Hydrogen Laws and Incentives in Hawaii
The list below contains summaries of all Hawaii laws and incentives related to hydrogen.
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. According to this standard, alternative fuels will provide 20% of highway fuel demand by 2020 and 30% by 2030. For the purposes of the alternative fuels standard, cellulosic ethanol is equivalent to 2.5 gallons of non-cellulosic ethanol.
(Reference Hawaii Revised Statutes 196-42)
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:
| Fuel Type | Tax |
|---|---|
| Ethanol | 0.145 times the rate for diesel |
| Methanol | 0.11 times the rate for diesel |
| Biodiesel | 0.25 times the rate for diesel |
| Propane | 0.33 times the rate for diesel |
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 impose additional taxes.
(Reference Hawaii Revised Statutes 243-4 and 243-5)
Alternative Fuel Vehicle (AFV) Registration
Owners of electric vehicles and AFVs must pay an annual fee of $50, in addition to standard registration fees. Fees contribute to the State Highway Fund.
(Reference Hawaii Revised Statutes 249-31)
Alternative Fuel and Advanced Vehicle Acquisition and Rental Requirements
State agencies must coordinate vehicle acquisition efforts to transition light-duty state fleet vehicles to 100% zero emission vehicles (ZEVs) by 2035. To support the state fleet transition to ZEVs, state and county agencies must purchase light-duty vehicles that reduce petroleum consumption. Vehicle purchasing priority is as follows:
- ZEVs;
- Plug-in hybrid electric vehicles (PHEVs);
- Other alternative fuel vehicles; and
- Hybrid electric vehicles (HEVs).
Exemptions may apply. State agencies must purchase the most fuel-efficient vehicle available that meets agency needs, use 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, or electricity generated from off-board energy sources.
State employees renting a vehicle for government business must rent either EVs or HEVs. Rental rates for EVs and HEVs must be comparable to that of a conventional internal combustion engine vehicle equivalent.
For more information, see the [Hawaii State Energy Offices Vehicle Purchasing Guidelines website.
(Reference Hawaii Revised Statutes 103D-412 and 196-9)
Clean Transportation 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 and 100% of the state’s energy needs from energy-efficient and renewable sources by 2045. 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 and advanced vehicle technologies; 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. For more information, see the MOU and Hawaii Clean Energy Initiative website.
(Reference Hawaii Revised Statutes 196-10.5)
Hydrogen Fueling Station Rebate Authorization
The Hawaii Public Utilities Commission (PUC) is authorized to establish a rebate program for renewable hydrogen fueling systems. The program may offer rebates of up to $200,000 for the installation of a hydrogen fueling system and for upgrading the capacity of an existing hydrogen fueling system. In administering the rebate program, the PUC must prioritize projects that are publicly available, serve fuel cell electric vehicle fleets, or serve multiple tenants, employees, or customers. Renewable hydrogen means hydrogen produced from renewable sources that produce less than 50 grams of carbon dioxide per kilowatt hour. The Hawaii Legislature established a special fund within the PUC to support this rebate program. The special fund receives $0.03 of the tax collected from each barrel of petroleum product sold by a distributor to any retail dealer or end user in Hawaii. The PUC may contract with a third-party, non-government entity to administer, operate, and manage the rebate program.
(Reference Hawaii Revised Statutes 243.3.5, 269-73, and 269-74)
Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Deployment Support
California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, Nevada, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).
In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.
For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.
Renewable Hydrogen Program
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 that will encourage the adoption of hydrogen vehicles, fund the Hydrogen Investment Capital Special Fund, and support investment in hydrogen infrastructure.
(Reference Hawaii Revised Statutes 196-10 and 206M-63)
Transportation Emission Reduction Goal and Electric Vehicle (EV) Infrastructure Support
Hawaii established state goals to reduce greenhouse gas emissions by 50% below 2005 levels by 2030 and achieve zero emissions across all transportation sectors by 2045. To support these goals, the Hawaii Department of Transportation (HDOT) must establish a Clean Ground Transportation Working Group and an Interisland and Transpacific Clean Transportation Working Group. HDOT and the Hawaii State Energy Office (HSEO) must develop plans in coordination with both working groups to ensure sufficient EV charging capacity to support the growing use of electric modes of transportation in Hawaii. HDOT and HSEO must:
- Develop a plan to increase the State’s electric charging capacity at a rate that exceeds state electric vehicle (EV) sales and projected charging needs;
- Allow EVs to access high-occupancy vehicle lanes until EVs constitute at least 40% of all new vehicle sales; and,
- Develop and implement other options to accelerate the transition to zero-emission transportation.
The working groups must submit an annual report to the Hawaii Legislature on progress made and recommendations.
(Reference Senate Bill 1024, 2023 and Hawaii Revised Statutes 225P-5)
State Incentives
Diesel Emission Reduction Funding
The Hawaii State Energy Office (HSEO) and Hawaii Department of Heath offers rebates of up to 45% of the replacement of qualified medium- and heavy-duty diesel vehicles with zero emission vehicles. Eligible vehicles include medium- and heavy-duty trucks; school, shuttle, tour, and transit buses; airport and port cargo handling equipment. Rebates may also cover up to 45% of the cost of an electric vehicle charging station. Rebates are available on a first-come, first-served basis. The program is funded by Hawaii’s portion of the Volkswagen (VW) Environmental Mitigation Trust and the Diesel Emissions Reduction Act. For more information, including program guidance and application, see the HSEO Diesel Replacement Rebate Program website.
More Laws and Incentives
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