COM 0710.037 2010-2012 - Laserfiche WebLink

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Members of the Hawaii County Council Page 2 July 12,2012 currently has $2.1 million and receives annual payments of$50,000 from Puna Geothermal Venture. Under Rule 12 of the Windward Planning Commission,the Asset Fund may be used to pay money to claimants who have been adversely impacted by activities conducted under Geothermal Resource Permit No. 2. The Asset fund also can be used for community approved mitigation projects to address the alleviation or attenuation of direct detrimental effects of geothermal operations,temporary relocation,adverse impacts such as physical injury,medical and health conditions, business or economic loss,nuisance, or any other claim of adverse impact which is substantiated by evidence. The Asset Fund may also be used for relocation. The type of expenditures envisioned by the bill such as health studies, air monitors,a monitoring service and a public information system can already be paid for through the Asset Fund. The Asset Fund was created pursuant to condition 51 of the Geothermal Resource Permit No. 2. Condition 51,provides that a priority list of impact mitigation projects may be established in conjunction with Puna residents or designated representatives. There exists a specific prohibition on use of the Asset fund in that it cannot be used for upgrading existing subdivisions in the Puna District to current subdivision standards. Community Benefits A significant number of residents in Lower Puna expressed their interest that the types of community benefits that have been previously funded by the Geothermal Relocation and Community Benefits Fund continue. Since the Asset Fund is limited to hazard mitigation or impact expenditures,the only fund available for community benefits is the existing Geothermal Relocation and Community Benefits Fund. The Geothermal Relocation and Community Benefits Program is funded through the money the County receives as its portion of the royalty payments made by PGV to the State of Hawaii for its use of the State's mineral rights. As this is a revenue source similar to property taxes,the Council has the authority to use the money as it so chooses, provided such use is budgeted through either the operating budget or the CIP budget. It could be put into the General Fund if the Council chose to do so and used anywhere on the island. It makes sense to leave community benefits as a use of this fund, especially as this fund receives significantly more revenues than the Asset Fund on an annual basis. Bill 256 results in increased costs and decreased revenues for the County. Bill 256 results in lower tax revenues for the County as it proposes to retain the properties purchased through relocation. It will increase costs by requiring the demolition. It will County of Hawai'i is an Equal Opportunity Provider and Employer.