HB1076 establishes a new Climate Mitigation and Resiliency Special Fund in the state treasury to support projects that address climate change impacts in Hawaii. The fund would be administered by the Department of Defense and could receive legislative appropriations, fees, grants, private donations, interest earned by the fund, a portion of transient accommodations tax revenues, and—most notably—all interest earned on balances in the Emergency and Budget Reserve Fund.
The bill authorizes money in the new fund to be spent on projects that mitigate, adapt to, or increase resiliency against climate change, as well as related consultant, personnel, and administrative costs. It also makes a conforming amendment to section 328L-3, Hawaii Revised Statutes, redirecting interest from the Emergency and Budget Reserve Fund to the new special fund. The bill includes an unspecified appropriation for fiscal years 2025-2026 and 2026-2027 and provides that the appropriation will not lapse until June 30, 2028, subject to specified lapse rules.
If enacted, the bill would change state finance law by creating a dedicated climate-related special fund and by diverting interest earnings from the Emergency and Budget Reserve Fund away from that reserve and into climate mitigation spending. It would also potentially affect how transient accommodations tax revenues are allocated, though the bill text references that source without specifying the exact share in the excerpt provided. The Department of Defense would become the administering agency for the new fund and the recipient of the appropriated money for implementation.
The overall sentiment reflected in the bill text is strongly supportive of climate action, framing the issue as a climate emergency requiring immediate and coordinated state investment. No committee transcripts or recorded votes were provided, so there is no additional evidence of support, opposition, or amendments from deliberations. Based on the text alone, the bill appears designed to prioritize climate resilience funding over maintaining all interest earnings in the state reserve fund.
The main point of potential contention is the redirection of interest from the Emergency and Budget Reserve Fund, which could be viewed as reducing resources available for fiscal stabilization or emergencies. Another possible issue is the use of transient accommodations tax revenue and the choice of the Department of Defense as the administering agency, both of which may prompt questions about fund governance, oversight, and program administration.
HB1076 would add a new chapter to the Hawaii Revised Statutes establishing the Climate Mitigation and Resiliency Special Fund and would amend section 328L-3 to redirect all interest earned on the Emergency and Budget Reserve Fund to that new fund. It would also create a new appropriation for climate-related projects and authorize the Department of Defense to administer and expend the money. The bill could affect state budgeting priorities by dedicating reserve-fund interest and potentially transient accommodations tax revenue to climate mitigation and resiliency efforts instead of other uses.
The bill’s tone is strongly pro-climate action and reflects urgency, describing Hawaii as facing a climate emergency and calling for comprehensive mitigation and adaptation efforts. Because no committee discussion or vote history was provided, there is no recorded legislative debate to gauge broader support or opposition. On its face, the measure appears intended to advance climate resilience funding and would likely be viewed favorably by supporters of climate investment.
The most likely point of contention is the diversion of interest from the Emergency and Budget Reserve Fund, since that reserve is typically intended to support fiscal stability and emergencies. Critics may also question whether it is appropriate to route climate funding through the Department of Defense and whether the bill’s reference to transient accommodations tax revenue should be expanded or constrained. Supporters would likely emphasize the need for dedicated, reliable funding for climate mitigation and resiliency projects.