HB2473 HD1

SECTION 1. The legislature finds that terrestrial conservation bank and conservation in-lieu fee mitigation programs restore, create, enhance, or preserve terrestrial habitats for threatened, endangered, candidate, proposed, or indigenous species. The federal government, in conjunction with as many as fourteen other states, has developed successful conservation bank and conservation in-lieu fee mitigation programs. Conservation bank and conservation in-lieu fee mitigation programs would serve as mechanisms to enhance the recovery and survival of threatened and endangered species and enhance conservation efforts for candidate, proposed, or indigenous species and their habitats.

The purpose of this Act is to authorize the department of land and natural resources to operate and approve conservation bank and conservation in-lieu fee mitigation programs where a person or entity is required to provide compensatory mitigation as part of an approved habitat conservation plan and incidental take license:

(1) For unavoidable impacts to threatened, endangered, candidate, or proposed species;

(2) Prospectively for damages to indigenous species and their habitats; and

(3) For past damages to threatened, endangered, candidate, proposed, or indigenous species and their habitats.

SECTION 2. Chapter 195D, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . CONSERVATION BANK AND CONSERVATION IN-LIEU FEE

MITIGATION PROGRAMS

§195D- Definitions. As used in this part:

"Compensatory mitigation" means actions taken to fulfill, in whole or in part, mitigation requirements under state or federal law or a court mandate.

"Conservation bank" means a type of compensatory mitigation where a site or sites established under a site protection instrument is conserved and managed to provide ecological functions and services expressed as credits for threatened, endangered, candidate, proposed, or indigenous species. "Conservation bank instrument" means an agreement establishing the conservation bank and describing the terms and conditions of operation.

"Conservation in-lieu fee mitigation program" means a type of compensatory mitigation where an incidental take licensee or person or entity required to provide mitigation pays a fee to the department- or nonprofit-approved sponsor to satisfy mitigation requirements in an approved habitat conservation plan, where the fee charged by a sponsor represents the expected cost of either:

(1) Increasing the likelihood that a threatened or endangered species will survive and recover as a result of the incidental take licensee's project; or

(2) Enhancing the conservation of candidate, proposed, or indigenous species and their habitats.

"Credit" means a value based on defined units representing the accrual or attainment of ecological functions or services at the conservation bank and released as the conservation bank meets performance criteria.

"Site protection instrument" means an interest in real property that protects a conservation bank or conservation in-lieu fee mitigation site in perpetuity, such as a conservation easement, deed restriction, condition, or covenant.

"Sponsor" means a qualified person or entity responsible for establishing or operating a conservation bank or conservation in-lieu fee mitigation.

§195D- Conservation banking and conservation in-lieu fee mitigation programs. (a) The department may require a person or entity to complete compensatory mitigation to offset environmental loss caused by prospective or past damages to threatened, endangered, candidate, proposed, or indigenous species and their habitats.

(b) The department may operate or approve conservation bank and conservation in-lieu fee mitigation programs for the purpose of restoring, creating, enhancing, or preserving, or any combination thereof threatened, endangered, candidate, proposed, or indigenous species and their habitats where a person or entity is required to provide compensatory mitigation either:

(1) For prospective damages to indigenous species and their habitats where the use of conservation banking or conservation in-lieu fee mitigation is approved by the agency requiring mitigation;

(2) For past damages to threatened, endangered, candidate, proposed, or indigenous species and their habitats where the use of conservation banking or conservation in-lieu fee mitigation is approved by the agency requiring mitigation; or

(3) As off-site mitigation to offset adverse impacts to a threatened, endangered, candidate, or proposed species as part of an approved habitat conservation plan and incidental take license.

(c) Conservation banks shall be established and operated under a conservation bank instrument on public or private lands, protected in perpetuity under a site protection instrument, and approved by the board. The endangered species recovery committee shall review and recommend to the department all conservation banks before the transfer or sale of credits.

(d) Conservation in-lieu fee mitigation programs shall be established and operated under a legal contract, protected in perpetuity under a site protection instrument, and approved by the board. The endangered species recovery committee shall review and recommend to the department all conservation in-lieu fee mitigation programs before the transfer or sale of credits.

(e) Sponsors may sell or transfer credits to persons required to provide compensatory mitigation pursuant to subsections (a) and (b).

(f) The department may collect fees or payment for costs incurred, including but not limited to costs incurred by the department during:

(1) Its rulemaking process; and

(2) The approval, establishment, monitoring, and oversight of conservation bank and conservation in-lieu fee mitigation programs.

(g) The department shall work cooperatively with federal agencies in concurrently processing mitigation requirements pursuant to federal law.

(h) This section shall not apply to aquatic species and their habitats.

§195D- Conservation bank and conservation in-lieu fee mitigation programs; rules. The department may adopt rules pursuant to chapter 91 necessary to implement this part."

SECTION 3. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	2473
THIRTY-SECOND LEGISLATURE, 2024		H.D. 1
STATE OF HAWAII