STAND. COM. REP. NO. 2618

Honolulu, Hawaii

RE:    S.B. No. 3003

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Commerce and Consumer Protection and Ways and Means, to which was referred S.B. No. 3003, S.D. 1, entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Allow geothermal resources exploration and geothermal resources development in all state land use districts and all zones of the conservation district; and

     (2)  Repeal the geothermal resource subzone provisions in the state land use law.

     Your Committees received testimony in support of this measure from the Department of Land and Natural Resources and Ormat Technologies, Inc.  Your Committees received testimony in opposition to this measure from the Office of Hawaiian Affairs and one individual.  Your Committees received comments on this measure from the Environmental Center at the University of Hawaii.

     Your Committees find that the cost of electricity in the State of Hawaii exceeds the costs of electricity in every other state.  Reducing electricity costs depends in part on diversifying the energy sources within the State.  Geothermal energy is a firm source of indigenous, renewable energy that could be made available at low costs. 

     Your Committees note that geothermal energy production has proven to be commercially viable.  A private company located in Puna has operated a geothermal energy facility for over a decade.  By eliminating geothermal subzone designation requirements, this measure would create a regulatory environment that enables geothermal energy enterprises to thrive, geothermal energy production to expand, and energy costs for consumers to decrease.

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3003, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Ways and Means,

____________________________ DAVID Y. IGE, Chair

____________________________ ROSALYN H. BAKER, Chair