HB2687

SECTION 1. The legislature finds that climate change driven by historic and continued carbon emissions from fossil fuel use will increase the prevalence of wildfires, extreme heat events, flooding, and storms with potentially devastating impacts on Hawaii's communities. The legislature further finds that community resilience is the capacity of a community to withstand, recover, rebound, and learn from adverse events and strengthen future response and recovery efforts. During an adverse event, all members of a resilient community should be able to meet their basic needs. Adverse events include wildfires, extreme heat events, flooding, storms, other climate emergencies, and non-climate related adverse events. Resilient communities have ownership of their essential resources, and all members are protected from adverse events, cared for during and after these events, and included in restorative efforts regardless of race, gender, sexuality, income, and ability.

The legislature also finds that resilient communities have physical infrastructure, governance structures, and economic conditions that are capable of withstanding adverse events and allow community members to become stronger after an adverse event. Building community resilience is an ongoing practice and includes strengthening connections between residents so that they can rely on each other in times of need. Increased resident connection can be supported by making investments in the built environment, addressing economic wellbeing, and creating more inclusive and responsive governance structures. Building community resilience means planning holistically for prevention, protection, mitigation, response, and recovery to adverse events.

The purpose of this Act is to:

(1) Establish the resilience hub and network grant program and the resilience hub and network grant program special fund; and

(2) Increase the environmental response, energy, and food security tax and deposit a portion of the tax into the resilience hub and network grant program special fund.

SECTION 2. Chapter 127A, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§127A-A Resilience hub and network grant program. (a) There is established the resilience hub and network grant program within the agency to provide grants, support, and technical assistance for resilience hubs and resilience networks statewide. The agency shall award:

(1) Grants for expenses related to planning and organizing resilience hubs and resilience networks; and

(2) Grants to support and expand development and operation of resilience hubs and resilience networks to ensure that physical facilities:

(A) Can provide protection from extreme weather;

(B) Can maintain power and climate during power outages;

(D) Are resilient following earthquakes, fires, tsunamis, hurricanes, floods, other severe weather events, and other potential disasters, emergencies, or incidents.

(b) Individuals or organizations may apply for grants in a form to be determined by the agency; provided that an application shall include:

(1) A description of the purpose for which grant moneys will be expended;

(2) A plan for implementing specific strategies to build resilience in a community;

(3) A description of additional resources available for purposes of the resilience hub or resilience network;

(4) A description of the project's ability to serve vulnerable populations and communities traditionally underrepresented in the public process, including communities of color, communities experiencing lower income, rural communities, communities with limited infrastructure, seniors, youth, and persons with disabilities; and

(5) Any other information required by the agency.

(c) The agency shall execute grant agreements with grant recipients to use grant moneys for purposes specified in the grant agreements. The agency shall determine the permissible purposes for a grant under this section based on the needs of the resilience hub or resilience network. The agency shall determine the needs of the resilience hub or resilience network in consultation with the community, including populations described in subsection (b)(4), within the locality in which the resilience hub or resilience network operates.

(d) The agency shall adopt rules pursuant to chapter 91 necessary to carry out the purposes of this section.

(e) For purposes of this section:

"Resilience hub" means a physical facility that is operated, managed, or supported by one or more local residents, local governments, public schools, community-based organizations, faith-based organizations, nonprofit organizations, or non-governmental organizations and that:

(1) Supports the needs of community members, facilitates gathering and communication, distributes resources, and otherwise enhances quality of life within a community;

(2) Serves as a central point for gathering, information sharing, and coordination in response to a disruption in the community;

(3) Enhances the ability of a community to respond to and recover from a disruption in a community;

(4) Is positioned, operated, and resourced on a day-to-day basis to provide community resources, including but not limited to food, water, information exchange, energy, electronic charging stations, basic medical supplies, and equipment proportionate to the size of the community's population and needs;

(5) Supports community cache sites and other support for community members who shelter in place;

(6) Can provide child care, training, food distribution, and other services that can help a community respond to unmet social needs to prepare for, respond to, and recover from disasters;

(7) Can provide or can be retrofitted to provide reliable renewable energy and energy storage, cooling, air filtration, and weather protection; and

(8) Accommodates individuals with accessibility needs.

"Resilience network" means an association of facilities, organizations, resource providers, or service providers outside of a resilience hub physical facility that collectively serves the purposes of a resilience hub.

§127A-B Resilience hub and network grant program special fund. (a) There is established in the state treasury the resilience hub and network grant program special fund, into which shall be deposited:

(1) A portion of the environmental response, energy, and food security tax pursuant to section 243-3.5;

(2) Appropriations made by the legislature;

(3) All contributions from public or private partners; and

(4) All interest earned on or accrued to moneys deposited into the special fund.

(b) Moneys in the resilience hub and network grant program special fund shall be used for the resilience hub and network grant program pursuant to section 127A-A."

SECTION 3. Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner. The tax shall be [~~$1.05~~] $2.10 on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided that of the tax collected pursuant to this subsection:

(1) 5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2;

(2) 4 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;

(3) 5 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169.1;

(4) 3 cents of the tax on each barrel shall be deposited into the electric vehicle charging system subaccount established pursuant to section 269-33(e); [~~and~~]

(5) 3 cents of the tax on each barrel shall be deposited into the hydrogen fueling system subaccount established pursuant to section 269-33(f)[.]; and

(6) $1.05 of the tax on each barrel shall be deposited into the resilience hub and network grant program special fund established pursuant to section 127A-B.

The tax imposed by this subsection shall be paid by the distributor of the petroleum product.

(b) In addition to subsection (a), the tax shall also be imposed on each one million British thermal units of fossil fuel sold by a distributor to any retail dealer or end user, other than a refiner, of fossil fuel. The tax shall be [19] 38 cents on each one million British thermal units of fossil fuel; provided that of the tax collected pursuant to this subsection:

(1) 4.8 per cent of the tax on each one million British thermal units shall be deposited into the environmental response revolving fund established under section 128D-2;

(2) 14.3 per cent of the tax on each one million British thermal units shall be deposited into the energy security special fund established under section 201-12.8; [~~and~~]

(3) 9.5 per cent of the tax on each one million British thermal units shall be deposited into the energy systems development special fund established under section 304A-2169.1[.]; and

(4) Fifty per cent of the tax on each one million British thermal units shall be deposited into the resilience hub and network grant program special fund established pursuant to section 127A-B.

The tax imposed by this subsection shall be paid by the distributor of the fossil fuel."

SECTION 4. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2687
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII