STAND. COM. REP. NO. 1052-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3229

S.D. 2

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 S.B. No. 3229, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Cap the amount of royalties from geothermal resources that are to be paid to the State and to the county in which the geothermal resources are located;

(2) Establish and appropriate funds out of the University of Hawaii Geothermal Exploration Special Fund for the Hawaii Groundwater and Geothermal Resources Center to further the discovery and development of geothermal resources;

(3) Provide for the deposit of certain royalties into the University of Hawaii Geothermal Exploration Special Fund; and

(4) Require the entities that receive geothermal royalties to submit an annual report to the Legislature.

Your Committee received testimony in support of this measure from the University of Hawai‘i System, Hawaii Groundwater and Geothermal Resources Center, Sustainable Energy Hawai‘i, and two individuals. Your Committee received testimony in opposition to this measure from the Department of Land and Natural Resources. Your Committee received comments on this measure from the Department of Budget and Finance and Hawaii State Energy Office.

Your Committee finds that geothermal technology facilitates the generation of power from heat and energy found below the Earth's surface and the development of geothermal resources will be important for achieving the State's goal of transitioning to one hundred percent renewable energy generation statewide. This measure provides further resources for the advancement of geothermal discovery and development and enables the State to achieve its clean energy goals.

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 S.B. No. 3229, S.D. 2, and recommends that it pass Second Reading and be referred to your Committee on Higher Education & Technology.

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

____________________________

NICOLE E. LOWEN, Chair