Bill Text: HI HR156 | 2011 | Regular Session | Introduced

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Bill Title: Geothermal Royalties; Attorney General Investigation

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-03-17 - (H) Referred to EEP, JUD/CPC, FIN, referral sheet 40 [HR156 Detail]

Download: Hawaii-2011-HR156-Introduced.html

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HOUSE OF REPRESENTATIVES	H.R. NO.	156
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

HOUSE RESOLUTION

 

 

REQUESTING the attorney general to investigate GEOTHERMAL ROYALTIES.

 

 

     WHEREAS, section 182-18, Hawaii Revised Statutes, relating to geothermal royalties, requires the Board of Land and Natural Resources to fix the payment of royalties to the State for the utilization of geothermal resources at a rate that will encourage the initial and continued production of such resources; and

 

     WHEREAS, the payment of geothermal royalties to the State by Puna Geothermal Venture, which holds a public land lease to geothermal resources on the Island of Hawaii, may have an unintended consequence of increasing the cost of energy to consumers of electrical energy produced from geothermal energy; and

 

     WHEREAS, the costs of royalty payments should be absorbed by Puna Geothermal Venture, rather than passed on to Hawaiian Electric Light Company, Inc., the utility that purchases geothermal energy from Puna Geothermal Venture; and

 

     WHEREAS, any contract between Hawaiian Electric Light Company, Inc. and Puna Geothermal Venture should be scrutinized to ensure that the amount of royalty payments is not passed on to Hawaiian Electric Light Company, Inc. to be ultimately passed on to consumers residing on the Island of Hawaii; and

 

     WHEREAS, federal law may allow for a so-called "avoided cost formula" that allows contracting parties to benefit from renewable energy by retaining for themselves the monies saved by converting from oil and gas fossil fuels to renewable energy sources like geothermal power, and this practice is inherently unfair to the general public who should themselves benefit from the cost savings; and

 

     WHEREAS, Big Island residents reportedly have been billed for electricity in the last twenty years for oil and gas consumption without credit for the twenty percent of the energy produced from geothermal energy; and

 

     WHEREAS, it has come to the attention of the Legislature that the administration of geothermal royalties has worked to the detriment of Big Island residents, particularly Native Hawaiians whose property comprise ceded lands; and

 

     WHEREAS, there could be illegal or excessive price fixing, profit taking, and even kickbacks associated with geothermal royalties; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2011, that the Attorney General is requested to conduct an investigation of:

 

     (1)  The payment of geothermal royalties, including amounts paid and other information that the Attorney General deems relevant to the issues mentioned in this measure;

 

     (2)  The special land and development fund under section 171-19, Hawaii Revised Statutes, as it relates to deposits of geothermal royalties;

 

     (3)  The adequacy of annual reports submitted by the Department of Land and Natural Resources to the Legislature pursuant to section 182-18, Hawaii Revised Statutes, and in accordance with section 171-29, Hawaii Revised Statutes, on all geothermal royalty dispositions;

 

     (4)  Any other matters that the Attorney General deems relevant to the investigation to ensure that geothermal royalties are administered in a fair, legal, and ethical manner; and

 

     (5)  Recommendations for legislation; and

 

     BE IT FURTHER RESOLVED that Puna Geothermal Venture and Hawaiian Electric Light Company, Inc., are requested to cooperate in any way with the Attorney General, including disclosing lease provisions for geothermal energy and verifying actual costs relating to Puna Geothermal Venture's current income and expenses; and

 

     BE IT FURTHER RESOLVED that the Attorney General assess the impact of any federal laws on geothermal royalties; and

 

     BE IT FURTHER RESOLVED that the Attorney General report findings and recommendations to the Legislature before the Regular Session of 2012; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the State Attorney General; Director of Finance; Chairperson of the Board of Land and Natural Resources; Director of Business, Economic Development, and Tourism; Chairperson of the Board of Trustees of the Office of Hawaiian Affairs; Hawaiian Electric Light Company, Inc.; and Puna Geothermal Venture.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Geothermal Royalties; Attorney General Investigation