HI HB2602

Establishes a sustainable tourism infrastructure matching grant program within the Department of Business, Economic Development, and Tourism to fund one-time capital investments in visitor industry facilities that advance sustainability and climate resilience outcomes.

Eligible projects include energy efficiency retrofits, renewable energy infrastructure, water conservation systems, waste reduction facilities, climate adaptation improvements, cycling/micromobility infrastructure, and passenger terminal upgrades.

All grants require private matching funds, and eligible applicants include hotels, resorts, cruise ship operators, passenger terminal operators, port facilities, bikeshare networks, and other visitor-serving facilities.

Funded by the 0.75 percentage point "green fee" increase to the transient accommodations tax enacted in 2025, projected to generate approximately $100 million annually.

Requires the department to submit annual reports to the legislature beginning in 2027, detailing grants awarded, projects funded, private funds leveraged, and measurable sustainability outcomes achieved.