Expand the state’s e-bike rebate program to improve mobility options
Proposals at the state legislature could bring about much needed changes to Hawaiʻi’s electric bike and moped program. Senate Bill 1117, currently advancing through the Hawaiʻi State Legislature, would expand the state’s rebate program and give more residents—from students to low-income individuals—an opportunity to benefit from improved mobility options.
In 2023, the Hawaiʻi Department of Transportation (HDOT) launched a rebate program for electric bikes (e-bikes) and mopeds. The goal was to lower transportation costs for Hawaiʻi residents and to decrease vehicle emissions. For example, in Denver, Colorado, a successful e-bike rebate program was implemented in 2022, and in the first nine months of the program 4,734 Denver residents became new e-bike owners. Officials found that participants of the Denver program:
Cumulatively saved an estimated $1 million from avoided fuel and electricity costs.
Used their bike to replace 3.4 car trips and traveled 21.6 miles weekly.
Income-qualified residents were using their ebikes more than standard voucher recipients and replaced more than 40% of their car trips using their e-bike.
Under the current program, eligible applicants can receive 20 percent off the retail price of an e-bike or e-moped, with a rebate cap of $500. Rebates can only be received for e-bikes or e-mopeds with maximum speeds of 28 mph. While the program was established on February 28, 2023, applicants can receive rebates for purchases made after July 2, 2022.
To participate, applicants must be at least 18 years old and be able to prove that they meet one of the following requirements:
Participation in a low-income assistance program (such as SNAP);
Not owning a vehicle; or
Being enrolled in an educational institution.
Since the onset of the program in FY23, an estimated 480 rebates have been distributed, totaling just under $160,000. One of the main critiques of the current program is that it is under-utilized because of the small rebate amount. For example, the average cost of e-bikes that have received rebates has been $1,665. Since the rebate program currently only covers 20 percent of the cost, that leaves individuals to shoulder the burden of the remaining cost (approximately $1,330).
If passed, Senate Bill (SB) 1117 would expand the current electric bike rebate program in several key ways, including:
Increased Rebate Amount: Applicants would receive a rebate of either 50 percent of the purchase price or $750—whichever is lower. This is a significant increase from the previous maximum of $500 and would make electric mobility devices more affordable for a wider range of residents.
Inclusion of Adaptive Mobility Devices: The expanded program would also cover adaptive electric bicycles and other micro-mobility devices. This would allow individuals with disabilities to greater benefit from the program.
Additional Financial Support for Low-Income Residents and Students: Low-income residents and students could receive an additional $750 rebate.
Increased Funding Cap: The rebate program’s funding cap would be significantly increased to $2 million.
Now is the time for the state legislature to pass SB1117. By expanding the electric bike and moped rebate program, the state can help to lower household transportation costs, reduce vehicle costs, and increase resident’s physical activity. This would move closer to a future where affordable and sustainable transportation options are the norm, not the exception.