the state’s true financial condition.

Digested: 2/1/2023

HB 1146

SUBJECT: INCOME, FUEL, Adoption of Carbon Tax, Income Tax Credit for Low Income Ratepayers

BILL NUMBER:  HB 1146, SB 1004

INTRODUCED BY:  HB by MARTEN, AMATO, GANADEN, GATES, HUSSEY-BURDICK, KAPELA, LOWEN, MARTINEZ, PERRUSO, POEPOE, SAIKI, TAM, TARNAS, WOODSON; SB by RHOADS, CHANG, KEITH-AGARAN, KEOHOKALOLE, LEE, MCKELVEY, SHIMABUKURO

EXECUTIVE SUMMARY: Establishes a carbon emissions tax credit. Expands the environmental response, energy, and food security tax to include carbon emissions. Applies to taxable years beginning after 12/31/2023. Requires the Office of Planning and Sustainable Development, in consultation with the Department of Taxation, to recommend updates to the tax per fuel and corresponding tax credits.

Continue reading HB 1146

HB 1110

SUBJECT: FUEL, MISCELLANEOUS, MOTOR VEHICLE, New Road Usage Charge for Electric Vehicles

BILL NUMBER:  HB 1110, SB 1408 [TRN-11]

INTRODUCED BY:  HB by SAIKI, SB by KOUCHI (Governor’s Package)

EXECUTIVE SUMMARY:    Creates a mileage-based road usage charge to replace state motor fuel taxes beginning on July 1, 2025, for electric vehicles. Eliminates $50 annual state vehicle registration surcharge for electric vehicles. Allows electric vehicles a choice of paying a registration surcharge or a per-mile road usage charge until 2033. Requires motor vehicle registration application to specify whether the type of fuel for which the vehicle is adapted is electricity. Requires certificates of inspection to state the odometer reading of vehicles. Requires the Department of Transportation to plan for the deployment of a state mileage based road user charge program by 2033 and submit a report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026. Defines electric vehicle. Defines alternative fuel vehicle. Makes an appropriation. Continue reading HB 1110

HB 279, SB 1091

SUBJECT:  GENERAL EXCISE, FUEL, Allow county revenues to repair private roadways used by the public

BILL NUMBER:  HB 279, SB 1091

INTRODUCED BY: HB by KILA, CHUN, ICHIYAMA, KAPELA, LAMOSAO, TAKENOUCHI; SB by LEE, CHANG, KEITH-AGARAN, SAN BUENAVENTURA

EXECUTIVE SUMMARY:   Allows certain counties to utilize tax revenues collected by the counties for the repair and maintenance of private roads that are open to and used by the public.

Continue reading HB 279, SB 1091

SB 3158 HD 1

SUBJECT:  FUEL, Earmark to Fund Electric Bicycle and Electric Moped Rebate Program

BILL NUMBER:  SB 3158 HD 1

INTRODUCED BY: House Committee on Transportation

EXECUTIVE SUMMARY: Establishes the electric bicycle and electric moped rebate program and subaccount to encourage the purchase and use of electric bicycles and electric mopeds. Allocates a portion of the barrel tax for the rebate program. Continue reading SB 3158 HD 1

HB 2278 HD 1

SUBJECT:  INCOME, FUEL, Adoption of Carbon Tax, Income Tax Credit for Low Income Ratepayers

BILL NUMBER:  HB 2278 HD 1

INTRODUCED BY:  House Committee on Consumer Protection & Commerce

EXECUTIVE SUMMARY:   Establishes a refundable income tax credit to mitigate the effect of a carbon emissions tax on taxpayers. Amends the environmental response, energy, and food security tax to address carbon emissions.

Continue reading HB 2278 HD 1

HB 2278 HD 1

SUBJECT:  INCOME, FUEL, Adoption of Carbon Tax, Income Tax Credit for Low Income Ratepayers

BILL NUMBER:  HB 2278 HD 1

INTRODUCED BY:  House Committee on Energy & Environmental Protection

EXECUTIVE SUMMARY:   Establishes a refundable income tax credit to mitigate the effect of a carbon emissions tax on taxpayers. Amends the environmental response, energy, and food security tax to address carbon emissions.

Continue reading HB 2278 HD 1

SB 3170

SUBJECT:  FUEL, Allow Supplementation of Highway Fund with Federal Pandemic Funds

BILL NUMBER:  SB 3170

INTRODUCED BY: SAN BUENAVENTURA, CHANG, MISALUCHA, Gabbard, Nishihara, Shimabukuro, Wakai

EXECUTIVE SUMMARY:   Allows federal pandemic relief funds received by the State to be used to supplement payment into the county highway funds. Permits the County of Hawaii to appropriate the county’s share of fuel tax revenue for the maintenance of substandard private subdivision roads that are used by the public. Sunsets 6/30/27.

Continue reading SB 3170

HB 1926, SB 3193

SUBJECT:  GENERAL EXCISE, USE, FUEL, LIQUOR, TOBACCO, Exemption for Activity in Foreign-Trade Zones

BILL NUMBER:  HB 1926, SB 3193

INTRODUCED BY: HB by SAIKI, SB by DELA CRUZ, INOUYE, KEITH-AGARAN, KIDANI, Baker, Nishihara

EXECUTIVE SUMMARY:   Retroactively restores the foreign-trade zones exemption from taxation under the general excise tax law, use tax law, fuel tax law, liquor tax law, and cigarette tax and tobacco tax law.  This issue seems to have stemmed from the Department’s misunderstanding of what laws can or can’t apply in a foreign trade zone.  The Department seems to have now figured it out and it wants taxpayers to pay for its mistakes…retroactively.  We think it’s appropriate for the Legislature to step in and come up with a just resolution.

Continue reading HB 1926, SB 3193