HB1052 HD1

SECTION 1. The legislature finds that Hawaii is experiencing a climate emergency. Climate change impacts are being felt statewide and have long-term threats to the State's economy, sustainability, environment, security, culture, and way of life. Successful mitigation and adaptation of climate change requires comprehensive study and action to address the impacts of climate change.

The 2017 Hawai‘i Sea Level Rise Vulnerability and Adaptation Report estimated the lost value of flooded structures and land at over $19,000,000,000. The legislature further finds that Hawaii needs to invest in climate action now to address these and other costs of climate change as soon as possible. Climate change action may include looking at the resiliency of the power grid, renewable energy resources, sustainable transportation systems, land use planning, sea level rise, health, natural and cultural resources, sustainable tourism, hazard vulnerability and mitigation, social vulnerability, economic resilience, and climate equity and justice. The breadth of the impact of climate change is such that comprehensive and coordinated efforts need to be undertaken.

The purpose of this Act is to establish the climate impact special fund and appropriate funds to address the impacts of climate change and mitigate further impacts on the State through education, carbon sequestration, and resiliency planning and implementation.

SECTION 2. Chapter 225P, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§225P- Climate impact special fund. (a) There is established in the state treasury the climate impact special fund, to be administered by the commission, into which shall be deposited:

(1) Appropriations made by the legislature to the fund;

(2) Fees collected under this chapter or any rule adopted pursuant to this chapter;

(3) Grants provided by governmental agencies or any other source;

(4) Donations made by private individuals or organizations for deposit into the fund; and

(5) Earnings on moneys in the fund.

(b) Moneys in the climate impact special fund shall

be used for:

(1) The operations of the commission; and

(2) Activities carried out by the State to address the impact, mitigation, and adaptation of climate change, including but not limited to nature-based solutions; climate smart agriculture; vehicle miles traveled reduction; sea level rise modeling, mapping, planning, adaption, and mitigation; managed retreat; carbon sequestration technologies; electrification of homes, vehicles, and appliances; clean renewable energy technologies; climate change education and outreach; and other activities deemed appropriate by the commission.

(c) The commission may transfer moneys to other state departments and agencies to carry out the purposes of the commission and to fund efforts to mitigate and adapt to climate change.

(d) The commission shall submit an annual report to the

legislature no later than twenty days prior to the convening of each regular session on the sources of moneys deposited into the climate impact special fund and expenditures of moneys from the special fund."

SECTION 3. Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner. The tax shall be $1.05 on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided that of the tax collected pursuant to this subsection:

(1) 5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2;

(2) 4 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;

(3) 5 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169.1;

(4) 3 cents of the tax on each barrel shall be deposited into the electric vehicle charging system subaccount established pursuant to section 269-33(e); [~~and~~]

(5) 3 cents of the tax on each barrel shall be deposited into the hydrogen fueling system subaccount established pursuant to section 269-33(f)[.]; and

(6) 5 cents of the tax on each barrel shall be deposited into the climate impact special fund established pursuant to section 225P- .

The tax imposed by this subsection shall be paid by the distributor of the petroleum product."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 to be deposited into the climate impact special fund.

SECTION 5. There is appropriated out of the climate impact special fund the sum of $80,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 for the purposes of carrying out the operations of the Hawaii climate change mitigation and adaptation commission.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act. SECTION 6. There is appropriated out of the climate impact special fund the sum of $20,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 to transfer moneys to the sea level rise voluntary relocation fund to carry out the purposes of the Hawaii climate change mitigation and adaptation commission and to fund efforts to mitigate and adapt to climate change.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on June 30, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	1052
THIRTY-SECOND LEGISLATURE, 2023		H.D. 1
STATE OF HAWAII