SB690

PART I

SECTION 1. As reflected in the findings of Act 32, Session Laws of Hawai‘i 2017 (Act 32), the legislature recognizes that climate change is not only real, but it is also the overriding challenge of the twenty-first century and one of the priority issues of the senate. Climate change poses immediate and long-term threats to the State's economy, sustainability, security, and way of life.

Act 32 established the Hawai‘i climate change mitigation and adaptation commission and directed the commission, as a first step, to focus on and develop sea level rise vulnerability and adaptation reports that are required to include:

(1) Identification of the major areas of sea level rise impacts affecting the State and counties through 2050;

(2) Identification of expected impacts of sea level rise based on the latest scientific research for each area through 2050;

(3) Identification of the economic ramifications of sea level rise;

(4) Identification of applicable federal laws, policies, or programs that impact affected areas; and

(5) Recommendations for planning, management, and adaptation for hazards associated with increasing sea level rise.

The Hawai‘i climate change mitigation and adaptation commission submitted a Hawai‘i sea level rise vulnerability and adaptation report in December 2017. The report identifies, with maps at tax map key detail, areas that are susceptible to sea level rise impacts based on a 3.2-foot increase in sea level projected to occur by mid-century or earlier. These areas are designated as the sea level rise exposure area projection, which the commission recommends be adopted as a sea level rise exposure area overlay to guide state and county adaptation strategies and standards for development. The Hawai‘i sea level rise vulnerability and adaptation report also made a number of recommendations to state and county agencies based on emerging good practices to strengthen Hawaii's overall readiness to face sea level rise and climate change.

The purpose of this Act is to implement the recommendations of the Hawai‘i sea level rise vulnerability and adaptation report.

PART II

SECTION 2. The purpose of this part is to require all state departments and agencies to implement the recommendations of the Hawai‘i sea level vulnerability and adaptation report.

SECTION 3. Chapter 27, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . SEA LEVEL RISE ADAPTATION

§27- Responsibilities. (a) Each department and agency of the State shall:

(1) Review its existing policies, regulatory processes, and administrative rules to assess whether the department or agency's regulatory framework supports the smart redevelopment of urban areas as part of sea level rise adaptation planning; provided that the first review shall be completed no later than July 1, 2020, and subsequent reviews shall be conducted at least once every five years;

(2) Update capital improvement planning to:

(A) Incorporate sea level rise projections; and

(B) Prioritize infrastructure improvements for urban areas identified as priority redevelopment areas by the standing committee on sea level rise and managed retreat established pursuant to section 225M‑A(d);

(3) Adopt a review and approval process to ensure that new developments and capital improvement projects with an expected life span of thirty years or more incorporate sea level rise in the development or project's design and siting. The State shall require:

(A) New developments and capital improvement projects to include an in-depth analysis of sea level rise impacts based on elevation, tolerance for risk, and lifetime of the structure; and

(B) Redevelopments within existing footprints to be dependent on established, resilient building design guidelines, or otherwise be subject to relocation to a more suitable area;

(4) Develop design standards for existing and proposed land uses that limit urban growth and increase flood resiliency within sea level rise exposure areas;

(5) Develop guidance for developers to assist with the integration of sea level rise in project design and encourage the use of best management practices for incorporating green and sustainable approaches in all stages of project development;

(6) If applicable, consider adopting rules or policies that encourage property owners at risk due to coastal flooding to purchase flood insurance;

(7) Incorporate projected sea level rise into hazard mitigation plans;

(8) Adopt a statewide program that supports county participation in the building code effectiveness grading schedule program, administered by the International Organization for Standardization;

(9) Develop a pre-disaster recovery framework that incorporates opportunities to adapt to sea level rise through disaster recovery;

(10) Prioritize the preservation of coral reefs when taking actions that may affect the health of the coral reefs of the State; and

(11) Conduct an in-depth assessment of critical infrastructure that are at risk due to climate change and sea level rise, including critical infrastructure within sea level rise exposure areas. The assessment shall examine the vulnerability and evaluation of adaptation strategies for the infrastructure. The assessment shall consider the current condition of the infrastructure and the remaining years of useful life. The State shall use the assessment to prioritize investment to protect, retrofit, or relocate the infrastructure. The first assessment shall be completed no later than July 1, 2019, and subsequent assessments shall be conducted at least once every five years.

(b) Except for paragraph (a)(1), the governor may delegate the duties required by subsection (a) to one or more specific executive departments or agencies.

(c) For purposes of this section, "sea level rise exposure area" means a sea level rise exposure area identified and officially designated by the Hawaii climate change mitigation and adaptation commission or its successor.

§27- Report. The office of the governor shall report to the legislature on its progress regarding the implementation of this part. The governor shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session."

SECTION 4. Section 27-1, Hawaii Revised Statutes, is amended to read as follows:

"§27-1 Functions of statewide concern. The purpose of the chapter is to fix responsibility for certain functions, which are of statewide concern, in the state government. These functions which are declared to be state functions are as follows:

(1) Planning, construction, improvement and maintenance of public school facilities and grounds and the transportation of school children; provided that nothing in this paragraph shall preclude the several counties from expending their own funds to supplement state funds;

(2) Burial of indigents;

(3) Planning, construction, improvement, maintenance, and operation of public hospitals and other public health and medical facilities;

(4) Rendering of medical treatment and hospitalization services to state and county pensioners;

(5) Administration and operation of district courts; [~~and~~]

(6) Providing information and services to the public through joint cooperation with the several counties[.]; and

(7) Developing, adopting, and implementing recommendations, policies, and practices related to climate change mitigation and adaption."

SECTION 5. 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 2018-2019 for the purposes of implementing this Act.

The sum appropriated shall be allotted by the department of accounting and general services to the respective state agencies for expenditure as may be necessary to fulfill the purposes of this Act.

PART III

SECTION 6. The purpose of this part is to require the counties to implement recommendations of the Hawai‘i sea level vulnerability and adaptation report.

SECTION 7. Chapter 46, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . SEA LEVEL RISE ADAPTATION

§46-A Responsibilities. (a) Each county shall:

(1) Review its existing policies, regulatory processes, and administrative rules to assess whether the county's regulatory framework supports the smart redevelopment of urban areas as part of sea level rise adaptation planning; provided that the first review shall be completed no later than July 1, 2020, and subsequent reviews shall be conducted at least once every five years;

(2) In consultation with the State, conduct a comprehensive regional market assessment for each urban area identified as a priority redevelopment area by the committee on sea level rise and managed retreat established pursuant to section 225M-A(d). The assessment shall:

(A) Provide defensible estimates of current market conditions and opportunities for supportable future growth across various economic sectors;

(B) Identify specific opportunities for future growth across various economic sectors;

(D) Include quantitative and qualitative information that presents a comprehensive assessment of the market and defines supportable residential, commercial, and industrial development potential;

(3) In consultation with the State, and based on the comprehensive regional market assessments required by paragraph (2), develop detailed redevelopment strategies for each urban area identified as a priority redevelopment area by the standing committee on sea level rise and managed retreat established pursuant to section 225M-A(d). The strategy shall include:

(A) Site-level assessments recommending the highest and best use for the priority redevelopment site; and

(B) Detailed redevelopment strategies to support successful redevelopment of priorities areas, including specific recommendations that tailor to the unique local conditions of each redevelopment area;

(4) Update capital improvement planning to:

(A) Incorporate sea level rise; and

(5) Adopt a review and approval process to ensure that new developments and capital improvement projects with an expected life span of thirty years or more incorporate sea level rise in the development or project's design and siting. The counties shall require:

(A) New developments and capital improvement projects to include an in-depth analysis of sea level rise impacts based on elevation, tolerance for risk, and lifetime of the structure; and

(B) Redevelopments within existing footprints to be dependent on established, resilient building design guidelines, or otherwise be subject to relocation to a more suitable area;

(6) Develop design standards for existing and proposed land uses that limit urban growth and increase flood resiliency within sea level rise exposure areas;

(7) Develop guidance for developers to assist with the integration of sea level rise in project design and encourage the use of best management practices for incorporating green and sustainable approaches in all stages of project development;

(8) Take into consideration future sea level rise when adopting or revising flood standards and flood maps;

(9) Consider adopting ordinances that require structures built in coastal A zones be constructed in compliance with V zone construction standards. For purposes of this paragraph, "coastal A zone" and "V zone" shall refer to areas designated as a coastal A zone or zone V, respectively, by the National Flood Insurance Program;

(10) Participate in the National Flood Insurance Program's Community Rating System;

(11) Consider adopting ordinances or policies that encourage property owners at risk due to coastal flooding to purchase flood insurance;

(12) Incorporate projected sea level rise into hazard mitigation plans;

(13) Develop a pre-disaster recovery framework that incorporates opportunities to adapt to sea level rise through disaster recovery;

(14) Prioritize the preservation of coral reefs when taking actions that may affect the health of the coral reefs of the respective county;

(15) Conduct an in-depth assessment of critical infrastructure that are at risk to climate change and sea level rise, including critical infrastructure within sea level rise exposure areas. The assessment shall examine the vulnerability and evaluation of adaptation strategies for the infrastructure. The assessment shall consider the current condition of the infrastructure and the remaining years of useful life. The counties shall use the data to prioritize investment to protect, retrofit, or relocate the infrastructure; and

(16) Consider ordinances that create transfer of development rights and purchase of development rights programs; provided that the programs are created to facilitate the managed retreat from sea level rise exposure areas and preserve beaches from the effects of sea level rise.

(b) For purposes of this section, "sea level rise exposure area" means a sea level rise exposure area identified and officially designated by the Hawaii climate change mitigation and adaptation commission or its successor.

§46-B Report. Each county shall report to the legislature regarding its progress on the implementation of this part. The county shall submit the report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session."

SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the following sums or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 to assist the counties in implementing this part:

County of Hawaii $

County of Kauai $

County of Maui $

County of Honolulu $

Total $

The sums appropriated shall constitute the State's share of the cost of the mandated program under article VIII, section 5 of the Hawaii State Constitution.

PART IV

SECTION 9. The purpose of this part is to implement provisions of the Hawai‘i sea level vulnerability and adaptation report relating to the office of planning.

SECTION 10. Chapter 225M, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§225M-A Sea level rise; exposure areas; mitigation. (a) The office of planning shall integrate into state planning the recommendations from the Hawaii climate change mitigation and adaptation commission regarding sea level rise exposure areas. Specifically, the office of planning shall consider:

(1) Immediate opportunities to implement sea level rise adaptation actions;

(2) The promotion of managed retreat from the shoreline where feasible, including the planning of new developments outside of sea level rise exposure areas;

(3) The protection of coastal areas and beaches from inappropriate development in light of potential sea level rise; and

(4) The creation of incentives for flood risk avoidance.

(b) The office of planning shall develop specific guidance to apply:

(1) The climate change adaptation priority guidelines established by section 226-109; and

(2) Actions recommended by the Hawaii sea level rise vulnerability and adaptation report, issued by the Hawaii climate change mitigation and adaptation commission or its successor, to address sea level rise impacts,

in plans and programs within the state planning system.

(c) The office of planning shall maintain an inventory of lands suitable for future development outside of sea level rise exposure areas. The inventory shall:

(1) Identify, assess, and prioritize underutilized land within urban zoned areas that could be redeveloped in a manner that is resilient to sea level rise;

(2) Assess potential developable lands outside of urban growth boundaries that are suitable for future development;

(3) Review existing redevelopment plans or studies to assess the consistency of the plans with state goals relating to sea level rise and managed retreat;

(4) Include the following factors in the inventory:

(A) Existing land use classification and ownership;

(B) Historic land use patterns;

(D) Whether the area is currently eroding;

(E) Whether shoreline armoring is already in place in the area;

(F) Whether the area has a high potential for landward migration;

(G) Whether the area has particular social, cultural, economic, or environmental value;

(H) Whether the area currently supports critical infrastructure; and

(I) Anticipated vulnerability of the area to sea level rise impacts; and

(5) Be developed in coordination with the counties.

(d) The office of planning shall establish a standing committee on sea level rise and managed retreat, to be chaired by the director of the office of planning and to consist of any relevant state or county officials invited by the director of the office of planning. The committee shall conduct detailed risk analyses of urban areas vulnerable to sea level rise. The risk analyses shall:

(1) Use data from:

(A) Vulnerability assessment results compiled by the Hawaii climate change mitigation and adaptation commission and published in the Hawaii sea level rise vulnerability and adaptation report; and

(B) The land inventory compiled pursuant to subsection (c);

(2) Quantify potential losses for the identified urban areas, including:

(A) Structural losses;

(B) Economic losses;

(D) Job losses;

(E) Wage losses;

(F) Tax revenue losses; and

(G) Social justice losses;

(3) Identify priority areas for smart redevelopment as part of a managed retreat strategy using the data referenced in paragraph (1) and the quantifying analysis done pursuant to paragraph (2); and

(4) Conduct an analysis comparing the costs and benefits of taking actions to mitigate or reduce the impacts of sea level rise compared to the costs and benefits of not taking any action.

The committee on sea level rise and managed retreat shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session.

(e) For purposes of this section, "sea level rise exposure area" means a sea level rise exposure area identified and officially designated by the Hawaii climate change mitigation and adaptation commission or its successor.

§225M-B Beach preservation; willing seller program. (a) The office of planning shall establish a willing seller program. The program shall identify property owners that are willing to sell their property or relocate outside of sea level rise exposure areas; provided that:

(1) The property being sold or relocated from is adjacent to a beach that is at risk of disappearing due to sea level rise; and

(2) The office of planning determines that acquisition of the property would be useful to protect the at-risk beach.

(b) For purposes of this section, "sea level rise exposure areas" means a sea level rise exposure area identified and officially designated by the Hawaii climate change mitigation and adaptation commission or its successor.

SECTION 11. (a) The office of planning shall develop a financing strategy to address the costs of adaptation to sea level rise. The strategy shall consider potential federal, state, county, private sector, and philanthropic sources to secure significant and sustainable funding for investments that reduce risks, harm to persons, and spending in response to disasters associated with sea level rise.

(b) The financing strategy shall address any costs anticipated due to sea level rise, including but not limited to:

(1) Land acquisition, including land acquisition for wetland and beach migration and public access;

(2) Relocation or retrofitting of critical infrastructure;

(3) Relocation or retrofitting of residential areas to increase flood resiliency; and

(4) Costs identified by:

(A) A comprehensive market assessment developed by a county pursuant to section 46-A(a)(2);

(B) A redevelopment strategy developed by a county pursuant to section 46-A(a)(3); and

(C) The climate change resilience study conducted by the department of land and natural resources pursuant to section 22 of this Act.

(1) Develop tax incentive programs and special tax districts;

(2) Create incentives to encourage landward relocation, infrastructure retrofitting, siting of new development, conservation of open space, and preservation or restoration of natural flood buffers;

(3) Utilize private sector funding sources, including voluntary contribution of funding or compensatory payment of assessments such as impact fees, sustainability fees on permit applications for new development, or other assessments on real property;

(4) Identify grant opportunities from philanthropic interests; and

(5) Create a statewide nonprofit organization to raise funds for projects to protect vulnerable populations, including persons who are economically disadvantaged, seniors, disabled persons, and veterans.

(d) The office of planning shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2022.

PART V

SECTION 12. The purpose of this part is to implement provisions of the Hawai‘i sea level vulnerability and adaptation report relating to the land use commission.

SECTION 13. Chapter 205, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§205- Managed retreat; agricultural and conservation lands. (a) The commission may develop a policy to address the managed retreat of urban areas onto lands zoned for agricultural and conservation use; provided that the policy:

(1) Supports the State's sustainability goals;

(2) Protects agricultural and conservation lands to the greatest extent possible; and

(3) Includes guidelines to:

(A) Minimize urban sprawl;

(B) Promote energy and transportation efficiencies;

(D) Protect important agricultural lands, natural resources, and environmentally or culturally sensitive areas.

(b) The commission may amend state land use district boundaries to accommodate urban expansions into areas outside of sea level rise exposure areas; provided that the amendments are consistent with the policy developed by the commission pursuant to subsection (a).

PART VI

SECTION 14. The purpose of this part is to make changes to the State's coastal zone management law as recommended by the Hawai‘i sea level rise vulnerability and adaptation report.

SECTION 15. Section 205A-2, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) Objectives.

(1) Recreational resources;

(A) Provide coastal recreational opportunities accessible to the public.

(2) Historic resources;

(A) Protect, preserve, and, where desirable, restore those natural and manmade historic and prehistoric resources in the coastal zone management area that are significant in Hawaiian and American history and culture.

(3) Scenic and open space resources;

(A) Protect, preserve, and, where desirable, restore or improve the quality of coastal scenic and open space resources.

(4) Coastal ecosystems;

(A) Protect valuable coastal ecosystems, including reefs, from disruption and minimize adverse impacts on all coastal ecosystems.

(5) Economic uses;

(A) Provide public or private facilities and improvements important to the State's economy in suitable locations.

(6) Coastal hazards;

(A) Reduce hazard to life and property from tsunami, storm waves, stream flooding, erosion, subsidence, and pollution.

(7) Managing development;

(A) Improve the development review process, communication, and public participation in the management of coastal resources and hazards.

(8) Public participation;

(A) Stimulate public awareness, education, and participation in coastal management.

(9) Beach protection;

(A) Protect beaches for public use and recreation.

(10) Marine resources;

(A) Promote the protection, use, and development of marine and coastal resources to assure their sustainability.

(11) Sea level rise;

(A) Promote adaptation strategies for accommodation, protection, and retreat in response to sea level rise.

(1) Recreational resources;

(A) Improve coordination and funding of coastal recreational planning and management; and

(B) Provide adequate, accessible, and diverse recreational opportunities in the coastal zone management area by:

(i) Protecting coastal resources uniquely suited for recreational activities that cannot be provided in other areas;

(ii) Requiring replacement of coastal resources having significant recreational value including, but not limited to surfing sites, fishponds, and sand beaches, when [~~such~~] those resources will be unavoidably damaged by development; or requiring reasonable monetary compensation to the State for recreation when replacement is not feasible or desirable;

(iii) Providing and managing adequate public access, consistent with conservation of natural resources, to and along shorelines with recreational value;

(iv) Providing an adequate supply of shoreline parks and other recreational facilities suitable for public recreation;

(v) Ensuring public recreational uses of county, state, and federally owned or controlled shoreline lands and waters having recreational value consistent with public safety standards and conservation of natural resources;

(vi) Adopting water quality standards and regulating point and nonpoint sources of pollution to protect, and where feasible, restore the recreational value of coastal waters;

(vii) Developing new shoreline recreational opportunities, where appropriate, such as artificial lagoons, artificial beaches, and artificial reefs for surfing and fishing; and

(viii) Encouraging reasonable dedication of shoreline areas with recreational value for public use as part of discretionary approvals or permits by the land use commission, board of land and natural resources, and county authorities; and crediting such dedication against the requirements of section 46-6[;].

(2) Historic resources;

(A) Identify and analyze significant archaeological resources;

(B) Maximize information retention through preservation of remains and artifacts or salvage operations; and

(3) Scenic and open space resources;

(A) Identify valued scenic resources in the coastal zone management area;

(B) Ensure that new developments are compatible with their visual environment by designing and locating [~~such~~] developments to minimize the alteration of natural landforms and existing public views to and along the shoreline;

(D) Encourage those developments that are not coastal dependent to locate in inland areas[;].

(4) Coastal ecosystems;

(A) Exercise an overall conservation ethic, and practice stewardship in the protection, use, and development of marine and coastal resources;

(B) Improve the technical basis for natural resource management;

(D) Minimize disruption or degradation of coastal water ecosystems by effective regulation of stream diversions, channelization, and similar land and water uses, recognizing competing water needs; and

(E) Promote water quantity and quality planning and management practices that reflect the tolerance of fresh water and marine ecosystems and maintain and enhance water quality through the development and implementation of point and nonpoint source water pollution control measures[;].

(5) Economic uses;

(A) Concentrate coastal dependent development in appropriate areas;

(B) Ensure that coastal dependent development such as harbors and ports, and coastal related development such as visitor industry facilities and energy generating facilities, are located, designed, and constructed to minimize adverse social, visual, and environmental impacts in the coastal zone management area; and

(C) Direct the location and expansion of coastal dependent developments to areas presently designated and used for [~~such~~] those developments and permit reasonable long-term growth at [~~such~~] those areas, and permit coastal dependent development outside of presently designated areas when:

(i) Use of presently designated locations is not feasible;

(ii) Adverse environmental effects are minimized; and

(iii) The development is important to the State's economy[;].

(6) Coastal hazards;

(A) Develop and communicate adequate information about storm wave, tsunami, flood, erosion, subsidence, and point and nonpoint source pollution hazards;

(B) Control development in areas subject to storm wave, tsunami, flood, erosion, hurricane, wind, subsidence, and point and nonpoint source pollution hazards;

(D) Prevent coastal flooding from inland projects[;].

(7) Managing development;

(A) Use, implement, and enforce existing law effectively to the maximum extent possible in managing present and future coastal zone development;

(B) Facilitate timely processing of applications for development permits and resolve overlapping or conflicting permit requirements; and

(C) Communicate the potential [~~short~~] short- and long-term impacts of proposed significant coastal developments early in their life cycle and in terms understandable to the public to facilitate public participation in the planning and review process[;].

(8) Public participation;

(A) Promote public involvement in coastal zone management processes;

(B) Disseminate information on coastal management issues by means of educational materials, published reports, staff contact, and public workshops for persons and organizations concerned with coastal issues, developments, and government activities; and

(9) Beach protection;

(A) Locate new structures inland from the shoreline setback to conserve open space, minimize interference with natural shoreline processes, and minimize loss of improvements due to erosion;

(B) Prohibit construction of private erosion-protection structures seaward of the shoreline, except when they result in improved aesthetic and engineering solutions to erosion at the sites and do not interfere with existing recreational and waterline activities;

(D) Prohibit private property owners from creating a public nuisance by inducing or cultivating the private property owner's vegetation in a beach transit corridor; and

(E) Prohibit private property owners from creating a public nuisance by allowing the private property owner's unmaintained vegetation to interfere or encroach upon a beach transit corridor[;].

(10) Marine resources;

(A) Ensure that the use and development of marine and coastal resources are ecologically and environmentally sound and economically beneficial;

(B) Coordinate the management of marine and coastal resources and activities to improve effectiveness and efficiency;

(C) Assert and articulate the interests of the State as a partner with federal agencies in the sound management of ocean resources within the United States exclusive economic zone;

(D) Promote research, study, and understanding of ocean processes, marine life, and other ocean resources to acquire and inventory information necessary to understand how ocean development activities relate to and impact upon ocean and coastal resources; and

(E) Encourage research and development of new, innovative technologies for exploring, using, or protecting marine and coastal resources.

(11) Sea level rise;

(A) Identify coastal areas that are vulnerable to sea level rise;

(B) Control development in areas subject to sea level rise and associated hazards, including coastal flooding, erosion, storm surge from tropical cyclones, beach loss, and pollution; and

(C) Promote development that takes into consideration adaptation strategies for accommodation, protection, and retreat in response to sea level rise."

PART VII

SECTION 16. The purpose of this part is to implement provisions of the Hawai‘i sea level vulnerability and adaptation report relating to the office of environmental quality control.

SECTION 17. Chapter 341, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§341- Sea level rise; environmental review process; guidance. (a) The director shall issue specific guidance on integrating:

(1) Sea level rise; and

(2) Climate change,

in the environmental review process.

(b) Guidance on sea level rise shall highlight the need for analysis of the proposed action in terms of design and siting to address the impacts of sea level rise, using the sea level rise exposure area as a vulnerability zone.

(c) Guidance on integrating climate change shall highlight the need for analysis of the proposed action in the context of the future state of the environment.

(d) The guidance required by this section shall be modeled after the federal guidance issued by the United States Council on Environmental Quality for federal departments and agencies on consideration of greenhouse gas emissions and the effects of climate change.

PART VIII

SECTION 18. The purpose of this part is to implement parts of the Hawai‘i sea level vulnerability and adaptation report relating to the board of land and natural resources.

SECTION 19. Section 6E-3, Hawaii Revised Statutes, is amended to read as follows:

"§6E-3 Historic preservation program. There is established within the department a division to administer a comprehensive historic preservation program, which shall include but not be limited to the following:

(1) Development of an ongoing program of historical, architectural, and archaeological research and development, including surveys, excavations, scientific recording, interpretation, signage, and publications on the State's historical and cultural resources;

(2) Acquisition of historic or cultural properties, real or personal, in fee or in any lesser interest, by gift, purchase, condemnation, devise, bequest, land exchange, or other means; preservation, restoration, administration, or transference of the property; and the charging of reasonable admissions to that property;

(3) Development of a statewide survey and inventory to identify and document historic properties, aviation artifacts, and burial sites, including [~~all~~]:

(A) All those owned by the State and the counties; and

(B) Traditional and customary native Hawaiian cultural resources and practices impacted by sea level rise;

(4) Preparation of information for the Hawaii register of historic places and listing on the national register of historic places;

(5) Preparation, review, and revisions of a state historic preservation plan, including budget requirements and land use recommendations;

(6) Application for and receipt of gifts, grants, technical assistance, and other funding from public and private sources for the purposes of this chapter;

(7) Provision of technical and financial assistance to the counties and public and private agencies involved in historic preservation activities;

(8) Coordination of activities of the counties in accordance with the state plan for historic preservation;

(9) Stimulation of public interest in historic preservation, including the development and implementation of interpretive programs for historic properties listed on or eligible for the Hawaii register of historic places;

(10) Coordination of the evaluation and management of burial sites as provided in section 6E-43;

(11) Acquisition of burial sites in fee or in any lesser interest, by gift, purchase, condemnation, devise, bequest, land exchange, or other means, to be held in trust;

(12) The development of a culturally-based adaptation process and protocols to preserve burial sites, burial goods, human skeletal remains, and native Hawaiian cultural resources and practices that may be impacted by sea level rise; provided that the process and protocols shall be developed in consultation with:

(A) The office of Hawaiian affairs;

(B) Island burial councils established by section 6E‑43.5; and

[~~(12)~~] (13) Submittal of an annual report to the governor and legislature detailing the accomplishments of the year, recommendations for changes in the state plan or future programs relating to historic preservation, and an accounting of all income, expenditures, and the fund balance of the Hawaii historic preservation special fund;

[~~(13)~~] (14) Regulation of archaeological activities throughout the State;

[~~(14)~~] (15) Employment of sufficient professional and technical staff for the purposes of this chapter which shall be in accordance with chapter 76;

[~~(15)~~] (16) The charging of fees to be determined by the department that are proportional to the nature and complexity of the projects or services provided, and adjusted from time to time to ensure that the proceeds, together with all other fines, income, and penalties collected under this chapter, do not surpass the annual operating costs of the comprehensive historic preservation program;

[~~(16)~~] (17) Adoption of rules in accordance with chapter 91, necessary to carry out the purposes of this chapter; and

[~~(17)~~] (18) Development and adoption, in consultation with the office of Hawaiian affairs native historic preservation council, of rules governing permits for access by native Hawaiians and Hawaiians to cultural, historic, and pre-contact sites and monuments."

SECTION 20. Section 171-6, Hawaii Revised Statutes, is amended to read as follows:

"§171-6 Powers. Except as otherwise provided by law, the board of land and natural resources shall have the powers and functions granted to the heads of departments and the board of land and natural resources under chapter 26.

In addition to the foregoing, the board may:

(1) Adopt a seal;

(2) Administer oaths;

(3) Prescribe forms of instruments and documents;

(4) Adopt rules which, upon compliance with chapter 91, shall have the force and effect of law;

(5) Set, charge, demand, and collect reasonable fees for the preparation of documents to be issued, for the surveying of public lands, and for the issuing of certified copies of its government records, which fees, when collected, shall be deposited into the state general fund, unless otherwise specified in this chapter;

(6) Establish additional restrictions, requirements, or conditions, not inconsistent with those prescribed in this chapter, relating to the use of particular land being disposed of, the terms of sale, lease, license, or permit, and the qualifications of any person to draw, bid, or negotiate for public land;

(7) Reduce or waive the lease rental at the beginning of the lease on any lease of public land to be used for any agricultural or pastoral use, or for resort, commercial, industrial, or other business use where the land being leased requires substantial improvements to be placed thereon; provided that [~~such~~] the reduction or waiver shall not exceed two years for land to be used for any agricultural or pastoral use, or exceed one year for land to be used for resort, commercial, industrial, or other business use;

(8) Delegate to the chairperson or employees of the department of land and natural resources, subject to the board's control and responsibility, [~~such~~] powers and duties as may be lawful or proper for the performance of the functions vested in the board;

(9) Use arbitration under chapter 658A to settle any controversy arising out of any existing or future lease;

(10) Set, charge, and collect reasonable fees in an amount sufficient to defray the cost of performing or otherwise providing for the inspection of activities permitted upon the issuance of a land license involving a commercial purpose;

(11) Appoint masters or hearing officers to conduct public hearings as provided by law and under [~~such~~] conditions as the board by rules shall establish;

(12) Bring [~~such~~] actions as may be necessary to remove or remedy encroachments upon public lands. Any person causing an encroachment upon public land shall:

(A) Be fined not more than $1,000 a day for the first offense;

(B) Be fined not less than $1,000 nor more than $4,000 per day upon the second offense and thereafter;

(D) Assume [~~such~~] the costs [as] that may result from adverse effects from [~~such~~] the restoration; and

(E) Be liable for administrative costs incurred by the department and for payment of damages;

(13) Set, charge, and collect interest and a service charge on delinquent payments due on leases, sales, or other accounts. The rate of interest shall not exceed one per cent a month and the service charge shall not exceed $50 a month for each delinquent payment; provided that the contract shall state the interest rate and the service charge and be signed by the party to be charged;

(14) Set, charge, and collect additional rentals for the unauthorized use of public lands by a lessee, licensee, grantee, or permittee who is in violation of any term or condition of a lease, license, easement, or revocable permit, retroactive to the date of the occurrence of the violation. [~~Such~~] Those amounts shall be considered delinquent payments and shall be subject to interest and service charges as provided in paragraph (13);

(15) Set, charge, and collect reasonable fines for violation of this chapter or any rule adopted thereunder. Any person engaging in any prohibited use of public lands or conducting any prohibited activity on public lands, or violating any of the other provisions of this chapter or any rule adopted thereunder, for which violation a penalty is not otherwise provided, shall be:

(A) Fined not more than $5,000 per violation for a first violation or a violation beyond five years of the last violation; provided that, after written or verbal notification from the department, an additional $1,000 per day per violation may be assessed for each day in which the violation persists;

(B) Fined not more than $10,000 per violation for a second violation within five years of the last violation; provided that, after written or verbal notification from the department, an additional $2,000 per day per violation may be assessed for each day in which the violation persists;

(C) Fined not more than $20,000 per violation for a third or subsequent violation within five years of the last violation; provided that, after written or verbal notification from the department, an additional $4,000 per day per violation may be assessed for each day in which the violation persists; and

(D) Liable for administrative costs and expenses incurred by the department and for payment for damages, including but not limited to natural resource damages.

In addition to the fines, administrative costs, and damages provided for hereinabove, for damage to or theft of natural resources, the board may also set, charge, and collect a fine that, in its discretion, is appropriate considering the value of the natural resource that is damaged or the subject of the theft. In arriving at an appropriate fine, the board may consider the market value of the natural resource damaged or taken and any other factor it deems appropriate, such as the loss of the natural resource to its natural habitat and environment and the cost of restoration or replacement. The remedies provided for in this paragraph are cumulative and in addition to any other remedies allowed by law.

No person shall be sanctioned pursuant to this section for the exercise of native Hawaiian gathering rights and traditional cultural practices as authorized by law or as permitted by the department pursuant to article XII, section 7, of the Hawaii [~~state constitution;~~] State Constitution;

(16) Issue revenue bonds, subject to the approval of the legislature. All revenue bonds shall be issued pursuant to part III of chapter 39, except as provided in this chapter. All revenue bonds shall be issued in the name of the department and not in the name of the State. The final maturity date of the revenue bonds may be any date not exceeding thirty years from the date of issuance;

(17) Pledge or assign all or any part of the receipts and revenues of the department. The revenue bonds shall be payable from and secured solely by the revenue derived by the department from the industrial park or parks for which the bonds are issued;

(18) Reimburse the state general fund for debt service on general obligation bonds or reimbursable general obligation bonds issued by the State for purposes of this chapter;

(19) Notwithstanding part II of chapter 205A to the contrary, plan, design, construct, operate, and maintain any lands or facilities under the jurisdiction of the division of boating and ocean recreation of the department without the need to obtain a special management area minor permit or special management area use permit; [~~and~~]

(20) Develop and enter into public-private partnerships for coastal land acquisition, beach management, reef protection, and other activities that preserve coastal resources; and

[~~(20)~~] (21) Do any and all things necessary to carry out its purposes and exercise the powers granted in this chapter."

SECTION 21. Section 173A-5, Hawaii Revised Statutes, is amended by amending subsections (g) and (h) to read as follows:

"(g) The acquisition of interests or rights in land having value as a resource to the State for the preservation of the following shall constitute a public purpose for which public funds may be expended or advanced:

(1) Watershed protection;

(2) Coastal areas, beaches, and ocean access;

(3) Habitat protection;

(4) Cultural and historical sites;

(5) Recreational and public hunting areas;

(6) Parks;

(7) Natural areas;

(8) Agricultural production; [~~and~~]

(9) Open spaces and scenic resources[.]; and

(10) Lands that buffer or otherwise may preserve adjacent beaches and other coastal areas.

(h) The fund shall be used for:

(1) The acquisition of interests or rights in land having value as a resource to the State, including conservation easements, whether in fee title or through the establishment of permanent conservation easements under chapter 198 or agricultural easements;

(2) The payment of any debt service on state financial instruments relating to the acquisition of interests or rights in land having value as a resource to the State;

(3) Annual administration costs for the fund, not to exceed five per cent of annual fund revenues of the previous year[[]; and[]]

(4) Costs related to the operation, maintenance, and management of lands acquired by way of this fund that are necessary to protect, maintain, or restore resources at risk on these lands, or that provide for greater public access and enjoyment of these lands; provided that the costs related to the operation, maintenance, and management of lands acquired by way of this fund do not exceed five per cent of annual fund revenues of the previous year."

SECTION 22. (a) The department of land and natural resources shall conduct a climate change resilience study. The study shall:

(1) Determine incentives that the State may implement to promote improved flood risk management in the State, particularly incentives that focus on driving action in the private sector;

(2) Identify existing and potential new areas for coastal wildlife refuges throughout the State to support:

(A) New wetlands that may form due to sea level rise; and

(B) Wildlife migration from other coastal areas, including the Northwestern Hawaiian Islands;

provided that the list shall be developed in consultation with federal agencies, the counties, and nongovernmental organizations;

(3) Identify near-term and long-term shoreline conservation and restoration guidelines to support adaptation to sea level rise, including:

(A) Recommendations on the use of seawalls, floodwalls, bulkheads, revetments, and other shoreline armoring;

(B) Policies to restrict the use of variances for seawalls, floodwalls, bulkheads, revetments, and other shoreline armoring; and

(C) Ways to discourage the use of seawalls, floodwalls, bulkheads, revetments, and other shoreline armoring as an option for shoreline protection, including:

(i) Adoption of policies that favor non-structural armoring, such as beach nourishment;

(ii) The adoption of fees or lease payments for the use of shoreline armoring; and

(iii) The use of county ordinances to require property owners to consider relocation of structures before the property owner may consider shoreline armoring; and

(4) Consider the feasibility of establishing a statewide buy-out program for residential property owners vulnerable to the effects of sea level rise. Specifically, the department of land and natural resources shall examine the feasibility of a program modeled after the flood mitigation assistance grant program of the Federal Emergency Management Agency.

In conducting the study, the department of land and natural resources shall solicit comments from the public and hold at least one public hearing.

(b) The department of land and natural resources shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2021.

SECTION 23. (a) The office of conservation and coastal lands of the department of land and natural resources shall conduct a statewide assessment to prioritize beaches that are important for:

(1) Recreational uses;

(2) Cultural practices; and

(3) Wildlife habitat.

(b) The office of conservation and coastal lands shall consult with the appropriate federal, state, and county-level agencies, nongovernmental organizations, and local stakeholders in conducting the assessment required by this section.

(c) The office of conservation and coastal lands shall identify beaches where special adaptation measures, such as preservation of undeveloped lands, managed retreat, and prohibition of coastal armoring may be implemented to ensure survival of the identified beaches.

(d) The office of conservation and coastal lands shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2021.

PART IX

SECTION 24. The purpose of this part is to implement parts of the Hawai‘i sea level vulnerability and adaptation report relating to the office of Hawaiian affairs.

SECTION 25. (a) The office of Hawaiian affairs shall establish a coastal lands and water adaptation working group, which shall consult with members of the native Hawaiian community to develop adaptation plans to preserve access to coastal lands and water impacted by sea level rise.

(b) The coastal lands and water adaptation working group shall include:

(1) The chief executive officer of the office of Hawaiian affairs or the chief executive officer's designee;

(2) The chair of the department of Hawaiian home lands or the chair's designee;

(3) The chair of the aha moku advisory committee or the chair's designee;

(4) Three persons with a background in native Hawaiian cultural practices; provided that the speaker of the house of representatives, the president of the senate, and the governor shall each appoint one person pursuant to this paragraph; and

(5) Three persons with a background in climate change science; provided that the speaker of the house of representatives, the president of the senate, and the governor shall each appoint one person pursuant to this paragraph.

(c) The coastal lands and water adaptation working group members shall select the working group chairperson from among its members.

(d) The coastal lands and water adaptation working group shall utilize data from the Hawaii sea level rise vulnerability and adaptation report to conduct its duties.

(e) The members of the working group shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(f) The coastal lands and water adaptation working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2021.

PART X

SECTION 26. The purpose of this part is to implement portions of the Hawai‘i sea level vulnerability and adaptation report that relate to the department of health.

SECTION 27. (a) The department of health shall conduct a sea level rise mitigation review. The review shall:

(1) Identify sites or geographic areas with the highest probability of large or catastrophic failures or releases associated with increased coastal flooding due to sea level rise. In conducting this part of the review, the department of health shall:

(A) Review existing permits, site records, and agency files;

(B) Conduct a thorough review of hazardous material and waste storage facilities within sea level rise exposure areas; and

(C) Develop hazard mitigation measures that landowners, permittees, and operators of the identified sites or geographic areas can use to address the threats from sea level rise; and

(2) Conduct a comprehensive review and gap analysis of the State's laws, existing environmental regulations, guidance documents, and best management practices relating to the construction, maintenance, and mitigation of underground storage tanks, on-site sewage disposal systems or wastewater treatment, and hazardous materials and waste storage facilities. The review and gap analysis shall focus on:

(A) Existing regulations that allow for siting new facilities in flood hazard prone areas;

(B) Monitoring or enforcement of existing vulnerable systems and facilities; and

(C) Identifying recommendations for changes and improvements to current regulations, guidance, and statutes for future updates.

(c) The department of health shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2021.

PART XI

SECTION 28. The purpose of this part is to require that mandatory seller disclosures in real estate transactions include identification of residential real properties lying within a sea level rise exposure area, as recommended by the Hawai‘i sea level rise vulnerability and adaptation report.

SECTION 29. Section 508D-15, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) When residential real property lies:

(1) Within the boundaries of a special flood hazard area as officially designated on Flood Insurance Administration maps promulgated by the United States Department of Housing and Urban Development for the purposes of determining eligibility for emergency flood insurance programs;

(2) Within the boundaries of the noise exposure area shown on maps prepared by the department of transportation in accordance with Federal Aviation Regulation part 150, Airport Noise Compatibility Planning (14 C.F.R. part 150) for any public airport;

(3) Within the boundaries of the Air Installation Compatible Use Zone of any Air Force, Army, Navy, or Marine Corps airport as officially designated by military authorities; [or]

(4) Within the anticipated inundation areas designated on the department of defense's emergency management tsunami inundation maps [,]; or

(5) Within a sea level rise exposure area as officially designated by the Hawaii climate change mitigation and adaptation commission or its successor

subject to the availability of maps that designate the four areas by tax map key (zone, section, parcel), the seller shall include the material fact information in the disclosure statement provided to the buyer subject to this chapter. Each county shall provide, where available, maps of its jurisdiction detailing the four designated areas specified in this subsection. The maps shall identify the properties situated within the four designated areas by tax map key number (zone, section, parcel) and shall be of a size sufficient to provide information necessary to serve the purposes of this section. Each county shall provide legible copies of the maps and may charge a reasonable copying fee."

PART XII

SECTION 30. The purpose of this part is to implement parts of the Hawai‘i sea level vulnerability and adaptation report relating to the Hawai‘i climate change mitigation and adaptation commission.

SECTION 31. Section 225P-3, Hawaii Revised Statutes, is amended to read as follows:

"§225P-3 Hawaii climate change mitigation and adaptation commission; general functions, duties, and powers. (a) There is established the Hawaii climate change mitigation and adaptation commission that shall be placed within the department of land and natural resources for administrative purposes only.

(b) Coordination of the commission shall be headed jointly by the chairperson of the board of land and natural resources, or the chairperson's designee, and the director of the office of planning, or the director's designee.

(1) The chairs of the standing committees of the legislature [~~with~~] having subject matter jurisdiction encompassing environmental protection and land use;

(2) The chairperson of the board of land and natural resources or the chairperson's designee, who shall be [~~the~~] a co-chair of the commission;

(3) The director of the office of planning or the director's designee, who shall be [~~the~~] a co-chair of the commission;

(4) The director of business, economic development, and tourism or the director's designee;

(5) The chairperson of the board of directors of the Hawaii tourism authority or the chairperson's designee;

(6) The chairperson of the board of agriculture or the chairperson's designee;

(7) The chief executive officer of the office of Hawaiian affairs or the officer's designee;

(8) The chairperson of the Hawaiian homes commission or the chairperson's designee;

(9) The director of transportation or the director's designee;

(10) The director of health or the director's designee;

(11) The adjutant general or the adjutant general's designee;

(12) The chairperson of the board of education or the chairperson's designee;

(13) The directors of each of the county planning departments, or the directors' designees; and

(14) The manager of the coastal zone management program.

(d) In addition to the members listed in subsection (c), the chairs of the commission may request the participation or input of members of the public; experts in the field; and county, state, or federal officials or others as necessary.

(e) The members of the commission shall serve without pay but shall be reimbursed for their actual and necessary expenses, including travel expenses, incurred in carrying out their duties.

(f) The commission shall provide policy direction, facilitation, coordination, and planning among state and county agencies, federal agencies, and other partners as appropriate.

(g) The commission shall establish climate change mitigation and adaptation strategies and goals to help guide planning and implementation statewide using the latest scientific analysis and risk assessment to monitor and forecast climate change-related impacts at the regional, state, and local level, including any additional information deemed necessary.

(h) The commission shall identify vulnerable people, communities, industries, ecosystems, and the potential economic ramifications for climate change-related impacts.

(i) The commission shall identify existing climate change mitigation and adaptation efforts at the federal, state, and local levels and make recommendations for how to meet or exceed Hawaii's state mitigation goals and shall adopt a liberal approach in preparation, so as to minimize future risk to the people and environment of Hawaii.

(j) The commission shall assess the capacity and availability of existing resources and identify new sources of revenue necessary to address climate change mitigation and adaptation and shall advise the governor, legislature, and counties on the economic and budgetary ramifications of climate change impacts, mitigation, and adaptation.

(k) The commission shall identify the information necessary to track progress in implementing climate change mitigation and adaptation efforts, including an assessment of the implementation of the priorities identified by the report pursuant to subsection (n)(6), and shall submit an annual report to the governor and legislature no later than twenty days prior to the convening of each regular session of the legislature.

(l) The commission shall maintain a website that includes a mission statement as well as access to climate change related actions, plans, policies, and results.

(m) The commission shall conduct a comprehensive review of the implementation as required by this section and submit a report to the governor, legislature, and the counties no later than twenty days prior to the convening of the regular session of 2023 and every five years thereafter.

(n) The commission [~~shall~~], as a first step, shall focus on and develop sea level rise vulnerability and adaptation reports that shall include:

(1) Identification of the major areas of sea level rise impacts affecting the State and counties through 2050;

(2) Identification of expected impacts of sea level rise based on the latest scientific research for each area through 2050;

(3) Identification of the economic ramifications of sea level rise;

(4) Identification of applicable federal laws, policies, or programs that impact affected areas; [~~and~~]

(5) Recommendations for planning, management, and adaptation for hazards associated with increasing sea level rise[.]; and

(6) Priorities derived from the recommendations developed pursuant to paragraph (5) and related data that convert the ideas and recommendations into specific actions that state and county agencies can use to mitigate and adapt to climate change and sea level rise.

The reports shall be made publicly available [~~no later than December 31, 2017,~~] and the commission shall establish a maintenance schedule to reevaluate and update the sea level rise vulnerability and adaptation report; provided that the commission shall reevaluate and update the sea level rise vulnerability and adaptation report no less than once every five years. In creating a reevaluation schedule, the commission shall consider the need for updating coastal hazards modeling based on the extent that new modeling would substantially change exposure and vulnerability in sea level rise exposure areas.

(o) In developing the report, pursuant to subsection (n), including updated versions of the report, the commission shall:

(1) Solicit public views and concerns; [~~and~~]

(2) Coordinate with the various county, state, and federal agencies involved in ongoing climate change adaptation planning initiatives[.];

(3) Convene multi-sectoral experts to identify, research, assess, and monitor priorities to support the update process; and

(4) Develop a monitoring and evaluation plan with benchmarks and indicators to support the update process.

(p) The commission shall coordinate community engagement among its member agencies to keep the State informed regarding the impacts of sea level rise. Community engagement strategies may include:

(1) Community-based planning to educate communities on their risk to sea level rise;

(2) Creation of a software application to visualize sea level rise based on geolocation and projections;

(3) Development of photo simulations to depict potential future flooding due to climate change and sea level rise; and

(4) Work with museums, science centers, schools, and other organizations to educate communities about sea level rise and its impacts."

PART XIII

SECTION 32. In codifying the new sections added by sections 7 and 10 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 33. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 34. This Act shall take effect on July 1, 2019.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	690
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII