Hawaii residents now have the opportunity to shape the future of sustainable tourism and environmental initiatives. The Green Fee Advisory Council (GFAC), established by Governor Josh Green, is actively soliciting public input on how to best utilize funds generated by the newly implemented "Green Fee" – a climate impact fee on lodging, also known as the Transient Accommodations Tax (TAT). This initiative presents a significant opportunity for Hawaii's entrepreneurs, investors, and professionals to influence how these funds are allocated to support projects across the islands.
The GFAC aims to gather project ideas from the public starting Wednesday, October 15, 2025. The public is encouraged to submit detailed proposals through an online portal, outlining project specifics such as impact areas, estimated costs, potential partnerships with local government agencies, and geographical location. This open call for proposals underscores the council's commitment to transparency and community involvement in ensuring the Green Fee's effectiveness. As detailed in Hawaii News Now's report, the funds are earmarked for three key areas: natural resource enhancement, infrastructure resilience and hazard mitigation, and visitor impact mitigation for sustainable tourism.
The Green Fee was signed into law on May 27, 2025, as Act 96 (Senate Bill 1396), which increases the Transient Accommodations Tax (TAT) by 0.75%, effective January 1, 2026. This marks a pioneering step for the state, establishing the nation’s first-ever climate impact fee. The funds collected are projected to generate approximately $100 million annually, as highlighted by Omidyar Fellows. The advisory council, as confirmed by GreenFeeHawaii.org, will provide key guidance on appropriating these funds with the goal of bolstering environmental conservation, disaster readiness, and sustainable tourism across the Hawaiian Islands.
For entrepreneurs and investors, this presents a unique opportunity to engage with local government and propose initiatives that align with Hawaii's sustainability goals. The projects that are selected and funded will likely spur economic activity in related sectors, including construction, environmental services, and tourism support. The council's focus on sustainability and responsible tourism aligns with growing global trends, making this initiative particularly relevant for businesses focused on long-term resilience and environmental stewardship. The public's ability to provide project suggestions gives a voice to those passionate about seeing these funds spent wisely and effectively to benefit all of Hawaii's residents.
