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HB1572
HOUSE OF REPRESENTATIVES
H.B. NO.
1572
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to aquaculture development
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The legislature finds that the State's
aquaculture industry has experienced significant decline over the past decade.
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Recent statistics reflect that the aquaculture
industry's value decreased seventeen per cent from 2018 to 2023 and a stagnant
number of aquaculture farms have been operating over the past decade.
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Further, exports of specific pathogen‑free
shrimp broodstock, a globally significant Hawaii product, has shown a
significant decline since 2015.
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The
legislature further finds that this decline has occurred despite the State having
comparative advantages in tropical aquaculture, including pristine water
resources, established research infrastructure such as the Natural Energy
Laboratory of Hawaii Authority and the university of Hawaii, and proximity to
premium markets.
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The
legislature recognizes that Act 96, Session Laws of Hawaii 2025 (Act 96), increased
the transient accommodations tax, colloquially termed a "green fee",
to generate revenues for environmental stewardship, climate and hazard
resilience, and sustainable tourism purposes.
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The legislature finds that aquaculture development, particularly
restorative aquaculture emphasizing ecosystem services, directly advances all
three purposes intended for the funds generated via Act 96, with documented
benefits including: water quality improvement through bivalve filtration and
seaweed nutrient uptake; carbon sequestration through seaweed cultivation;
ocean acidification buffering through localized pH elevation during seaweed
photosynthesis; habitat provision through oyster reef and fishpond structures;
support for native species including
ʻ
ama
ʻ
ama
(mullet), awa (milkfish), and indigenous limu varieties; and support for local
food systems that reduce environmental impacts from food transportation while
enhancing visitor experiences through authentic agricultural tourism.
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The
legislature further finds that sustainable aquaculture expansion simultaneously
addresses multiple state policy priorities, including: food security by
reducing the State's ninety per cent food import dependency; climate resilience
by providing nature-based coastal protection and adaptive food production
systems less vulnerable to terrestrial climate impacts; rural economic development
by creating employment opportunities in underserved communities; workforce
development by establishing career pathways in emerging blue economy sectors;
and environmental justice by supporting community-based resource management and
subsistence practices.
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Accordingly,
the purpose of this Act is to require the department of agriculture and
biosecurity to:
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(1)
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Establish
a four-year restorative aquaculture development program to reduce aquaculture
permit processing time, support restorative aquaculture infrastructure
expansion, increase aquaculture education and its workforce, and pursue federal
aquaculture grants;
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(2)
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Establish
three pilot demonstration sites for restorative aquaculture; and
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(3)
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Convene
a restorative aquaculture advisory council.
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SECTION 2.
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(a)
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The department of agriculture
and biosecurity shall establish and implement a restorative aquaculture
development program.
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The program shall
prioritize:
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(1)
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Restorative
aquaculture operations over non-restorative commercial aquaculture;
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(2)
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Native
species and traditional Native Hawaiian systems, including loko i
ʻ
a,
indigenous limu varieties, and endemic Native Hawaiian aquatic species;
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(3)
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Equitable
participation and benefit-sharing with Native Hawaiian practitioners,
small-scale producers, and underrepresented communities; and
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(4)
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Public-private
partnerships that leverage federal funds, foundation support, and private
investment.
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(b)
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The program shall establish measurable performance objectives to be
achieved no later than June 30, 2030, including:
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(1)
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Reduction
of average aquaculture permit processing time to a target range of twelve to
fifteen months, provided that the procedures shall comply with section 91-13.5,
Hawaii Revised Statutes;
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(2)
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Pursuing
at least $10,000,000 in federal competitive grants for aquaculture development
from the following sources:
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(A)
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National
Oceanic and Atmospheric Administration (NOAA) coastal partnership grants;
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(B)
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NOAA
aquaculture research competitive grants;
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(C)
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United
States Department of Agriculture (USDA) Natural Resources Conservation Service
programs;
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(D)
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USDA
Rural Energy for America program;
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(E)
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United
States National Science Foundation and Department of Energy programs supporting
sustainable marine systems and climate resilience; and
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(F)
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Other
federal programs supporting fisheries restoration, watershed management, and
blue carbon research;
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provided that the department of
agriculture and biosecurity shall coordinate with the university of Hawaii and
private sector partners to develop competitive grant proposals and manage
federal funding partnerships;
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(3)
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Development
of not less than twenty-five new or significantly expanded restorative
aquaculture operations, including:
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(A)
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Planning,
design, and construction of shared-use hatchery facilities for native and
restorative aquaculture species, with priority for small‑scale producers
and indigenous Native Hawaiian species including limu,
ʻ
ama
ʻ
ama,
awa, and
ʻ
o
ʻ
opu;
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(B)
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Development
of shared-use processing, aggregation, and cold storage facilities accessible
to small-scale producers;
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(C)
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Establishment
and support of aquaculture development zones with coordinated permitting and
shared infrastructure;
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(D)
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Development
of infrastructure to establish or restore not less than fifteen traditional Native
Hawaiian fishponds statewide, integrating subsistence, cultural, and controlled
aquaculture production and support for their operations, including water
control structures, sluice gates, and educational facilities; and
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(E)
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Capital
improvements at existing state facilities, including the Natural Energy
Laboratory of Hawaii Authority, to accommodate additional aquaculture tenants;
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(4)
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Facilitating
the creation of not less than two hundred fifty direct jobs in aquaculture and
related value‑chain sectors, especially in rural communities, including:
���������
(A)
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Development
and delivery of aquaculture training programs and youth engagement, including
curriculum for secondary schools and community colleges;
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(B)
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Apprenticeship
programs connecting students with commercial operations, including utilization
of the farmer apprentice mentoring program under section 141-15, Hawaii Revised
Statutes, with an emphasis on native species, biosecurity, and restoration
techniques;
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(C)
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Technical
assistance for small-scale and Native Hawaiian practitioners, including
business planning, production techniques, regulatory compliance, and market
development;
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(D)
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Scholarships
and stipends for students pursuing aquaculture education, with priority for
Native Hawaiian or economically disadvantaged students; and
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(E)
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Support
for traditional knowledge transmission through mentorship programs pairing
experienced traditional Native Hawaiian fishpond practitioners with new
practitioners;
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(5)
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Achieving
measurable environmental benefits including:
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(A)
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Restoration
of not less than two hundred acres of coastal aquaculture habitat associated
with restorative aquaculture systems;
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(B)
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Deployment
of restorative aquaculture systems demonstrating water quality improvement in not
less than three embayments;
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(C)
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Documentation
of carbon sequestration through seaweed cultivation totaling not less than two
thousand five hundred tons of carbon dioxide annually by 2030; and
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(D)
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Establishment
of baseline monitoring protocols for long-term assessment of aquaculture
ecosystem services; and
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(6)
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Demonstration
of economic viability of restorative aquaculture through production metrics,
market development, and value‑chain analysis supporting long‑term
private sector participation.
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(c)
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The department of agriculture and biosecurity shall submit a report to
the legislature no later than twenty days prior to the convening of the regular
sessions of 2027, 2028, 2029, and 2030 on:
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(1)
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Progress
toward achieving the performance objectives specified in subsection (b), with
disaggregated data by island and operation type;
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(2)
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Federal
grant applications submitted and awards received, including funding amounts and
project descriptions;
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(3)
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Infrastructure
development projects completed or in progress, including location, capacity,
and utilization rates;
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(4)
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Number
of new commercial aquaculture operations supported, categorized by scale and
type;
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(5)
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Jobs
created, including number of positions, wage ranges, and demographic
characteristics;
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(6)
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Environmental
benefits documented, including:
���������
(A)
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Water
quality improvements measured through nitrogen, phosphorus, and turbidity
reductions;
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(B)
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Carbon
sequestration quantified through biomass production data;
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(C)
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Habitat
restoration acreage by location and habitat type; and
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(D)
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Native
species production volumes;
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(7)
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Support
provided to Native Hawaiian practitioners and traditional aquaculture systems,
including number of traditional Native Hawaiian fishponds supported, technical
assistance provided, and funding allocated;
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(8)
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Workforce
development activities including training programs delivered, participants
served, and employment outcomes;
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(9)
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Stakeholder
engagement activities including advisory council meetings, community
consultations, and feedback received; and
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(10)
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Challenges
encountered and strategies for addressing those challenges.
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(d)
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The department of agriculture and biosecurity shall contract with an
independent third-party to conduct an evaluation of the restorative aquaculture
development program under subsection (a) no later than December 31, 2027.
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The evaluation shall
:
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(1)
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Assess
progress toward performance objectives with analysis of factors contributing to
success or hindering achievement;
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(2)
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Assess
return on investment for infrastructure development, including utilization
rates and economic impact;
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(3)
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Evaluate
federal funding leverage achieved and competitive positioning relative to other
states;
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(4)
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Validate
environmental benefits through scientific monitoring and third-party
verification;
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(5)
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Assess
economic impact including jobs created, industry value growth, and multiplier
effects;
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(6)
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Evaluate
equity outcomes including support for small‑scale and Native Hawaiian
practitioners;
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(7)
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Identify
best practices and derive insights to inform future practices; and
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(8)
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Provide
recommendations for program adjustments or continuation.
The
findings of the evaluation shall be submitted to the legislature no later than
twenty days prior to the convening of the regular session of 2028.
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SECTION 3.
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The department of agriculture and biosecurity shall establish three
pilot demonstration sites for restorative aquaculture with verified carbon and
ecosystem service monitoring protocols.
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The monitoring protocols shall measure:
����
(1)
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Net
ecosystem production and carbon burial rates using accepted field protocols;
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(2)
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Water
quality improvements;
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(3)
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Habitat
provision and biodiversity benefits; and
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(4)
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Community
economic and food security outcomes.
Monitoring
data shall be made publicly available and used to support carbon tax credit
applications, federal funding proposals, and adaptive management
decisions.
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Baseline data collected shall
inform long-term climate finance opportunities and blue carbon market
participation.
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SECTION 4.
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(a)
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The department of agriculture
and biosecurity shall convene a restorative aquaculture advisory council.
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The advisory council shall consist of the
following members:
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(1)
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The
chairperson of the board of agriculture and biosecurity, who shall serve as the
chairperson of the advisory council;
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(2)
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representatives from relevant state agencies, including the department of land
and natural resources, department of health, and office of planning and
sustainable development;
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(3)
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representatives from each county planning department;
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(4)
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One
member of the house of representatives, to appointed by the speaker of the
house;
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(5)
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One
member of the senate, to appointed by the president of the senate;
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(6)
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representatives from the university of Hawaii with aquaculture research
expertise;
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(7)
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representatives from commercial aquaculture operations, including at least one
representative from each county, to be invited by the chairperson;
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(8)
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representatives from small-scale aquaculture operations, including not less
than two Native Hawaiian practitioners;
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(9)
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representatives from Native Hawaiian organizations engaged in traditional
aquaculture practices, to be invited by the chairperson;
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(10)
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representatives from environmental organizations with expertise in marine
conservation and restoration, to be invited by the chairperson; and
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(11)
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One
representative from each county with a demonstrated interest in restorative
aquaculture, to be invited by the chairperson.
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(b)
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The
restorative aquaculture advisory council shall meet at least quarterly to:
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(1)
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Advise
on project selection, funding allocation, and performance metrics;
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(2)
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Monitor
progress toward the restorative aquaculture development program objectives and
environmental stewardship;
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(3)
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Facilitate
knowledge exchange and best practice sharing; and
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(4)
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Support
federal funding partnerships and grant applications.
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SECTION 5.
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As used in this Act, "restorative aquaculture" means
aquaculture operations that demonstrably improve environmental conditions or
provide measurable ecosystem services, including:
����
(1)
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Water
quality improvement through bivalve filtration or nutrient reduction via
macroalgae cultivation;
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(2)
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Carbon
sequestration or cycling through seaweed and macroalgae systems;
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(3)
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Habitat
restoration and creation through oyster reef structures or macroalgae bed or
traditional fishpond systems;
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(4)
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Native
species recovery, including indigenous limu varities,
ʻ
ama
ʻ
ama
(mullet), awa (milkfish),
ʻ
o
ʻ
opu,
and other Native Hawaiian species; and
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(5)
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Climate
resilience infrastructure providing coastal wave attenuation, acidification
buffering, or adaptive food production systems;
as a
primary or co-equal production objective, as determined by the department of
agriculture and biosecurity in consultation with the department of land and
natural resources.
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SECTION 6.
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There is appropriated out of the general revenues of the State of Hawaii
the sum of $4,500,000 or so much thereof as may be necessary for fiscal year
2026-2027 to be expended as follows:
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(1)
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$2,000,000
for aquaculture infrastructure development; provided that twenty-five per cent
of funds shall be directed to support Native Hawaiian practitioners and
traditional aquaculture systems;
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(2)
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$600,000
for aquaculture workforce development and technical assistance; provided that
twenty-five per cent of funds shall be directed to support Native Hawaiian
practitioners and traditional aquaculture systems;
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(3)
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$1,000,000
for the pursuit of federal grants, including:
���������
(A)
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Staffing
for federal grant identification, development, and management;
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(B)
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Matching
funds for competitive federal grants that may be awarded under the proposed Marine
Aquaculture Research for America Act or related programs;
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(C)
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Consultant
services for grant proposal development;
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(D)
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Partnership
development with the university of Hawaii, federal agencies, and private sector
entities; and
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(E)
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Compliance
with federal grant reporting and performance requirements;
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(4)
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$500,000
for the establishment, operation, and monitoring of restorative aquaculture pilot
demonstration sites; and
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(5)
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$400,000
for the establishment and administration of the restorative aquaculture
development program, including but not limited to:
���������
(A)
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Program
coordination activities;
���������
(B)
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Aquaculture
advisory council support;
���������
(C)
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Program
technical assistance;
���������
(D)
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Program
performance reporting; and
���������
(E)
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Stakeholder
engagement and community outreach.
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The sum
appropriated shall be expended by the department of agriculture and
biosecurity for the purposes of this Act.
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SECTION 7.
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This Act shall take effect on July 1, 2026; provided that sections 2, 3,
and 4 shall be repealed on June 30, 2030.
INTRODUCED BY:
_____________________________
Report Title:
DAB; Restorative
Aquaculture Development Program; Workforce Development; Restorative Aquaculture
Advisory Council; Appropriation; Reports
Description:
Requires
the Department of Agriculture and Biosecurity to:
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(1) Establish a four-year Restorative
Aquaculture Development Program to reduce aquaculture permit processing time,
support aquaculture infrastructure expansion, increase the aquaculture
workforce, and pursue federal aquaculture grants; (2) Establish three pilot
demonstration sites for restorative aquaculture; and (3) Convene a Restorative Aquaculture
Advisory Council.
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Requires reports to
the Legislature.
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Appropriates funds.
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not legislation or evidence of legislative intent.