H.B. 975 Summary

• Permanently establishes the Hawaii Carbon Smart Land Management Assistance Program, originally created as a pilot program under Act 185 (Session Laws of Hawaii 2022), eliminating its June 30, 2025 sunset date.

• Creates incentive contracts for landowners and lessees to implement eligible carbon sequestration practices including reforestation, conservation tillage, improved forages, crop diversity, rotational grazing, and waste-stream amendments, with contract terms ranging from 1 to 30 years.

• Designates the Department of Land and Natural Resources to administer the program, establish compensation rates, monitor compliance, and coordinate with relevant agencies to verify sequestration benefits and identify co-benefits such as job creation, food security, water security, biodiversity, and soil health.

• Establishes Phase I activities (high-likelihood sequestration benefits) and Phase II activities (significant potential requiring additional technical work) with prioritization criteria including cost-effectiveness, co-benefits, job creation potential, and community priorities.

• Appropriates unspecified funds from general revenues for fiscal years 2025-2026 and 2026-2027 to support program implementation, including establishment of permanent positions, with an effective date of July 1, 3000.