HB912.DOC

HOUSE OF REPRESENTATIVES	H.B. NO.	912
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

relating to the natural energy laboratory of hawaii authority.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Without regard to chapter 171, Hawaii Revised Statutes, the legislature hereby conveys to the natural energy laboratory of Hawaii authority the title to:

(1) All fast and submerged lands situate at Hamanamana, Kalaoa 1^st-4^th and Ooma 1^st and 2^nd, North Kona, Island of Hawaii, Hawaii, identified in general lease no. S-5619 between the State of Hawaii and natural energy laboratory of Hawaii authority, entered into on July 13, 2001, as "Natural Energy Laboratory of Hawaii Site, Parts 1, 2, and 3", more particularly described in exhibit A to that lease and shown on the map marked exhibit B to that lease; and

(2) All fast and submerged lands situate at Kapoho, Puna, Island of Hawaii, Hawaii, identified in C.S.F. No. 18,422 (September 15, 1978) and on tax map key 1-4-01:1, and otherwise known as Hawaii geothermal research station.

In order to effectuate the foregoing conveyance, the natural energy laboratory of Hawaii authority shall ensure due and adequate satisfaction of provisions for any covenant between the State or any county or department or board thereof and the holders of bonds issued by the State or the county, department, or board, if any.

SECTION 2. Section 227D-1.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The authority shall be exempt from the definition of "public utility" under section 269-1 and shall be exempt from regulation by the public utilities commission for the sale or provision of electricity generated by the authority using renewable energy as its source in facilities located at the authority's research and technology park; provided that all sales or provisions of electricity are made directly to a user located adjacent to the authority's research and technology park on lands leased by the user from the State[;] or the authority; and provided further that connection to the electrical grid shall not be required to provide any electricity to any user."

SECTION 3. Section 227D-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established the natural energy laboratory of Hawaii authority, which shall be a body corporate and politic and an instrumentality and agency of the State. The authority shall be placed within the department of business, economic development, and tourism for administrative purposes, pursuant to section 26-35. The purpose of the natural energy laboratory of Hawaii authority shall be to facilitate research, development, and commercialization of natural energy resources and ocean-related research, technology, and industry in Hawaii and to engage in retail, commercial, or tourism activities that will financially support that research, development, and commercialization at a research and technology park in Hawaii. Its duties shall include:

(1) Establishing, managing, and operating facilities owned or leased by the authority that provide sites for:

(A) Research and development;

(B) Commercial projects and businesses utilizing natural resources, such as ocean water or geothermal energy;

(C) Compatible businesses engaged in scientific and technological investigations, or retail, commercial, and tourism activities; and

(D) Businesses or educational facilities that support the primary projects and activities;

(2) Providing support, utilities, and other services to facility tenants and government agencies;

(3) Maintaining the physical structure of the facilities;

(4) Promoting and marketing these facilities;

(5) Promoting and marketing the reasonable utilization of available natural resources;

(6) Supporting ocean research and technology development projects that support national and state interests, use facilities and infrastructure in Hawaii, and foster potential commercial development; and

(7) Engaging in retail, commercial, and tourism activities that are not related to facilitating research, development, and commercialization of natural energy resources in Hawaii; provided that all income derived from these activities shall be deposited in the natural energy laboratory of Hawaii authority special fund."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________