FINAL BILL REPORT

                 EHB 1277

                          C 76 L 91

                     Synopsis As Enacted

Brief Description:  Continuing the geothermal account ten additional years.

By Representatives Grant, May, H. Myers, Hochstatter, Paris and Jacobsen; by request of Washington State Energy Office.

House Committee on Energy & Utilities

House Committee on Capital Facilities & Financing

Senate Committee on Energy & Utilities

Background:  The State receives a portion of federal lease and royalty payments for use of federal lands in the state.  Much of the money was placed in the common schools fund including money received pursuant to the federal Geothermal Steam Act of 1970.

In 1981, finding geothermal energy development to be in the public interest, the legislature diverted the Geothermal Steam Act funds into a specially created geothermal account until June 30, 1991 for the development of geothermal energy.

Geothermal energy is still largely undeveloped in the state but is a potentially large and possibly benign indigenous energy resource.  Hence, this diversion might beneficially be continued until a future date or when a substantial geothermal energy facility is built, whichever occurs first.

Summary:  Federal Geothermal Steam Act funds shall continue to be placed in the Geothermal Account in the state treasury until June 30, 2001 when the geothermal account will be closed.

If 30 megawatts geothermal production is reached before June 30, 2001, deposits to the Geothermal Account will be reduced to 80 percent of the funds received under the federal act until the account is closed on June 30, 2001.

The Department of Natural Resources shall adopt state land geothermal leasing rules by December 1, 1991.

Votes on Final Passage:

House  85   1

Senate 40   0    (Senate amended)

House  96   0    (House concurred)

Effective:    July 28, 1991