STAND. COM. REP. NO. 587-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2602

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2602, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO A SUSTAINABLE TOURISM INFRASTRUCTURE,"

begs leave to report as follows:

The purpose of this measure is to establish and appropriate funds for the Department of Business, Economic Development, and Tourism to establish a matching grant program to support voluntary, one-time capital investments by tourism industry operators in tourism infrastructure that produce measurable sustainability or climate resilience outcomes.

Your Committee received testimony in support of this measure from the Hawaiʻi Tourism Authority; Chamber of Commerce Hawaii; and Hawaiʻi Bicycling League.

Your Committee finds that the State's visitor industry supports statewide employment, tax revenues, and public services but also relies heavily on energy, water, transportation, and coastal assets that are increasingly vulnerable to climate-related risks. Your Committee further finds that strategic capital investments in visitor industry facilities, particularly hotels, cruise ship operations, passenger terminals, and port-related infrastructure, can reduce greenhouse gas emissions, improve energy and water efficiency, mitigate climate risks, and reduce long-term public infrastructure and disaster recovery costs borne by the State. Your Committee believes that this measure presents a fiscally prudent opportunity to leverage limited public funds to support voluntary, outcome-driven, private-sector investments to achieve measurable environmental and economic benefits.

Your Committee has amended this measure by:

(1) Adding cycling and micromobility infrastructure to the authorized uses of grants awarded;

(2) Adding bikeshare networks and operators and private nonprofit organizations doing similar work to the applicants eligible for grants; and

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

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2602, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 2602, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair