STAND. COM. REP. NO. 3122

Honolulu, Hawaii

RE: S.B. No. 3325

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3325, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to establish and provide moneys for the Hawaii Farmland and Forest Soil Health Carbon Smart Incentive Program to provide incentive contracts to agricultural landowners and lessees who engage in certain carbon sequestration activities.

Your Committee received written comments in support of this measure from the Department of Land and Natural Resources, Recycle Hawaii and Clean the Pacific, Kauai Climate Action Coalition, Kauai Women's Caucus, 350Hawaii, Hawaii Gas, Climate Protectors Hawaii, Puamana Gardens, Nature Conservancy Hawaii, Hawaii Farm Bureau, Hawaii Cattlemen's Council, Environmental Caucus of the Democratic Party of Hawaii, and numerous individuals.

Your Committee received written comments in opposition to this measure from one individual.

Your Committee received written comments on this measure from the Department of Agriculture, Department of Budget and Finance, and Office of Planning and Sustainable Development.

Your Committee finds that the incentive program established by this measure will help support forestry and regenerative agriculture, improve soil health, increase carbon sequestration, and curb the detrimental impacts of climate change.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

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

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3325, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3325, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair