Hawaii-2022-SB2328-Introduced

SECTION 1. The legislature finds that each year, Hawaii's reefs, oceans, beaches, and forests provide billions of dollars in value to the economy, supporting the well-being of the State's communities and visitors alike. Hawaii cannot disentangle its environment from its economy. Therefore, residents and visitors understand the value and importance of Hawaii's natural resources. Inseparable from the culture of Hawaii, Hawaii's environment is integral to the experiences of residents and visitors.

The legislature further finds that although these natural resources are critical for the visitor industry and resident communities, Hawaii's total natural resources management funding constitutes a major unfunded liability that poses a significant risk to the business climate and the economic resiliency of the State. The State's vital ecosystems and the resources they harbor continue to decline, due to lack of adequate investment in proven and effective conservation approaches. Data demonstrates growing concern that the lack of adequate plans to address the multitude of issues contributes to the continued decline to Hawaii's environment.

The legislature further finds that millions of visitors enjoyed the benefits of Hawaii's ecosystem and natural environment in 2021, and the number of visitors is expected to continue to rise in the future. Increased demand on Hawaii's natural resources requires innovative conservation plans and programs focused on reversing the decline in ecosystems and the associated risks for Hawaii's visitor industry and communities; such as the innovative financing mechanism of green fees and other assessments to address funding natural resource management and climate change mitigation. By prioritizing the protection of Hawaii's ocean, forest, and freshwater ecosystems and following the benchmarks set forth in the Aloha+ Challenge natural resource management goals, the legislature seeks to better understand how the governor's administration, state departments and agencies, and their private partners are working together to set forth plans to accomplish the climate change goals of the State.

The purpose of this Act is to appropriate funds for a study to identify the current plans, programs, funding sequences and plans, and allocations of state revenue in place to achieve the Aloha+ Challenge natural resource management goals.

SECTION 2. (a) The office of planning and sustainable development shall conduct a study that includes but is not limited to the following:

(1) Identification of:

(A) Current plans and programs established to meet the Aloha+ Challenge natural resource management 2030 goals;

(B) Investments focused on protecting Hawaii's ocean, forest, and freshwater ecosystems to ensure the perpetuation of the resources and resilience to climate change;

(D) Priority areas where natural resources are in extreme threat;

(2) An analysis and breakdown of Hawaii's conservation funding gap that exists in current natural resource management funding relative to meeting the needs and priorities identified in the Aloha+ Challenge natural resource management 2030 goals and the extent to which Hawaii's unfunded conservation liabilities will increase based on the current rate of funding;

(3) An analysis and review of the current utilization and effectiveness of natural resource management funding throughout state departments and agencies;

(4) An examination of all existing tax and fee structures that exist to support natural resource management efforts, including all sources of funding and allocation of the funds to address the Aloha+ Challenge natural resource management 2030 goals;

(5) An examination of all existing tax and fee structures placed on residents and visitors, including an estimated per resident and per visitor annual contributions;

(6) An analysis and recommendations on the existing funding structures and the advantages or disadvantages of increasing, decreasing, or reallocating existing taxes and fees relative to addressing the funding needs to achieve the Aloha+ Challenge natural resource management 2030 goals;

(7) An analysis of all innovative financing mechanisms that will ensure the most effective management of funds and result in use of revenues collected for the specific purposes of this Act, such as green fees and other assessments to address funding natural resource management and climate change mitigation;

(8) Identification of potential short-term and long-term impacts on Hawaii's tourism industry, including possible market impacts and economic and workforce considerations; and

(9) Development of a seven-year achievement plan with the recommendation of funding sources to begin no later than July 1, 2024, including proposed funding sources, benchmarks, indicators, and mandatory impact reporting.

(b) The office of planning and sustainable development, in consultation with the Hawaii tourism authority, department of business, economic development, and tourism, and department of land and natural resources, shall engage with stakeholders and industry leaders, including but not limited to:

(1) The director of finance;

(2) The director of taxation;

(3) Representatives of other relevant state agencies;

(4) Representatives of business or industry groups whose respective members would be affected by the implementation of the plan;

(5) Representatives of non-governmental organizations having an interest in climate change issues and natural resource protection; and

(6) Other relevant parties necessary to assist in fulfilling the Aloha+ Challenge natural resource management 2030 goals.

(c) The office of planning and sustainable development shall submit an interim report to the legislature of its progress, participants, findings, recommendations, and timeline for completion of the plan no later than December 31, 2022.

(d) The office of planning and sustainable development shall submit a final report to the legislature of its progress, participants, findings, and recommendations, including the implementation plan to achieve the Aloha+ Challenge natural resource management 2030 goals, no later than October 31, 2023.

SECTION 3. 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 2022-2023 for a study to be conducted by the office of planning and sustainable development pursuant to section 2 of this Act.

The sum appropriated shall be expended by the office of planning and sustainable development for the purposes of this Act; provided that no funds shall be made available under this Act unless the office of planning and sustainable development obtains matching funds from the private sector for at least fifty per cent of the cost of the study.

SECTION 4. This Act shall take effect on July 1, 2022.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2328
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII