SB 2374: Blue Economy; Decarbonization; Marine Ecosystems; Working Group; Report

A BILL FOR AN ACT

RELATING TO A BLUE ECONOMY.

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

     SECTION 1.  The legislature finds that natural climate solutions--or actions to protect, sustainably manage, and restore natural and modified ecosystems in ways that address climate change--are crucial interventions that help governments and companies achieve their net-zero carbon emissions ambitions.  Marine-based ecosystem restoration projects have attracted particular attention as natural climate solutions due to their ability to sequester and store carbon at densities that may exceed other climate initiatives.

     The legislature further finds that interest in funding projects that connect marine-based ecosystem restoration with decarbonization may come from the private sector, public sector, and philanthropic organizations.  Coordinating these funding sources will involve identifying constraints that each sector must consider, including the costs of project implementation and project management, and the impact of local and federal governance decisions on project feasibility and sustainability.

     The legislature additionally finds that lawmakers adopted S.C.R. No. 115, H.D. 1 (2025), which affirms the importance of marine ecosystem restoration in achieving the State's decarbonization goals.  Notably, the senate concurrent resolution also reasserted a commitment to strengthening carbon accounting methodologies to assist in the quantification and reduction of direct and indirect greenhouse gas emissions, including emissions reductions achieved through ocean and marine ecosystem restoration.

     The legislature also finds that Hatch Innovation Services, an innovation consultancy focused on sustainable and climate smart seafood systems, published a report entitled "Hawaii's Ocean Opportunity" with funding from the department of agriculture and biosecurity that recognized restorative ocean food production as a sustainable economic venture for the State.  According to the report, restorative aquaculture presents a nature-based opportunity to serve communities at a lower environmental footprint.  The report also notes that investments in coastal and marine ecosystem restoration and protection, sustainable marine aquaculture, zero-emission marine transport, and ocean-based renewable energy could have a transformative impact on the State's ability to successfully merge its climate mitigation, carbon sequestration, sustainable agriculture, and economic development goals.

     Accordingly, the purpose of this Act is to establish a blue economy working group to study how best to develop and support economic activities that further the State's climate and food production goals.

     SECTION 2.  (a)  There is established a blue economy working group to study how best to develop and support marine‑based economic activities that align with the State's decarbonization and restorative food production goals.

     (b)  The working group shall:

     (1)  Evaluate opportunities for expanding funding and other forms of support for projects related to a blue economy, including projects that connect coastal and marine ecosystem restoration with decarbonization and regenerative agricultural methods;

     (2)  Analyze existing blue economic models and research, including the "Hawaii's Ocean Opportunity" report prepared by Hatch Innovation Services in partnership with the department of agriculture and biosecurity;

     (3)  Identify favorable public policies and best practices for developing successful projects that follow blue economic principles and align with Hawaii's cultural foundations;

     (4)  Assess possibilities for cross-sector collaboration in the development and expansion of the State's blue economy, including in the areas of conservation, climate mitigation, agriculture, and aquaculture; and

     (5)  Consider any other relevant factors that the working group deems appropriate.

     (c)  The working group shall consist of the following members:

     (1)  The director of the department of business, economic development, and tourism, or their designee, who shall serve as chairperson of the working group;

     (2)  The chairperson of the board of land and natural resources, or their designee;

     (3)  The chief energy officer of the Hawaii state energy office, or their designee;

     (4)  The chairperson of the board of agriculture and biosecurity, or their designee;

     (5)  The coordinator of the Hawaii climate change mitigation and adaptation commission, or their designee;

     (6)  The executive director of the university of Hawaii economic research organization, or their designee;

     (7)  A representative from a private business that operates in an oceanic or other marine-based industry, to be invited by the chairperson;

     (8)  A representative from a nonprofit public interest organization that specializes in marine-based ecosystem restoration or management, to be invited by the chairperson;

     (9)  A representative from a nonprofit public interest organization that specializes in environmental preservation, to be invited by the chairperson;

    (10)  A representative from an organization that specializes in innovation related to climate smart seafood systems, to be invited by the chairperson; and 

    (11)  Any additional members with appropriate specialized expertise, as recommended by the members of the working group, at the discretion of and to be invited by the chairperson.

     (d)  The members of the working group shall serve without compensation, but may be reimbursed for reasonable expenses incurred, including travel expenses.

     (e)  No member of the working group shall be subject to

chapter 84, Hawaii Revised Statutes, solely because of the

member's participation in the working group.

     (f)  The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027.

     (g)  The working group shall be dissolved on June 30, 2027.

     SECTION 3.  This Act shall take effect on July 1, 2050.

Report Title:

Blue Economy; Decarbonization; Marine Ecosystems; Working Group; Report

Description:

Establishes the Blue Economy Working Group to study how to develop and support marine-based economic activities that align with the State's decarbonization and restorative food production goals.  Requires a report to the Legislature.  Effective 7/1/2050.  (SD1)

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

A BILL FOR AN ACT

relating to a blue economy.

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

     SECTION 1.  The legislature finds that natural climate solutions--or actions to protect, sustainably manage, and restore natural and modified ecosystems in ways that address climate change--are crucial interventions that help governments and companies achieve their net-zero carbon emissions ambitions.  Marine-based ecosystem restoration projects have attracted particular attention as natural climate solutions due to their ability to sequester and store carbon at densities that may exceed other climate initiatives.

     The legislature further finds that interest in funding projects that connect marine-based ecosystem restoration with decarbonization may come from the private sector, public sector, and philanthropic organizations.  Coordinating these funding sources will involve identifying constraints that each sector must consider, including the costs of project implementation and project management, and the impact of local and federal governance decisions on project feasibility and sustainability.

     The legislature additionally finds that lawmakers adopted S.C.R. No. 115, H.D. 1 (2025), which affirms the importance of marine ecosystem restoration in achieving the State's decarbonization goals.  Notably, the resolution also reasserted a commitment to strengthening carbon accounting methodologies to assist in the quantification and reduction of direct and indirect greenhouse gas emissions, including emissions reductions achieved through ocean and marine ecosystem restoration.

     The legislature also finds that Hatch Innovation Services, an innovation consultancy focused on sustainable and climate smart seafood systems, published a report entitled "Hawaii's Ocean Opportunity" with funding from the department of agriculture and biosecurity that recognizes restorative ocean food production as a sustainable economic venture for the State.  According to the report, restorative aquaculture presents a nature-based opportunity to serve communities at a lower environmental footprint.  The report also notes that investments in coastal and marine ecosystem restoration and protection, sustainable marine aquaculture, zero-emission marine transport, and ocean-based renewable energy could have a transformative impact on the State's ability to successfully merge its climate mitigation, carbon sequestration, sustainable agriculture, and economic development goals.

     Accordingly, the purpose of this Act is to establish a blue economy working group to study how best to develop and support economic activities that further the State's climate and food production goals.

     SECTION 2.  (a)  There is established a blue economy working group to study how best to develop and support marine-based economic activities that align with the State's decarbonization and restorative food production goals.

     (b)  The working group shall:

     (1)  Evaluate opportunities for expanding funding and other forms of support for projects related to a blue economy, including projects that connect coastal and marine ecosystem restoration with decarbonization and regenerative agricultural methods;

     (2)  Analyze existing blue economic models and research, including the "Hawaii's Ocean Opportunity" report prepared by Hatch Innovation Services in partnership with the department of agriculture and biosecurity;

     (3)  Identify favorable public policies and best practices for developing successful projects that follow blue economic principles and align with Hawaii's cultural foundations;

     (4)  Assess possibilities for cross-sector collaboration in the development and expansion of the State's blue economy, including in the areas of conservation, climate mitigation, agriculture, and aquaculture; and

     (5)  Consider any other relevant factors that the working group deems appropriate.

     (c)  The working group shall consist of the following members:

     (1)  The director of the department of business, economic development, and tourism, or their designee, who shall serve as chairperson of the working group;

     (2)  The chairperson of the board of land and natural resources, or their designee;

     (3)  The chief energy officer of the Hawaii state energy office, or their designee;

     (4)  The chairperson of the board of agriculture and biosecurity, or their designee;

     (5)  The coordinator of the Hawaii climate change mitigation and adaptation commission, or their designee;

     (6)  The executive director of the university of Hawaii economic research organization, or their designee;

     (7)  A representative from a private business that operates in an oceanic or other marine-based industry, to be invited by the chairperson;

     (8)  A representative from a nonprofit public interest organization that specializes in marine-based ecosystem restoration or management, to be invited by the chairperson;

     (9)  A representative from a nonprofit public interest organization that specializes in environmental preservation, to be invited by the chairperson;

    (10)  A representative from an organization that specializes in innovation related to climate smart seafood systems, to be invited by the chairperson; and 

    (11)  Any additional members with appropriate specialized expertise, as recommended by the members of the working group, at the discretion of the chairperson.

     (d)  The members of the working group shall serve without compensation, but may be reimbursed for reasonable expenses incurred, including travel expenses.

     (e)  No member of the working group shall be subject to

chapter 84, Hawaii Revised Statutes, solely because of the

member's participation in the working group.

     (f)  The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2027.

     (g)  The working group shall be dissolved on June 30, 2027.

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

Blue Economy; Decarbonization; Marine Ecosystems; Working Group; Report

Description:

Establishes the Blue Economy Working Group to study how to develop and support marine-based economic activities that align with the State's decarbonization and restorative food production goals.  Requires a report to the Legislature.

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

STAND. COM. REP. NO. 2665

Honolulu, Hawaii

RE:     S.B. No. 2374

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committees on Economic Development and Tourism and Agriculture and Environment, to which was referred S.B. No. 2374 entitled:

"A BILL FOR AN ACT RELATING TO A BLUE ECONOMY,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish the Blue Economy Working Group to study how to develop and support marine-based economic activities that align with the State's decarbonization and restorative food production goals; and

     (2)  Require a report to the Legislature.

     Your Committees received testimony in support of this measure from the Department of Agriculture and Biosecurity, Imua Alliance, Hawaiʻi Food+ Policy, and three individuals.

     Your Committees received testimony in opposition to this measure from one individual.

     Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism.

     Your Committees find that blue economic ventures align directly with the State's economic and climate goals.  As the blue economy expands, it offers opportunities for economic diversification, high-wage job creation, and decarbonization.  While the State possesses a strategic advantage in marine-based industries due to its ocean geography and unique cultural heritage, a coordinated cross-sector policy framework is necessary to compete with other coastal states and nations as an epicenter of blue economy innovation.  This measure establishes a sustainable framework to capitalize on the blue economy to advance the State's climate, food production, and equity objectives.

     Your Committees have amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Economic Development and Tourism and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2374, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2374, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development and Tourism and Agriculture and Environment,