SENATE BILL REPORT

                                    HB 2399

       AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, FEBRUARY 21, 1992

Brief Description:  Limiting transfers from the geothermal account.

SPONSORS: Representatives H. Sommers, Grant, Rayburn, May and Miller

HOUSE COMMITTEE ON ENERGY & UTILITIES

SENATE COMMITTEE ON ENERGY & UTILITIES

Majority Report:  Do pass. 

      Signed by Senators Thorsness, Chairman; Jesernig, Nelson, Patterson, Stratton, Sutherland, and Williams.

Staff:  Andrew Scott (786-7198)

Hearing Dates: February 20, 1992; February 21, 1992

BACKGROUND:

In 1981 the Legislature established the geothermal account to provide for the allocation of revenue made available to the state from geothermal leasing and development on federal lands.  The revenue to the geothermal account over the last nine years has ranged from zero in each of three years to $48,000 in fiscal year 1985.  Without this account, revenue from the leasing would be placed in the common school construction fund.

Last session, the Legislature extended the diversion of geothermal lease receipts from 1991 to the year 2001.  The extending legislation provided that if 30 or more megawatts of geothermal power became available before 2001, then the diversion would drop to 80 percent of the receipts with the remainder placed in the common school construction fund.

The diversion reduction associated with attaining thirty megawatts of geothermal power has not been clearly understood from the language used in last year's legislation.

SUMMARY:

The provision associated with the diversion reduction is clarified.

If 30 megawatts of geothermal power is certified as commercially available by the receiving utilities and the State Energy Office, then only 80 percent of such moneys shall be diverted to the geothermal account, with the remaining 20 percent placed in the common school construction fund. 

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:  None

TESTIMONY AGAINST:  None

TESTIFIED:  No one