RELATING TO A SUSTAINABLE TOURISM INFRASTRUCTURE.

SB3228

THE SENATE

S.B. NO.

3228

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO A sustainable tourism infrastructure
.

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

����
SECTION 1.
�
The
legislature finds that the State's visitor industry constitutes essential
economic infrastructure that supports statewide employment, tax revenues, and
public services, while also relying heavily on energy, water, transportation,
and coastal assets that are increasingly vulnerable to climate-related risks.

����
The legislature further finds that
strategic, capital-based sustainability and climate resilience investments in
visitor industry facilities, particularly in hotels, cruise ship operations,
passenger terminals, and port-related infrastructure, can reduce greenhouse gas
emissions, improve energy and water efficiency, mitigate climate risks, and
reduce long-term public infrastructure and disaster recovery costs borne by the
State.

����
Additionally, the legislature finds that in
2025, the State enacted a 0.75 per cent increase to the transient
accommodations tax, commonly referred to as the "Green Fee", to
create a dedicated funding source to support climate resilience, environmental
protection, and sustainability initiatives related to the visitor industry.
�
According to the office of the governor, the
increased transient accommodations is projected to generate approximately $100
million in tax revenues annually.

����
Furthermore, the legislature finds that
leveraging limited public funds to support voluntary, outcome-driven
private-sector investments through competitive, matching grants can achieve
measurable environmental and economic benefits without imposing new regulatory
mandates or creating ongoing financial obligations for the State.

����
Accordingly, the purpose of this Act is to
establish within the department of business, economic development, and tourism
a time-limited, performance-based matching grant program to support voluntary
sustainability and climate resilience investments in visitor industry
infrastructure, maximize the return on public investment, and ensure
transparency and accountability in the use of public funds.

����
SECTION 2.
�

Chapter 201, Hawaii Revised Statutes, is amended by adding a new section
to be appropriately designated and to read as follows:

����
"
�201-
�
Sustainable
tourism infrastructure matching grant program.
�
(a)
�
There is established within
the department of business, economic development, and tourism, a competitive,
performance-based sustainable tourism infrastructure matching grant program to support
one-time capital investments that advance measurable sustainability and climate
resilience outcomes within the State's visitor industry.

����
(b)
�

Eligible applicants may include but are not limited to:

����
(1)
�
Hotels,
resorts, and other transient accommodations;

����
(2)
�
Cruise
ship operators;

����
(3)
�
Passenger
terminal operators;

����
(4)
�
Port
or harbor facilities that directly support visitor transportation; and

����
(5)
�
Other
visitor-serving facilities, as determined by the department, that demonstrate a
clear nexus to sustainability or climate resilience outcomes.

����
(c)
�

Grant funds shall be used exclusively for one-time capital expenditures
that produce measurable sustainability or climate resilience outcomes,
including but not limited to:

����
(1)
�
Energy
efficiency retrofits or electrification;

����
(2)
�
Renewable
energy or emissions-reduction infrastructure;

����
(3)
�
Water
efficiency, conservation, or reuse systems;

����
(4)
�
Waste
reduction or materials management infrastructure;

����
(5)
�
Climate
adaptation or resilience improvements, including flood mitigation; and

����
(6)
�
Passenger
terminal or port facility improvements that reduce environmental impacts.

����
(d)
�

Grant funds shall not be used for ongoing operating expenses, routine
maintenance, or activities that are otherwise required by law.

����
(e)
�

All grants awarded under this section shall require a private-sector
matching contribution, in an amount determined by the department, to ensure
shared investment, fiscal discipline, and leverage of state funds.

����
(f)
�

In awarding grants, the department shall prioritize projects that:

����
(1)
�
Are
implementation-ready;

����
(2)
�
Demonstrate
clear, measurable outcomes;

����
(3)
�
Leverage
significant private capital;

����
(4)
�
Reduce
long-term infrastructure risk or public cost exposure; and

����
(5)
�
Align
with statewide climate and economic resilience goals.

����
(g)
�

The department shall submit an annual report of its findings and
recommendations, including any proposed legislation, on the grant program to
the legislature no later than twenty days prior to the convening of each
regular session, beginning with the regular session of
2027.
�
The report shall include, at a minimum:

����
(1)
�
The number and amount of grants
awarded;

����
(2)
�
Types
and locations of projects funded;

����
(3)
�
Amount
of private matching funds leveraged;

����
(4)
�
Quantifiable
sustainability or climate outcomes achieved; and

����
(5)
�
An
assessment of program effectiveness relative to stated goals.

����
(h)
�

The department may adopt rules pursuant to chapter 91 to carry out the
purposes of this section.
"

����
SECTION 3.
�

There is appropriated out of the general revenues of the State of Hawaii
the sum of $ or so
much thereof as may be necessary for fiscal year 2026-2027 for the sustainable
tourism infrastructure matching grant program established under section 2 of
this Act.

����
The sum appropriated shall be expended by
the department of business, economic development, and tourism for the purposes
of this Act.

����
SECTION 4.
�

New statutory material is underscored.

����
SECTION 5.
�

This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

DBEDT; Travel and Tourism; Sustainable Infrastructure;
Climate Resilience; Matching Grant Program; Reports; Appropriation

Description:

Establishes

the sustainable tourism infrastructure matching grant program within the
Department of Business, Economic Development, and Tourism to support one-time
capital investments that advance measurable sustainability and climate
resilience outcomes within the State's visitor industry.
�
Requires annual reports to the
Legislature.
�
Appropriates funds.

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