STAND. COM. REP. NO. 2617

Honolulu, Hawaii

RE: S.B. No. 1178

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Water, Land, Culture and the Arts and Agriculture and Environment, to which was referred S.B. No. 1178 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to codify and make permanent the Hawaii Carbon Smart Land Management Assistance Program under the Department of Land and Natural Resources.

Your Committees received testimony in support of this measure from the Hawaii Climate Change Mitigation and Adaptation Commission; Climate Protectors Hawaiʻi; Imua Alliance; Hawaii Cattlemen's Council, Inc.; Hawaiʻi Forest Association; and one individual.

Your Committees find that the Hawaii Carbon Smart Land Management Assistance Pilot Program (Pilot Program) established by Act 185, Session Laws of Hawaii 2022, received engagement from a vast swath of the agricultural community including local farmers, farmer networks, ranchers, foresters, agroecologists, grassroots and local non-profit organizations, community groups, schools, private land managers, ecologists, and businesses. While the Pilot Program was considered a success, it concluded in 2025. By making the Program a permanent program, this measure will support sustainable land management, regenerative agriculture, and food sovereignty for the State.

Your Committees have amended this measure by:

(1) Changing the appropriation amount from $2,000,000 to an unspecified amount to encourage further discussion;

(2) Updating dates to reflect the current legislative session;

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Water, Land, Culture and the Arts and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1178, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1178, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Water, Land, Culture and the Arts and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ CHRIS LEE, Chair