HI HB1584

Office of Planning shall conduct a comprehensive study on implementing a statewide carbon tax in Hawaii, with option to contract with third party assistance.

Study must examine carbon pricing options, determine necessary price levels to reduce emissions, project revenue sources, analyze behavior change thresholds, and evaluate graduated implementation timelines.

Study shall evaluate equitable implementation mechanisms for low- to moderate-income residents, including direct dividends, reduction of regressive taxes, earned income tax credit increases, and revenue reinvestment in carbon reduction programs.

Study must review comparative advantages of modifying existing taxes (such as environmental response tax or fuel tax) instead of or in combination with a new carbon tax, include air travel considerations, and examine carbon tax examples from other jurisdictions.

Office of Planning shall submit interim report to legislature by December 31, 2019, and final report with findings and proposed legislation by October 31, 2020; funds appropriated from general revenues for fiscal years 2019-2020 and 2020-2021.