Hawaii-2024-SB1390-Introduced

SECTION l. The legislature finds that climate change is real. Rising sea levels throughout the State will increasingly erode beaches, damage habitats, and be an existential threat to residential development and associated infrastructure in many shorefront and low-lying areas as described in the 2017 Hawaii Sea Level Rise Vulnerability and Adaptation Report and companion State of Hawaii Sea Level Rise Viewer. These impacts are being observed on our shorelines today throughout the State as exemplified by recent highly publicized erosion threats to development in West Maui, on the North Shore of Oahu, and elsewhere. The legislature finds that managed retreat will be an essential policy and programmatic approach for voluntarily relocating development and associated public infrastructure from areas that are critically impacted by coastal hazards including coastal erosion and flooding with sea level rise, particularly from areas with high natural ecosystem, cultural, and recreational public resource value and to reduce hazard to life and property from coastal hazards.

The purpose of this Act is to expand the authority of the State and the counties and develop funding to begin to utilize managed retreat as a climate adaptation and hazard avoidance option for voluntarily moving residential development and associated infrastructure away from critically vulnerable areas to locations outside of sea level rise and coastal flooding exposure areas.

SECTION 2. Chapter 171, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and read as follows:

"PART . VOLUNTARY RELOCATION OF RESIDENTIAL DEVELOPMENT FROM SEA LEVEL RISE EXPOSURE AREAS INVOLVING STATE LANDS

§171- Definitions. For the purposes of this part:

"Land exchanges" means mechanisms to secure lands while compensating property owners in-kind through providing land or development rights. Land exchanges can provide a partial or full replacement alternative to financial compensation.

"Leaseback" means a transaction in which a property owner willingly sells the real property to the government or third party and leases the property back from that new owner until such time that the land is deemed unsafe due to increasing erosion or flooding hazards.

"Receiving area" means areas where additional growth and development can be accommodated from a sending area.

"Sending area" means areas where development is no longer encouraged due to exposure to increasing hazards with climate change and sea level rise.

"Transfer of development rights" means programs allowing land owners to transfer development rights from property in areas where development is no longer desirable or sustainable to areas that are. Transfer of development right programs may also allow developers to purchase development rights from property owners in areas where development is no longer desirable or sustainable and transfer those development rights to their own property.

§171- General powers. (a) In carrying out its functions under this part, the board and department may do all things necessary, useful, and convenient in connection with voluntary relocation of residential development and associated public utilities and infrastructure from locations that are or will be critically threatened by impacts related to climate change and sea level rise and have high natural resource value, including transfer of development rights, leasebacks, land exchanges, and restoration of coastal lands, subject to all applicable laws, so long as the public interest is served.

§171- Sea level rise voluntary relocation plan. The department, in cooperation with appropriate state and county agencies, shall prepare and, from time to time, revise plans for the implementation of a program to facilitate voluntary relocation of private residential development and associated public infrastructure from areas that are critically threatened by coastal erosion and flooding with sea level rise and that have high natural resource value to areas outside of the sea level rise exposure area as designated by the Hawaii climate change adaptation commission and special flood hazard areas. These plans shall guide the department with appropriate state and county agencies in identifying and prioritizing coastal lands that are critically threatened by coastal erosion and sea level rise and have high natural and community resource value, and in identifying and prioritizing potential sending and receiving areas for relocation of residential development and associated public utilities and infrastructure. In preparing these plans, the department may institute studies pertaining to the need for restoration of such lands to natural conditions and for public purposes and shall consider any plan relating to the restoration of such lands that has been prepared by any federal, state, county, or private agency or entity. The department may also institute other studies as necessary to support the development of voluntary relocation projects, including the development of environmental studies pertaining to relocation of development, cost-benefit analysis for project viability, and engineering studies.

§171- Sea level rise voluntary relocation fund. (a) There is established in the state treasury a special fund to be designated as the "sea level rise voluntary relocation fund" to carry out the purposes of this part. The following moneys shall be deposited into the sea level rise voluntary relocation special fund:

(1) Appropriations made by the legislature for deposit into this fund;

(2) Appropriations made out of the climate change special fund;

(3) Donations and contributions made by private individuals or organizations for deposit into this fund;

(4) Grants provided by government agencies or any other source;

(5) Proceeds from transfer of development rights, leasebacks, and land exchanges; and

(6) Proceeds from lawsuits holding industries accountable for climate change impacts that threaten Hawaii.

(b) The sea level rise voluntary relocation special fund may be used by the department for one or more of the following purposes:

(1) Planning, designing, developing, or implementing of climate change and sea level rise adaptation projects pursuant to this part including voluntary relocation of residential development and associated infrastructure through mechanisms, including but not limited to transfer of development rights, leasebacks, land exchanges, and restoration of coastal lands; and

(2) Acquiring, through eminent domain, private development at risk of exposure to sea level rise and flooding."

SECTION 3. Chapter 171, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and read as follows:

"§171- Public lands suitable and available for transfer of development rights or land exchanges; inventory. The department shall complete and maintain a current inventory of all public lands and other high-priority private lands, regardless of zoning, which are located outside of the sea level rise exposure area as designated by the Hawaii climate change mitigation and adaptation commission and special flood hazard areas and are or may be suitable for relocation of residential development from areas that are critically threatened by coastal erosion and flooding with sea level rise and from areas that have high natural and community resource value according to the objectives and policies set forth in chapter 205A. This inventory shall be updated annually and contain the following information: the island and areas in which the land is situated, the acreage, development potential including but not limited to, nearest access to county or state roads, nearest access to public utilities including electrical and water, and such other information which the department determines may be necessary to identify and inventory the land for those purposes. The department shall submit a report detailing this initial inventory to the governor, legislature, and Hawaii climate change mitigation and adaptation commission no later than twenty days prior to the convening of the 2024 regular legislative session and every year thereafter."

SECTION 4. Section 171-50, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Purpose. No exchange of public land for private land shall be made except for public purposes, including but not limited to (1) consolidation of holdings of public lands; (2) straightening of boundaries of public lands; (3) acquisition of adequate access for landlocked public lands [~~which~~] that have development potential; [or] (4) acquisition of lands suitable for residential use[.]; or (5) relocation of private development away from high risk areas of coastal hazards, sea level rise, and flooding exposure, and expansion of public coastal areas and access. Exchanges shall be effected without public auction. Public notice of any proposed exchange shall be given in accordance with the applicable provisions set forth in section 171-16(d). All private lands conveyed to the State by way of exchanges shall thereafter become public lands."

SECTION 5. Section 226-109, Hawaii Revised Statutes, is amended to read as follows:

"[[]§226-109[]] Climate change adaptation priority guidelines. Priority guidelines to prepare the State to address the impacts of climate change, including impacts to the areas of agriculture; conservation lands; coastal and nearshore marine areas; natural and cultural resources; education; energy; higher education; health; historic preservation; water resources; the built environment, such as housing, recreation, transportation; and the economy shall:

(1) Ensure that Hawaii's people are educated, informed, and aware of the impacts climate change may have on their communities;

(2) Encourage community stewardship groups and local stakeholders to participate in planning and implementation of climate change policies;

(3) Invest in continued monitoring and research of Hawaii's climate and the impacts of climate change on the State;

(4) Consider native Hawaiian traditional knowledge and practices in planning for the impacts of climate change;

(5) Encourage the preservation and restoration of natural landscape features, such as coral reefs, beaches and dunes, forests, streams, floodplains, and wetlands, that have the inherent capacity to avoid, minimize, or mitigate the impacts of climate change;

(6) Explore adaptation strategies that moderate harm or exploit beneficial opportunities in response to actual or expected climate change impacts to the natural and built environments;

(7) Promote sector resilience in areas such as water, roads, airports, and public health, by encouraging the identification of climate change threats, assessment of potential consequences, and evaluation of adaptation options;

(8) Foster cross-jurisdictional collaboration between county, state, and federal agencies and partnerships between government and private entities and other nongovernmental entities, including nonprofit entities;

(9) Use management and implementation approaches that encourage the continual collection, evaluation, and integration of new information and strategies into new and existing practices, policies, and plans; [~~and~~]

(10) Encourage planning and management of the natural and built environments that effectively integrate climate change policy[.]; and

(11) Identify and prioritize climate change and sea level rise adaptation sending areas facing the greatest threats from increasing impacts from coastal erosion and flooding, and identify and prioritize potential receiving areas for relocation of residential development and public infrastructure from locations that are or will be critically threatened by those impacts."

SECTION 6. There is appropriated out of the sea level rise voluntary relocation fund the sum of $20,000,000, or so much thereof as may be necessary for fiscal year 2023-2024, to carry out the purpose of this Act. The sum appropriated shall be expended by the department of land and natural resources.

SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST

THE SENATE	S.B. NO.	1390
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII