STAND. COM. REP. NO. 1563

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.C.R. No. 261
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Energy and Environmental Protection, to
which was referred H.C.R. No. 261 entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING THE CONVENING OF A
     MEETING TO CONSIDER MEANS TO ATTRACT CARBON INVESTMENTS TO
     MITIGATE GLOBAL WARMING THROUGH SUSTAINABLE FORESTRY IN
     HAWAII,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to request the
Hawaii Forestry and Communities Executive Council and the
Department of Health to convene a meeting--including all affected
stakeholders--to consider regulatory, policy, fiscal and human
resources that would be required to attract carbon investments
into the state.

     Testimony in support of this measure was submitted by the
Department of Land and Natural Resources, Trees For Life, and the
Department of Labor and Industrial Relations. 

      The concept of carbon credits was initiated at the Kyoto
Protocal, where it was acknowledged that carbon sinks could
greatly aid in offsetting global warming.  Carbon sinks include
newly-planted and existing forests in which trees absorb carbon
dioxide from the atmosphere and store or "sequester" it in a
solid form as wood. 

     Currently, numerous companies are investing in carbon offset
forestry (COF) projects.  The State of Hawaii, with its unique

 
 
                                 STAND. COM. REP. NO. 1563
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geography and warm climate, has an opportunity to establish COF
projects that demonstrate management of forests for:  carbon
sequestration, thereby mitigating global warming; sustainable
forestry industries; and restoration of native forests.  

     Hawaii is presently a member-state to the Pacific NorthWest
Carbon Sequestration Coalition, which seeks to provide carbon
sequestration projects--which are described in this resolution--
to buyers of carbon credits.    
     
     As affirmed by the record of votes of the members of your
Committee on Energy and Environmental Protection that is attached
to this report, your Committee concurs with the intent and
purpose of H.C.R. No. 261, and recommends that it be referred to
the Committee on Finance.

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



                                   ______________________________
                                   HERMINA M. MORITA, Chair