Ocean Stewardship User Fee
Overview and Spend Plan
Collecting funds from ocean recreation users tomanage, protect, and enhance aquatic ecosystems
Act 46 (SLH 2021) - Hawaii Revised Statutes §187A-52

Snorkelers in Kealakekua Bay. Image credit: Fair Winds Cruises

State of Hawai‘i Department of Land and Natural Resources
Division of Aquatic Resources2023

In June 2021, Hawaii’s Governor signed Act 46 into law establishing an ocean
stewardship special fund and authorizing the Department of Land and Natural
Resources (DLNR) to collect fees for the use and enjoyment of the State’s ocean
resources. In creating the Ocean Stewardship User Fee, the Legislature noted thatHawaii’s ocean waters and the marine resources contained within are some of theState’s most ecologically, economically, and culturally valuable environmental assets.
The Legislature also noted that the increasing popularity of marine ecotourism
requires greater measures to ensure the continued health of marine ecosystems andthat DLNR may need a more consistent and reliable source of funding to manage,
protect, and restore marine resources throughout the State. The collection of Ocean
Stewardship User Fees will help DLNR and the Division of Aquatic Resources (DAR)
more effectively manage the State’s marine resources.

Table of Contents
Introduction

08

Ocean Stewardship Special
Fund

02

Ocean Users Directly
Supporting Ocean Initiatives

09

Spend Plan

04

Collection of Fee

18

Frequently Asked Questions

06

Commercial Operators

30

Appendix01

Introduction
The ocean is a critical resource that sustains livelihood and culture throughout the
Hawaiian Islands. Unfortunately, important marine resources like coral reefs areunder threat from unprecedented impacts like climate change, land-based sources ofpollution, and direct human use. Managing these threats is crucial to the continued
way of life in Hawaiʻi, and this requires robust and proactive management which inturn benefits not only the marine ecosystem, but the communities that rely on theocean for subsistence, recreation, and economic stability. The Ocean Stewardship
User Fee addresses this need for proactive management and gives ocean users an
opportunity to directly steward marine resources. This stewardship in turn enhances
the user experience and promotes continued use and appreciation of marine
resources.

Effective Management
and Ocean Stewardship

Sustainable Ocean
EconomyHealthy and Viable Reefs

Enhanced User
Experience1Ocean Users Directly Supporting
Ocean Initiatives
It is clear that ocean recreation and human use of a marine environment impacts theoverall health of that region. These impacts from human use can come from a rangeof ocean recreation activities, like divers inadvertently kicking and standing on corals
or boat anchors accidentally dragging across a reef. This impact can be particularly
harmful when it is consistent and at a high frequency. For example, a recent study
from Lin et. al on coastal tourism in Hawaiʻi showed that ocean users are particularly
attracted to reefs with higher coral cover and better water quality. This attraction to“higher quality” marine areas puts undue stress on this ecosystem and has potential
to further degrade the area. Unfortunately, these marine environments that attract
people for their beauty and accessibility are facing a larger threat of degradationfrom continuous high use.

$1.00 Per Activity
All ocean users participating in a commercial ocean recreation activity will pay one
dollar ($1.00) per person per activity. Collection of the fee will be managed bycommercial operators providing these ocean activity experiences. This includes
SCUBA and snorkel charters, recreational fishing charters, catamaran cruises, guided
kayak tours, whale-watching tours, and commercial surf lessons.

Allocation of Funds per County
For the most part, funds generated in one region will funnel into projects for that
region. DAR plans to record usership by county, and this will inform the allocation offunds for every project and allow the fund to represent restoration andenhancement needs based on the level of usership in that county.
2

Ocean Users’ Willingness to Pay
This one dollar ($1.00) fee was the amount established by the Legislature and isestimated to generate between one million dollars ($1,000,000.00) and five million
dollars ($5,000,000.00) annually for ocean enhancement, management, andrestoration projects.
This fee is in line with a report from the National Oceanic and Atmospheric
Administration (NOAA) on ocean users’ willingness to pay for marine stewardshipprograms. This study determined that ocean users would be willing to contribute
between one dollar ($1.00) and five dollars ($5.00) per activity to directly benefit theresource that they are using. This NOAA study contributed to findings reported inConservation International’s (CI) recent Ocean Stewardship Feasibility Report on thefeasibility for Hawaiʻi to implement an Ocean Stewardship User Fee. CI’s report
included a financial impact analysis for several different fee rate scenarios, including
a one dollar ($1.00) fee. This report estimated that fees collected under a one dollar($1.00) fee structure could range between one million and five million dollars. The
findings in both of these reports suggest that a one dollar ($1.00) user fee would bewell received and provide substantial benefit to both the marine resource and theocean user.
Recreational Survey in Selected Marine Managed Areas in the Main Hawaiian Islands

The table above is from the paper "Recreational Survey in Marine Managed Areas in the Main Hawaiian Islands"
the results of a willingness to pay study based on specific user groups. Divers (blue), snorkelers (purple), and nonusers (yellow) show a range of willingness to pay between $0.00 and $15.00. The percentages on the right show
the percentage of willingness to pay ranging from 0% to 30% of users surveyed.

3Collection of Fee
Collection of Fee from Ocean Users
DAR does not have specific guidance on howcommercial operators should collect user fees fromusers and will defer to the discretion of commercial
operators. DAR does encourage commercial
operators to communicate with ocean users thatthey will be charged an Ocean Stewardship User
Fee. DAR will create materials to enhance ocean
users’ awareness of the stewardship fee, like flyers,
stickers, and a website, and publicly communicate
programs funded with user fee funds.
If an operation is unexpectedly canceled due toweather, health, or other reasons requiring aparticipant refund, it is at the discretion of thecommercial operators to create a policy on whether
or not to refund the user fee, or if the business will
cover the cost. This is because these passengers arestill represented on the passenger manifest.

Ocean users observing manta rays
Image credit: GoHawaii.com

How DAR plans to collect fee from Commercial Operators
DAR will collect user fees from commercial operators monthly via an online reporting
system that is still in development. The intent of the online system is for a simple,
accessible way for operators to provide requested information and payment of the
Ocean Stewardship User Fee. This includes geographical information, types ofservices provided, and number of passengers carried or customers served. Other
than identification information and passenger or customer counts to determine theamount of fees collected, providing other information is voluntary. The information
will help better inform DAR in where and how much to allocate funds across the4state and will be transparent across the process.

How DAR Will Enforce Compliance of User Fee
Compliance

Enforcement

There are no plans for DAR staff toregularly check compliance fromcommercial operators in-person. At
present, DAR expects to coordinate with
the Division of Boating and Ocean
Recreation (DOBOR) to maintain acurrent list of the operators subject tocollection of the fees under Act 46 andto share with DOBOR the compliancestatus of those operators, so any
compliance or noncompliance with Act
46 can be taken into account during theissuance and reissuance process forcommercial operator permits andcatamaran registration certificates.

Act 46 is legally binding on allcommercial operators required to havea DOBOR commercial use permit. As ofJanuary 1, 2024, commercial operators
must collect the Ocean Stewardship
User Fee and transfer it to DLNR on amonthly basis. See Act 46, section 2(HRS §187A-52). Operators that do not
submit on time may be subject toadministrative and criminal penalties,
including fines up to a one thousand
dollar ($1,000.00) per violation, and in
extreme circumstances, commercial use
permit revocation.

DAR may occasionally, at random,
request these records from an operator
to conduct an accounting to ensurecompliance. This is important so that
operators and their customers who fulfill
the user fee requirements are not left
carrying a disproportionate
responsibility to the resources becauseof non-compliant individuals. This is why
DAR is requesting that passenger
manifests and records related to the
Ocean Stewardship User Fee be
maintained for at least two years, toaccommodate these random andperiodic checks.

Image of day use mooring buoy
Image Credit: SailTrilogy.com

5Commercial Operators:
Fee Collection, Process, and Eligibility
Commercial Operators will Collect the User Fee
All operators of commercial vessels, watercraft or water sports equipment or
activities conducting commercial tours or instruction on State ocean waters are
required to have a permit under section 13-256-3 of the Hawaii Administrative Rules(HAR), known as a Commercial Use Permit. Beginning January 1, 2024, these
operators will need to collect a one dollar ($1.00) Ocean Stewardship User Fee fromeach passenger they carry or customer they serve. The collected fees must betransferred to DAR on a monthly basis and deposited into the Ocean StewardshipSpecial Fund.
Operators of commercial vessels, water craft, or water sports equipment or
permitted activities currently pay fees to DOBOR, pursuant to HAR chapters 13-256,
13-231, 13-234, and 13-253. These fees pay the expenses of operating, maintaining,and managing boating facilities and services, including berths, slips, launch ramps,
general navigation channels, breakwaters, aids to navigation, and other harbor
structures. The Ocean Stewardship User Fee is NOT associated with the DOBOR
commercial use permit fees and will need to be reported and paid separately
through an online portal developed by DAR.

Exemption of User Fee
Not all commercial operators will need to collect user fees if they operate out of astatewide harbor and do not require a CUP. Under HAR section 13-256-3, “[a]ll
operators of commercial vessels, watercraft or water sports equipment or
activities conducting commercial tours or instruction on State ocean waters mustobtain a commercial use permit or where applicable a catamaran registration
certificate to be issued by the department, except for those operating out of astate commercial harbor.” HAR §13-256-3.
6

Based on this language, passengers or customers of commercial vessels, water craft,or water sports equipment operating out of a state commercial harbor would not be
required to pay the Ocean Stewardship User Fee. There are nine (9) commercial
harbors in the Statewide system. These are: Honolulu, Kalaeloa, Barbers Point, Hilo,
Kawaihae, Kahului, Kaunakakai, Kaumālapa'u , Nawiliwili, and Port Allen.
If you are a commercial operator with questions on how this fee relates to you and your business,please contact the Ocean Stewardship Fund administrator at OSUF@hawaii.gov.

User Fee Transparency and Accountability
Annual Reporting on Ocean Stewardship User Fee Funding Initiatives
DAR is committed to transparent reporting of Ocean Stewardship User Fee revenues
and expenditures through annual reports of program implementation and progress.
This annual reporting effort will likely include a publicly available dashboard that canserve as a resource for commercial operators to highlight to their customer base
how their fee supports marine conservation.
Commercial operator public engagement strategy
DAR plans to develop and distribute materials to operators (e.g., flyers, posters, etc.)
as well as electronic communications (e.g., e-flyer, website, QR codes, etc.) that canbe shared with customers and passengers of commercial operators. These materials
will highlight the positive impacts that just one dollar ($1.00) per person will have on
the ocean ecosystems that customers and passengers enjoy and experience throughoperators’ businesses. Initially, these materials will likely be very simple. Over time
as user fees are collected and used to support efforts to improve the resources, DAR
expects these materials will become more robust and will highlight specific types ofimprovements that were supported by user fees and demonstrate how customers’
fees have had positive impacts.
7Collected Fees will go into the Ocean
Stewardship Special Fund
Ocean Stewardship Special Fund Uses
Per Act 46, funds in the Ocean Stewardship Special Fund can be used to:Develop and carry out marine resource conservation, restoration,enhancement, research, regulatory measures, enforcement actions,educational activities, or any other management measure intended toconserve, restore, and enhance marine resources under the jurisdictionof the State;
Develop and carry out restoration and compensatory mitigation
measures for impacts to the marine environment, including impacts tothe marine environment from federal or state permitted actions, orviolations of subtitle 5 of title 12 or any rule adopted thereunder; andInstall, maintain, and replace day use mooring buoys and otherinfrastructure to reduce impacts to the marine ecosystem.

Limited Lifespan of the Ocean Stewardship Special Fund
Pursuant to Section 3 of Act 46 (SLH 2021), the Ocean Stewardship Special Fund will
eventually “sunset,” meaning expire after a set amount of time. For the first 5 years,
user fees will be deposited into the Ocean Stewardship Special Fund, a fundadministered by DAR to manage the State’s ocean resources. Starting January 1,
2029, user fees will still be collected but will be deposited to the State General Fundwith no restrictions specified for the use of those fees. DAR intends to request theLegislature to repeal the sunset provision if the Division can show that their systemcreated to manage the funds is successful. If repealing the sunset provision is notpossible, another alternative could be to request the Legislature allocate revenue
generated by the Fund to DAR from the General fund, prior to the January 2029
8
sunset.

Spend Plan
DAR will use revenue generated from the
Ocean Stewardship User Fee to develop andcarry out marine resource conservation,
restoration, enhancement, research,
regulatory measures, enforcement actions,educational activities, or any othermanagement measure intended to conserve,
restore, and enhance marine resources’
under the jurisdiction of the State. This
includes projects like coral reef restoration,
day use mooring buoys, and coastal water
quality. Particular emphasis andconsideration will be given to projects that
produce a simultaneous benefit to both
Hawaiʻi residents and commercial operators
relying on the continued health of marine
ecosystems.

Free diver observing coral and fish
Image Credit: Bert Weeks

Mandatory Uses of Fund and Administrative Costs
Office of Hawaiian Affairs (OHA)
Under Article XII Section 6 of the Hawai‘i State Constitution and Act 178 of theSession Laws of Hawai`i 2006, twenty percent (20%) of all funds derived from thepublic land trust revenue must be set aside for OHA specifically to better theconditions of Native Hawaiians. This is often referred to as the Department of Land
and Natural Resources obligation to contribute to ceded lands revenue. The Ocean
Stewardship User Fee must contribute to ceded lands revenue obligations because
submerged lands are in public trust and owned by the State government. Therefore,
twenty percent of revenue generated from the Ocean Stewardship User Fee must be
allocated to OHA.
9

Online Reporting and Payment Services
DAR, with the help of a third-party contractor, has created a reporting/payment
portal. This portal will allow commercial operators to report the number of users,
location of ocean recreation activities, and other relevant metrics.
The estimated cost for the development, maintenance, and hosting of the payment
portal is broken down into 5-year increments, shown below”
Up Front

Year 1

Year 2

Year 3

Year 4

Year 5Total(5 years)$71,900.00$24,300.00$22,600.00$22,600.00$22,600.00$22,600.00$186,600.00

Administrative Costs
Approximately one hundred and fifty thousand dollars ($150,000.00) of Ocean
Stewardship User Fee revenue will go towards implementing and maintaining
contracts, preparing reports, establishing community partnerships, managing budget
accounts associated with the Fee, monitoring for compliance, and maintaining apublicly available dashboard to ensure transparency with the public in regards to theallocation of funds. These administrative functions will be performed by DAR staff
and contractors.

Examples of DAR programs for coral reef restoration. On the left is coral outplanted
onto the reef. On the right are sea urchins about the be outplanted. Image credit: DAR

10

Revenue Estimates and Funding Allocation
The chart below describes estimates of funds available after mandatory costs andadministrative fees (described above) are allocated. The chart breaks down threedifferent budget scenarios based on a range of projected revenue for a full year of fee
collection. Three different scenarios are included because the amount of revenue
generated is unknown at this time.

Cost Estimations

Alternative 1:
Estimate of $1
million generated
revenue

Alternative 2:
Estimate of $3
million generated
revenue

Alternative 3:
Estimate of $5
million generated
revenue

Annual Revenue$1,000,000.00$3,000,000.00$5,000,000.00

OHA (20% of revenue
generated)$200,000.00$600,000.00$1,000,000.00

Year 1 Web portal
fees$24,300.00$24,300.00$24,300.00

Administrative costs$150,000.00$150,000.00$150,000.00

ANNUAL to allocate to
stewardship projects$625,700.00$2,225,700.00$3,825,700.00

CUMULATIVE after 5
years of fee collection(assuming annual
revenue is constant)$3,128,500.00$11,128,500.00$19,128,500.00

11

Potential Projects
The stewardship projects are the ultimate purpose of the Ocean Stewardship User
Fee and Special Fund, to improve and enhance the marine environment of Hawai‘i tosupport healthy ecosystems. DAR has prioritized projects based on the perceived
benefit to ocean users, the enhancement of overall marine resources, and Statepriorities in managing aquatic resources.
At this time, it is unclear exactly how much revenue will be generated from the
Ocean Stewardship User Fee given the lack of information on the number ofCommercial tour participants and the level of compliance the program will receive.
Once the Ocean Stewardship User Fee is fully implemented and begins collecting
revenue the spend plan will be updated to give a more accurate depiction ofprogram funds.
This list is not comprehensive or final, but is designed to give stakeholders an idea of
projects currently in consideration by DAR. DAR welcomes an open dialogue onpriorities for this innovative fund and looks forward to working with community
partners and commercial operators to implement this funding source.
SCUBA diver observing acoral head with schools of
fish.
Image credit: Brian Neilson

12Stewardship Projects
To address the possible range of revenue generated from the Ocean Stewardship
User Fee, DAR proposes to allocate a percentage of annual revenues to various
project categories. We also provide an estimated cost for each project category,
which is a rough estimate of anticipated materials, staff time, and other supporting
costs. If the percentage allocation exceeds the needed funding for a project
category, then excess funds would be allocated to other projects in the spend plan.

Commercial operators
directly benefiting from this% of total revenue generated annuallyprogramFunds allocatedProject Category

Statewide day use mooring
buoy

25%

SCUBA/Snorkel commercial
operators

Community stewardship20%

All Commercial Operators

Coral Reef Restoration

20%

All Commercial Operators

Improving coastal water
quality

10%

All Commercial Operators

Education and outreach10%

All Commercial Operators

Marine invasive species
management

5%

All Commercial Operators

Commercial operator
stewardship5%

All Commercial Operators

Marine debris prevention,
response, and mitigation

5%

All Commercial Operators

13

Statewide Day Use Mooring Buoy ProgramLong term continuous anchoring in one area of reef causes stress to the reef. To mitigate this
impact of continuous use, DAR is currently piloting a day use mooring program in Kona on Hawai‘iIsland. Supplemental funds from the Ocean Stewardship User Fee could be used to support scaling
the day use mooring program to the next high-use priority sites at West Hawai‘i, Molokini, andWest Oʻahu.
General benefit to commercial operators providing SCUBA and snorkel experiences and ocean
recreation users with day use mooring needs.

Allocation ofFunds: 25%
Estimated
Project Cost:$200,000.00

Maintenance of current pilot site in Kona
Locations: Hawaiʻi County

Implementing new sites in West Hawai‘i,
Molokini, and West Oʻahu
Locations: Maui County, Hawai‘i County, Honolulu City and County

Community Stewardship Support and Grants
Supporting the community organizations and Hawaiʻi residents to steward places culturally,
environmentally, and economically relevant to them would be a valuable use of Ocean
Stewardship User Fee Funds.
General benefit to all ocean users (commercial operators, Hawaiʻi residents, and community
organizations).

Grants for community led restoration
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Grants for community led monitoring
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Capacity building via internships and trainings
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Community led outreach and education
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Makai Watch program support

Allocation ofFunds: 20%
Estimated
Project Cost:$500,000.00

Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

14

Coral Reef Restoration
Coral reef restoration diminishes the direct impact of human use and other anthropogenic
stressors on coral reefs through intervention activities that improve reef conditions and promoteoverall reef resilience.
General benefit to all ocean users (commercial operators, Hawaiʻi residents, and community
organizations).

Allocation ofFunds: 20%
Estimated
Project Cost:$687,908.00

Outplanting nursery grown corals onto coral reefs
prioritized for resilience and restoration
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Artificial reefs on reef habitat to improve reef
habitat complexity
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Emergency restoration response to coral and reef
damage events
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Long-term monitoring
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Improving Coastal Water Quality
With a myriad of land based sources of pollution, it is a tremendous effort to identify and mitigate
impacts on coastal water quality. A current focus for the State is increasing water quality
monitoring efforts and improving watershed conditions.
General benefit to all ocean users (commercial operators, Hawaiʻi residents, and community
organizations).

Establishing a Statewide coastal water quality
monitoring program with coral health indicators
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Managing watershed health to mitigate threats fromsedimentation
Locations: Maui County

Statewide watershed coordination
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Allocation ofFunds: 10%
Estimated
Project Cost:$487,112.00

15

Education and Outreach
Education and outreach efforts are essential to managing, conserving, and restoring Hawai‘i’s
unique aquatic resources. Cultivating an ethic of sustainability and encouraging pono practices
among resource users are crucial to successful resource management in Hawai‘i.
General benefit to all ocean users (commercial operators, Hawaiʻi residents, and community
organizations).

Allocation ofFunds: 10%

Threatened and endangered species education
campaigns
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Estimated
Project Cost:$344,560.00

Pono practices education campaigns
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Marine invasive species management
Marine invasive species pose a threat to Hawaiʻi marine life when they outcompete native species
for space and food, often smothering the reef and choking out native species. Ocean Stewardship
User Fee revenue would allow the State to respond rapidly to mitigate invasive species threats
early and prevent these species from becoming established in the marine ecosystem.
General benefit to all ocean users (commercial operators, Hawaiʻi residents, and community
organizations).

Control of invasive species
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Invasive species prevention
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Funds for community-led invasive species fishing
tournaments
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Long term monitoring of marine invasive species
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Allocation ofFunds: 5%
Estimated
Project Cost:$250,000.00
16

Commercial Operator Stewardship Grants
Some commercial operators already participate in programming and engagement activities to
steward the places they frequent. The Ocean Stewardship User Fee would like to support these
initiatives and provide funds to support the continued stewardship from commercial operators.
General benefit to all ocean users (commercial operators, Hawaiʻi residents, and community
organizations).

Allocation ofFunds: 5%
Estimated
Project Cost:$100,000.00

Grants for operators to provide education andoutreach services
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Marine Debris Prevention, Response, and Mitigation
Marine debris is an increasingly impactful threat to marine life health and the overall enjoymentof ocean recreation activities. Ocean Stewardship User Fee funds would alleviate marine debris
response and mitigation pressure that largely falls on State agencies and communities to address.
General benefit to all ocean users (commercial operators, Hawaiʻi residents, and community
organizations).

Ghost net removal and rapid response
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Allocating funds to support community-led
marine debris clean-ups
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Entangled threatened and endangered species
rapid response
Locations: Maui County, Hawai‘i County, Honolulu City and County, and Kauaʻi County

Allocation ofFunds: 5%
Estimated
Project Cost:$168,556.00

17Frequently Asked Questions
To review specific questions about the Ocean Stewardship User Fee, click on the links below.

General Information
Where did the Ocean Stewardship Fund come about and how will the fee be implemented?
What are the State’s plans on collateral marketing and sharing information with travelers and guests beforehand?
Is it possible for commercial operators who have been consistently compliant and follow the rules to receive credit for
ensuring that the passengers/customers are educated and mindful about their environment during their experienceswith the ocean?
Will infants, who ride for free, be subject to the $1 fee as well?
Some of the larger boat operators are already paying one dollar ($1.00) per passenger on their gross receipt form to
DOBOR. Will these fees to DOBOR go away and be converted into this new system?
Are staff and crew members of a commercial operation also subject to the $1 the Ocean Stewardship User Fee?
If commercial vessels are used on personal trips like holoholo will these trips be subject to the one dollar ($1.00) the
Ocean Stewardship User Fee?
When does DAR anticipate starting allocating funds after the collection starts coming in?

Use of Fees
Is it the intent for the information collected from operators to be used to limit access to areas in the future?
Can some of the funds go towards maintenance of boating facilities?
How will the fees collected contribute towards fisheries and actual fishermen who will be taxed $20/person per day,$40/person per week, $70/person per 12 months?
There are multiple fees that will go towards mooring upkeep, including the Ocean Stewardship User Fee. Will operators
still be required to comply with multiple fees funding mooring upkeep?

Eligibility for User Fee
What commercial operators are required to participate in the Ocean Stewardship User Fee?
Do passengers of charter fishing operators have to pay this new fee as well as obtain a nonresident marine fishinglicense?
Is gear rental included in the Ocean Stewardship User Fee?
How can we address the increasing number of bare boat rentals across the islands that do not consider themselves ascommercial operators? Will this exclude them from the Ocean Stewardship User Fee requirement?

18

For non-profit organizations that utilize grants to put passengers on educational vessels, will each passenger still be
subjected to the one dollar ($1.00) fee. Is there any way to be subsidized for situations in which non-profit
organizations are promoting educational resources?
Are cruise ship passengers subject to pay the $1 fee?
Are self-guided operators required to get a commercial use permit and are they subjected to the Ocean Stewardship
User Fee?

Collecting the User Fee
Can commercial operators submit these Ocean Stewardship User Fees at the same time and in the same way that they
pay their DOBOR fees?
Why can’t I just pay DLNR one time for my DOBOR permit fees and to transfer the collected Ocean Stewardship User
Fees?
Commercial operators already report the number of passengers to DOBOR. Will I have to report the number ofpassengers separately to DAR?
I already report for a Molokini MLCD permit, do I have to complete another report each month?
Will collecting these fees increase the amount commercial operators owe in general excise taxes?
In the case that a commercial operator requires three permits for a single experience with a passenger/customer, will
the permit holder be only charged once or will they be charged for each permit?
If a trip is refunded due to weather, are commercial operators still responsible for the fee even if the tour didn't goout?

Reporting and Compliance with the User Fee
How can DAR/DLNR assure commercial ocean operators who have been compliant with regulations and fees thatbusinesses who have been operating illegally will be held accountable and be subject to the same fees?
For those working with hotels, how will businesses handle disputes with customers who want a reimbursement, which
also includes the $1 Ocean Stewardship User Fee? Will the business be using their funds to cover that cost instead?
Will DAR be monitoring across the islands in-person to see compliance of operators with the Ocean Stewardship User
Fee?
What are the penalties for companies who do not pay the Ocean Stewardship User Fees on time?
What happens if commercial operators don't collect or submit the collected fees to DLNR?
How will this new fee requirement be enforced fairly and consistently?
How will DAR ensure that the information operators submit is accurate?
Why do I have to keep records of customers or passengers for two years?

19General Information
Where did the Ocean Stewardship Fund come from and how will the fee be
implemented?
DAR proposed the legislation as an Administrative Bill which went through thelegislative process. The Legislature adopted Act 46 and it was signed by the Governor
in 2021. DAR was given 2.5 years to implement the user fee collection throughcommercial operators, with the intent that the users will be paying the fee. The user
fee will be in effect starting January 1, 2024.
What are the State’s plans on collateral marketing and sharing information withtravelers and guests beforehand?
DAR will create a marketing strategy to inform the public of the implementation of
the Ocean Stewardship User Fee program. This strategy will include materials forcommercial operators to share information on program uses supported by the Ocean
Stewardship User Fee and promote overall stewardship of Hawai‘i marine resources.

Is it possible for commercial operators who have been consistently compliant andfollow the rules to receive credit for ensuring that the passengers/customers are
educated and mindful about their environment during their experiences with theocean?
Although it is great that some operators inform their passengers/customers to beenvironmentally conscious, there are no exceptions in the statute to credit
passengers for removing marine debris. However, DAR has received somesuggestions to provide operators with educational materials to distribute forpassengers/customers to interact with marine resources in a responsible way so that
operators do not have to put their own money into developing materials to educate
their clients.

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Will infants, who ride for free, be subject to the one dollar ($1.00) fee as well?
The way the statute reads, if infants are reported as passengers, they will still be
subjected to the one dollar ($1.00) fee. DAR acknowledges that different types ofactivities will have different levels of impact, but the statute is not based on the typeof activity, but rather if there are ocean-related activities taking place under acommercial operator.
Some of the larger boat operators are already paying one dollar ($1.00) per
passenger on their gross receipt form to DOBOR. Will these fees to DOBOR go
away and be converted into this new system?
The Ocean Stewardship User Fee does not take away the gross receipts that are due
to DOBOR, as those other fees go to DOBOR facilities management and not ocean
stewardship projects. The Ocean Stewardship User Fee will be in addition to fees
currently paid to DOBOR, but specifically allocated to DAR to be used towards marine
resource management.
Are staff and crew members of a commercial operation also subject to the one
dollar ($1.00) the Ocean Stewardship User Fee?
No. The definition of passenger doesn't include the captain or crew members or
employees.
If commercial vessels are used on personal trips like holoholo will these trips be
subject to the one dollar ($1.00) the Ocean Stewardship User Fee?
No. Personal trips are not under commercial trips, so there is no requirement to be
subjected to the one dollar ($1.00) fee.
When does DAR anticipate starting allocating funds after the collection starts
coming in?
That would depend on what projects have been identified and are ready to
implement once the funds accrue. Some potential projects that may get funded
include a pilot day use mooring inspection and maintenance program, statewide
inventory of existing moorings, and maintenance status. More allocation to otherprojects will take place over time.
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Use of Fees
Is it the intent for the information collected from operators to be used to limit
access to areas in the future?
No. The information about where and how much activity is taking place is forgeographical purposes to help DAR allocate funds appropriately. The informationcollected could be used to help DLNR know where and how the fees should be spent
to benefit operators and customers/passengers. This could include enhanced
education and outreach, mooring maintenance, restoration needs, etc.
Can some of the funds go towards maintenance of boating facilities?
No. HRS §187A-51(c) does not allow Ocean Stewardship User Fee revenues to be used
for maintenance of boating facilities. Pursuant to HRS §200-8, revenues generated
from the commercial use permit fee through DOBOR are allocated toward projects
like maintenance of boating facilities. However, as a sister agency, DAR can help
communicate that need to DOBOR.
How will the fees collected contribute towards the non-resident recreational
marine fishing license, which will collect twenty dollars ($20.00)/person per day,forty dollars ($40.00)/person per week, seventy dollars ($70.00)/person per 12months for non-residents?
The twenty dollars ($20.00), forty dollars ($40.00), seventy dollars ($70.00) fees referto a separate non-resident recreational marine fishing license that DAR is also
implementing, but they will also be subject to the Ocean Stewardship User Fee. The
funds from the non-resident fishing license will go into the sport fish special fund tosupport sport fish projects. The funds from the Ocean Stewardship User Fee will go
towards projects like habitat enhancement which also benefit fisheries.

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There are multiple fees that will go towards mooring upkeep, including the Ocean
Stewardship User Fee. Will operators still be required to comply with multiple fees
funding mooring upkeep?
DOBOR is proposing new fees specifically for use of manta site moorings to help pay
for the costs associated with the upkeep of these moorings. The extra fee is justified
by the more intensive use of the moorings (and therefore higher maintenance costs)
by nighttime manta tour activities.

Eligibility for User Fee
What commercial operators are required to participate in the Ocean Stewardship
User Fee?
All commercial operators that hold a DOBOR commercial use permit are required tocollect funds for the Ocean Stewardship User Fee. This includes ocean recreation
charter vessels such as recreational fishing, SCUBA, snorkel, catamaran and sailboat
cruises, and glass bottom boat tours. This also includes surfing programs and small
craft rentals operating with commercial use permits.

Do passengers of charter fishing operators have to pay this new fee as well as
obtain a nonresident marine fishing license?
There is no exemption for charter fishing operators under Act 46. Therefore,
passengers of charter fishing operators that are required to have a permit pursuant
to section 13-256-3 of the Hawaiʻi Administrative Rules would have to pay the Ocean
Stewardship User Fee. Under Act 48, also signed into law in 2021, passengers ofcharter fishing operators who are nonresidents of the State of Hawaiʻi, over the ageof 15, and not a member of the armed forces of the United States on active duty in
Hawaiʻi or the spouse or minor child of such a member, would also be required toobtain a nonresident marine fishing license. See Act 48, section 2 (2021).
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Is gear rental included in the Ocean Stewardship User Fee?
Rental of snorkel gear and other water sports equipment is not subject to thecommercial use permit requirement and therefore not subject to the Ocean
Stewardship User Fee.
How can we address the increasing number of bare boat rentals across the islands
that do not consider themselves as commercial operators? Will this exclude themfrom the Ocean Stewardship User Fee requirement?
Bare boat rental companies are required to have a commercial use permit fromDOBOR, so they are subject to the Ocean Stewardship User Fee.
For non-profit organizations that utilize grants to put passengers on educational
vessels, will each passenger still be subjected to the one dollar ($1.00) fee. Is there
any way to be subsidized for situations in which non-profit organizations arepromoting educational resources?
Yes, there may be opportunities for subsidies under unique circumstances. This will be
addressed through the commercial operator stewardship grants outlined in the
Ocean Stewardship User Fee spend plan.

Are cruise ship passengers subject to pay the one dollar ($1.00) fee?
Cruise ships that operate out of commercial harbors are not required to have acommercial use permit from DOBOR, so the Ocean Stewardship User Fee would not
apply to them.
Are self-guided operators required to get a commercial use permit and are theysubjected to the Ocean Stewardship User Fee?
Companies who rent out vessels are required to have a commercial use permit, sothey are also subject to the Ocean Stewardship User Fee. However, companies who
rent out other water sports equipment (kayaks, surf boards, snorkel gear) are notrequired to have a commercial use permit and therefore would not be subject to the
Ocean Stewardship User Fee.
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Collecting the User Fee
Can commercial operators submit these Ocean Stewardship User Fees at the sametime and in the same way that they pay their DOBOR fees?
No, the payment method is different than the DOBOR fees and will require separate
reporting. The new online system details will be further developed through scoping
and the administrative rulemaking process. Based on currently available information,
the Ocean Stewardship User Fees are likely to be submitted at the same time but notin the same way as the DOBOR fees related to the permit required by section 13-2563. DAR is developing an online system that will allow the Ocean Stewardship User
Fees to be submitted on a monthly basis online.
Why can’t I just pay DLNR one time for my DOBOR permit fees and to transfer thecollected Ocean Stewardship User Fees?
Separate payment or transfer is needed to account for the distinct purposes of thepermit fees and the Ocean Stewardship User Fees. This enables DLNR to validate thateach fee type is being spent in a way that fulfills the distinct purpose for which eachfee was collected. For example, this ensures that DOBOR fees are spent on the
expenses of operating, maintaining, and managing boating facilities and services andthat Ocean Stewardship User Fees are spent on the expenses of marine resource
conservation, restoration, enhancement, and educational activities, research, andenforcement actions.
Commercial operators already report the number of passengers to DOBOR. Will I
have to report the number of passengers separately to DAR?
There will be a separate online system for the Ocean Stewardship Fund. DOBOR’soperating system is primarily paper-based and is not efficient to gather the
information requested for the user fees. The goal is to make this process completely
online and user-friendly.

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I already report for a Molokini Marine Life Conservation District (MLCD) permit, do
I have to complete another report each month?
The requirements for the ocean stewardship user fee will not change or eliminate the
Molokini Marine Life Conservation District permit reporting requirements. However,DAR is interested in developing an online system for the ocean stewardship user feethat will be able to integrate the Molokini Marine Life Conservation District permit
reporting functions to avoid redundancy for operators.

Will collecting these fees increase the amount commercial operators owe ingeneral excise taxes?
No, the fees collected from the OSUF will be tax exempt from general excise andincome tax. Justification for this exemption can be found in Tax Announcement 2008005.
In the case that a commercial operator requires three permits for a single
experience with a passenger/customer, will the permit holder be only charged
once or will they be charged for each permit?
A single commercial operator that transports passengers on multiple vessels during
one trip (for example a submarine company that uses a tender vessel to transportpassengers to and from shore) will only need to collect the fee one time perpassenger.

If a trip is refunded due to weather, are commercial operators still responsible forthe fee even if the tour didn't go out?
Yes, those passengers will still be subjected to the Ocean Stewardship User Fee
because those customers were still reported in your passenger manifest. It is up to
the business to create a policy on whether or not to refund the user fee, or if thebusiness will cover the cost. DAR will work on providing educational materials forcustomers to understand where the fee will go towards.

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Reporting and Compliance with the User Fee
How can DAR/DLNR assure commercial ocean operators who have been compliant
with regulations and fees that businesses who have been operating illegally will beheld accountable and be subject to the same fees?
DAR acknowledges there are challenges with enforcement. The Ocean Stewardship
User Fee is specific to manage the aquatic resources in the ocean to enhance user
experience– it can be used towards things like broader education and outreach,better enforcement, or improving regulations. This may also include tracking down
illegally run businesses and making sure they are compliant to the existing
regulations and requirements to run an ocean-based business.
For those working with hotels, how will businesses handle disputes with customers
who want a reimbursement, which also includes the one dollar ($1.00) Ocean
Stewardship User Fee? Will the business be using their funds to cover that cost
instead?
It is up to the business to create a policy on whether or not to refund the user fee, orif the business will cover the cost.
Will DAR be monitoring across the islands in-person to see compliance of operatorswith the Ocean Stewardship User Fee?
There are no plans for DAR staff to regularly check compliance from commercial
operators in-person. The intent of the online system is for a simple, accessible way for
operators to provide requested information and payment for the Ocean Stewardship
User Fee. This includes geographical information, types of services provided, etc.
Other than identification information and passenger manifests to determine howmuch the Ocean Stewardship User Fee are collected, providing other information isvoluntary. The information will help better inform DAR in where and how much toallocate funds across the state and will be transparent across the process.

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What are the penalties for companies who do not pay the Ocean Stewardship User
Fees on time?
Operators that do not submit on time may be subject to penalties including late fees,
and in extreme circumstances, commercial use permit revocation. There is a statutory
maximum administrative penalty of one thousand dollars ($1,000.00) per violation.
There is a criminal minimum penalty of two hundred and fifty dollars ($250.00).
Revocation of the commercial use permit is also possible.
What happens if commercial operators don't collect or submit the collected fees to
DLNR?
DLNR is required to determine that all applicable laws have been complied with andthat all fees and charges owed to the State have been paid before issuing or reissuing
a commercial use permit or catamaran registration certificate under HAR under
section 13-256-3. See HAR § 13-231-3(b) (am 2018), § 13-231-61(a)(3) (am and comp2014). Act 46 is an applicable law for commercial operators and, as of January 1,
2024, the Ocean Stewardship User Fee will be a fee owed to the State that must becollected by commercial operators and transferred to DLNR on a monthly basis. See
Act 46, section 2 (§187A-B). Therefore, DLNR would not issue or reissue commercial
use permits or catamaran registration certificates to commercial operators that don’tcollect or submit their collected Ocean Stewardship User Fees to DLNR.
How will this new fee requirement be enforced fairly and consistently?
At present, DAR expects to coordinate with DOBOR to maintain a current list of theoperators subject to collection of the fees under Act 46 and to share with DOBOR thecompliance status of those operators, so any compliance or noncompliance with Act
46 can be taken into account during the issuance and reissuance process forcommercial operator permits and catamaran registration certificates.
How will DAR ensure that the information operators submit is accurate?
DAR can match the numbers submitted with DOBOR’s records. Alternatively, it isstated in the proposed rule that commercial operators are required to maintainrecords of the daily number of passengers carried or customers served for at least 24
months after the service date and shall be made available for inspection by the DLNR
upon request. The intent is to do spot checks randomly to check for compliance, in
hopes to promote honest reporting.
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Why do I have to keep records of customers or passengers for two years?
DAR may occasionally, at random, request these records from an operator to conduct
an accounting to ensure compliance. This is important so that operators and theircustomers who fulfill the user fee requirements are not left carrying adisproportionate responsibility to the resources because of non-compliant individuals.

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Appendix
The resources listed below were used to inform this document and outline
appropriate uses of funds generated from the Ocean Stewardship User Fee.

Board of Land and Natural Resources
Division of Aquatic Resources public hearing record
Board of Land Natural Resources request for public hearing
Board of Land and Natural Resources Briefing on the Ocean Stewardship User
Fee

Legislative Resources
The Office of Hawaiian Affairs ceded lands revenue bill
The Ocean Stewardship User Fee and Special Fund legal documentation can befound in HRS §187-51 and §187A-52.
Ocean Stewardship User Fee: Section 187A-51
Ocean Stewardship Special Fund: Section 187A-52

Academic and Programmatic Studies
Ocean Stewardship User Fee Feasibility Study
Recreational Survey in Selected Marine Managed Areas in the Main Hawaiian
Islands
Coral Reefs and Coastal Tourism in Hawaiʻi30