STAND. COM. REP. NO. 176-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 2493

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2493 entitled:

"A BILL FOR AN ACT RELATING TO CARBON SEQUESTRATION INCENTIVES,"

begs leave to report as follows:

The purpose of this measure is to establish and appropriate funds for the Hawaii Farmland and Forest Soil Health Carbon Smart Incentive Program to incentivize carbon sequestration activities through incentives contracts that provide for compensation for eligible practices by program participants.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources; Hawaii Green Infrastructure Authority; Office of Planning and Sustainable Development; The Nature Conservancy – Hawai‘i and Palmyra; Hawaii Cattlemen's Council, Inc.; Life of the Land; Kauai Women's Caucus; 350Hawaii.org; Our Revolution Hawaii; Hawai‘i Gas; Climate Protectors Hawaii; Energy & Climate Action Committee of the Environmental Caucus of the Democratic Party of Hawai‘i; Dibshawaii LLC; Ohana Hui Ventures, Inc; Environmental Caucus of the Democratic Party of Hawai‘i; Art Farm; Eco4Life; and numerous individuals. Your Committee received comments on this measure from the Department of Budget and Finance and Department of Agriculture.

Your Committee finds that the State needs to reduce its contribution to climate change, increase local food production, improve soil health, and secure resilient water sources. Incentivizing nature-based actions that are soil health and carbon positive provide rich, diverse co-benefits to the State, such as restoring, maintaining, and improving landscape soil health and water security through payment for service programs. This measure would increase the State's food and water security, while also allowing small farmers, ranchers, foresters, and landowners to be compensated for taking measures to help Hawaii reach its climate readiness goals.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2100, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2493, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2493, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair