Vacations to Hawaii could become pricier if a proposed environmental impact fee sailing through the state Legislature becomes law.
Senate Bill 304 would require nonresidents aged 15 or older to obtain an environmental license to visit state parks or other “natural areas on state land.” Those licenses would be valid for one year and cost $50, which would be collected into a special fund administered by the state Department of Land and Natural Resources.
That fund would be used to fund projects to offset the visitor industry’s impact on the environment and help maintain the state’s natural resources.
Up to 50% of the fund’s annual fee revenue also could be used to provide grants to counties and nonprofits.
Since the measure’s introduction, SB 304 has moved smoothly through the Legislature and attracted widespread support from lawmakers, state officials and residents. In a statement submitted for a March 29 committee hearing, the Hawaii Trust for Public Land estimated that the proposal could generate $500 million a year for conservation work.
John De Fries, CEO of the Hawaii Tourism Authority, did not voice support or opposition to the measure at the March 29 hearing, but agreed with the bill’s intent.
“Hawaii’s environment is a treasure, and it is our collective kuleana to protect it for the generations to come. Fulfilling that responsibility takes funding,” De Fries wrote, but added that site-specific user fees are HTA’s preferred model.
DLNR Chair Dawn Chang wrote that her department strongly supports the measure, explaining that it would help fill an estimated $360 million gap between existing and needed funding to manage the state’s natural resources. She added that based on comparable tourism-focused economies — such as those of Palau, the Galapagos Islands and New Zealand — the imposition of additional fees likely will not be a significant deterrent for visitors.
“Visitors and many residents do not mind paying a green fee because they know it goes back to caring for the beautiful places and resources they have come to enjoy,” Chang wrote, comparing the proposal to a parking and entry fee the DLNR’s State Parks Division imposed on visitors in 2020, which was met with support from tourists.
However, the Grassroot Institute of Hawaii, a Honolulu-based think tank, had “grave concerns” about the bill, stating that it could be found unconstitutional.
“The U.S. Supreme Court frowns upon any law that would restrict the right to travel freely between states and has ruled against disparate resident/nonresident tax schemes,” wrote Grassroot Institute spokesperson Ted Kefalas, explaining that the proposed fee is so broad in scope that it could feasibly be called a tax rather than a mere user fee. “Thus, unless residents were also charged for a similar license, the entire scheme risks being overturned by a federal court.”
However, the state Department of the Attorney General disagreed, noting that while the bill could theoretically become the subject of a lawsuit, that suit likely would fail because of several reasons, including that visitor fees at the Hanauma Bay Natural Area Reserve already have been challenged in U.S. District Court and were upheld.
But Kefalas had other concerns, stating that determining who is a visitor and who is a resident could lead to discrepancies. The bill defines a “resident of Hawaii” as somebody who has filed state income taxes for the previous year or has an established residence in the state documented through a valid state driver’s license, ID card, school ID, or other official documents.
“A billionaire who pays taxes in Hawaii as well as other states is a ‘resident,’ but a local family who had to move to Nevada to make ends meet will have to pay hundreds of dollars if they want to come home for grandma’s birthday party at the beach,” Kefalas wrote.
Kefalas concluded that local businesses also could suffer under the bill, with visiting families cutting spending at local establishments to compensate for the fees.
However, Kefalas was one of the only people or groups opposing the measure, which was overwhelmingly popular at all six of its committee hearings this session. Having passed all of those hearings, the bill must pass third reading in the House by April 13.
Email Michael Brestovansky at mbrestovansky@hawaiitribune-herald.com.