HI HB1256

Amends Hawaii Revised Statutes Section 182-18 to require geothermal royalties paid to the State and Office of Hawaiian Affairs be expended exclusively for projects and expenses located in the county where the geothermal resource was produced.

Maintains existing authority for the board to waive royalty payments for up to eight years to encourage initial or continued production of geothermal resources.

Directs the State Auditor to conduct an audit of geothermal royalty expenditures by the State and Office of Hawaiian Affairs and report findings to the legislature no later than twenty days before the 2012 regular legislative session.

Takes effect July 1, 2011.