HI SCR85

Request the State Auditor to conduct an audit of Hawaii's geothermal leasing and royalty payment program, including the roles of the Board of Land and Natural Resources and the Department of Business, Economic Development, and Tourism.

Audit should examine whether geothermal resource development is proceeding in a fair, legal, and ethical manner, with consideration of production capabilities and royalty structure appropriateness.

The Board of Land and Natural Resources received $642,599 in geothermal royalties from Puna Geothermal Venture in fiscal year 2009-10, with 30% distributed to Hawaii County and 20% to the Office of Hawaiian Affairs.

Require the Auditor to report findings, recommendations, and any legislative recommendations to the Legislature no later than 20 days before the 2012 Regular Session convenes.

Require affected state departments and Puna Geothermal Venture to cooperate with the Auditor's investigation.