STAND. COM. REP. NO. 3108

Honolulu, Hawaii

RE: S.B. No. 3229

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3229, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to amend the distribution scheme for geothermal royalties received by the State.

Specifically, this measure:

(1) Caps the amount of royalties from geothermal resources that can be paid to the State or a county in which the geothermal resources are located;

(2) Establishes the University of Hawaii geothermal exploration special fund to further the discovery and development of geothermal resources;

(3) Provides for the deposit of excess royalties into the University of Hawaii geothermal exploration special fund; and

(4) Requires annual reports to the Legislature.

Your Committee received written comments in support of this measure from the University of Hawaii and one individual.

Your Committee received written comments on this measure from the Department of Land and Natural Resources, Hawaii State Energy Office, and Department of Budget and Finance.

Your Committee finds that the development of geothermal resources will be important for achieving the State's goal of transitioning to one hundred percent renewable energy generation statewide.

Your Committee has amended this measure by:

(1) Clarifying that, after other required distributions are made, any excess royalties received by the State annually from geothermal resources on lands not under the jurisdiction of the Department of Hawaiian Home Lands, up to a maximum of $1,000,000, shall be deposited into the University of Hawaii geothermal exploration special fund;

(2) Appropriating an unspecified sum out of the University of Hawaii geothermal exploration special fund; and

(3) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3229, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3229, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair