HI SB1178

Permanently establishes the Hawaii Carbon Smart Land Management Assistance Program within the Department of Land and Natural Resources, converting a pilot program created by Act 185 (2022) into a permanent initiative to incentivize carbon sequestration through compensation contracts with landowners and lessees.

Incentive contracts range from 1 to 30 years, with longer contract terms correlating to higher compensation rates for eligible practices that increase soil health, reduce emissions, and promote carbon storage.

Phase I activities include reforestation, windbreaks, conservation tillage, rotational grazing, cover crops, compost/biochar application, and invasive species control; Phase II activities cover methane capture, improved forest management, and perennial biofuel feedstocks.

Prioritizes projects that are cost-effective, create jobs in forestry and agriculture sectors, achieve community priorities like food security and watershed protection, and provide co-benefits including water security, biodiversity, and soil health.

Appropriates unspecified general fund revenues for fiscal year 2026-2027, including one full-time permanent position; effective date is July 1, 2050.