Bill Text: HI SB3229 | 2022 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating To Geothermal Royalties.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Enrolled) 2022-06-27 - Notice of intent to veto (Gov. Msg. No. 1216) [SB3229 Detail]

Download: Hawaii-2022-SB3229-Amended.html

THE SENATE

S.B. NO.

3229

THIRTY-FIRST LEGISLATURE, 2022

S.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO GEOTHERMAL ROYALTIES.

 

 

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

 


     SECTION 1.  Chapter 182, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§182-    University of Hawaii geothermal exploration special fund; establishment.  (a)  There is established in the state treasury the University of Hawaii geothermal exploration special fund, into which shall be deposited any excess of geothermal royalties annually collected pursuant to section 182‑18(a).

     (b)  The royalties in the University of Hawaii geothermal exploration special fund shall be used by the Hawaii groundwater and geothermal resources center to further the discovery and development of geothermal resources.

     §182-    Annual report to legislature.  No later than twenty days prior to the convening of each regular session, the board of land and natural resources, each county in which mining operations covered under a state geothermal resource mining lease are situated, and the Hawaii groundwater and geothermal resources center at the University of Hawaii shall submit a report to the legislature regarding the use of the distributed geothermal royalties."

     SECTION 2.  Section 182-7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The payments to the State as fixed by the board shall be specified; provided that:

     (1)  In the case of bauxite, bauxitic clay, gibbsite, diaspore, boehmite, and all ores of aluminum, the amount of royalties for each long dry ton of ore as beneficiated shall not be less than twenty-five cents or the equivalent of the price of one pound of virgin pig aluminum, whichever is higher, nor shall it exceed the equivalent of the price of three pounds of virgin pig aluminum;

     (2)  The rate of royalty for ore processed into aluminous oxide in the State shall be set at eighty per cent of the rate of royalty for ore not processed to aluminous oxide in the State; and

     (3)  The royalty shall be fixed at a rate that will tend to encourage the establishment and continuation of the mining industry in the State.

     The prices of virgin pig aluminum for the purpose of determining the royalties under this section shall be the basic price on the mainland United States market for virgin pig, not refined, f.o.b. factory.  The royalties shall be in lieu of any severance or other similar tax on the extracting, producing, winning, beneficiating, handling, storing, treating, or transporting of the mineral or any product into which it may be processed in the State, and shall not be subject to reopening or renegotiating for and during the first twenty years of the lease term.

     If the lessee desires to mine other minerals, the lessee, before mining the minerals, shall notify the board in writing, and the board and the lessee shall negotiate and fix the royalties for the minerals.

     [Any other law to the contrary notwithstanding, thirty per cent of all royalties received by the State from geothermal resources shall be paid to the county in which mining operations covered under a state geothermal resource mining lease are situated; provided that if the geothermal resources are located on lands under the jurisdiction of the department of Hawaiian home lands, one hundred per cent of royalties received by the State shall be paid to the department of Hawaiian home lands.]"

     SECTION 3.  Section 182-18, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The board shall fix the payment of royalties to the State for the utilization of geothermal resources at a rate [which] that will encourage the initial and continued production of [such] geothermal resources[.]; provided that:

     (1)  Thirty per cent of all royalties received by the State annually from geothermal resources or $600,000, whichever is less, shall be paid to the county in which mining operations covered under a state geothermal resource mining lease are situated; and

     (2)  Any excess royalties, up to a maximum of $1,000,000 annually, shall be deposited into the University of Hawaii geothermal exploration special fund;

provided further that if the geothermal resources are located on lands under the jurisdiction of the department of Hawaiian home lands, one hundred per cent of royalties received by the State from these geothermal resources shall be paid to the department of Hawaiian home lands.

     With respect to all geothermal mining leases previously issued or to be issued, where the board determines that it is necessary to encourage the initial or continued production of geothermal resources, the board [shall have the authority to] may waive royalty payments to the State for any fixed period of time up to but not exceeding eight years."

     SECTION 4.  There is appropriated out of the University of Hawaii geothermal exploration special fund the sum of $           or so much thereof as may be necessary for fiscal year 2022-2023 to be expended to further the discovery and development of geothermal resources.

     The sum appropriated shall be expended by the University of Hawaii for the purposes of this Act.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2050.


 


 

Report Title:

Geothermal Resources; Royalties; University of Hawaii Geothermal Exploration Special Fund; Department of Land and Natural Resources; Counties; Hawaii Groundwater and Geothermal Resources Center; Report

 

Description:

Caps the amount of royalties from geothermal resources that are to be paid to the State and to the county in which the geothermal resources are located.  Establishes the University of Hawaii Geothermal Exploration Special Fund for the Hawaii Groundwater and Geothermal Resources Center to further the discovery and development of geothermal resources.  Requires the entities that received geothermal royalties to submit an annual report to the Legislature.  Effective 7/1/2050.  (SD2)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

 

feedback