RELATING TO ELECTRIC VEHICLE INFRASTRUCTURE.

SB1668

THE SENATE

S.B. NO.

1668

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to Electric Vehicle Infrastructure
.

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

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SECTION
1
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The legislature finds that the State has one
of the most aggressive clean energy goals in the nation and was the first to
commit to a one hundred per cent renewable energy goal.
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The State aims for a zero emissions clean
energy economy "as quickly as practicable, but no later than 2045"
with a fifty per cent reduction from 2005 levels by 2030 per Act 15, Session
Laws of Hawaii 2018.
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Hawaii was also the
first state in the nation to declare a climate emergency through S.C.R. No. 44,
S.D. 1, H.D. 1 (2021), which also called for a statewide commitment to a
decarbonized economy.
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To help achieve
the State's renewable energy goals, Act 74, Session Laws of Hawaii 2021,
requires one hundred per cent of the State's light-duty fleet to be fueled by
renewable energy by the end of 2035.

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The
legislature also finds that the use of fossil fuels is the primary source of
greenhouse gas emissions in the State, contributing to climate change and posing
a serious threat to the State's economic well-being, public health,
infrastructure, environment, and way of life.
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Of those emissions, the transportation sector
is responsible for almost two-third of all petroleum imported and consumed in
the State.
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The legislature notes that
for ground transportation, electric vehicles provide a viable, cost-effective
alternative to vehicles that run on fossil fuels.
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The legislature further finds that electric
vehicles will play an integral role in Hawaii's clean energy future and in
meeting the goals set for the State in reducing its greenhouse gas emissions,
particularly as electrical generation in Hawaii transitions more completely to
renewable energy sources.

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The
legislature further finds that current charging facilities for electric
vehicles do not meet Hawaii's needs and fall short of supporting the State's
goal of zero emissions by 2045.
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The
State must accelerate a transition to cleaner transportation to reach its
carbon emissions reduction goals.
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Additionally,
the legislature finds that as the State progresses toward a fully decarbonized
economy, the challenges of addressing hard-to-decarbonize sectors will also
increase.
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To achieve the goal of a fully
decarbonized economy, the State needs to plan ahead and understand the steps
necessary to create a carbon-negative economy by 2045.
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The legislature also finds that significant
investment in clean energy technology and infrastructure will be required to
achieve the State's goals of energy self-sufficiency, energy security, and
energy diversification.

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Accordingly,
the purpose of this Act is to facilitate the transition to one hundred per cent
clean energy in the State by:

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(1)
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Creating a funding program that
incentivizes electric vehicle charging systems and infrastructure development;

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(2)
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Increasing the amount of petroleum tax
to be deposited into the electric vehicle charging system subaccount; and

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(3)
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Allowing funds from the electric
vehicle charging system subaccount to be expended for the funding program.

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SECTION

2
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Chapter 269,
Hawaii Revised Statutes, is amended by adding two new section to be
appropriately designated and to read as follows:

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"
�269
-A
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Electric vehicle charging systems and infrastructure; funding
program.
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(a)
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The public utilities commission shall administer a funding program that
incentivizes the installation, maintenance, and upgrade of electric vehicle
charging systems and infrastructure throughout the State to achieve and
maintain a zero emissions clean energy economy.
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The public utilities commission may contract with a third-party
administrator pursuant to section 269-B to operate and manage the funding
program.

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(b)
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Funding shall be made
available to applicants for the purposes of developing, maintaining, and
upgrading electric vehicle charging systems, infrastructure, related
technologies, and related grid services.

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(c)
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Funding shall be subject to
availability, and the program administrator shall not approve additional
funding for the remainder of the fiscal year after program funds have been
fully exhausted.

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(d)
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The public utilities
commission, or its designated program administrator shall:

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(1)
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Prepare any forms that may be
necessary for an applicant to claim funding pursuant to this section; and

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(2)
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Require each applicant to furnish
reasonable information to ascertain the validity of the claim, including but
not limited to documentation necessary to demonstrate that the installation,
maintenance, and upgrade for which the funding is claimed is eligible.

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(e)
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In administering the funding program, the
public utilities commission shall give consideration to the following
guidelines:

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(1)
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Priority shall be given to electric
vehicle charging systems that are publicly available; serve multiple tenants,
employees, or customers; serve electric vehicle fleets; support the visitor
industry in transitioning to clean transportation; or serve low‑income,
moderate-income, underserved, or environmental justice communities;

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(2)
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Funding shall enhance broader public
clean energy and grid resiliency goals by supporting deployment of electric
vehicle charging systems that can regulate their time of use, be networked and
co-optimized with other electric vehicle charging systems and clean
transportation options, and otherwise provide grid services or other benefits
to the utility and electric grid; and

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(3)
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The program administrator may
propose new or modified guidelines to be considered in addition to those
specified in this subsection and may make programmatic adjustments due to
market changes, technological advancements, and levels of participation to ensure
the prudent use of taxpayer funds to effectively manage the program budget.

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(f)
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Eligible applicants receiving funds through
the funding program shall at minimum:

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(1)
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State the name of the applicant
requesting program funds;

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(2)
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State the amount of program funds
being requested; and

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(3)
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Describe the electric vehicle
charging system or infrastructure to be installed, maintained, or upgraded.

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(g)
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Eligible applicants may be eligible for
program funding if the funds are used to:

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(1)
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Install a new vehicle charging
system or infrastructure where none previously existed to:

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(A)
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An alternating current Level 2
station with one port;

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(B)
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An alternating current Level 2
station with one or more ports that provide electricity to one or more electric
vehicles; or

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(C)
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A direct current fast charging
system; or

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(2)
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Upgrade an existing electric vehicle
charging system or infrastructure to:

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(A)
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An alternating current Level 2
station with one port;

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(B)
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An alternating current Level 2
station with one or more ports that provide electricity to one or more electric
vehicles; or

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(C)
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A direct current fast charging
station.

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(h)
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Eligible applicants receiving funds through
the funding program shall use funds in accordance with the requirements of this
section.
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Installations funded by the
funding program shall be performed by experienced and qualified persons.

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(i)
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Eligible applicants receiving funds through
the funding program shall comply with all applicable federal and state laws
prohibiting discrimination against any person on the basis of race, color,
national origin, religion, creed, sex, age, sexual orientation, or disability,
or any other characteristic protected under applicable law.

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(j)
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Eligible applicants receiving funds shall
indemnify and save harmless the State and its officers, agents, and employees
from and against any and all claims arising out of or resulting from activities
carried out or projects undertaken with funds provided hereunder and procure
sufficient insurance to provide this indemnification.

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(k)
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For the purposes of this section:

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"Alternating
current Level 2 charging station" has the same meaning as in section
269-72.

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"Applicant"
means an individual; non-profit or for-profit corporation; local, state, or
federal government agency; public utility; homeowner association; or any other
eligible entity as defined under rules adopted for the electric vehicle charging
system funding program.

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"Direct
current fast charging system" has the same meaning as in section 269-72.

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"Electric
vehicle charging system" has the same meaning as "electric vehicle
supply equipment" as defined in article 625.2 of the National Electrical
Code of 1897, as amended.

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"Person"
means any individual, estate, trust, receiver, cooperative association, club,
corporation, company, firm, partnership, joint venture, syndicate, or other
entity.

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269-B
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Electric vehicle charging system and
infrastructure; administrator.
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(a)
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The public utilities commission may contract
with a third-party administrator to operate and manage the funding program
established under section 269-A.
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The administrator shall not be deemed to be a "governmental
body" as defined in section 103D-104; provided that all moneys transferred
to the third-party administrator shall have been appropriated by the
legislature or shall be from funds provided by the federal government or
private funding sources.
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The
administrator shall not expend more than fifteen per cent or a reasonable
percentage, as determined by the public utilities commission, of the amount
appropriated for the funding program for administration of the program
established under section 269-A; provided that program administration expenses
may include marketing and outreach expenses to increase program participation,
if needed; provided further that not more than ten per cent of the amounts
appropriated for the funding program may be expended on non-marketing and
outreach programs or administration of the program.

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(b)
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The administrator shall be subject to
regulation by the public utilities commission under any provision applicable to
a public utility in sections 269-7, 269-8, 269-8.2, 269-8.5, 269-9, 269-10,
269-13, 269-15, 269-19.5, and 269-28, and shall report to the public utilities
commission on a regular basis.
"

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SECTION

3
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Section
243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read
as follows:

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(a)
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In addition to any other taxes provided by
law, subject to the exemptions set forth in section 243-7, there is hereby
imposed a state environmental response, energy, and food security tax on each
barrel or fractional part of a barrel of petroleum product sold by a
distributor to any retail dealer or end user of petroleum product, other than a
refiner.
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The tax shall be $1.05 on each
barrel or fractional part of a barrel of petroleum product that is not aviation
fuel; provided that of the tax collected pursuant to this subsection:

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(1)
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5
cents of the tax on each barrel shall be deposited into the environmental
response revolving fund established under section 128D-2;

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(2)
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4 cents of the tax on each barrel shall be deposited into the
energy security special fund established under section 201-12.8;

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(3)
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5 cents of the tax on each barrel shall be deposited into the
energy systems development special fund established under section 304A-2169.1;

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(4)
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[
3
]

10
cents of the tax on each barrel shall be deposited into the electric
vehicle charging system subaccount established pursuant to section 269-33(e);
and

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(5)
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3
cents of the tax on each barrel shall be deposited into the hydrogen fueling
system subaccount established pursuant to section 269-33(f).

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The
tax imposed by this subsection shall be paid by the distributor of the
petroleum product."

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SECTION

4
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Section 269-33,
Hawaii Revised Statutes, is amended by amending subsection (e) to read as
follows:

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"(e)
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There is established within the public
utilities commission special fund an electric vehicle charging system
subaccount.
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The public utilities
commission shall expend
up to forty per cent of the
moneys in the
subaccount for the purposes of funding the electric vehicle charging system
rebate program established pursuant to sections 269-72 and 269-73[
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]
and
up to sixty per cent of the moneys in the subaccount for the purposes of
funding the electric vehicle charging systems and infrastructure program pursuant
to sections 269-A and 269-B.
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The
funds in this subaccount shall not be subject to the special fund ceiling in
subsection (d).
"

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SECTION

5
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There
is appropriated out of the electric vehicle charging system subaccount within
the public utilities commission special fund the sum of $2,373,908 or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for the fiscal year 2026‑2027 for the
purpose of funding the electric vehicle charging systems and infrastructure
funding program established pursuant to this Act.

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The
sums appropriated shall be expended by the public utilities commission for the
purposes of this Act.

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SECTION
6.
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In codifying the new sections added
by section 2 of this Act, the revisor of statutes shall substitute
appropriate section numbers for the letters used in designating the new
sections in this Act.

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SECTION
7.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION
8.
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This Act shall take effect on July 1,
2025.

INTRODUCED BY:

_____________________________

Report Title:

Public
Utilities Commission; Electric Vehicle Charging System Funding Program; Clean
Energy; Electric Vehicle Charging System Subaccount; Appropriations

Description:

Establishes
the Electric Vehicle Charging System and Infrastructure Funding Program and
allows the Electric Vehicle Charging System Subaccount to expend funds for the Program.

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Increases the amount of petroleum tax to
be deposited into the Electric Vehicle Charging System Subaccount.
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Appropriates funds.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.