RAPID/Geothermal/Hawaii

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Regulatory and Permitting Information Desktop Toolkit

Hawaii Geothermal Permitting Process (HI)

The steps of the Hawaii geothermal permitting process are summarized in the chart below. Roll over each section for a summary of the regulations and permits it covers. Click a section to learn more about the required permits and regulations related to that topic.

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Project Development Timeline

Geothermal Development in Hawaii

In Hawaii, geothermal resources, including hot brines and waters associated with the resource, are considered minerals for regulatory purposes. As such, water removed from the ground in order to obtain geothermal resources is regulated as part of the mineral resource and not otherwise subject to Hawaii water law. H.R.S. 182-1 – Reservation and Disposition of Government Mineral Rights, Definitions. Although Hawaii uses a temperature threshold to define geothermal resources (above 150 degrees Fahrenheit), water associated with a resource at temperatures less than 150 degrees is still considered a geothermal resource if the resource is used for electrical power generation. HRS 182-1.

Initially, geothermal developers in Hawaii need to ensure that the district is zoned to permit geothermal exploration and development. Geothermal development is permitted in all zones in urban, agricultural, and rural districts. In conservation districts, geothermal development is only permitted in general and resource zones.

To develop geothermal resources in Hawaii, developers must obtain a lease, any required permits to encroach on existing public rights-of-way (ROWs) or state highways, and approval to cross or enter the state energy corridor. The geothermal leasing process differs depending on whether the land is “reserved” or “state land.” Mainly, the surface owners/occupiers of reserved land have a right of first refusal for any geothermal lease application on their land. If the requested land is state land, the Hawaii Department of Land and Natural Resources (HDLNR) goes straight to the competitive bid leasing process. Reserved Lands are defined by H.R.S. 182-1 Definitions. Generally, if the state reserved the mineral rights of any land subsequently conveyed, the land qualifies as reserved land. The Hawaii Department of Land and Natural Resources (HDLNR) oversees mineral leasing on Reserved Lands in Hawaii under H.R.S. 182-5 Mining leases on reserved lands. Developers will have to apply for and participate in a competitive bidding process in order to obtain a geothermal lease on state land. H.R.S. 182-4. For projects that require crossing or entering the state Energy Corridor on Oahu due to construction activities, developers will need to obtain an approval letter to Cross or Enter the State Energy Corridor from the Hawaii Department of Transportation Harbors Division pursuant to H.R.S. 277 - Energy Corridors. The harbors division will not issue a letter of approval unless all three utilities (Hawaiian Electric Company, Hawaii Gas, and Par Petroleum) approve the proposal.

To conduct certain exploration activities, developers must obtain a Geothermal Exploration Permit from the Hawaii Department of Land and Natural Resources Engineering Division. The Permit is required prior to exploration activity on state or reserved lands for evidence of geothermal resources, including geophysical operations, drilling of shallow temperature test holes, construction of roads and trials, and vehicle travel. If the exploration process will be invasive, developers are subject to the Hawaii Environmental Policy Act (HEPA) environmental review process.

For geothermal development drilling operations, including exploration or production, developers must obtain a Drilling or Modification Permit from the Hawaii Department of Land and Natural Resources Engineering Division to drill, modify, or modify the use of a well for geothermal exploration beyond a shallow temperature test hole of 500 feet or less. To obtain a Drilling Permit, the permitting agency must have completed the Hawaii Environmental Policy Act (HEPA) environmental review process for the proposed drilling activities.

For geothermal operations that include the injection and removal of fluids, developers proposing to construct, operate, modify, or abandon an underground injection control well must obtain an Underground Injection Control (UIC) Permit from the Hawaii Department of Health Safe Drinking Water Branch (SDWB).

In order to produce the geothermal resources and convert the resource to marketable electricity, construction of a power plant may include:

  • The deepwater cable system process to transmit geothermal energy from one island to another;
  • The Renewable Energy Facility Siting process to help streamline geothermal power plant permitting; and
  • A Certificate of Public Convenience and Necessity (CPCN) for operation of the power plant.

To construct a geothermal power plant and deepwater cable system to transmit the energy from one island to another, developers must obtain a Geothermal/Cable Development Consolidated Permit from the Hawaii Department of Land and Natural Resources (DLNR). To date, the Geothermal and Cable System Development permitting process has never been used.

To construct a geothermal power plant through a streamlined permitting process, developers must follow the Renewable Energy Facility Siting Process through the Hawaii Department of Business, Economic Development, and Tourism (DBEDT). The streamlined process allows proposed facilities qualifying for the process, including all renewable energy facilities over 200 MW and certain renewable energy facilities over 5 MW, to complete the state and county permitting process within 12 months.

To provide, sell, or transmit power to the public as a public utility, a power plant developer must obtain a Certificate of Public Convenience and Necessity (CPCN) from the Hawaii PUC. The CPCN process involves required notice to ratepayers and is subject to approval by the Hawaii PUC. All projects must follow the Hawaii Environmental Policy Act (HEPA) environmental review that propose to use state or county lands or funds, or lands within conservation districts, shoreline areas, historic sites, in the Waikiki Special District or proposing a power generating facility.

Where the geothermal facility requires the use of water for ancillary purposes involved in geothermal development projects (cooling water, dust suppression, etc.), developers will likely need to obtain water through a surface water use permit. The Hawaii Department of Land and Natural Resources Commission on Water Resource Management administers surface water permitting and interested developers may submit an application for DLNR Form SWUPA-N.

Prior to commencing geothermal well plugging and abandonment procedures, developers are encouraged to notify the Hawaii Commission on Water Resource Management (the “commission”). Within 60 days after completion of the abandonment work, the developer must file a Well Abandonment Form with the commission.

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Federal Regulations and Permits for Geothermal Development

Initially, geothermal developers need to ensure that the applicable Land Use Plan (i.e., Resource Management Plan (RMP)) allows for geothermal exploration and development projects. In order to conduct certain exploration activities, developers need permission from the Bureau of Land Management (BLM) or United States Forest Service (USFS). Exploration activities may require review under the National Environmental Policy Act (NEPA). Whether nominated by the BLM or by a developer, eventually developers need to obtain a Lease for Geothermal Resources (Form 3200-024a) overlying the land for any activities beyond geothermal exploration covered under a Notice of Intent to Conduct Geothermal Resource Exploration Operations (Form 3200-009) (NOI).

For ancillary activities related to development and not covered under a geothermal lease, developers may need to obtain a right-of-way (ROW) over federal land from the applicable surface land management agency. Geothermal development operations, including drilling, require an approved Geothermal Drilling Permit (Form 3260-002) (GDP) and typically an approved Plan of Operations (POO) from the BLM, which will also require NEPA review. In order to produce the geothermal resources and convert the resource to marketable electricity, developers need an approved Plan of Utilization (POU) for the construction of a power plant and related activities. Finally, the developer must plug and abandon geothermal wells that are no longer in use or demonstrated to be potentially useful, if directed to do so by the BLM.

Land Use Planning

Geothermal projects on federal land must be consistent with the applicable Land Use Plan (LUP). Most projects on federal land will be subject to the administration of either the BLM or the USFS. In 2008, the BLM and USFS, in cooperation with the United States Department of Energy (DOE), issued a Record of Decision (ROD) to amend RMPs for geothermal leasing in the western United States. The ROD amended 114 BLM land use plans in the 11 western states and Alaska by using a Programmatic Geothermal Environmental Impact Statement (PGEIS). Geothermal projects sited within the RMP areas affected by the PGEIS will not require a revision or an amendment. Geothermal projects sited outside of the RMP areas affected by the PGEIS may require an amendment to the applicable LUP/RMP.

Exploration

Generally, developers will obtain a Notice of Intent to Conduct Geothermal Resource Exploration Operations (Form 3200-009) (NOI) on federal lands from the BLM. Exploration activities that “ordinarily lead to no significant disturbance of federal lands, resources, or improvements” 43 CFR 3200.1 qualify as “Casual Use” activities and do not technically require a permit. CU geothermal exploration activities generally include the use of all-terrain vehicles, two-meter probe surveys, magnetotelluric surveys, gravity surveys, geochemical surveys, archaeological surveys, and water sampling. In practice however, developers typically submit an NOI even for CU exploration activities. If the lands are managed by the USFS and not covered under a geothermal lease, developers must obtain an Exploration Permit directly from the USFS. If managed by the USFS but already subject to a geothermal lease, developers will go through the NOI process with the BLM. An approved NOI is tantamount to a permit to explore. In addition to CU exploration activities, an NOI can also allow for seismic surveys, electromagnetic surveys, and the drilling of temperature gradient wells. 43 CFR 3200.1. The aforementioned more invasive exploration activities can still bypass an otherwise more lengthy NEPA review by way of a Categorical Exclusion (CX). 43 CFR 3250. A CX is only applicable to drilling temperature gradient wells so long as there is no new associated well pad or access road construction. Any additional drilling beyond a temperature gradient well required to confirm the existence of geothermal resources will require an approved Geothermal Drilling Permit (Form 3260-002) (GDP). GDPs are not eligible for CX classification for purposes of NEPA review, likely requiring either an Environmental Assessment (EA) or Determination of NEPA Adequacy (DNA). Generally, a DNA will only suffice for subsequent GDP applications, where the original EA contemplated more wells than the amount proposed. Upon completion of exploration operations, if the BLM approved a NOI, the developer must send the BLM a complete and signed Notice of Completion of Geothermal Resource Exploration Operations (Form 3200-010). 43 CFR 3253.11.

Land Access

Geothermal Lease

In order to obtain federal geothermal mineral rights, developers must obtain a Geothermal Lease from the BLM. A Geothermal Lease conveys the exclusive right to drill for, extract, produce, remove, utilize, sell, and dispose of all geothermal resources in the lands subject to the lease. Lease for Geothermal Resources (Form 3200-024a).

Geothermal resources include:

  1. All products of geothermal processes, including indigenous steam, hot water, and hot brines;
  2. Steam and other gases, hot water, and hot brines resulting from water, gas, or other fluids artificially introduced into geothermal formations;
  3. Heat or other associated energy found in geothermal formations; and
  4. Any byproducts.

43 CFR 3200.1.

Given the rights conveyed and the applicable definition of “geothermal resources,” developers do not need to obtain a state water right related to the extraction of hot water and brines that are part of the geothermal resource/formation. The right to extract water, brines, and fluids for the purposes of geothermal development is inherent in the rights conveyed under a federal geothermal lease. If the project lands are available for lease, the BLM will hold an oral competitive auction and the lands will be offered to the highest qualified bidder. If no one bids on the leases in the competitive auction, developers may obtain a lease through a non-competitive process.

If the project is located on tribal lands, developers will negotiate with the appropriate tribe for a lease, which must be approved by the Bureau of Indian Affairs (BIA).

Issuing a Geothermal Lease constitutes a “major federal action” that triggers NEPA review. However, the previously discussed PGEIS allows for the issuance of geothermal leases without additional NEPA review by way of a Determination of NEPA Adequacy (DNA) tiered to the environmental review conducted for the amended RMP. For lands not within the 114 RMPs covered by the PGEIS, the BLM must conduct a NEPA review prior to issuing or making lands available for geothermal leasing.

Rights of Way

If federal land is required for ancillary activities related to development and is not covered by the geothermal lease, developers must obtain ROW access from the BLM or other federal agency. Ancillary activities may include transmission lines, roads, and other access. If the aforementioned activities are on USFS managed surface land, developers must obtain a special use authorization from the USFS. Similarly, for ancillary activities on Bureau of Reclamation (BOR) managed land, developers must obtain a Use Authorization from the BOR.

Well Field Development

In order to conduct drilling operations on federal land, developers must obtain an approved Geothermal Drilling Permit (Form 3260-002) (GDP) and POO from the BLM. Title 43 CFR 3261 Drilling Operations: Getting a Permit. If another federal agency manages the surface of the lease, that agency will be involved in the application review process. GDPs require NEPA review, either in the form of a DNA, EA, or Environmental Impact Statement (EIS). Generally, a DNA will only suffice for subsequent GDP applications, where the original EA or EIS contemplated more wells than the amount proposed.

Power Plant

In order to produce the geothermal resources and convert them to marketable electricity, developers need an approved POU for the construction of a power plant and related activities. A POU involves a Utilization Plan, Facility Construction Permit 43 CFR 3272, Site License 43 CFR 3273, and Commercial Use Permit 43 CFR 3274. Developers must participate in an application coordination meeting, which may be combined with the required on-site visit. Developers must complete the environmental review process under NEPA before the Site License and Facility Construction Permit will be approved by the BLM. After construction of the power plant, developers must obtain the Commercial Use Permit prior to commencing commercial operations under a federal lease, a federal unit, or a utilization facility. 43 CFR 3274.10.

Developers may choose to seek status as a Qualifying Facility (QF) under the Public Utilities Regulatory Act (PURPA). QF status provides certain benefits under the law. For example, QFs have the right to sell energy or capacity to a utility, the right to purchase certain services from utilities, and relief from certain regulatory burdens.

Developers may qualify as Exempt Wholesale Generators if they are independent power producers that exclusively sell energy to wholesale customers and complete the self-certification process overseen by the Federal Energy Regulatory Commission (FERC). Obtaining EWG status can exempt the generator from certain reporting and accounting regulations under the Energy Policy Act of 2005 and allows the generator to sell power at market-based rates.

Well Abandonment

A geothermal lessee/operator is required to promptly plug and abandon geothermal wells that are no longer in use or demonstrated to be potentially useful. Title 43 CFR 3263 Well Abandonment. The BLM may verbally order the operator to abandon a well or the operator may request verbal approval from the BLM to plug a well. In either case, the operator must submit a well plugging or abandonment report upon completion. 43 CFR § 3263.11

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