Gov. Josh Green’s latest proposed model for a visitor-paid “green fee” would generate far fewer dollars than what proponents of the concept have called for in the past. 

It’s also far less than what conservationists have said is needed to protect Hawaii’s environment from the mounting harms of heavy tourism and climate change.

Nonetheless, the governor said Friday that the latest green fee proposal, which stands to collect about $68 million a year from tourists, could be used to float bonds and finance big, expensive projects in Hawaii related to climate and the environment.

Green said that at least half of those proceeds should go toward a state disaster recovery fund, or disaster insurance. Having such a safety net in place would reassure future investors when they assess whether it’s too risky to do business in Hawaii, he said.

“If we don’t do that, it’s going to be very difficult for anyone to come and do large-scale business, like energy companies, people that build condominiums,” Green said Friday. “There’s a lot more to it than just having a stream of dollars to fix things. It’s also about the future economies that we bring.”

Legislators will take up Green’s new green fee proposal, now dubbed a “climate impact fee,” during a Feb. 13 hearing before the House Energy and Environmental Protection Committee. 

The measure calls for a $25 fee on all visitor check-ins to Hawaii regardless of the party size. 

Previously, Green and other proponents of the visitor fee called for a fee of between $40 and $50 applied to individual visitors. 

When campaigning for governor, Green said the state could charge that fee toward all visitors over the age of 12 and that the proceeds could raise anywhere between $300 million and $600 million annually toward Hawaii’s climate and conservation needs.

However, state lawmakers have failed to pass a green fee the past two years despite advancing the measures to the pivotal conference sessions in which the House and Senate negotiate the final details.

Last month, in his annual State of the State address, Green featured the climate impact fee as a priority that he wants to see passed.

“We need to do a little better this year, so today I’m simplifying the proposal,” he said.

To get those visitor funds, Green said he’s open to the Legislature either creating a flat $25 fee or tacking it on as a percentage increase to the state’s existing Transient Accommodations Tax, which is currently 10.25%.

The Hawaii Lodging and Tourism Association opposes any further increases to the TAT, saying it’s already been raised as high as visitors are willing to pay. And Green said he doesn’t want to impose the fee on locals when they’re traveling within the state because Hawaii’s cost of living is already too high.

“I don’t have any concerns that it will discourage travelers to Hawaii,” he said of the climate impact fee. “In fact, I think it will increase people’s interest because they’ll see that we are committed to protecting this beautiful place.” 

A Large Deficit In Environmental Spending

In 2019, the non-governmental organization Conservation International published a report on Hawaii’s need for more funding to protect the state’s nearshore waters, watersheds, forests and other unique island environments.

The report, dubbed “Green Passport: Innovation Financing Solutions for Conservation In Hawaii,” concluded that the state has an annual spending gap of $358 million to sufficiently manage its natural environment.

“Conservation International is right that the State will need to make large investments for climate mitigation,” Green said in a statement last week. “But you have to take their numbers with a grain of salt. They are producing big guestimates regarding the overall size of the investment.”

The local advocacy coalition Care for Aina Now, which lobbied the Legislature last year to try and get a green fee passed, said in a statement Sunday that the daunting, $358 million gap estimated by Conservation International may not have a singular solution.

The group “believes we must be open to all available options for funding. We appreciate Gov. Green’s ongoing commitment to a climate impact fee for visitors.”

It supports all proposals – “including the Governor’s” – that will make a significant investment toward closing the gap, the coalition stated on Sunday.

Meanwhile, Green dismissed a green-fee model touted last year by legislative leaders that would charge visitors at trails and other sites, similar to what occurs at Hanauma Bay on Oahu, as insufficient.

Under that model the dollars collected would be limited to the upkeep of those specific sites, Green said. Instead, he said the state needs to have the broad capacity to protect the overall environment.

The disaster fund component could help insure taxpayers and utility ratepayers against future lawsuits related to climate, but it would not be used to help settle the dozens of lawsuits filed against Hawaiian Electric in the aftermath of the Maui fires in August, he said.

The Lahaina disaster is being addressed with resources that are already available, while the proposed climate fee would address the disasters on the horizon, according to Green.

“Much of our future will be tied to our capacity to do these kind of things, like having impact fees,” he said.

Civil Beat’s coverage of climate change is supported by The Healy Foundation, Marisla Fund of the Hawaii Community Foundation and the Frost Family Foundation.