STAND. COM. REP. NO. 1124

Honolulu, Hawaii

RE: S.B. No. 458

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 458, 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 promote the discovery and development of geothermal resources in the State.

More specifically, this measure:

(1) Establishes additional sources of funding for, and authorized uses of moneys deposited into, the university innovation and commercialization initiative special fund;

(2) Requires the Board of Land and Natural Resources, certain counties, and the Hawaii Groundwater and Geothermal Resources Center to submit annual reports to the Legislature on the use of geothermal royalties; and

(3) Provides for the distribution of geothermal royalties to certain entities.

Your Committee received written comments in support of this measure from the Department of Land and Natural Resources; Hawaii Center for Advanced Transportation Technologies of the Hawaii Technology Development Corporation; Office of Hawaiian Affairs; University of Hawaii; DaRubbahSlippahGroup.com; Hawaiian Electric; Servco Pacific, Inc.; Ulupono Initiative; and numerous individuals.

Your Committee received written comments in opposition to this measure from the Hawaii County Council and one individual.

Your Committee received written comments on this measure from the Hawaii State Energy Office.

Your Committee finds that using geothermal royalties as a source of funding for projects that promote and advance renewable energy resources development will help the State to achieve its clean renewable energy goals.

Your Committee has amended this measure by:

(1) Deleting the provision establishing new funding sources for, and authorized uses of moneys in, the university innovation and commercialization initiative special fund; and

(2) Deleting the provision requiring the Board of Land and Natural Resources, certain counties, and the Hawaii Groundwater and Geothermal Resources Center to submit annual reports to the Legislature;

(3) Establishing a renewable energy resources development special fund and the funding sources for, and authorized uses of moneys in, the special fund;

(4) Requiring the Department of Business, Economic Development, and Tourism to submit an annual report to the Legislature on the revenue and expenditures of the renewable energy resources development special fund;

(5) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(6) 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. 458, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 458, 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