STAND. COM. REP. NO.1608
                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.R. No. 230
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Energy and Environmental Protection, to
which was referred H.R. No. 230 entitled: 

     "HOUSE RESOLUTION REQUESTING THE CONVENING OF A MEETING TO
     CONSIDER MEANS TO ATTRACT CARBON INVESTMENTS TO MITIGATE
     GLOBAL WARMING THROUGH SUSTAINABLE FORESTRY IN HAWAII,"

begs leave to report as follows:

     The purpose of this resolution is to request the Hawaii
Forestry and Communities Executive Council and the Department of
Health to convene a meeting--including all affected stakeholders-
-to consider regulatory, policy, fiscal and human resources that
would be required to attract carbon investments into the state.

     Testimony in support of this measure was submitted by the
Department of Land and Natural Resources, Trees For Life, and the
Department of Labor and Industrial Relations. 

      The concept of carbon credits was initiated at the Kyoto
Protocal, where it was acknowledged that carbon sinks could
greatly aid in offsetting global warming.  Carbon sinks include
newly-planted and existing forests in which trees absorb carbon
dioxide from the atmosphere and store or "sequester" it in a
solid form as wood. 

     Currently, numerous companies are investing in carbon offset
forestry (COF) projects.  The State of Hawaii, with its unique
geography and warm climate, has an opportunity to establish COF
projects that demonstrate management of forests for:  carbon

 
 
 
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sequestration, thereby mitigating global warming; sustainable
forestry industries; and restoration of native forests.  

     Hawaii is presently a member-state to the Pacific NorthWest
Carbon Sequestration Coalition, which seeks to provide carbon
sequestration projects--which are described in this resolution--
to buyers of carbon credits.    
     
     As affirmed by the record of votes of the members of your
Committee on Energy and Environmental Protection that is attached
to this report, your Committee concurs with the intent and
purpose of H.R. No. 230, and recommends that it be referred to
the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Energy and
                                   Environmental Protection,



                                   ______________________________
                                   HERMINA M. MORITA, Chair