SB3296 SD1

SECTION 1. The legislature finds that the State's agricultural lands, watersheds, and working landscapes are essential to the State's long-term food security, climate resilience, and environmental health. Farmers and land stewards face persistent barriers to adopt conservation agricultural practices including limited access to technical assistance, underinvestment in farm-level conservation infrastructure, and a lack of coordinated statewide support for soil health, regenerative agriculture, and climate-smart stewardship.

The legislature further finds that although federal conservation programs provide important resources nationally, many of these programs were developed for large-scale, continental agricultural systems and do not align well with the State's small, diversified farms or indigenous and community-based aina restoration practices. The United States Natural Resources Conservation Service's practice standards, timelines, and engineering requirements often reflect temperate-climate, acreage-intensive farming models and can be difficult for the State's producers to access or implement within tropical agroecosystems, mixed land-tenure arrangements, and culturally grounded stewardship methods. As a result, Hawaii lacks a conservation agriculture support structure tailored to the State's unique ecological conditions, production systems, and aina-based restoration needs. While individual state-level programs currently offer elements of training, cost-share, and conservation support, Hawaii lacks a unified, statewide system that integrates conservation agriculture training, on-the-ground implementation, and infrastructure development. A coordinated statewide approach will strengthen environmental stewardship, expand local food production, reduce greenhouse gas emissions, improve soil and water health, and build long-term resilience in the State's food systems.

Accordingly, the purpose of this Act is to establish a conservation and agriculture environmental stewardship pilot program.

SECTION 2. Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§141- Conservation and agriculture environmental stewardship pilot program; established. (a) There is established within the department of agriculture and biosecurity a conservation and agriculture environmental stewardship pilot program to expand access to funding and technical assistance for training incentives, infrastructure support, and cost-share incentives for farmers, ranchers, land managers, and conservation partners with the goal of supporting agricultural production.

(b) The pilot program shall include but not be limited to:

(1) Training incentives and capacity building that shall include:

(A) Small stipends for farmers and stewards who complete conservation and planning trainings; and

(B) Workshops on topics including but not limited to soil health, climate-smart agriculture, agroforestry, composting, water conservation, and farm planning;

(2) Stewardship implementation cost-share that provides:

(A) Direct support for implementing conservation practices, including but not limited to cover cropping, soil amendments, erosion control, nutrient management, compost use, riparian buffers, and biodiversity improvement; and

(B) Cost-share availability to working farms, ranches, cooperatives, and community-based conservation partners; and

(3) Infrastructure development funding for small-scale conservation infrastructure, including but not limited to composting systems, improved irrigation efficiency, stormwater management features, equipment for soil health implementation, and other projects that advance regenerative practices.

(c) The department of agriculture and biosecurity may contract with or award grants to a nonprofit, or a consortium of nonprofits, with experience in administering statewide food systems funds, agriculture and conservation cost-share programs, and delivering conservation agriculture training and technical assistance.

(d) Eligible participants shall include Hawaii-based farmers, ranchers, producers, landowners, cooperatives, conservation organizations, community-based agriculture projects, and aina restoration and stewardship organizations.

(e) Applications for grants shall be made to the department of agriculture and biosecurity and contain the information as shall be required by rules adopted to administer the pilot program. At a minimum, the applicant shall:

(1) Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which a grant is awarded;

(2) Provide a detailed plan outlining the scope, objectives, and projected impact of the project or projects, including a clear breakdown of how grant funds will be expended;

(3) Agree to use state funds exclusively for the purposes of the program;

(4) Indicate the capability and capacity to properly carry out the proposed project and properly administer grant funds; provided that the department of agriculture and biosecurity shall prescribe the applicant qualifications for each grant;

(5) Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;

(6) Agree not to use state funds for purposes of entertainment or perquisites;

(7) Comply with any additional requirements prescribed by the department of agriculture and biosecurity;

(8) Comply with all applicable federal, state, and county statutes, rules, and ordinances;

(9) Agree to indemnify and hold harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with grant funds provided hereunder and procure sufficient insurance to provide this indemnification if requested to do so by the department of agriculture and biosecurity; and

(10) Agree to make available to the department of agriculture and biosecurity all records the applicant may have relating to the grant, to allow state agencies to monitor the applicant's compliance with this section."

SECTION 3. The department of agriculture and biosecurity shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027, regarding the conservation and agriculture environmental stewardship pilot program, which shall include:

(1) The number and types of participants;

(2) Acres and areas impacted by conservation implementation;

(3) Types of conservation practices funded and completed;

(4) Environmental, social, and cultural outcomes, including soil health improvements, compost use, water efficiency, and other documented benefits, community participation, education, and awareness about conservation and agriculture; and

(5) Recommendations regarding expansion, modification, or continuation of the program.

SECTION 4. The department of agriculture and biosecurity may adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to effectuate the purposes of this Act.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 to implement the conservation and agriculture environmental stewardship pilot program.

The sum appropriated shall be expended by the department of agriculture and biosecurity for the purposes of this Act.

SECTION 6. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2050, and shall be repealed on June 30, 2028; provided that the department of agriculture and biosecurity shall retain the authority to complete reporting requirements and close-out activities.

THE SENATE	S.B. NO.	3296
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII