Bill would expand use of geothermal fund

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A bill that would allow Hawaii County to spend its geothermal royalties on “community health and safety projects” will be sent to the Planning Commission for review.

A bill that would allow Hawaii County to spend its geothermal royalties on “community health and safety projects” will be sent to the Planning Commission for review.

The County Council voted 8-0 Tuesday during the Finance Committee meeting to send it to the panel before advancing it to a vote at a regular council meeting.

The royalties go into the county’s geothermal relocation and community benefits program, established in 1998 initially to purchase homes of people who feel adversely affected by Puna Geothermal Venture, the state’s only geothermal power plant, near Pahoa. The county Planning Department manages the fund, along with a separate geothermal asset fund.

The council later changed the relocation fund to also allow the money to be spent for the benefit of Puna, such as improving roads, water infrastructure, parks, civil defense and mass transit services.

Puna Councilwoman Eileen O’Hara, who introduced the bill, said her amendment could allow the funds to be spent on a community response plan in case of an emergency at PGV.

But some testifiers were concerned the change would allow more funds to be diverted away from addressing geothermal safety.

“The rules have been changed multiple times,” said Bob Petricci, president of the Puna Pono Alliance.

“The intent of the fund has never been met.”

O’Hara said Monday she sought to use the funds to cover security in Pahoa, but that was denied since it didn’t meet existing criteria. The amendment would appear to cover such a request.

She said she also supports prioritizing the fund so that geothermal issues are addressed first.

“I will commit with (Puna Pono Alliance) to meet this week so we can get their priorities in view,” O’Hara said at the meeting.

Joaquin Gamiao-Kunkel, Planning Department administrative officer, said the county has $1.3 million available in the fund for allocation, with $2.3 million encumbered and another $1 million held in reserve.

The county has purchased approximately 20 properties through the relocation program, mostly in the past few years. Priorities are given to those who live within 1 mile of the plant, which became operational in 1993. Properties are purchased up to 130 percent of assessed value and are later auctioned.

Anyone who moves into the area can qualify by claiming adverse impacts from PGV, assuming the property wasn’t purchased through the program before and a home is present.

From July 2015 through June 2016, PGV paid about $1 million to the state in royalties. The county received $306,887, or 30 percent of that amount, according to the state Department of Land and Natural Resources’ most recent report to the state Legislature.

Email Tom Callis at tcallis@hawaiitribune-herald.com.