Natural Gas Laws and Incentives in Hawaii
The list below contains summaries of all Hawaii laws and incentives related to natural gas.
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)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.