The Trump administration has stepped into a legal battle over Hawaiʻi’s new green fee, a tax aimed at offsetting tourism’s impact on the environment. The U.S. Department of Justice filed a motion to intervene in a lawsuit brought by Cruise Lines International against the state and county. This move by the federal government comes amidst a growing hostility towards climate change initiatives.
The green fee, which passed the Hawaiʻi Legislature in April and will go into effect on January 1, applies to hotel guests, short-term visitors, and cruise ships. The tax was seen as historic, being the first of its kind in the nation. However, Assistant Attorney General Stanley Woodward has labeled it as a “scheme to extort American citizens and businesses solely to benefit Hawaiʻi.”
The outcome of this lawsuit will determine the extent of the green fee’s reach, especially concerning cruise ships that dock in Hawaiʻi. Richard Wallsgrove, co-director of the William S. Richardson School of Law’s Environmental Law Program, criticized the DOJ’s involvement as ideologically motivated, given the administration’s stance on climate change.
The Trump administration’s previous lawsuit against Hawaiʻi over climate actions and the familial connection between U.S. Attorney General Pam Bondi and the lead attorney for Cruise Lines International have raised ethical concerns. The DOJ’s intervention in this case has sparked questions about its motives.
The green fee is expected to raise about $100 million annually for projects addressing climate change and environmental degradation in the islands. The Green Fee Advisory Council is currently evaluating projects totaling $2 billion that could benefit from this fund. The council plans to provide recommendations to Governor Josh Green before the legislative session starts in January.
Cruise Lines International maintains that the green fee violates constitutional clauses and limits on states’ ability to charge vessels for docking and navigating waters. The industry argues that it contributes significantly to Hawaiʻi’s economy and aims to sustain responsible maritime travel.
As the legal battle continues, both state officials and the cruise industry are navigating competing interests to ensure a sustainable and lawful future for tourism in Hawaiʻi. The legal battle over the legality of Hawaii’s green fee continues as the Department of Justice seeks to intervene in the lawsuit. The judge overseeing the case will have to approve the DOJ’s entrance into the suit, adding another layer of complexity to the already contentious issue.
In response to the DOJ’s involvement, Lopez’s office released a statement on Friday, asserting that they are vigorously defending the legality of the green fee. However, due to the pending litigation, they declined to provide further comments on the matter. This legal dispute has put the spotlight on Hawaii’s environmental policies and their impact on the tourism industry.
State Representative Adrian Tam, who chairs the House Tourism Committee and played a role in including cruise ships in the tax base, expressed full confidence in Lopez’s ability to protect Hawaii’s interests in this case. However, he also voiced his disappointment in the Department of Justice’s failure to prioritize Hawaii’s interests in the matter.
As the legal proceedings unfold, it is clear that the outcome of this case will have far-reaching implications for Hawaii’s environmental policies and its tourism industry. The involvement of the Department of Justice further underscores the complexity and significance of this issue.
Civil Beat’s coverage of climate change and the environment is made possible by the generous support of The Healy Foundation, the Marisla Fund of the Hawaii Community Foundation, and the Frost Family Foundation. Their contributions enable in-depth reporting on crucial environmental issues like the green fee lawsuit, ensuring that the public remains informed and engaged on these important matters.

