STAND. COM. REP. NO.  1193

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 1088

      S.D. 1

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Water & Land, to which was referred S.B. No. 1088, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CARBON FORESTRY CERTIFICATION,"

begs leave to report as follows:

The purpose of this measure is to:

     (1)  Appropriate funds for certification of a reforestation carbon project at Haleakala, Maui, operated by the Department of Land and Natural Resources, under an established forest carbon standard certification system; and

     (2)  Require the Department to submit an annual report on the project certification to the Governor and Legislature.  

The Office of Environmental Quality Control and one concerned individual testified in support of this measure.  The Department of Land and Natural Resources, State Environmental Council, and Life of the Land commented on this measure.

Your Committee has amended this measure by:

     (1)  Deleting the portion of its preamble explaining carbon sequestration;

     (2)  Specifying that the funds shall be appropriated from the Natural Area Reserve Fund rather than the general fund;

     (3)  Adding language that provides that contractors and other third parties who receive funds under this section may be subject to review and inspection by the Department of Land and Natural Resources, the Attorney General, or the Auditor;

     (4)  Requiring all contracts, investors, and memorandums of understandings to be listed in the Department's annual audit report to the Legislature;  

     (5)  Changing the effective date to July 1, 2050; and

     (6)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1088, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1088, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

RYAN I. YAMANE, Chair