STAND. COM. REP. NO. 2632

Honolulu, Hawaii

RE: S.B. No. 3325

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Agriculture and Environment and Energy, Economic Development, and Tourism, to which was referred S.B. No. 3325 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Hawaii farmland and forest soil health carbon smart incentive program to incentivize carbon sequestration activities; and

(2) Appropriate funds for the program.

Your Committees received testimony in support of this measure from the Hawaii Green Infrastructure Authority; Department of Land and Natural Resources; The Nature Conservancy; 350Hawaii.org; Hawaii Cattlemen's Council, Inc.; Climate Protectors Hawai‘i, Conservation Council For Hawaii, and seven individuals. Your Committees received testimony in opposition to this measure from one individual. Your Committees received comments on this measure from the Department of Budget and Finance, Department of Agriculture, and Office of Planning and Sustainable Development.

Your Committees find that climate change has caused an increase in extreme weather events that pose a threat to food production and distribution. However, the State can mitigate its contributions to climate change by sequestering carbon. This measure incentivizes carbon sequestration by establishing a carbon smart incentive program for certain sequestering activities.

Your Committees have amended this measure by:

(1) Making the Office of Planning and Sustainable Development the coordinating agency for the farmland and forest soil health carbon smart incentive program;

(2) Replacing the carbon offset program under section 225P-6, Hawaii Revised Statutes, with the new provisions proposed by this measure to establish a farmland and forest soil health carbon smart incentive program;

(3) Requiring the greenhouse gas sequestration task force to establish a reviewing committee;

(4) Replacing the Hawaii Green Infrastructure Authority with the Office of Planning and Sustainable Development as the expending agency; and

(5) 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 Agriculture and Environment 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. 3325, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3325, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Environment and Energy, Economic Development, and Tourism,

________________________________ GLENN WAKAI, Chair

________________________________ MIKE GABBARD, Chair