RELATING TO CONSERVATION BANKING.

SB2978

THE SENATE

S.B. NO.

2978

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to Conservation Banking
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1.
�
The legislature finds that the use of
conservation banks as compensatory mitigation projects for incidental take
licensees with habitat conservation plans increases certainty that the
mitigation obligation is complete, expedites project review, and makes project
costs more predictable for incidental take licensees.
�
The legislature further finds that conservation
banks provide long-term, landscape-scale protection for Hawaii's threatened,
endangered, candidate, and proposed species.

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Accordingly, the purpose of
this Act is to authorize the use of conservation banks where a person or entity
is required to provide compensatory mitigation to offset adverse impacts to
threatened, endangered, candidate, or proposed species as part of a habitat
conservation plan and associated incidental take license.

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SECTION 2.
�
Chapter 195D, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

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"
�195D-
�
Conservation banking.
�
(a)
�
The department or other bank
sponsor may seek board approval of a conservation bank instrument to operate a
conservation bank for the purposes of restoring, creating, enhancing, or
protecting populations of threatened, endangered, candidate, or proposed species
and their habitats to provide for situations in which a person or entity is
required to provide compensatory mitigation to offset adverse impacts to
threatened, endangered, candidate, or proposed species as part of an approved
incidental take license and habitat conservation plan.

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(b)
�
The department may adopt rules pursuant to
chapter 91 necessary to implement this section.
"

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SECTION
3.
�
Section 195D-2, Hawaii Revised
Statutes, is amended by adding a new definition to be appropriately inserted
and to read as follows:

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"
"Conservation
bank" means a site or suite of sites established under a conservation bank
instrument for the purposes of restoring, creating, enhancing, or protecting
populations of threatened, endangered, candidate, or proposed species and their
habitats, expressed as credits.
"

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SECTION
4
.
�
Section 195D-21, Hawaii Revised Statutes, is
amended by amending subsection (b) to read as follows:

"
(b)(1)
�
Except
as otherwise provided by law, the board, upon recommendation from the
department, in cooperation with other state, federal, county, or private
organizations and landowners, after a public hearing on the island affected,
and upon an affirmative vote of no less than two-thirds of its authorized
membership, may enter into a habitat conservation plan, if it determines that:

���������
(A)
�
The plan will
further the purposes of this chapter by protecting, maintaining, restoring, or
enhancing identified ecosystems, natural communities, or habitat types upon
which endangered, threatened, proposed, or candidate species depend within the
area covered by the plan;

���������
(B)
�
The plan will
increase the likelihood of recovery of the endangered or threatened species
that are the focus of the plan; and

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(C)
�
The plan satisfies
all the requirements of this chapter.

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[
In the event]

If
the board votes to enter into a habitat conservation plan for
which the majority of the endangered species recovery committee recommended
disapproval, the board [
may
]
shall
not enter into the habitat
conservation plan unless the plan is approved by a two-thirds majority vote of
both houses of the legislature.
�
Habitat
conservation plans may allow conservation rental agreements, habitat banking,
conservation
banks,
and direct payments.
�
Any
habitat conservation plan approved pursuant to this section shall be based on
the best available scientific and other reliable data available at the time the
plan is approved.

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(2)
�
Each habitat conservation plan shall:

���������
(A)
�
Identify
the geographic area encompassed by the plan; the ecosystems, natural communities,
or habitat types within the plan area that are the focus of the plan; and the
endangered, threatened, proposed, and candidate species known or reasonably
expected to be present in those ecosystems, natural communities, or habitat
types in the plan area;

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(B)
�
Describe the
activities contemplated to be undertaken within the plan area with sufficient
detail to allow the department to evaluate the impact of the activities on the
particular ecosystems, natural communities, or habitat types within the plan
area that are the focus of the plan;

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(C)
�
Identify the steps
that will be taken to minimize and mitigate all negative impacts, including
without limitation the impact of any authorized incidental take, with
consideration of the full range of the species on the island so that cumulative
impacts associated with the take can be adequately assessed; and the funding
that will be available to implement those steps;

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(D)
�
Identify those
measures or actions to be undertaken to protect, maintain, restore, or enhance
the ecosystems, natural communities, or habitat types within the plan area; a
schedule for implementation of the measures or actions; and an adequate funding
source to ensure that the actions or measures, including monitoring, are
undertaken in accordance with the schedule;

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(E)
�
Be consistent with
the goals and objectives of any approved recovery plan for any endangered
species or threatened species known or reasonably expected to occur in the
ecosystems, natural communities, or habitat types in the plan area;

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(F)
�
Provide reasonable
certainty that the ecosystems, natural communities, or habitat types will be
maintained in the plan area, throughout the life of the plan, in sufficient
quality, distribution, and extent to support within the plan area those species
typically associated with the ecosystems, natural communities, or habitat
types, including any endangered, threatened, proposed, and candidate species
known or reasonably expected to be present in the ecosystems, natural
communities, or habitat types within the plan area;

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(G)
�
Include an
agreement to enter into and maintain an annual service contract with a stand-by
and response facility available to provide emergency medical and rehabilitation
services to native wildlife affected by activities undertaken within the plan
area;

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(H)
�
Contain
objective, measurable goals, the achievement of which will contribute
significantly to the protection, maintenance, restoration, or enhancement of
the ecosystems, natural communities, or habitat types; time frames within which
the goals are to be achieved; provisions for monitoring (such as field sampling
techniques), including periodic monitoring by representatives of the department
or the endangered species recovery committee, or both; and provisions for
evaluating progress in achieving the goals quantitatively and qualitatively;
and

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(I)
�
Provide
for an adaptive management strategy that specifies the actions to be taken
periodically if the plan is not achieving its goals."

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SECTION
5
.
�
Section 195D-25, Hawaii Revised Statutes, is
amended to read as follows:

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"
�195D-25
�

Endangered species recovery committee.
�

(
a)
�
There is established within the department
for administrative purposes only, the endangered species recovery committee,
which shall serve as a consultant to the board and the department on matters
relating to endangered, threatened, proposed, and candidate species.
�
The committee shall consist of two field
biologists with expertise in conservation biology, the chairperson of the board
or the chairperson's designee, the ecoregion director of the United States Fish
and Wildlife Service or the director's designee, the
associate
director
of the United States Geological Survey, [
Biological Resources Division
]
Ecosystem
Mission Area
or the
associate
director's designee, the dean of the [
University
]

university
of Hawaii at Manoa college of natural sciences or the dean's
designee, and a person possessing a background in native Hawaiian traditional
and customary practices, as evidenced by:

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(1)
�
A
college degree in a relevant field, such as Hawaiian studies,
native
Hawaiian law, native
Hawaiian traditional and customary practices, or related subject area;

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(2)
�
Work
history that demonstrates an appropriate level of knowledge in native Hawaiian
traditional and customary practices; or

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(3)
�
Substantial
experience in native Hawaiian traditional and customary practices.

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Nongovernmental members shall be
appointed by the governor pursuant to section 26-34.
�
Nongovernmental members shall not serve for
more than two consecutive terms.
�

Nongovernmental members shall serve for four-year staggered terms,
except that one of the members first appointed shall serve for two years.

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Governmental members from the
federal agencies are requested but not required to serve on the committee.
�
The ability of the committee to carry out its
functions and purposes shall not be affected by the vacancy of any position
allotted to a federal governmental member.

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(b)
�
The endangered species recovery committee
shall:

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(1)
�
Review all applications and proposals for
habitat conservation plans, safe harbor agreements,
conservation banks,

and incidental take licenses and make recommendations, based on a full review
of the best available scientific and other reliable data and at least one site
visit to each property that is the subject of the proposed action, and in
consideration of the cumulative impacts of the proposed action on the recovery
potential of the endangered, threatened, proposed, or candidate species, to the
department and the board as to whether or not they should be approved, amended,
or rejected;

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(2)
�
Review all habitat conservation plans, safe
harbor agreements,
conservation banks,
and incidental take licenses on
an annual basis to ensure compliance with agreed to activities and, on the
basis of any available monitoring reports, and scientific and other reliable
data, make recommendations for any necessary changes;

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(3)
�
Consider and recommend appropriate incentives
to encourage landowners to voluntarily engage in efforts that restore and
conserve endangered, threatened, proposed, and candidate species;

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(4)
�
Perform such other duties as provided in this
chapter;

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(5)
�
Consult with persons possessing expertise in
such areas as the committee may deem appropriate and necessary in the course of
exercising its duties; and

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(6)
�
Not conduct more than one site visit per year
to each property that is the subject of a habitat conservation plan [
or
]
,

safe harbor agreement[
.
]
, or conservation bank instrument.
"

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SECTION
6.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION 7.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Department
of Land and Natural Resources; Board of Land and Natural Resources;
Conservation Banks; Habitat Conservation Plans; Compensatory Mitigation;
Incidental Take License; Endangered Species

Description:

Authorizes
the use of conservation banks for compensatory mitigation in a habitat
conservation plan and associated incidental take license.
�
Amends the membership and scope of authority
for the Endangered Species Recovery Committee.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.