The 26th Alaska State Legislature, 2009 - 2010||
Sponsor Statement: House Bill 320
No Royalty On Geothermal Resource
“An Act removing the royalty obligation for geothermal resources.”
Posted: February 4, 2010 : v26-LS1402\A
Status: (H) FIN : 2010-04-07
Electric power generated from geothermal sources is a clean, sustainable and environmentally friendly alternative to fossil fuels. It can play a major part in meeting the future energy needs of the railbelt and other regions of our state.
The problem for any company seeking to build a commercial grade geothermal plant in Alaska is high capital costs that could run 25-50 percent higher than the Lower-48. Operational costs could run 100 percent higher than the rest of the country because the plants will be located in remote locations.
House Bill 320 assists companies in developing geothermal resources discovered in commercial quantities on state land by lifting the 10 to 15 percent royalty payment obligation currently in state statute. In other western states, geothermal power plants rarely have to pay state royalties.
HB 320 is common sense legislation to finally make geothermal power projects economically viable so Alaska can take advantage of the more affordable and very reliable electric power they generate for homes and businesses.
Geothermal electrical generation is a mature and proven technology and has been used for decades all over the world. It creates "green" jobs and unlike other forms of renewable energy it can run 24 hours a day, 365 days a year.
Please join me in supporting HB 320 so our state can move a step closer to a more secure energy future.