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SB 2880

Carbon credits or sequestration; require recorded instrument to convey.

2025 Regular Session Introduced by Tyler McCaughn

Requires all transfers of carbon credits or sequestration rights tied to land to be recorded in land records to protect buyers and lenders.

Died In Committee
#judiciary #divisiona
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Bill Summary · SB 2880

SB 2880 — Carbon credits or sequestration; require recorded instrument to convey

Status: Died In Committee
Introduced: March 14, 2025
Primary sponsors: Senators Hashimoto, Kidani, Wakai, Moriwaki, San Buenaventura, Chang, Fevella
Related/companion bills: HB 5510, HB 2227

Note: The bill text or version content was not provided. This summary is based on the bill title and the available legislative history. Where the specific statute language is not available, the summary describes the bill’s apparent intent and the kinds of provisions such a bill typically contains.

Main purpose and intent

SB 2880 would require that the conveyance (transfer) of carbon credits or rights to carbon sequestration associated with land be effected by a recorded instrument in the land records. The stated intent is to make transfers of carbon rights part of the public record, improve clarity of title and chain of ownership, reduce disputes, and provide notice to subsequent purchasers, lenders, and other parties with property interests.

Key provisions (based on title; exact language not provided)

Likely substantive elements the bill would enact include:
- Definition section clarifying terms such as “carbon credit,” “carbon sequestration right,” “sequestration agreement,” and “conveyance.”
- A requirement that any transfer, assignment, reservation, or grant of carbon credits or sequestration rights that pertain to real property must be memorialized in a written instrument recorded in the county land records (or other designated recording office) to be effective against subsequent purchasers or to be enforceable against third parties.
- Specification of recording formalities (e.g., acknowledgment, notarization, legal description of the property, recording fees).
- Possible exceptions or carve-outs (e.g., certain registry-only transfers, short-term leases, ministerial greenhouse gas reporting obligations, governmental permits or programs).
- Remedies and effect: language stating unrecorded transfers may remain valid between parties but not enforceable against bona fide purchasers for value without notice; possible civil penalties or recording penalties for noncompliance.
- Interaction with existing land-use, easement, mineral/severed-rights, and title insurance law.

Who would be affected

  • Private landowners and tenants who hold or wish to sell/lease carbon sequestration rights (e.g., forestry owners, agricultural operators, rangeland managers).
  • Carbon project developers, brokers, and buyers participating in voluntary or compliance carbon markets.
  • Title companies, lenders, and prospective purchasers who rely on recorded land records to determine encumbrances and interests.
  • County recording offices and clerks (administrative workload and recording fee revenue).
  • State agencies overseeing land records or environmental programs.
  • Potentially Indigenous communities and others holding surface or subsurface rights—parties with complex ownership claims.

Potential impacts

  • Greater transparency in carbon-rights markets and reduced risk of competing claims due to public notice via recording.
  • Increased administrative and transaction costs (recording fees, legal preparation, possible reformation of current contracts to meet recording requirements).
  • Improved ability for lenders and title insurers to assess encumbrances tied to carbon contracts, potentially affecting financing terms.
  • Possible chilling effect on certain private or registry-based carbon transactions if parties overlook or resist recording requirements.

Procedural history (as provided)

The legislative actions supplied include many committee and floor steps spanning 2024–2025 (introductions, committee hearings, readings, and various votes). Key items shown:
- Multiple referrals to committees including Judiciary (Division A), State Affairs, HHS/PSM, and WAM.
- Several committee hearings, votes, and reported favorable actions (including a reported substitution).
- Recorded floor readings and votes (dates in April 2025 appear to show passage in one chamber).
- Final listed status: Died In Committee (date shown: 2025-02-04). Note: the provided chronology contains date inconsistencies (some actions predate the reported introduction date); the definitive status in the materials is that the bill did not advance out of committee in its final session.

Next steps / additional information

  • Because the bill text was not supplied here, consult the official state legislature bill page for SB 2880 (and companion HB 5510/HB 2227) for the exact statutory language, amendments, and the authoritative procedural calendar.
  • Stakeholders (landowners, carbon market participants, title insurers, county clerks) should review the final bill text—if reintroduced in a future session—to evaluate compliance steps, recording mechanics, and any exemptions.

Compiled from official sources — confirm details with the bill’s official record.

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