Governor Josh Green signed historic climate impact legislation into law on Tuesday. Senate Bill 1396 is a first-in-the-nation initiative that establishes a climate impact fee, or “Green Fee,” creating a stable source of funding for environmental stewardship, hazard mitigation and sustainable tourism in Hawaiʻi. The Green Fee is projected to generate $100 million annually, and the Green Administration will work with the legislature to confirm projects next session as revenue becomes available. Senate Bill 1396 increases the TAT, or transient accommodation tax, rate by 0.75% beginning in 2026 and levies, for the first time, the TAT on cruise ships that port in the state.
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