SB 3325 Summary

• Establishes the Hawaii Carbon Smart Land Management Assistance Pilot Program within the Department of Land and Natural Resources to provide compensation to landowners and lessees for carbon sequestration activities through incentive contracts lasting 1 to 30 years.

• Eligible practices include Phase I activities (reforestation, conservation tillage, invasive species control, crop diversity, manure management, rotational grazing) and Phase II activities (perennial biofuel feedstocks, methane capture, improved forest management, conservation easements).

• Requires the department to establish compensation rates, monitor contract compliance, make technical resources available to the public, and prioritize projects that are cost-effective, provide co-benefits, create jobs, and advance food security or watershed protection.

• Identifies potential co-benefits including job creation, food security, water security, increased biodiversity, soil health, and invasive species reduction and removal.

• Repeals Section 225P-6 (the Carbon Offset Program) and terminates the pilot program on June 30, 2025.