Bill Text: HI SR70 | 2011 | Regular Session | Amended
Bill Title: Geothermal Royalties; Attorney General Investigation
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2011-06-06 - (S) Certified copies of resolutions sent, 06-06-11. [SR70 Detail]
Download: Hawaii-2011-SR70-Amended.html
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THE SENATE |
S.R. NO. |
70 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
S.D. 1 |
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STATE OF HAWAII |
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SENATE RESOLUTION
REQUESTING THE AUDITOR TO CONDUCT AN AUDIT RELATING TO GEOTHERMAL RESOURCES.
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 which will encourage the initial and continued production of such resources"; and
WHEREAS, the Board of Land and Natural Resources has granted a public land lease to Puna Geothermal Venture to mine geothermal resources on the island of Hawaii, and Puna Geothermal Venture in turn sells the electricity it produces to Hawaii Electric Light Company, Inc.; and
WHEREAS, the Board of Land and Natural Resources reports that it received $642,599 in geothermal royalties from Puna Geothermal Venture in fiscal year 2009-10, of which thirty percent was distributed to the County of Hawaii and twenty percent was distributed to the Office of Hawaiian Affairs; and
WHEREAS, the Board of Land and Natural Resources is charged with various responsibilities with respect to geothermal mining leases, including the adoption of rules to establish or waive the royalty payments to the State; and
WHEREAS, Puna Geothermal Venture asserts that it could produce more renewable energy on a continuous basis, an assertion the Board of Land and Natural Resources would be expected to consider in any further evaluation of the royalty structure; and
WHEREAS, the performance of the Board of Land and Natural Resources with respect to its geothermal royalty responsibilities is subject to audit by the Auditor; and
WHEREAS, inasmuch as the State's responsibilities and interest in renewable energy are also the concern of the Department of Business, Economic Development, and Tourism even though the Department does not have regulatory authority over rate structures or land leases, the Department's performance may be integral to an audit regarding geothermal leasing and royalty payments and therefore should be subject to such an audit; now, therefore,
BE IT RESOLVED by the Senate of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2011, that the Auditor is requested to conduct an audit of the State's program of geothermal leasing and royalty payments, including any consideration of the role of the Board of Land and Natural Resources and the Department of Business, Economic Development, and Tourism, and any other matters the Auditor deems relevant to the audit to ensure that the development of geothermal resources is continued in a fair, legal, and ethical manner; and
BE IT FURTHER RESOLVED that the affected departments and Puna Geothermal Venture are requested to cooperate in any way with the Auditor; and
BE IT FURTHER RESOLVED that the Auditor report findings and recommendations, including any recommendations for legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2012; and
BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the 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; Hawaii Electric Light Company, Inc.; and Puna Geothermal Venture.
Geothermal Royalties; Attorney General Investigation
