Hawaii Incentives and Laws for Hydrogen Fuel Cells

The list below contains summaries of all Hawaii incentives and laws related to Hydrogen Fuel Cells.

Laws and Regulations

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.

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)

Printable Version