SECTION 1. The legislature finds that hydrogen fuel may be burned in internal combustion engines or used in fuel cells to power electric motors. The legislature further finds that there are many benefits to using vehicles powered by hydrogen fuel instead of gasoline or other fossil fuels. Fuel cell vehicles powered by pure hydrogen emit only heat and water, thereby reducing greenhouse gas emissions. Depending on production methods, hydrogen fuel can be substantially less expensive than gasoline. Because hydrogen can be produced in the United States, its use can reduce Hawaii's dependence on imported foreign oil.

The State has recognized the potential benefits of hydrogen fuel cell vehicles by requiring that they be given high priority in the procurement policy for all agencies that purchase or lease light-duty motor vehicles. This Act furthers existing policy by giving them the highest priority. Similarly, attractive consumer incentives will stimulate demand for hydrogen fuel cell vehicles in the private market. This Act also seeks to promote greater use of hydrogen fuel cell vehicles by including them in existing exemptions from the payment of certain parking fees and from high occupancy vehicle lane restrictions applicable to other types of alternative fuel vehicles.

Accordingly, the purpose of this Act is to increase the use of hydrogen fuel cell vehicles in the State by:

(1) Giving hydrogen fuel cell vehicles the highest priority in state and county procurement;

(2) Appropriating funds to enable the State to convert its vehicle fleet to hydrogen fuel cell vehicles; and

(3) Exempting hydrogen fuel cell vehicles from certain parking fees and from high occupancy vehicle lane restrictions.

SECTION 2. Section 103D-412, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Beginning January 1, 2010, all state and county entities, when purchasing new vehicles, shall seek vehicles with reduced dependence on petroleum-based fuels that meet the needs of the agency. Priority for selecting vehicles shall be as follows:

(1) [E~~lectric or plug-in hybrid electric vehicles;~~] Hydrogen or fuel cell vehicles;

(2) [H~~ydrogen or fuel cell vehicles;~~] Electric or plug-in hybrid electric vehicles;

(3) Other alternative fuel vehicles;

(4) Hybrid electric vehicles; and

(5) Vehicles that are identified by the United States Environmental Protection Agency in its annual "Fuel Economy Leaders" report as being among the top performers for fuel economy in their class."

SECTION 3. Act 168, Session Laws of Hawaii 2012, section 2, is amended by amending subsection (d) to read as follows:

"(d) For the purposes of this Act:

"Electric vehicle" means:

(1) A neighborhood electric vehicle; [or]

(2) A vehicle, with four or more wheels, that draws propulsion energy from a battery with at least four kilowatt hours of energy storage capacity that can be recharged from an external source of electricity[.]; or

(3) A vehicle that draws propulsion energy from electricity primarily produced using a fuel cell powered by hydrogen."

SECTION 4. The department of accounting and general services shall:

(1) Compile a list of all state fleet vehicles, including a listing of vehicles that are powered by gasoline or electricity, or that are hybrid vehicles;

(2) Determine the priority in which state fleet vehicles shall be replaced, establish a method to replace these vehicles with new priority vehicles pursuant to section 103D-412, Hawaii Revised Statutes, and make recommendations about how to accomplish the replacement over time; and

(3) Submit a report that includes:

(A) The information in paragraphs (1) and (2);

(B) The number of priority vehicles purchased or leased during the past fiscal year; and

to the legislature no later than twenty days prior to the regular session of 2016.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for the purchase of hydrogen fuel cell vehicles to replace or upgrade existing state fleet vehicles.

The sums appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

SECTION 6. The department of accounting and general services shall submit a report of its progress in converting the State's vehicle fleet from existing vehicles to hydrogen fuel cell vehicles, including any proposed legislation, to the legislature no later than twenty days prior to the regular sessions of 2017 and 2018; provided that the reports shall include the:

(1) Number and types of vehicles in the State's fleet;

(2) Number of hydrogen fuel cell vehicles purchased or leased; and

(3) Number of vehicles disposed of or sold.

SECTION 7. This Act shall take effect on July 1, 2015; provided that section 2 of this Act shall take effect on July 1, 2017.

HOUSE OF REPRESENTATIVES	H.B. NO.	887
TWENTY-EIGHTH LEGISLATURE, 2015		H.D. 1
STATE OF HAWAII