STAND. COM. REP. NO. 17-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1808

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1808 entitled:

"A BILL FOR AN ACT RELATING TO GEOTHERMAL ROYALTIES,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Increase the percentage of royalties received by the State from geothermal resources that are to be paid to the county in which the geothermal resources are located;

(2) Require the royalties paid to a county to be used for further geothermal resources discovery and development; and

(3) Require the county to submit an annual report to the Legislature on how it used the royalties.

Your Committee received testimony in support of this measure from two individuals. Your Committee received testimony in opposition to this measure from the Department of Land and Natural Resources and Life of the Land. Your Committee received comments on this measure from the Hawaii State Energy Office and Hawaii Clean Power Alliance.

Your Committee finds that geothermal technology facilitates the generation of power from heat and energy found below the Earth's surface. Currently, thirty percent of the royalties received by the State from geothermal resources are paid to the county in which the mining operations are situated. Increasing the royalties to the counties to further advance geothermal resources discovery and development may play a significant role in achieving one hundred percent renewable energy generation statewide.

Your Committee notes the concerns of the Department of Land and Natural Resources that any reduction in the State's share of geothermal royalties would result in a shortfall of funding for its Mineral Resources Program. Your Committee believes that this issue and the possibility of increasing the funding ceiling of the Department's Special Land and Development Fund merit further discussion by your Committee on Finance.

Your Committee has amended this measure by changing the effective date to July 1, 2100, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1808, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1808, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair