Bill Text: HI SB811 | 2013 | Regular Session | Introduced

Hawaii Senate Bill 811 (Prior Session Legislation)

Introduced

Bill Title: Department of Land and Natural Resources; Hawaii Legacy Trust Fund; Forest Carbon Offsets Program; Carbon Emissions

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2013-01-28 - Re-Referred to HMS/WTL/ENE, WAM. [SB811 Detail]

Download: Hawaii-2013-SB811-Introduced.html

THE SENATE	S.B. NO.	811
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

A BILL FOR AN ACT

relating to the department of land and natural resources.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

SECTION 1. The purpose of this part is to establish the Hawaii legacy trust fund as a means to encourage people to make strong financial investments while supporting conservation, reforestation of Hawaii's native trees, environmental stewardship, sustainable food and energy production, affordable housing, public education, and programs that support and benefit keiki and kupuna. The fund will serve as a repository for federal and state funds, as well as private contributions from corporations and other businesses, foundations, individuals, and other interested parties. The fund will be used to purchase individual or lots of Hawaiian hardwood trees that will be grown on private or publicly owned land. The legislature's intent is for the Hawaiian hardwood trees to be used for investment purposes by the State of Hawaii, individual residents of Hawaii, and other individuals and organizations who are interested in financial health, conservation, reforestation, environmental stewardship, sustainable food and energy production, affordable housing, public education, and the well-being of the State's keiki and kupuna.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER A

HAWAII LEGACY TRUST FUND

§A-1 Definitions. As used in this chapter:

"Board" means the Hawaii legacy trust fund advisory board.

"Chairperson" means the chairperson of the board of land and natural resources.

"Department" means the department of land and natural resources.

"Trust fund" or "fund" means the Hawaii legacy trust fund.

§A-2 Hawaii legacy trust fund; established. (a) There is established the Hawaii legacy trust fund as a separate fund of a nonprofit entity having a board of directors and qualifying under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, into which shall be deposited moneys received as provided under subsection (e). The chairperson, with the concurrence of the governor, shall select, in accordance with chapter 103D, the entity based upon the proven record of accomplishment of the entity in administering a similar trust fund.

(b) The purpose of the trust fund is to encourage people to make strong financial investments while supporting conservation efforts, the reforestation of Hawaii's native trees, environmental stewardship, sustainable food and energy production, affordable housing, public education, and programs that support and benefit the State's keiki and kupuna.

(c) Notwithstanding that the Hawaii legacy trust fund is established within a private entity, the department of budget and finance shall have oversight authority over the fund and may make periodic financial audits of the fund; provided that the director of finance may contract with a certified public accountancy firm for this purpose. The chairperson with the concurrence of the governor in their sole discretion may rescind the selection of the entity. If the selection of the entity is rescinded, moneys in the trust fund shall revert back to the State and shall be deemed to be trust moneys.

(d) The Hawaii legacy trust fund may receive appropriations, contributions, grants, endowments, or gifts in cash or otherwise from any source, including the State, corporations or other businesses, foundations, government, individuals, and other interested parties.

(e) The assets of the Hawaii legacy trust fund shall consist of:

(1) Moneys appropriated to the Hawaii legacy trust fund by the state, county, or federal government;

(2) Income tax remittances allocated under section 235‑ ;

(3) Fees collected for the identification of sustainable forest carbon offsets under section B-65;

(4) Private contributions of cash or property; and

(5) Income and capital gains earned by the trust fund.

(f) The aggregate principal sum deposited in the Hawaii legacy trust fund shall be invested by the entity selected under subsection (a) in a manner intended to maximize the rate of return on investment of the trust fund consistent with the objective of preserving the trust fund's principal.

(g) If the entity selected under subsection (a) is dissolved, the chairperson, with the concurrence of the governor, shall select a successor entity. If the Hawaii legacy trust fund is terminated, the moneys remaining in the trust fund shall revert back to the State and shall be deemed to be trust moneys.

(h) The administration of the Hawaii legacy trust fund shall be advised by the Hawaii legacy advisory board created under section A-4.

§A-4 Hawaii legacy trust fund advisory board. (a) There is established a Hawaii legacy trust fund advisory board under the department for administrative purposes.

(b) The board shall consist of seven members, who shall be appointed in the manner and serve for the term set forth in section 26-34, as follows:

(1) One member of the governor's staff, appointed by the governor;

(2) One member to be appointed by the governor from a list of two names submitted by the president of the senate;

(3) One member to be appointed by the governor from a list of two names submitted by the speaker of the house of representatives;

(4) The chairperson or the chairperson's designee;

(5) One member representing a well-established service organization organized in the State, appointed by the governor;

(6) One member who is a reputable arborist or other professional educated and experienced in the growth and care of trees, appointed by the chairperson; and

(7) One member who is experienced in forest finance or managing a trust fund, appointed by the chairperson.

(c) The Hawaii legacy trust fund advisory board, in collaboration with the department, shall develop policy, planning, and strategy for the fund; publicize the fund; and solicit public and private moneys for the fund.

(d) The Hawaii legacy trust fund advisory board shall make the final recommendations to the entity selected under subsection A-2(a) for the expenditure of funds for the following activities:

(1) Grantmaking to raise community awareness of the trust fund;

(2) Allocation of funds for sustainable forestry operations;

(3) Allocation of funds for sustainable energy production;

(4) Allocation of funds for sustainable food production;

(5) Allocation of funds for affordable housing;

(6) Allocation of funds for the benefit of public education;

(7) Allocation of funds for programs that support and benefit the State's keiki;

(8) Allocation of funds for programs that support and benefit the State's kupuna; and

(9) Administration of the trust fund."

SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part VI to be appropriately designated and to read as follows:

"§235- Additional income designation or check-off authorized. Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $2 or more may designate $2 of the refund to be paid over to the Hawaii legacy trust fund established by section A-2, when submitting a state income tax return to the department. In the case of a joint return of a husband and wife having a state income tax refund of $4 or more, each spouse may designate that $2 be deposited into the special fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked."

PART II

SECTION 4. The legislature finds that the State's natural environment and ecosystems are in a fragile position because of the amount of greenhouse gases released through human activities and its contribution to global climate change.

The legislature also finds that the State should support programs that incentivize businesses and landowners to adopt practices that are more environmentally friendly and that result in reduced carbon emissions into the environment. One such mechanism that has gained success in Europe after adoption of the Kyoto Protocol is the transferring and selling of carbon credits.

The purpose of this part is to create a forest carbon offsets program in Hawaii that would incentivize and reward businesses or individuals that adopt, practice, and adhere to carbon emission reduction activities, consistent with the Hawaii 2050 sustainability plan.

SECTION 5. The Hawaii Revised Statutes is amended by adding a new chapter to title 12, subtitle 6, to be appropriately designated and to read as follows:

"Chapter B

FOREST CARBON OFFSETS PROGRAM

§B-1 Definitions. As used in this chapter:

"Board" means the board of land and natural resources.

"Department" means the department of land and natural resources.

"Forest carbon offset" means a transferable unit based on a measured amount of carbon storage expressed as a carbon dioxide emission equivalent, or other equivalent standard, and accruing on forestland as live or dead matter in trees, shrubs, forest litter, and soil.

§B-2 Forest carbon offsets program. (a) The department shall establish a forest carbon offsets program that:

(1) Develops a process to identify forest management actions that contribute to carbon sequestration;

(2) Establishes offset credits that may be transferred or sold among public and private agencies in the State on regulated or volunteer markets; and

(3) Guarantees sustainable management of Hawaii's natural resources by ensuring land conservation and reducing carbon emissions.

(b) The department shall adopt rules pursuant to chapter 91 necessary to carry out the purposes of this chapter.

§B-3 Forest carbon offset. (a) A forest carbon offset may be created by performing, financing, or otherwise causing one or more of the following activities:

(1) Reforestation of underproducing lands that are not otherwise subject to a reforestation program;

(2) Forest management activities that are not already required by law, including but not limited to the following practices:

(A) Stand density control treatments in overstocked underproducing stands of timber;

(B) Silvicultural practices that increase forest stand biomass, including but not limited to structure-based management, variable retention, uneven age management, longer rotation ages, and no harvest reserves;

(D) Deferred harvest rotations past fifty years or an appropriate time depending on the species or the age of economic maturity, whichever is longer; and

(3) Other activities as defined by the board.

(b) The department shall only be responsible for identifying sustainable management activities for forest carbon offsets.

§B-4 Sustainable management. (a) The department shall develop a process for identifying practices for the sustainable management of Hawaii's natural resources and the additional benefits related to forest carbon offsets. The process for the determination of sustainable management shall include:

(1) Accepted principles, standards, and best management practices relating to the management and restoration of Hawaii's natural resources;

(2) The effects of increasing carbon sequestration and storage on forestlands as measured by a third party or accredited forest carbon offset accounting system;

(3) Whether there is actual or threatened harm or deterioration of the natural resources of Hawaii; and

(4) Environmental, social, cultural, or economic benefits for the citizens of Hawaii, including but not limited to the protection or enhancement of long-term native fish and wildlife habitats and water quality.

(b) Rules adopted by the board under this section shall establish:

(1) Standards to assure participants that forest carbon offsets to be transferred or sold as a result of forest management activities shall:

(A) Not result in harm to or deterioration of the natural resources of Hawaii; and

(B) Provide environmental, social, cultural, or economic benefits, including but not limited to the protection or enhancement of long-term native fish and wildlife habitat and water quality; and

(2) Principles to ensure that the forest carbon offset program shall:

(A) Include provisions for establishing the appropriate baseline for projects, practices, rotation ages, and harvest schedules, and ownership for which measured carbon dioxide emission debits and credits for carbon storage or sequestration are made through a third party or accredited program;

(B) Ensure that specific forest management practices include verifiable provisions for monitoring carbon dioxide emission for carbon storage or sequestration;

(C) Account for environmental, social, or economic benefits of forest carbon offsets and ensure that practices with unsustainable long-term consequences are not used to create forest carbon offsets; and

(D) Encourage the use of reputable third-party verification of forest carbon offsets.

§B-5 Carbon offset transfer or sale. Nothing in this chapter shall prohibit any person or governmental agency from marketing, selling, or transferring forest carbon offsets.

§B-6 Fees. The board shall establish a processing fee for the identification of sustainable forest carbon offsets. Fees collected shall be deposited into the Hawaii legacy trust fund established by section A-2."

PART III

SECTION 6. In codifying the new chapters added by sections 2 and 5 of this Act, the revisor of statutes shall substitute appropriate chapter numbers for the letters used in designating the new chapters in this Act.

SECTION 7. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2013; provided that section 3 of this Act shall apply to taxable years beginning after December 31, 2012.

INTRODUCED BY:	_____________________________

Report Title:

Department of Land and Natural Resources; Hawaii Legacy Trust Fund; Forest Carbon Offsets Program; Carbon Emissions

Description:

Establishes the Hawaii legacy trust fund as a separate fund of a nonprofit entity to encourage individuals to make strong financial investments while supporting conservation, reforestation, environmental stewardship, sustainability, affordable housing, public education, and the well-being of the State's keiki and kupuna. Establishes an income tax refund check-off box for the Hawaii legacy trust fund. Establishes a forest carbon offsets program in the department of land and natural resources. Creates a process for local businesses, individuals, and land owners to invest in forest carbon offsets that would provide incentives for retaining conservation land or practicing carbon emission reduction activities.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.