Bill Text: HI SCR159 | 2021 | Regular Session | Amended
Bill Title: Urging The Department Of Land And Natural Resources To Examine And Consider Purchasing Reef Insurance To Support Nature-based Solutions To Protect Hawaii's Coastlines And Coastal Infrastructure From Natural Disasters.
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Passed) 2021-06-21 - Certified copies of resolutions sent, 06-21-21. [SCR159 Detail]
Download: Hawaii-2021-SCR159-Amended.html
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THE SENATE |
S.C.R. NO. |
159 |
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THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 1 |
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STATE OF HAWAII |
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SENATE CONCURRENT
RESOLUTION
URGING THE DEPARTMENT OF LAND AND NATURAL RESOURCES TO EXAMINE AND CONSIDER PURCHASING REEF INSURANCE TO SUPPORT NATURE-BASED SOLUTIONS TO PROTECT HAWAII'S COASTLINES AND COASTAL INFRASTRUCTURE FROM NATURAL DISASTERS.
WHEREAS, the State has environmental resources such as coral reefs, wetlands, forests, and other natural infrastructure that, when healthy, effectively managed, and functioning, can help mitigate the risks and related loss and damage from the effects of climate change and natural disasters; and
WHEREAS, Hawaii's coastal areas and infrastructure are facing exposure to climate change-related risks and disaster events, including exposure to storms, high wave events, sea level rise, and flooding; and
WHEREAS, climate scientists and other local and global experts predict an increase in severity and frequency in such events; and
WHEREAS, a study by a team from the United States Geological Survey, The Nature Conservancy, and University of California at Santa Cruz estimates that Hawaii's coral reefs protect $836,000,000 worth of coastal infrastructure from flooding annually; and
WHEREAS, in addition to coastal protection, Hawaii's nearshore coral reefs provide residents with income from fishing, which is estimated at $13,400,000 annually, of which $10,000,000 is from non‑commercial catch; and
WHEREAS, Hawaii's coral reefs also provide reef-related tourism, which is estimated at $1,230,000,000 annually; and
WHEREAS, Hawaii's coral reefs also provide food security, recreational opportunities, and a cultural connection to the State; and
WHEREAS, over ten million visitors traveled to Hawaii in 2019 to experience the beauty of the State's beaches, reefs, oceans, and other natural resources and, in doing so, contributed nearly $17,000,000,000 to the State's economy; and
WHEREAS, the health and sustainability of the State's communities and economy are closely intertwined with the health of the State's coral reefs and coastal ecosystems; and
WHEREAS, the health and function of Hawaii's coral reefs are threatened by global stressors related to climate change, including sea level rise, coral bleaching, and acidification; and by local stressors from land-based sources of pollution, unsustainable fishing practices, and invasive species; and
WHEREAS, in some areas of the State, live coral cover has declined by as much as forty percent, and reef fish abundance has declined by up to ninety percent; and
WHEREAS, Hawaii has experienced three coral bleaching events in the past five years, including the first statewide mass bleaching event in 2015; and
WHEREAS, coastal risks are expected to increase from the effects of climate change, which include an increase in the number and severity of hurricanes, higher levels of rainfall in fewer storm events, higher sea surface temperatures, and greater ocean acidification, which negatively impacts coral reefs, lobsters, oysters, and other calcifying organisms; and
WHEREAS, global losses due to natural catastrophes and tropical hurricanes have been increasing in recent decades, which impact national and local economic productivity, threaten water and food security, increase diseases, damage critical public infrastructure, and impede basic services; and
WHEREAS, the exposure of communities and coastal assets to flooding and erosion is also increasing because coastal ecosystems that serve as the first line of defense, such as wetlands and coral reefs, are being lost at alarming rates; and
WHEREAS, in 2018, the Mexican state government of Quintana Roo partnered with the local hotel owners' association, The Nature Conservancy, and a local marine park to establish the Coastal Zone Management Trust Fund, which was funded in part through local tourism taxes, to manage and restore beaches and coral reefs; and
WHEREAS, in mid-2019, the Coastal Zone Management Trust Fund purchased the world's first reef insurance policy, which will provide funds to quickly restore the coral reef if it is damaged in a hurricane; and
WHEREAS, a reef insurance policy covers damage to the reef rather than damage to the private property on the coastline, thus insuring nature itself; and
WHEREAS, in 2020, Mexico's reef insurance policy paid out $850,000 to repair a reef that was impacted by Hurricane Delta; and
WHEREAS, The Nature Conservancy completed a feasibility assessment in 2020, finding that reef insurance is ecologically and economically feasible in the State and could help Hawaii repair its reefs after a natural disaster; and
WHEREAS, the feasibility assessment identified hurricanes, marine heatwaves, and excessive storm runoff as potentially insurable natural disasters; now, therefore,
BE IT RESOLVED by the Senate of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2021, the House of Representatives concurring, that the Department of Land and Natural Resources is urged to examine and consider purchasing reef insurance to support nature-based solutions to protect Hawaii's coastlines and coastal infrastructure from natural disasters; and
BE IT FURTHER RESOLVED that in its examination, the Department of Land and Natural Resources is requested to work, in collaboration with the State Insurance Commissioner and other appropriate state and county agencies, The Nature Conservancy, insurance experts, and other experts and partners, to develop a report that includes:
(1) Term sheets for a prospective Hawaii reef insurance policy for natural disasters;
(2) Priority sites for insurance;
(3) Possible buyers and sellers of reef insurance; and
(4) Recommended funding mechanisms to cover insurance premium costs; and
BE IT FURTHER RESOLVED that the Department of Land and Natural Resources is requested to identify and propose to the Legislature specific nature-based projects that help protect the State's coastal infrastructure from inundation, including insurance and other market mechanisms that incentivize public and private investment to protect and restore the health and function of reefs and other coastal systems from natural disasters; and
BE IT FURTHER RESOLVED that the Department of Land and Natural Resources is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2023; and
BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, Chairperson of the Board of Land and Natural Resources, Chairpersons of the Hawaii Climate Change Mitigation and Adaptation Commission, State Insurance Commissioner, Mayor of the City and County of Honolulu, Mayor of the County of Hawaii, Mayor of the County of Maui, Mayor of the County of Kauai, and Executive Director of The Nature Conservancy Hawaii.
Reef Insurance; Department of Land and Natural Resources; Coastlines; Natural Disasters
