Hawaii Laws and Incentives

Listed below are the summaries of all current Hawaii laws, incentives, 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

Renewable Fuels Production Tax Credit

Renewable fuels produced from renewable feedstocks, such as ethanol, hydrogen, biodiesel, and biofuel, renewable diesel, biogas, and biofuel may qualify for an income tax credit equal to $0.20 per 76,000 British thermal units (BTUs) of renewable fuels sold for distribution in Hawaii. The facility must produce at least 15 billion BTUs of its nameplate capacity annually to receive the tax credit and may claim the tax credit for up to five years, not to exceed $3,000,000 per calendar year. Qualifying renewable fuel production facilities must provide written notification of their intent to produce renewable fuels before becoming eligible for the tax credit.

Producers must file a statement with the Department of Business, Economic Development, and Tourism within 30 days following the close of the calendar year.

Additional terms and conditions apply. The incentive is effective through December 31, 2021. For more information, see the Hawaii Department of Taxation Tax Information Release document. (Reference Hawaii Revised Statutes 235-110.31)

Transportation Electrification Loan Program

The Green Infrastructure Special Fund offers loans and a revolving credit line of up to $50,000,000 to eligible entities for the purchase or lease of electric vehicles and the installation of electric vehicle supply equipment. Eligible entities include public, private, and non-profit borrowers. For more information, see the Hawaii Green Infrastructure Authority website. (Reference Senate Bill 932, 2021, and Hawaii Revised Statutes 196-65)

Utility/Private Incentives

Electric Vehicle Supply Equipment (EVSE) Rebates – Hawaii Energy

Hawaii Energy administers the Electric Vehicle Charging Station rebate program on behalf of the Hawaii Public Utilities Commission, which offers rebates to commercial and multifamily dwelling customers for the installation of Level 2 and direct current (DC) fast EVSE. Eligible applicants include individuals, non-profit organizations, private businesses, government entities, and homeowner associations or authorized entities on behalf of multi-unit dwellings. Rebates are available for new and retrofitted EVSE. Rebates are awarded on a first-come, first-served basis while funding lasts. A total of $100,000 is available for eligible EVSE projects installed between July 1, 2021, and June 30, 2022. For more information, including program eligibility and requirements, see the Hawaii Energy Electric Vehicle Charging Station website.

Plug-In Electric Vehicle (PEV) Charging Rate Incentives - Hawaiian Electric Company

Hawaiian Electric Company and its subsidiaries, Maui Electric Company and Hawaii Electric Light Company, offer time-of-use (TOU) rates for residential, multi-unit dwelling, electric bus fleet facility, and commercial customers. The TOU rates are available to customers on Oahu, Molokai, Maui, and Hawaii Island. Hawaiian Electric also offers a TOU rate for customers who charge their PEV at Hawaii Electric’s publicly available direct current (DC) fast stations. For more information, see the Hawaiian Electric Vehicles website.

Propane Vehicle Rebate – Pacific Propane Gas Association (PPGA)

PPGA offers commercial customers a rebate of $1,500 for the purchase of a new propane vehicle or propane conversion. Rebates are available until December 31, 2021, on a first-come, first-served basis. Eligible vehicles must be purchased in 2021. For more information, see the PPGA Pacific Runs on Propane website.

Laws and Regulations

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

By January 2021, the Task Force will develop a multi-state action plan to support electrification of medium- and heavy-duty vehicles. The Task Force will consider actions to accomplish the goals of the MOU, including limiting all new medium- and heavy-duty vehicles sales in the signatory states to ZEVs by 2050. The signatory states will also seek to accelerate the deployment of medium- and heavy-duty ZEVs to benefit disadvantaged communities and explore opportunities to coordinate and partner with key stakeholders.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Electric Vehicle Supply Equipment (EVSE) Rebate Program Authorization

The Hawaii Public Utility Commission (PUC) is authorized to establish an EVSE rebate program. The PUC may contract with a third-party, non-government entity to administer, operate, and manage the rebate program. The EVSE rebate program may award up to $500,000 annually. The Hawaii Legislature established a special fund within the PUC to support the EVSE 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. (Reference House Bill 1142, 2021, and Hawaii Revised Statutes 269-72 and 269-73)

Vehicle Performance Contracts

State agencies must identify and evaluate energy efficiency program contracts to implement, including vehicle and related infrastructure programs, as well as vehicle maintenance or fuel cost savings as they relate to a fleet’s energy efficiency program. Energy performance contracts may include installation of electric vehicle supply equipment infrastructure. (Reference Hawaii Revised Statutes 36-42).

Alternative Fuel Vehicle (AFV) Registration

Owners of plug-in 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)

Autonomous Vehicle (AV) Task Force

The Attorney General will convene an AV Legal Preparation Task Force (Task Force) to prepare Hawaii with laws and regulations required for AVs. The Task Force will examine the adaptation and testing of AVs and existing laws relating to legal and insurance regulation of AVs, and make recommendations for AVs in Hawaii. The Task Force published a report on December 2020. (Reference House Concurrent Resolution 220, 2019)

Public Utility Definition

An entity that owns, controls, operates, or manages a plant or facility primarily used to charge or discharge a vehicle battery that provides power for vehicle propulsion is not defined as a public utility. (Reference Hawaii Revised Statutes 269-1)

Plug-In Electric Vehicle (PEV) Parking Requirement

All parking facilities that are available for use by the general public and include at least 100 parking spaces must designate at least one parking space specifically for PEVs, provided that no parking spaces required by the Americans with Disabilities Act Accessibility Guidelines are reduced or displaced. Spaces must be clearly marked and equipped with electric vehicle supply equipment (EVSE). An owner of multiple parking lots may designate and install EVSE in fewer parking spaces than required in one or more parking lots, as long as the owner meets the requirement for total number of aggregate spaces for all parking lots. A fee of $50-100 applies for non-PEVs that park in spaces designated for PEVs. (Reference Hawaii Revised Statutes 291-71 and 291-72)

Electric Vehicle Supply Equipment (EVSE) Policies for Multi-Family Residences

A multi-family residential dwelling or townhouse owner may install EVSE on or near a parking stall at the dwelling as long as the EVSE is in compliance with applicable rules and specifications, the EVSE is registered with the private entity within 30 days of installation, and the homeowner receives consent from the private entity if the EVSE is placed in a common area. Private entities may adopt rules that restrict the placement and use of EVSE but may not charge a fee for the placement. The EVSE owner is responsible for any damages resulting from the installation, maintenance, repair, removal, or replacement of the EVSE. A private entity includes associations of homeowners, community associations, condominium associations, cooperatives, or any nongovernmental entity with covenants.

A working group within the Hawaii Department of Business, Economic Development, and Tourism identified and examined the issues regarding multi-family dwelling EVSE requests to private entities. The group reported its findings and recommendations to the state legislature in December 2015.

(Reference Hawaii Revised Statutes 196-7.5)

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 and Advanced Vehicle Acquisition and Rental Requirements

State and county agencies must purchase light-duty vehicles that reduce petroleum consumption. Vehicle purchasing priority is as follows:

  1. Zero-emission vehicles;
  2. Plug-in hybrid electric vehicles (PEVs);
  3. Other alternative fuel vehicles; and
  4. 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 PEVs or HEVs. Rental rates for PEVs and HEVs must be comparable to that of a conventional internal combustion engine vehicle equivalent.

For more information, see the Hawaii State Energy Office's Vehicle Purchasing Guidelines website. (Reference House Bill 552, 2021, House Bill 424, 2021, and 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)

Idle Reduction Requirement

A 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 equipment operation such as operation of cranes and certain bulk carriers, provided no visible smoke is emitted and the equipment 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 (Department) established the Energy Feedstock Program to promote and support the production of energy feedstock development in Hawaii and to establish milestones and objectives for production of energy feedstock in the state to meet its energy requirements. Energy feedstock includes feedstock used to produce biofuels. For more information, see the Department's 2017 and 2020 Energy Feedstock Program reports. (Reference Hawaii Revised Statutes 141-9)

Biofuels Procurement Preference

State and county agency contracts awarded for the purchase of diesel fuel must give preference to bids for biofuels or blends of biofuel and petroleum fuel. When purchasing fuel for use in diesel engines, the price preference 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. For the purpose of this requirement, biodiesel is a vegetable oil-based fuel that meets ASTM specification D6751 and 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 Implementation Support

The Director of the Hawaii Center for Advanced Transportation Technologies serves as the state hydrogen implementation coordinator and is responsible for promoting hydrogen fuel through the establishment of hydrogen infrastructure and policies and chairs the Hawaii Hydrogen Implementation Working Group (H2IWG). H2IWG facilitates the establishment of infrastructure and policies across all state agencies with the goal of promoting the expansion of hydrogen-based energy in Hawaii. The H2IWG submitted recommendations to the state legislature in 2015. (Reference Hawaii Revised Statutes 206M-23)

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)

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 TypeTax
Ethanol0.145 times the rate for diesel
Methanol0.11 times the rate for diesel
Biodiesel0.25 times the rate for diesel
Propane0.33 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)

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 25 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 3,000 pounds, and conforms to the minimum safety equipment requirements in Title 49 of the Code of Federal Regulations, section 571.500. (Reference Hawaii Revised Statutes 286-2, 286-41, and 291C-134)