STAND. COM. REP. NO. 403

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1612

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committees on Energy and Environment and Transportation, International and Intergovernmental Affairs, to which was referred S.B. No. 1612 entitled:

 

"A BILL FOR AN ACT RELATING TO TRANSPORTATION ENERGY,"

 

beg leave to report as follows:

 

     The purpose of this measure is to establish a comprehensive approach to increasing the use of alternative fuel vehicles in the State, including state procurement of alternative fuel vehicles, tax incentives, and infrastructure requirements. 

 

     Testimony in support of the measure was submitted by one private organization.  Testimony in support, with suggested amendments and comments, was submitted by one state department and four private organizations. Testimony supporting the intent of the measure, but with concerns, was submitted by two state departments.  Testimony in opposition to the measure was submitted by one state department and one private organization.  Comments were submitted by three private organizations.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

 

     The Department of Transportation submitted testimony addressing the effect that the tax and fee exemptions and waivers in this measure would have on the State Highway Fund revenues.  Given the Department of Transportation's current and projected financial situations, the Department of Transportation has been concerned about keeping up with the project schedules for critical roadway infrastructure improvements.  To address these concerns, the Department of Transportation has offered an amendment to the measure, authorizing it to set up certain programs, which are contingent upon the economy improving.

 

     Your Committees find that this measure contains a comprehensive framework to encourage the development of electric and alternative fuel cars in Hawaii.  Nonetheless, your Committees find that this measure's impact on the already-strained budget of the Department of Transportation is problematic.  Your Committees further find that, with the economic downturn affecting the state budget, it is incumbent upon the legislature to make tough choices.

 

     Your Committees have amended this measure by deleting the contents of the measure and replacing it with language suggested by the Department of Transportation, establishing a Land Transportation Modernization Special Fund, to be administered by the Department of Transportation.  Moneys deposited in the Land Transportation Modernization special Fund would be used for the purpose of rectifying critical deficiencies by pursuing programs and projects of the Department of Transportation that have the greatest potential to improve performance categories relating to safety, congestion, system preservation, and other programs and initiatives.

 

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Transportation, International and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1612, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1612, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Transportation, International and Intergovernmental Affairs,

 

____________________________

J. KALANI ENGLISH, Chair

 

____________________________

MIKE GABBARD, Chair