STAND. COM. REP. NO. 299

Honolulu, Hawaii

RE: S.B. No. 1350

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committees on Agriculture and Environment and Water and Land, to which was referred S.B. No. 1350 entitled:

"A BILL FOR AN ACT RELATING TO CLIMATE CHANGE,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Climate Impact Special Fund;

(2) Allocate five cents a barrel from the Environmental Response, Energy, and Food Security Tax to the Climate Impact Special Fund;

(3) Appropriate funds to the Hawaii Climate Change Mitigation and Adaptation Commission to address impacts of climate change and to mitigate further impacts on the State through carbon sequestration and resiliency planning; and

(4) Allocate funds to the sea level rise voluntary relocation fund.

Your Committees received testimony in support of this measure from the Office of the Governor, Hawai‘i Emergency Management Agency, Hawai‘i Climate Change Mitigation and Adaptation Commission, Office of Planning and Sustainable Development, Hawaii Green Infrastructure Authority, Department of Land and Natural Resources, University of Hawai‘i Sea Grant Program, Climate Resilience Collaboration, Office of the Mayor of the County of Maui, Hawaiian Electric, Climate Protectors Coalition, Energy and Climate Action Committee of the Environmental Caucus of the Democratic Party of Hawai‘i, The Nature Conservancy, and six individuals. Your Committees received testimony in opposition to this measure from two individuals. Your Committees received comments on this measure from the Tax Foundation of Hawaii and one individual.

Your Committees find that Hawaii is experiencing a climate emergency and that climate change will lead to dire consequences for the State's economy, sustainability, environment, security, culture, and way of life. This measure establishes a Climate Impact Special Fund to allocate and appropriate funds to address impacts of climate change and mitigate further impacts to the State.

Your Committees have amended this measure by:

(1) Deleting the allocation of five cents a barrel from the Environmental Response, Energy, and Food Security Tax to the Climate Impact Special Fund;

(2) Deleting the establishment of the Climate Impact Special Fund;

(3) Appropriating funds from general revenues, rather than the Climate Impact Special Fund, for the purposes of carrying out the operations of the Hawaii Climate Change Mitigation and Adaptation Commission;

(4) Appropriating funds from general revenues, rather than the Climate Impact Special Fund, to transfer moneys to the sea level rise voluntary relocation fund to carry out the purposes of the Hawaii Climate Change Mitigation and Adaptation Commission;

(5) Amending section 1 to reflect its amended purpose; and

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

Your Committees note that they were not able to confirm the establishment of a sea level rise voluntary relocation fund in existing law; therefore, in future deliberations of this measure, consideration should be given to confirming the fund into which the $20,000,000 appropriation made in section 3 of this measure is intended to be placed.

As affirmed by the records of votes of the members of your Committees on Agriculture and Environment and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1350, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1350, 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 Water and Land,

________________________________ LORRAINE R. INOUYE, Chair

________________________________ MIKE GABBARD, Chair