STAND. COM. REP. NO. 394

Honolulu, Hawaii

RE: S.B. No. 1269

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Economic Development and Tourism, to which was referred S.B. No. 1269 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to appropriate funds to the Department of Business, Economic Development, and Tourism for continued exploration and identification of geothermal resources and commercial viability for utility-scale geothermal production in counties with a population of less than 300,000.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Office of the Mayor of the County of Hawaii; one member of the Hawaiʻi County Council, Innovations Development Group; Waikā Consulting; Hawaiian Electric; Lepo ʻUla South Kaʻū Rural Enterprise & Innovation Hive; Komike O Kupuna Ainahoopulapula; and eleven individuals.

Your Committee received testimony in opposition to this measure from one individual.

Your Committee finds that the State has shown a dedication towards energy self-sufficiency with a prioritization on renewable energy sources. As the State works to become energy independent, geothermal resources that can provide stable power and community benefits, are a viable alternative to biofuels. The Hawaii Technology Development Corporation, in partnership with the University of Hawaii, were mandated by the Legislature to develop an integrated geothermal development plan with the concrete goal of developing the first utility power station on Hawaii island. However, while the Legislature appropriated $6,000,00 for this critical endeavor in 2024, the Governor reduced its budget to $3,000,000. This measure will provide a necessary framework for the adequate expansion of this geothermal production development by appropriating additional funds.

Your Committee notes the concerns raised during the hearing on this measure regarding the multiple measures relating to geothermal energy introduced in both houses of the Legislature during this legislative session. Accordingly, your Committee requests that the Department of Business, Economic Development, and Tourism consult with subsequent Committees to which this measure is referred to examine the measures and determine a more comprehensive, effective legislation allowing the State to efficiently and successfully utilize geothermal energy as an alternative to biofuel.

Your Committee has amended this measure by:

(1) Changing the appropriation to an unspecified amount;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

Your Committee notes that this measure, as amended, contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider an appropriation amount of $6,000,000.

As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1269, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1269, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,

________________________________

LYNN DECOITE, Chair