Bill Text: HI SB458 | 2024 | Regular Session | Amended
Bill Title: Relating To Geothermal Royalties.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Engrossed) 2024-04-19 - Received notice of Senate conferees (Sen. Com. No. 702). [SB458 Detail]
Download: Hawaii-2024-SB458-Amended.html
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THE SENATE |
S.B. NO. |
458 |
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THIRTY-SECOND LEGISLATURE, 2023 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO GEOTHERMAL ROYALTIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§201- Renewable energy resources development
special fund. (a) There is established in the state treasury a
renewable energy resources development special fund, into which shall be
deposited:
(1) Any geothermal royalties distributed
pursuant to section 182-7;
(2) Moneys appropriated by the
legislature;
(3) All interest attributable to the investment
of moneys deposited into the special fund; and
(4) Moneys allotted to the special fund
from other sources.
(b) Subject to legislative appropriation, moneys
in the special fund may be expended by the Hawaii state energy office to
support projects that promote and advance renewable energy resources
development, including projects that contribute to offsetting developmental
risk associated with Hawaii's indigenous resources.
(c) The department of business, economic
development, and tourism shall submit a report to the legislature, no later
than twenty days prior to the convening of each regular session, on the revenue
and expenditures of the special fund."
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 annually by the State from geothermal resources shall
be [paid] distributed as follows: ten per cent shall be paid to
the county in which mining operations covered under a state geothermal resource
mining lease are situated[;], twenty per cent shall be deposited into
the renewable
energy resources development special fund established by section 201- , fifty per cent shall be paid to the
department, and twenty per cent shall be paid to the office of Hawaiian
affairs; 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. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
Geothermal Resources; Royalties; Renewable Energy Resources Development Special Fund; DLNR DBEDT; Hawaii State Energy Office; OHA; Reports
Description:
Establishes the renewable energy resources development special fund. Requires annual reports to the Legislature. Requires that, for royalties from geothermal resources, ten per cent be paid to the county where the geothermal mining operations are situated, fifty per cent be paid to the Department of Land and Natural Resources, twenty per cent be paid to the Office of Hawaiian Affairs, and twenty per cent be deposited into the renewable energy resources development special fund. 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.
