THE SENATE S.B. NO. 678 THIRTY-THIRD LEGISLATURE, 2025 S.D. 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO AGRICULTURE. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
THE SENATE S.B. NO. 678
THIRTY-THIRD LEGISLATURE, 2025 S.D. 1
STATE OF HAWAII
THE SENATE
S.B. NO.
678
THIRTY-THIRD LEGISLATURE, 2025
S.D. 1
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO AGRICULTURE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§141- Agricultural development and food security special fund; establishment. (a) There is established within the state treasury the agricultural development and food security special fund. (b) The following moneys shall be deposited into the special fund: (1) The portion of the environmental response, energy, and food security tax specified under section 243-3.5; (2) Any appropriation by the legislature into the special fund; (3) Any grant or donation made to the special fund; and (4) Any interest earned on the balance of the special fund. (c) Subject to legislative appropriation, moneys in the special fund may be expended for the following purposes: (1) The awarding of grants to farmers for agricultural production or processing activity; (2) The acquisition of real property for agricultural production or processing activity; (3) The improvement of real property, dams, reservoirs, irrigation systems, and transportation networks necessary to promote agricultural production or processing activity, including investigative studies to identify and assess necessary improvements to dams, reservoirs, irrigation systems, and transportation networks; (4) The purchase of equipment necessary for agricultural production or processing activity; (5) The conduct of research on and testing of agricultural products and markets; (6) The funding of agricultural inspector positions within the department of agriculture; (7) The promotion and marketing of agricultural products grown or raised in the State; (8) Water quality testing and improvement; (9) Any other activity intended to increase agricultural production or processing that may lead to reduced importation of food, fodder, or feed from outside the State; and (10) The procurement of locally produced agricultural products during federally declared disasters or state emergencies to address food insecurity and stabilize agricultural markets. (d) The applications for grants awarded under subsection (c)(1) shall be submitted to the department of agriculture and contain the information required by rules adopted thereunder. At a minimum, the applicant shall: (1) Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which a grant is awarded; (2) Provide a detailed plan outlining the scope, objectives, and projected impact of the project or projects and a clear breakdown of how grant funds will be used; (3) Agree to use state funds exclusively for the purposes of agricultural production or processing activity; (4) Indicate capability to properly use the grant for the purposes of agricultural production or processing activity; (5) Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law; (6) Agree to not use state funds for purposes of entertainment or perquisites; (7) Comply with other requirements as the department of agriculture may prescribe; (8) Comply with all applicable federal, state, and county statutes, rules, and ordinances; (9) Agree to indemnify and save harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided hereunder and procure sufficient insurance to provide this indemnification if requested to do so by the department of agriculture; and (10) Agree to make available to the department of agriculture all records the applicant may have relating to the grant, to allow state agencies to monitor the applicant's compliance with this section. (e) The department of agriculture shall submit a report to the legislature no later than twenty days prior to the convening of each regular session on the status and progress of existing programs and activities and the status of new programs and activities funded under the agricultural development and food security special fund. The report shall also include: (1) The spending plan of the agricultural development and food security special fund; (2) All expenditures of agricultural development and food security special fund moneys; (3) The targeted markets of the expenditures, including the reason for selecting those markets; (4) The persons to be served using the expenditures; and (5) The specific objectives of the expenditures, including measurable outcomes." SECTION 2. Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows: "(a) In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner. The tax shall be $1.05 on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided that of the tax collected pursuant to this subsection: (1) 5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2; (2) 4 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8; (3) 5 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169.1; (4) 3 cents of the tax on each barrel shall be deposited into the electric vehicle charging system subaccount established pursuant to section 269-33(e); [and] (5) 3 cents of the tax on each barrel shall be deposited into the hydrogen fueling system subaccount established pursuant to section 269-33(f)[.]; and (6) cents of the tax on each barrel shall be deposited into the agricultural development and food security special fund established under section 141- . The tax imposed by this subsection shall be paid by the distributor of the petroleum product. (b) In addition to subsection (a), the tax shall also be imposed on each one million British thermal units of fossil fuel sold by a distributor to any retail dealer or end user, other than a refiner, of fossil fuel. The tax shall be 19 cents on each one million British thermal units of fossil fuel; provided that of the tax collected pursuant to this subsection: (1) 4.8 per cent of the tax on each one million British thermal units shall be deposited into the environmental response revolving fund established under section 128D-2; (2) 14.3 per cent of the tax on each one million British thermal units shall be deposited into the energy security special fund established under section 201‑12.8; [and] (3) 9.5 per cent of the tax on each one million British thermal units shall be deposited into the energy systems development special fund established under section 304A-2169.1[.]; and (4) per cent of the tax on each million British thermal units shall be deposited into the agricultural development and food security special fund established under section 141- . The tax imposed by this subsection shall be paid by the distributor of the fossil fuel." SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 4. This Act shall take effect on July 1, 2050.
SECTION 1. Chapter 141, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§141- Agricultural development and food security special fund; establishment. (a) There is established within the state treasury the agricultural development and food security special fund.
(b) The following moneys shall be deposited into the special fund:
(1) The portion of the environmental response, energy, and food security tax specified under section 243-3.5;
(2) Any appropriation by the legislature into the special fund;
(3) Any grant or donation made to the special fund; and
(4) Any interest earned on the balance of the special fund.
(c) Subject to legislative appropriation, moneys in the special fund may be expended for the following purposes:
(1) The awarding of grants to farmers for agricultural production or processing activity;
(2) The acquisition of real property for agricultural production or processing activity;
(3) The improvement of real property, dams, reservoirs, irrigation systems, and transportation networks necessary to promote agricultural production or processing activity, including investigative studies to identify and assess necessary improvements to dams, reservoirs, irrigation systems, and transportation networks;
(4) The purchase of equipment necessary for agricultural production or processing activity;
(5) The conduct of research on and testing of agricultural products and markets;
(6) The funding of agricultural inspector positions within the department of agriculture;
(7) The promotion and marketing of agricultural products grown or raised in the State;
(8) Water quality testing and improvement;
(9) Any other activity intended to increase agricultural production or processing that may lead to reduced importation of food, fodder, or feed from outside the State; and
(10) The procurement of locally produced agricultural products during federally declared disasters or state emergencies to address food insecurity and stabilize agricultural markets.
(d) The applications for grants awarded under subsection (c)(1) shall be submitted to the department of agriculture and contain the information required by rules adopted thereunder. At a minimum, the applicant shall:
(1) Be licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which a grant is awarded;
(2) Provide a detailed plan outlining the scope, objectives, and projected impact of the project or projects and a clear breakdown of how grant funds will be used;
(3) Agree to use state funds exclusively for the purposes of agricultural production or processing activity;
(4) Indicate capability to properly use the grant for the purposes of agricultural production or processing activity;
(5) Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;
(6) Agree to not use state funds for purposes of entertainment or perquisites;
(7) Comply with other requirements as the department of agriculture may prescribe;
(8) Comply with all applicable federal, state, and county statutes, rules, and ordinances;
(9) Agree to indemnify and save harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds provided hereunder and procure sufficient insurance to provide this indemnification if requested to do so by the department of agriculture; and
(10) Agree to make available to the department of agriculture all records the applicant may have relating to the grant, to allow state agencies to monitor the applicant's compliance with this section.
(e) The department of agriculture shall submit a report to the legislature no later than twenty days prior to the convening of each regular session on the status and progress of existing programs and activities and the status of new programs and activities funded under the agricultural development and food security special fund. The report shall also include:
(1) The spending plan of the agricultural development and food security special fund;
(2) All expenditures of agricultural development and food security special fund moneys;
(3) The targeted markets of the expenditures, including the reason for selecting those markets;
(4) The persons to be served using the expenditures; and
(5) The specific objectives of the expenditures, including measurable outcomes."
SECTION 2. Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
"(a) In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner. The tax shall be $1.05 on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided that of the tax collected pursuant to this subsection:
(1) 5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2;
(2) 4 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;
(3) 5 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169.1;
(4) 3 cents of the tax on each barrel shall be deposited into the electric vehicle charging system subaccount established pursuant to section 269-33(e); [and]
(5) 3 cents of the tax on each barrel shall be deposited into the hydrogen fueling system subaccount established pursuant to section 269-33(f)[.]; and
(6) cents of the tax on each barrel shall be deposited into the agricultural development and food security special fund established under section 141- .
The tax imposed by this subsection shall be paid by the distributor of the petroleum product.
(b) In addition to subsection (a), the tax shall also be imposed on each one million British thermal units of fossil fuel sold by a distributor to any retail dealer or end user, other than a refiner, of fossil fuel. The tax shall be 19 cents on each one million British thermal units of fossil fuel; provided that of the tax collected pursuant to this subsection:
(1) 4.8 per cent of the tax on each one million British thermal units shall be deposited into the environmental response revolving fund established under section 128D-2;
(2) 14.3 per cent of the tax on each one million British thermal units shall be deposited into the energy security special fund established under section 201‑12.8; [and]
(3) 9.5 per cent of the tax on each one million British thermal units shall be deposited into the energy systems development special fund established under section 304A-2169.1[.]; and
(4) per cent of the tax on each million British thermal units shall be deposited into the agricultural development and food security special fund established under section 141- .
The tax imposed by this subsection shall be paid by the distributor of the fossil fuel."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title: Department of Agriculture; Agricultural Development and Food Security Special Fund; Environmental Response, Energy, and Food Security Tax Description: Establishes the Agricultural Development and Food Security Special Fund. Requires a portion of the Environmental Response, Energy, and Food Security Tax to be deposited into the Special Fund. 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.
Report Title:
Department of Agriculture; Agricultural Development and Food Security Special Fund; Environmental Response, Energy, and Food Security Tax
Description:
Establishes the Agricultural Development and Food Security Special Fund. Requires a portion of the Environmental Response, Energy, and Food Security Tax to be deposited into the Special Fund. 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.