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Hawaii Incentives and Laws

Listed below are the summaries of all current Hawaii incentives, laws, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (3)
• Utility/Private Incentives (1)
• Laws and Regulations (15)

State Incentives

Plug-In Electric Vehicle and Electric Vehicle Supply Equipment (EVSE) Rebates

Qualified Hawaii residents, businesses, government agencies, and non-profit agencies may apply for rebates for the purchase of plug-in hybrid and battery electric vehicles (EVs) and EVSE through Hawaii's EV Ready Rebate Program. EV rebates are 20% of the vehicle purchase price, up to $4,500, and are restricted to one EV per applicant. To be eligible, the Internal Revenue Service must have approved the EV for the Qualified Plug-in Electric Drive Motor Vehicle Credit, and the vehicle must be purchased in Hawaii on or after August 1, 2010. EVSE rebates are 30% of the charging system cost including installation, up to $500. EVSE must be purchased on or after August 1, 2010, and installed before the rebate program ends; EVSE product and installation requirements apply. Rebates are issued on a first come, first served basis. The Hawaii EV Ready Rebate Program will continue until November 1, 2012, or until funds are exhausted.

Ethanol Production Incentive

An income tax credit is available for qualifying ethanol production facilities equal to 30% of nameplate capacity between 500,000 and 15 million gallons per year. The facility must produce at least 75% of its nameplate capacity to be eligible to receive the tax credit each year, and the tax credit may be taken for up to eight years. The credit is only available to the first 40 million gallons of ethanol produced per year. Qualifying ethanol production facilities must be in operation before January 1, 2017. Once the total nameplate capacities of all qualifying ethanol production facilities built within the state reaches 40,000 gallons per year, credits are not allowed for new facilities. (Reference Hawaii Revised Statutes 235-110.3)

Electric Vehicle (EV) High Occupancy Vehicle (HOV) Lane and Parking Fee Exemptions

Qualified EVs affixed with special state-issued EV license plates may use HOV lanes regardless of the number of passengers and are also exempt from parking fees charged by any non-federal governmental authority. (Reference Hawaii Act 290, 1997)

Utility/Private Incentives

Plug-In Electric Vehicle Charging Rate Incentive - Hawaiian Electric Company

Hawaiian Electric Company offers Electric Vehicle (EV) Pilot Rates for both residential and commercial customers. The pilot EV rates are available to 1,000 customers on Oahu, 300 in Maui County, and 300 on the Island of Hawaii for charging highway-capable, four-wheeled battery electric and plug-in hybrid electric vehicles. The pilot will remain in effect until October 1, 2013.

Laws and Regulations

State Biofuel Study

The Hawaii Department of Business, Economic Development and Tourism, led by the Energy Resources Coordinator, must conduct a study and issue a report on the conditions and policies needed to expand biofuel production in Hawaii with the goal of displacing a significant amount of petroleum-based fuel. The report must include recommendations related to the need for mandates and any changes to the existing ethanol fuel standard. A preliminary report is due at least 20 days prior to the start of the 2012 legislative session and the final report is due at least 20 days prior to the start of the 2013 legislative session. (Reference Senate Bill 146, 2011)

Plug-in Electric Vehicle (EV) Parking Requirement

All public, private, and government parking facilities that are available for use by the general public and that include at least one hundred parking spaces must designate at least 1% of the spaces specifically for EVs by December 31, 2011. At least one of the parking spaces must be located near the building entrance, and spaces must be clearly marked and equipped with an EV charging unit that meets recognized standards. Owners of multiple parking lots may designate and install an EV charging unit in fewer parking spaces than required in one parking lot, as long as the total number of aggregate spaces for all parking lots is met. The spaces designated for EVs will continue to increase by 1% for each additional 5,000 registered EVs until the percentage reaches 10%. Penalties apply for non-EVs that park in parking spots designated for EVs. (Reference Hawaii Revised Statutes 291-71 and 291-72)

Plug-in Electric Vehicle (EV) Charging System Requirements

A multi-family residential dwelling or townhouse owner may install an EV charging system at a parking stall at the dwelling as long as the system is in compliance with applicable rules and specifications; the system is registered within thirty days of installation; and the homeowner receives consent from the private entity if the system is placed in a common area. Private entities may adopt rules that restrict the placement and use of charging systems, but many not charge a fee for the installation of a vehicle charging system. The owner of a charging system is responsible for any damages resulting from the installation, maintenance, repair, removal, or replacement of the system. A private entity includes any association of homeowners, community association, condominium association, or cooperative. (Reference Hawaii Revised Statutes 196-7.5)

Plug-in Electric Vehicle (EV) Promotion

To achieve Hawaii's transportation efficiency goals and to create jobs, foster economic growth, and reduce greenhouse gas emissions, the Hawaii Senate encourages the promotion of EV use in the state. As a first step, EV charging infrastructure must be developed. In addition, stakeholders should work together to expedite the use of EVs in Hawaii. Additionally, the Hawaii House of Representatives urges the Hawaii Clean Energy Initiative End-Use Efficiency Work Group to address the challenges related to EV charging stations and access to electrical outlets to facilitate the use of EVs and plug-in hybrid electric vehicles. (Reference House Concurrent Resolution 230, 2010, and Senate Concurrent Resolution 126, 2009)

Ethanol Fuel Blend Standard

At least 85% of gasoline supplied to a retailer or sold in Hawaii must contain a minimum of 10% ethanol (E10). Gasoline blended with an ethanol-based product, such as ethyl tertiary butyl ether, will be considered to be in conformance with this requirement. Retail fuel distributors must meet this requirement and report to the state Energy, Resources, and Technology Division of the Department of Business, Economic Development, and Tourism on a monthly basis. (Reference Hawaii Revised Statutes 486J-10 and Hawaii Administrative Rules Title 15, Chapter 35)

Alternative Fuel Standard Development

The state of Hawaii is responsible for facilitating the development of alternative fuels and supporting the attainment of a statewide alternative fuels standard. The alternative fuels standard will be as follows: alternative fuels will provide 10% of highway fuel use by 2010, 15% by 2015, 20% by 2020, and 30% by 2030. For the purposes of the alternative fuels standard, ethanol produced from cellulosic materials is equivalent to 2.5 gallons of non-cellulosic ethanol. (Reference Hawaii Revised Statutes 196-42)

Alternative Fuel and Advanced Vehicle Acquisition Requirements

State and county agencies must purchase light-duty vehicles that reduce petroleum consumption and meet the needs of the agency. The priority to be used for purchasing such vehicles is as follows:

1. Electric or plug-in hybrid electric vehicles;
2. Hydrogen or fuel cell vehicles;
3. Other alternative fuel vehicles;
4. Hybrid electric vehicles; and
5. Vehicles identified as top performers for fuel economy in the U.S. Environmental Protection Agency's annual "Fuel Economy Leaders" report.

Exemptions may apply. State agencies must purchase alternative fuels and ethanol blended gasoline when available, evaluate a purchase preference for biodiesel blends, and promote the efficient operation of vehicles. For the purpose of this requirement, an alternative fuel is defined as an alcohol fuel, an alcohol fuel blend containing at least 85% alcohol, natural gas, liquefied petroleum gas (propane), hydrogen, biodiesel, a biodiesel blend containing at least 20% biodiesel, a fuel derived from biological materials, and electricity from off-board energy sources.

(Reference Hawaii Revised Statutes 103D-412 and 196-9)

Alternative Fuels Promotion

The state of Hawaii has signed a Memorandum of Understanding (MOU) with the U.S. Department of Energy to collaborate to produce 70% of the state's energy needs from energy-efficient and renewable sources by 2030. This effort is part of the Hawaii Clean Energy Initiative. The goals of the partnership include defining the structural transformation required to transition the state to a clean energy-dominated economy; demonstrating and fostering innovation in the use of clean energy, including alternative fuels; creating opportunities for the widespread distribution of clean energy benefits; establishing an open learning model for other states and entities to adopt; and building a workforce with cross-cutting skills to support a clean energy economy in the state.

Biofuels Production Land Use Allowance and Exemption

To reduce dependence on petroleum, achieve environmental sustainability, and create jobs, the state of Hawaii permits the use of lands originally zoned as agricultural land use districts to be used for renewable energy production, storage, and distribution, including the production of biofuels. Biofuels production or distribution facilities must be integrated with an agricultural activity and may not adversely impact agricultural land and other agricultural uses in the vicinity. Biofuels production or distribution facilities include those that produce or distribute liquid or gaseous fuels from organic sources such as biomass crops, agricultural residues, food wastes, animal residues and wastes, and oil crops including palm, canola, soybean, and waste cooking oils. Additionally, biofuels production or distribution facilities are exempt from subdivision requirements for leases and easements within agricultural land use districts. To qualify for the exemption, a biofuels facility must have the capacity to produce or distribute at least 100,000 gallons of fuel annually and be designated as a renewable energy facility. (Reference Senate Bill 1244, 2011, and Hawaii Revised Statutes 201N-14, 205-2, and 205-4.5)

Idle Reduction Requirement

A gasoline- or diesel-powered vehicle may not idle at a loading zone, parking or service area, route terminal, or other off-street areas, except for the following situations: during adjustment or repair of the engine; during auxiliary vehicle operations such as cranes and certain bulk carriers, provided no visible smoke is emitted and the vehicle is being used for its intended purpose; during loading and unloading of passengers, not to exceed three minutes; and during engine start-up and cool-down, not to exceed three minutes. (Reference Hawaii Administrative Rules Title 11, Chapter 60.1-34)

Energy Feedstock Program

The Hawaii Department of Agriculture established the Energy Feedstock Program to promote and support the production of energy feedstock development in Hawaii and to establish milestones and objectives for energy feedstock to be grown in the state to meet its energy requirements. Energy feedstock includes feedstock used to produce biofuels. (Reference Hawaii Revised Statutes 141-9)

Biofuels Procurement Preference

State and county agency contracts for the purchase of diesel fuel are to be awarded with preference given to bids for biofuels or blends of biofuel and petroleum fuel. When purchasing fuel for use in diesel engines, the preference price is $0.05 per gallon of B100. For blends containing both biodiesel and petroleum-based diesel, the preference is applied only to the biodiesel portion of the blend. Biodiesel is a vegetable oil-based fuel that meets ASTM specification D6751. Biofuel is a fuel from non-petroleum plant or animal based sources that can be used for the generation of heat or power. (Reference Hawaii Revised Statutes 103D-1012)

Hydrogen Energy Plan and Fund

The Hawaii Department of Business, Economic Development, and Tourism established the Hawaii Renewable Hydrogen Program (Program) to manage the state's transition to a renewable hydrogen economy. A Hydrogen Investment Capital Special Fund was created to provide seed capital for, and venture capital investments in, private sector and federal projects for research, development, testing, and Program implementation. The Program is responsible for designing, implementing, and administering activities including:

• Strategic partnerships for research, development, testing, and deployment;
• Demonstration projects, including infrastructure for hydrogen production, hydrogen storage, and fueling hydrogen vehicles;
• Statewide hydrogen economy public education and outreach
• Promotion of Hawaii's renewable hydrogen resources to potential partners and investors;
• A plan, for implementation during 2010 to 2020, to transition the Island of Hawaii to a hydrogen-fueled economy and to extend the application of the plan throughout the state; and
• Evaluation of policy recommendations to encourage the adoption of hydrogen vehicles, continually fund the Hydrogen Investment Capital Special Fund, and support investment in hydrogen infrastructure.

(Reference Hawaii Revised Statutes 196-10 and 211F-5.7)

Alternative Fuel Tax Rate

A distributor of any alternative fuel used to operate an internal combustion engine must pay a license tax of $0.0025 for each gallon of alternative fuel the distributor sells or uses. In addition, a distributor must pay a license tax for each gallon of fuel sold or used by the distributor for operating a motor vehicle on state public highways according to the following rates:

For other alternative fuels, the rate is based on the energy content of the fuels as compared to diesel fuel, using a lower heating value of 130,000 British thermal units per gallon as a standard for diesel, so that the tax rate, on an energy content basis, is equal to one-quarter the rate for diesel fuel. Counties may also impose additional taxes.

(Reference Hawaii Revised Statutes 243-4)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV may operate at speeds of up to 25 miles per hour (mph) and is only permitted on roadways with speed limits of 35 mph or less. An NEV must have a notice of the operational restrictions pertaining to the vehicle permanently attached to, or painted on, the vehicle in a location that is in clear view of the driver. An NEV is a four-wheeled self-propelled electrically powered motor vehicle that produces no emissions, has a gross vehicle weight rating of less than 2,500 pounds, and conforms to the minimum safety equipment requirements contained in Title 49 of the Code of Federal Regulations, section 571.500. (Reference Hawaii Revised Statutes 286-2, 286-41, and 291C-134)