HOUSE OF REPRESENTATIVES	H.C.R. NO.	209
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

requesting the department of transportation to establish a fossil fuel subsidy and fare-free transit fiscal impact working group to identify the impacts of fossil fuel subsidies and the economic, environmental, and health impacts of statewide fare-free public transportation.

 

 

 

     WHEREAS, the State is committed to achieving a zero-emissions clean economy by 2045 pursuant to Act 15, Session Laws of Hawaii 2018; and

 

     WHEREAS, transportation is the largest source of greenhouse gas emissions in the State, with the majority attributable to on-road gasoline consumption; and

 

     WHEREAS, according to the United States Energy Information Administration, Hawaii consistently experiences among the highest retail gasoline prices in the United States due to geographic isolation and reliance on imported petroleum; and

 

     WHEREAS, the Congressional Budget Office and United States Government Accountability Office have documented that the federal government provides billions of dollars annually in tax expenditures and other fiscal support benefiting fossil fuel production and consumption; and

 

     WHEREAS, the International Monetary Fund has found that when accounting for direct fiscal support and indirect externalized costs, including climate damages, air pollution-related health impacts, and infrastructure burdens, the effective subsidy for fossil fuels substantially exceeds direct budgetary expenditures; and

 

     WHEREAS, the American Public Transportation Association reports that public transportation reduces household transportation costs, lowers fuel consumption, and decreases greenhouse gas emissions, with national transit use saving billions of gallons of gasoline annually; and

 

     WHEREAS, research indicates that fare-free public transportation programs can increase ridership by twenty to sixty percent depending on service availability and population density; and

 

     WHEREAS, increasing public transportation ridership in Hawaii could reduce vehicle miles traveled, lower gasoline consumption, reduce roadway wear and congestion, and generate long-term public infrastructure savings; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, the Senate concurring, that the Department of Transportation is requested to establish a Fossil Fuel Subsidy and Fare-Free Transit Fiscal Impact Working Group to identify the impacts of fossil fuel subsidies and the economic, environmental, and health impacts of statewide fare-free public transportation; and

 

     BE IT FURTHER RESOLVED that the Fossil Fuel Subsidy and Fare-Free Transit Fiscal Impact Working Group is requested to:

 

     (1)  Quantify the total annual amount of federal taxpayer dollars used to subsidize fossil fuels nationally and estimate the proportional share attributable to petroleum consumed in Hawaii;

 

     (2)  Estimate the "true cost" per gallon of gasoline in Hawaii if federal fossil fuel subsidies were eliminated, including:

 

          (A)  The removal of direct federal tax expenditures; and

 

          (B)  The monetized value of externalized environmental and public health costs, where feasible;

 

     (3)  Determine the total annual cost to each county of providing fare-free public transportation, including the City and County of Honolulu;

 

     (4)  Estimate potential state and county government cost savings associated with fare-free public transportation, including reductions in:

 

          (A)  Roadway maintenance and repair costs;

 

          (B)  Congestion mitigation expenditures;

 

          (C)  Public health costs associated with vehicle emissions; and

 

          (D)  Administrative costs related to fare collection;

 

     (5)  Model a scenario in which statewide public transportation ridership increases by twenty percent, forty percent, and sixty percent and calculate:

 

          (A)  The estimated reduction in private vehicle miles traveled;

 

          (B)  The estimated reduction in gasoline consumption by private vehicles;

 

          (C)  The corresponding reduction in greenhouse gas emissions; and

 

          (D)  Long-term infrastructure and fiscal savings associated with fewer vehicles on public roadways;

 

     (6)  Provide ten-year and twenty-year comparative projections of:

 

          (A)  Business-as-usual transportation expenditures; and

 

          (B)  A fare-free public transportation system funded through increased petroleum taxation; and

 

     (7)  Develop policy recommendations consistent with the State's 2045 zero-emissions mandate; and

 

     BE IT FURTHER RESOLVED that the Director of Transportation, or the Director's designee, shall serve as the Chairperson of the working group; and

 

     BE IT FURTHER RESOLVED that the working group is requested to include representatives from:

 

     (1)  The Department of Taxation;

 

     (2)  The Department of Business, Economic Development, and Tourism;

 

     (3)  Each county public transportation agency, including:

 

          (A)  TheBus;

 

          (B)  Hele-On Bus;

 

          (C)  Maui Bus; and

 

          (D)  Kauai Bus;

 

     (4)  The University of Hawaii Economic Research Organization;

 

     (5)  At least one transportation economist to be invited by the Chairperson;

 

     (6)  Three representatives from three different organizations serving working families, to be invited by the Chairperson; and

 

     (7)  At least one climate or public health expert, to be invited by the Chairperson; and

 

     BE IT FURTHER RESOLVED that the Department of Transportation is requested to convene the first meeting of the working group no later than ninety days after the adoption of this Resolution; and

 

     BE IT FURTHER RESOLVED that the working group is requested to submit a report of its findings and recommendations, including detailed fiscal tables, gasoline price modeling scenarios, emissions reduction projections, and any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2027; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Transportation; Director of Taxation; Director of Business, Economic Development, and Tourism; Mayors of each county; Chairpersons of each County Council; Director of the Department of Transportation Services for the City and County of Honolulu; Executive Director of the Transportation Agency for the County of Kaua i; Director of the Department of Transportation for the County of Maui; and Administrator of the County of Hawai i Mass Transit Agency.

 

 

 

OFFERED BY: