STAND. COM. REP. NO. 1013

Honolulu, Hawaii

, 2021

RE: S.B. No. 493

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Energy & Environmental Protection and Agriculture, to which was referred S.B. No. 493, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

beg leave to report as follows:

The purpose of this measure is to establish and appropriate funds for the Hawaii Agriculture and Forest Carbon Positive Incentive Program.

Your Committees received testimony in support of this measure from the Department of Land and Natural Resources, Hawaii Green Infrastructure Authority, Office of Planning, Climate Protectors Hawaii, Environmental Caucus of the Democratic Party of Hawai‘i, Hawaii Cattlemen's Council, and six individuals. Your Committees received testimony in opposition to this measure from one individual. Your Committees received comments on this measure from the Department of Taxation, Department of Agriculture, Department of Budget and Finance, Life of the Land, and Tax Foundation of Hawaii.

Your Committees find that the State needs to find a way to reduce its contribution to climate change and increase local food production. This measure incentivizes carbon positive actions through a payment of services program that would allow small farmers, ranchers, and landowners to be compensated for taking actions to help the State reach its climate positive goal.

Your Committees have amended this measure by:

(1) Blanking out the allocation of the Environmental Response, Energy, and Food Security Tax that is deposited into the Agricultural Development and Food Security Special Fund; and

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

As affirmed by the records of votes of the members of your Committees on Energy & Environmental Protection and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 493, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 493, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committees on Energy & Environmental Protection and Agriculture,

____________________________ MARK J. HASHEM, Chair

____________________________ NICOLE E. LOWEN, Chair