STAND. COM. REP. NO. 1420-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3325

S.D. 2

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 Consumer Protection & Commerce, to which was referred S.B. No. 3325, S.D. 2, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish the Hawaii Carbon Smart Land Management Assistance Pilot Program to incentivize carbon sequestration activities through incentive contracts that provide compensation for eligible practices;

(2) Repeal the Carbon Offset Program; and

(3) Appropriate funds for positions and administration of the Program.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, Office of Planning and Sustainable Development, one member of the Hawai‘i County Council, Hawai‘i Farm Bureau, 350Hawaii.org, Hawai‘i Alliance for Progressive Action, The Nature Conservancy - Hawai‘i and Palmyra, Hawai‘i Gas, Climate Protectors Hawai‘i, Environmental Caucus of the Democratic Party of Hawai‘i, and three individuals. Your Committee received testimony in opposition to this measure from two 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 can reduce its contribution to climate change by increasing local food production, improving soil health, securing resilient water sources, and sequestering greenhouse gases through regenerative agriculture and forest preservation. This measure would allow small farmers, ranchers, foresters, landowners, and lessees to be compensated for engaging in practices that increase soil health, reduce carbon emissions, and promote carbon sequestration and storage, thereby contributing to state climate change mitigation efforts.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3325, S.D. 2, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair