STAND. COM. REP. NO. 1501

Honolulu, Hawaii

, 2025

RE: S.B. No. 1269

S.D. 1

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1269, S.D. 1, 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 appropriate funds for the continued exploration and identification of geothermal resources and commercial viability for utility-scale geothermal production in counties with a population of less than three hundred thousand, with certain limitations.

Your Committee received testimony in support of this measure from Ulupono Initiative; Waika Consulting; Innovations Development Group; Coalition Earth; Hawaiian Electric; and eight individuals. Your Committee received testimony in opposition to this measure from the Hulu Mamo Hawaiian Civic Club; Energy Justice Network; Environmental Caucus of the Democratic Party of Hawaiʻi; Green Party Hawaiʻi; Mala Hanai Pua LLC; Malu ʻAina Center for Non-violent Education & Action; Laʻakea Permaculture Farm; and numerous individuals. Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism; Sustainable Energy Hawaiʻi; and one individual.

Your Committee finds that geothermal energy is heat that was generated during the planet's formation, stored in rocks and fluids, and brought as steam to the Earth's surface using deep wells. The steam drives turbines to generate electricity. Your Committee further finds that geothermal has been identified as a near-term and mid-term decarbonization opportunity for Hawaii. Geothermal energy thus has the potential to play an extremely significant role in meeting the State's energy objectives of reliability, affordability, and diversification. Because geothermal exploration and identification require significant investment of upfront capital, underlying research to confirm the viability of geothermal is needed.

Your Committee further finds that the Hawaii Technology Development Corporation received an appropriation of $3,000,000 for the 2024-2025 Fiscal Year, and, through its partnership with the University of Hawaii, has already begun work on an integrated geothermal development roadmap with the concrete goal of facilitating the development of a utility-scale geothermal power plant. This measure provides further necessary funding for the Hawaii Technology Development Corporation to continue its work.

Your Committee has amended this measure by:

(1) Amending the restriction on the usage of funds such that funds shall not be used for exploratory, test, or production wells within a fifteen-mile radius of an existing geothermal power plant that is currently providing electricity to the grid; and

(2) Specifying that funds shall not be used on projects within an unspecified radius of residential areas.

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $3,000,000.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1269, S.D. 1, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 1269, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair