RELATING TO TRANSPORTATION.

SB2995

THE SENATE

S.B. NO.

2995

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to transportation
.

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 rideshare or
ride-hailing services, formally known as transportation network companies, are
services that offer on-demand rides by connecting drivers using their personal
vehicles with passengers hailing a ride through a technology-based
platform.
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The legislature further finds
that in recent years, the rideshare industry has experienced substantial growth
nationally and in the State, transforming the way people commute and
navigate.
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In Hawaii, rideshare services
are utilized by local residents in lieu of driving or owning a care of their
own.
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Rideshare services are often also
utilized by visitors.

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The
legislature further finds that, as the rideshare industry continues to grow,
its impacts are also increasing.
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Many of
these impacts stem from the use of fossil fuel vehicles by the drivers of
transportation network companies.
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On
average, a driver in the state logs roughly ten to twelve thousand miles per
year.
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In comparison, a full-time
rideshare driver can often exceed fifty thousand miles per year.
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The fossil fuel used for that amount of
driving imposes a heavy economic burden on rideshare drivers, in addition to
the environmental costs that come with air pollution and greenhouse gas
emissions.

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The
legislature also finds that a recent study showed that Hawaii households with
the highest reliance on gasoline, which include drivers for on-demand rideshare
and delivery platforms, spend, on average, almost $14,000 on gasoline each
year, which is roughly fourteen per cent of their incomes.
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Incentivizing these drivers to switch to
electric vehicles could save them thousands of dollars annually on fuel costs
and maintenance while significantly reducing greenhouse gas emissions.

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The
legislature finds that in recognition of the climate impacts of transportation
emissions from the rideshare industry, California and Massachusetts have
required transportation network companies to reduce their greenhouse gas
emissions.
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Since 2024, California has
also implemented an incentive program to help transportation network company
drivers who qualify as low- or moderate-income to purchase or lease
zero-emission vehicles.
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California's
program is funded by a fee of nine cents charged to riders per ride.
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This fee has raised $30 million to support
the conversion of transportation network company divers and fleets to
zero-emission vehicles.

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The
legislature further finds that a similar incentive program is appropriate for
Hawaii and will help ease the burden of transportation costs for low- to
moderate-income drivers while facilitating the decarbonization of the rideshare
transportation industry in line with the State's climate adaptation and
mitigation mandates.
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This incentive
program will provide an innovative and compelling self-funding model that
collects a fee from the industry then returns the funds back to the industry to
reduce its impacts, increase its efficiency, and enable savings for its
workers.

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Accordingly,
the purpose of this Act is to:

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(1)
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Establish a zero-emissions rideshare
rebate program to be administered by the department of transportation;

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(2)
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Establish a rideshare fee that shall be
assessed on a rider of a prearranged ride; and

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(3)
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Establish the zero-emissions rideshare
subaccount within the highway development special fund.

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SECTION

2
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Chapter
279J
,
Hawaii Revised Statutes, is amended by adding two new sections to be
appropriately designated and to read as follows:

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�279J-A
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Zero-emissions rideshare rebate program;
established; third-party administrator.
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(a)
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There is established a zero-emissions
rideshare rebate program to be administered by the department.
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The rebate program shall support the purchase
or lease of zero-emission vehicles by qualified transportation network company
drivers.
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The department may contract
with a third-party manage and administer the rebate program.

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(b)
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Each eligible purchase or lease of a
zero-emission vehicle shall receive a rebate of not more than
$ .

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(c)
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The department shall make the rebate
available to transportation network company drivers belonging to low- and
moderate-income households.

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(d)
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The department shall:

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(1)
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Prepare any forms that may be
necessary for an applicant to claim a rebate under this section;

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(2)
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Require each applicant to furnish
the information necessary to ascertain the validity of the claim, including but
not limited to documentation that demonstrates the applicant's eligibility
pursuant to rules adopted by the department; and

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(3)
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Cooperate with a participating
dealer or retailer to apply the rebate at the point-of-sale.

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(e)
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Rebates issued pursuant to this section shall
be subject to available funds; provided that if available funds have been
exhausted, the department or third-party administrator shall not approve
additional rebates for the remainder of the fiscal year.

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(f)
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Nothing in this section shall alter taxes due
on the original purchase of the zero-emission vehicle before the application of
the rebate.

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(g)
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Any rebate received under this section shall
not be considered income for the purposes of state or county taxes.

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(h)
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Subject to approval by the department, the
third-party administrator may provide guidelines in addition to those specified
under this section.
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The third-party
administrator shall have the flexibility to make programmatic adjustments due
to market changes, technological advancements, and levels of participation to
ensure the prudent use and effective management of rebate program funds.

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(i)
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A third-party administrator contracted by the
department shall not be considered a "governmental body" as that term
is defined in section 103D-4; provided that all moneys transferred to the
third-party administrator shall only comprise funds collected pursuant to
section 279J-B, appropriated by the legislature, or provided by the federal
government or private funding sources.
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The third-party administrator shall not expend more than ten per cent of
the amounts deposited into the zero-emissions rideshare subaccount with the
highway development special fund pursuant to section 264-122(e) in any fiscal
year, or any other reasonable percentage determined by the department, for the
administration of the rebate program.

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(j)
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The department shall adopt rules pursuant to
chapter 91 to carry out the purposes of this section.

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(k)
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For the purposes of this section:

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"Low-
and moderate-income household" means a household with an income equal to
or less than one hundred forty per cent of the area median income as determined
by the United States Department of Housing and Urban Development.

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"Rebate
program" means the zero-emissions rideshare rebate program.

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"Zero-emission
vehicle" has the same meaning as defined in section 196-9.

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�279J-B
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Rideshare fee.
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(a)
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There shall be a rideshare fee of
$ assessed on each
prearranged ride; provided that the rider shall be subject to the rideshare
fee.

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(b)
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Each transportation network company shall
collect and remit the rideshare fee to the department.

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(c)
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All fees collected by the department under
this section shall be deposited into the zero-emissions rideshare subaccount within
the highway development special fund pursuant to section 264-122(e).
"

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SECTION

3
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Section
264-122, Hawaii Revised Statutes, is amended to read as follows:

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"
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264-122
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Highway development special fund.
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(a)
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There is established in the
state treasury the highway development special fund to be administered by the
department, into which shall be deposited:

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(1)
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Transfers of county impact fees
assessed under part VIII of chapter 46 and this part to pay for state highway
improvements;

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(2)
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Interest from investment of deposits;
and

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(3)
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Legislative and county appropriations.

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(b)
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Moneys in the highway development special
fund shall be used for the following purposes:

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(1)
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Capital costs of qualifying proposed
state highway improvements;

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(2)
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Reevaluation of the need, geographic
limitations, amount, and use of impact fees;

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(3)
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Transfers to reimburse other special
funds for expenditures which otherwise might have been funded with moneys in
the highway development special fund;

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(4)
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Transfers under sections 36-27 and
36-30;

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(5)
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Refunds under section 264-125; and

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(6)
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The department's costs to implement
this part, including but not limited to costs to administer the highway
development special fund.

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(c)
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The department may establish accounts in the
highway development special fund as necessary to implement this part and rules
adopted by the department.

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(d)
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There is established within the highway
development special fund an electric bicycle and electric moped
subaccount.
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The department shall expend
moneys in the subaccount for the purposes of funding the electric bicycle and
electric moped rebate program established pursuant to section 196-7.8.

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(e)
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There is established within the highway
development special fund a zero-emission rideshare subaccount.
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The department shall expend moneys in the
subaccount for the purposes of funding the zero-emissions rideshare rebate
program established pursuant to section 279J-A.
"

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SECTION
4.
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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
5.
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New statutory material is
underscored.

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SECTION
6.
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This Act shall take effect on July 1,
2026.

INTRODUCED BY:

_____________________________

Report Title:

DOT;
Highway Development Special Fund; Zero-Emissions Rideshare Rebate Program; Zero
Emissions Rideshare Subaccount; Ridesharing; Zero-Emission Vehicles; Fees

Description:

Establishes
a Zero-Emissions Rideshare Rebate Program to be administered by the Department
of Transportation.
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Establishes a
rideshare fee.
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Establishes the
Zero-Emissions Rideshare Subaccount within the Highway Development Special
Fund.

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not legislation or evidence of legislative intent.