STAND. COM. REP. NO.  890-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2690

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2690, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to address Hawaii's energy independence needs specifically with regard to geothermal resources by:

     (1)  Differentiating between "geothermal resources exploration" and "geothermal resources development" for purposes of mining leases and exploration permits;

     (2)  Designating geothermal resources exploration and geothermal resources development as permitted uses in all state land use districts and conservation district zones; and

     (3)  Repealing geothermal resource subzone provisions under state land use law.

The Department of Land and Natural Resources; the Department of Business, Economic Development, and Tourism; and The Pacific Resource Partnership testified in support of this measure.  The Office of Hawaiian Affairs testified in opposition to this measure.

     Your Committee has amended this measure by:

     (1)  Re-inserting language from the original version of the bill, exempting geothermal resources exploration from statutorily established environmental assessment and environmental impact statement requirements;

     (2)  Changing its effective date to July 1, 2030, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2690, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2690, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair