RELATING TO CARBON SEQUESTRATION INCENTIVES.
HB975 would permanently establish the Hawaii Carbon Smart Land Management Assistance Program within the Department of Land and Natural Resources and fund it with a general fund appropriation for fiscal years 2025-2026 and 2026-2027. The bill is intended to continue and expand the pilot program created by Act 185 (2022), which the legislature says drew strong interest from farmers, ranchers, foresters, community groups, schools, nonprofits, private land managers, and businesses.
The program would pay owners and lessees of eligible land through incentive contracts for approved carbon-sequestering land management practices. It directs DLNR to administer the program, coordinate with other agencies, set compensation rates and contract terms, monitor compliance, publish modeling and methodology resources, and conduct outreach and research. Eligible practices include reforestation, windbreaks, conservation tillage, cover crops, rotational grazing, manure management, compost and biochar application, improved forest and cropping systems, methane capture, and other related activities. The bill also defines phase I and phase II activities, with phase II practices requiring additional technical work before compensation rates are finalized.
HB975 would add a new section to chapter 225P, Hawaii Revised Statutes, making the carbon smart land management assistance program a permanent statutory program rather than a time-limited pilot. It would place the program under DLNR, authorize incentive contracts with landowners and lessees, and require the department to establish verification, compensation, and outreach processes. The bill also appropriates unspecified general funds and authorizes a permanent full-time position, thereby creating an ongoing fiscal and administrative commitment for the state.
The overall sentiment appears generally supportive. The bill’s findings emphasize broad stakeholder interest and frame the program as a climate, agriculture, and land stewardship initiative that advances soil health, carbon sequestration, food security, watershed protection, and resilience. The House vote history also suggests substantial support, as the bill passed second reading as amended, with no members voting aye with reservations.
The main policy issue is not whether to support carbon-smart land management, but how the program should be structured and funded. The bill prohibits participants from using program compensation for carbon offsetting initiatives and bars the department from requiring conservation easements, which may reflect concern about limiting land-use restrictions and avoiding offset-market controversies. The distinction between phase I and phase II activities also suggests some uncertainty about which practices can be reliably compensated now versus those needing more technical development. The recorded no votes by Representatives Garcia and Pierick indicate some opposition, though the available record does not specify their reasons.