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Senate committees approve barrel-tax increase to boost EV charger fund amid grid-capacity concerns
Summary
A joint Senate hearing approved SB 2905 to raise the environmental response tax allocation for an electric-vehicle (EV) charging systems subaccount, increasing the subaccount share by 10¢ (from 3¢ to 13¢). Witnesses said demand for chargers far outpaces current funding and raised questions about grid capacity and implementation timelines.
The Senate committees on Energy and Intergovernmental Affairs and AEN on Thursday approved SB 2905, which increases the portion of the barrel tax directed to an electric vehicle charging system subaccount.
The bill would raise the subaccount allocation by 10¢, moving the EV charging subaccount from 3¢ to 13¢ per barrel, and direct additional revenues to funding public EV chargers. "This bill addresses one of the most significant barriers to EV adoption," Dura Shin of the nonprofit Children’s Trust said in testimony, noting a June 2024 settlement that obligates the state to achieve net-zero transportation emissions by 2045 and urging infrastructure investment.
Supporters said the proposal would help close large gaps between current EV adoption and statutory goals. "The Department of Transportation’s plan calls for 80% battery-electric vehicle adoption by 2030; we’re currently only at about 14% EV sales per year," Shin said. Industry and advocacy witnesses said charging infrastructure remains a major barrier.
Senators pressed witnesses on how much money is already in the subaccount and on whether the state can turn additional funding into usable charging infrastructure. Ashley Norman, representing the Public Utilities Commission, said the annual appropriation for the subaccount was $750,000 and that the account held about that amount as it prepared contracts for the current fiscal year. Energy office staff said the current program is fully subscribed and has a backlog of ready projects waiting for funding.
Committee members raised implementation concerns. One senator cited a recent HNEI presentation suggesting the utility (HECO) had only about 5% available capacity on the grid, warning that "if we pile on more… HECO is totally unequipped to be able to meet that demand," and cautioned that ratepayers could pay more without commensurate delivery of chargers.
Committee leadership adopted an amendment to defer the bill’s effective date (recorded as a technical deferral in committee documents) and moved the measure forward. Vice Chair votes and one senator registered reservations about infrastructure capacity, but the recommendation to pass the bill with amendment was adopted.
