S.B. 493 Summary

• Establishes the Hawaii Agriculture and Forest Carbon Positive Incentive Program administered by the Hawaii Green Infrastructure Authority to compensate landowners for carbon sequestration activities on agricultural and forest land.

• Creates carbon incentives contracts with participating landowners specifying eligible practices, acreage, compensation rates, and verification schedules, with contract terms ranging from one to thirty years.

• Designates Phase I activities (regenerative cropping, improved pasture, agroforestry, reforestation, forest protection, rotational grazing) and Phase II activities (biofuel production, methane capture, improved forest management, nutrient management) as eligible carbon positive practices.

• Establishes a dedicated special fund for the program to be financed by revenues from the environmental response, energy, and food security tax on petroleum products, with annual legislative reports required on carbon reductions achieved and program enrollment.

• Takes effect July 1, 2050, with appropriations and program funding provisions effective July 1, 2051.