STAND. COM. REP. NO. 3666

Honolulu, Hawaii

RE: H.B. No. 1986

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1986, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE ENVIRONMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to establish a carbon offset program through which revenues realized from the sale of carbon offset credits may be deposited into the forest stewardship fund or invested into projects that improve the State's water infrastructure or mitigate threats to water sustainability due to climate change.

Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Land and Natural Resources; The Nature Conservancy; Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii; Ulupono Initiative; and three individuals.

Your Committee received written comments on this measure from the Office of Planning, Hawaii Energy Policy Forum Fuels Working Group, and Hawaii Farm Bureau.

Your Committee finds that it is in the public interest to create a carbon offset program that would incentivize and reward the adoption and practice of, and adherence to, carbon emission reduction activities in a manner consistent with the Hawaii 2050 sustainability plan.

Your Committee has amended this measure by:

(1) Correcting a reference to a section of the Hawaii Revised Statutes; and

(2) Making technical nonsubstantive changes for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1986, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1986, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair