Hawaii law lets sponsors seek approval for species conservation banks

The Department of Land and Natural Resources or another public or private sponsor may ask the Board of Land and Natural Resources to approve a conservation bank. Banks may protect threatened, endangered, candidate, or proposed species and their habitats. This part does not apply to aquatic life or its habitats. A bank may restore, create, improve, or protect certain species and their habitats to offset harm covered by an approved incidental take license and habitat conservation plan. The board must consult the endangered species recovery committee and approve the bank by a two-thirds vote. It cannot approve a bank that a majority of the committee recommends rejecting. A sponsor other than the department must show it has the needed skills, funding, and long-term property protections. It must also submit an annual report. The law took effect when the governor approved it on July 8, 2026.

A bank sponsor may sell or transfer a conservation credit to an incidental take license holder for approved mitigation. The credit is for offsetting harm to threatened or endangered species under an approved incidental take license and habitat conservation plan. The bank must create the credit under its approved system, and a majority of the endangered species recovery committee must approve its use. Credits cannot be stacked. A bundled credit may cover all or some of its listed functions, but may be used only once. A sold or transferred credit is retired and cannot be reused. The credit must meet the requirements for the license and habitat plan. Bank approval does not remove a sponsor's separate duty to get a temporary license before harming a covered species. A credit may be sold or transferred only after the bank creates it under its approved credit system.

The endangered species recovery committee reviews conservation bank applications and proposals, and reviews approved banks for compliance each year. These reviews cover conservation bank applications, proposals, instruments, and ongoing compliance. The committee makes recommendations to the department and board after reviewing reliable information and visiting each property covered by an application or proposal. The committee may visit a property covered by a conservation bank instrument no more than once per year. The committee includes the associate director of the U.S. Geological Survey's Ecosystem Mission Area or that director's designee. The committee reviews banks annually and may visit each property covered by a bank instrument no more than once a year.