STAND. COM. REP. NO. 2831

Honolulu, Hawaii

RE: S.B. No. 2696

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Water and Land and Energy, Economic Development, and Tourism, to which was referred S.B. No. 2696 entitled:

"A BILL FOR AN ACT RELATING TO GREEN FEES,"

beg leave to report as follows:

The purpose and intent of this measure is to require the Office of Planning to conduct a feasibility and implementation plan on assessing tourism green fees.

Your Committees received testimony in support of this measure from the Department of Land and Natural Resources, Hawaii Youth Climate Coalition, Kohala Coast Resort Association, Hawaiian Airlines, and two individuals. Your Committees received comments on this measure from the Office of Planning.

Your Committees find that Hawaii's natural resources are huge economic assets, an essential piece of our tourism industry, and support the well-being of our communities. However, the State's natural resources continue to decline, due to lack of adequate investment in proven and effective conservation approaches. Innovative financing mechanisms such as green fees are trending around the globe as triple bottom-line solutions to better manage visitor impacts on eco-systems and natural resources. Green fees may be referred to as eco-taxes, tourist taxes, green taxes, and environmental, conservation and tourism levies. In general, green fees require mandatory payments made by visitors to government entities for the explicit purpose of supporting conservation and natural resource management. This measure will appropriate funds for a feasibility and implementation plan focused on the establishment of a green fees program that will help the State invest in improving Hawaii's natural resources.

Your Committees note that according to the testimony of the Office of Planning, it estimates an appropriation of $600,000 for the feasibility and implementation plan. Your Committees recommend that the Office of Planning's suggestions be considered regarding requiring that the Office of Planning create an advisory group no later than July 1, 2021 made up of stakeholders and industry leaders. Your Committees recommend that the county agencies also be including in the advisory group. Your Committees note that should the State of Hawaii enact a green fee in the future, a fair apportionment should be apportioned amongst the various jurisdictions that are impacted.

Your Committees have amended this measure by:

(1) Inserting language that the private sector be required to pay for fifty percent of the cost of the feasibility and implementation plan;

(2) Inserting a blank appropriation amount;

(3) Inserting an effective date of December 31, 2033, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Water and Land and Energy, Economic Development, and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2696, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2696, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Water and Land and Energy, Economic Development, and Tourism,

________________________________ GLENN WAKAI, Chair

________________________________ KAIALI'I KAHELE, Chair