RELATING TO STATE FINANCES.
SB241 establishes a new Climate Health and Environmental Action Special Fund within the Department of Land and Natural Resources (DLNR) to finance prevention, preparedness, response, and recovery activities related to climate crises. The bill defines climate crises broadly to include wildfires, sea level rise and coastal erosion, reef loss, extreme heat, drought, floods, and pollution affecting drinking water or nearshore waters. It directs fund expenditures toward wildfire prevention and response, flood prevention, coral reef protection and restoration, emergency water and electricity supplies, heat mitigation, shoreline restoration, protection of lives and infrastructure, planning, and support for indigenous Hawaiian stewardship practices.
The bill also creates a dedicated revenue source by adding a $25 tax on each furnishing of transient accommodations beginning January 1, 2026, with the new revenue deposited into the special fund. It amends the Transient Accommodations Tax statutes to exempt emergency housing provided at no charge to persons displaced by a state disaster, and it preserves existing TAT exemptions while carving out the new surcharge. The measure further authorizes the department to seek reimbursements from responsible parties, allows revenue bonds backed by specified revenues, requires annual reporting to the Legislature, and mandates periodic audits starting in 2029. It also appropriates general funds and special-fund money to seed the program and create two DLNR positions to administer it.
SB241 would add a new chapter to the Hawaii Revised Statutes establishing the Climate Health and Environmental Action Special Fund and would amend the transient accommodations tax laws in chapter 237D to impose an additional $25 per stay surcharge. It would redirect that surcharge, along with certain other revenues and appropriations, into the new fund for climate resilience and emergency response projects administered by DLNR. The bill would also create a new exemption from the transient accommodations tax for no-charge emergency housing provided after a governor-declared disaster, and it would require reporting, audits, and grant administration rules for counties, nonprofits, and other eligible entities.
The bill’s stated purpose and structure suggest strong support for climate adaptation, wildfire prevention, and natural resource protection, especially in light of the Maui/Lahaina wildfire disaster and broader concerns about drought, flooding, and coastal erosion. The available context does not include committee testimony or recorded votes, so there is no direct evidence of opposition or support from hearings. The bill’s re-referral to multiple committees indicates it remained under active legislative consideration rather than having advanced cleanly through the process.
The main likely points of contention are the new $25 transient accommodations surcharge, the use of tourism-related taxes to fund climate and environmental programs, and the scope of DLNR’s authority to administer grants, seek reimbursements, and issue revenue bonds. Stakeholders tied to tourism, lodging, and tax policy may question the added cost to visitors and the effect on the visitor industry, while counties, environmental advocates, and Native Hawaiian stewardship groups may support the dedicated funding stream and the bill’s emphasis on wildfire prevention, reef restoration, and indigenous-led solutions. Another possible issue is whether the fund’s broad eligible uses and grant structure provide enough oversight, although the bill addresses this through reporting, audits, eligibility requirements, and a technical advisory committee.