HONOLULU, Hawaii – Attorney General David M. Louie announced on Tuesday that he has issued a Formal Opinion concluding that 100% of the royalties derived from geothermal resources development on Hawaiian home lands must be used for the benefit of native Hawaiians.

The opinion came at the request of Department of Hawaiian Home Lands chairperson Jobie Masagatani. Bills currently moving through the state legislature propose to give DHHL a portion of the royalties from geothermal resource development on lands under DHHL control. Questions arose as to whether or not DHHL is entitled to all the royalties. The Attorney General Louie concluded that DHHL is entitled to all such royalties “following a comprehensive legal” analysis. Louie’s opinion also concludes that Department of Hawaiian Home Lands is the state entity authorized to manage geothermal resources on Hawaiian home lands.

After hearing the news, we went to speak to Patrick Kahawaiola’a, a respected elder in the Keaukaha Hawaiian Home Lands community. Kahawaiolaa also sat on the geothermal working group which studied the use of the resource to power Hawaii Island a few years ago. We caught up with him at Puhi Bay, his usual Tuesday afternoon meeting place.

Patrick Kahawaiola’a talks about Tuesday’s attorney general opinion

I’m really amazed that an attorney general, State of Hawaii, would make an opinion… that this resource which is in turn geothermal on Hawaiian Home Lands should be turned over to Hawaiian Homes.

The problem I have and having to explain that in my community is: How? What, when, where, why?

Are we going to have the department build homes that our beneficiaries can’t afford? Are we going to continue to do commercial building? Is it going to make the cost of electricity to our beneficiaries, first, cheaper?Patrick Kahawaiola’a on March 18, 2014

The attorney general said he hopes that by issuing the opinion, the Legislature and the community will have a greater appreciation of the constitutional and legal foundation for DHHL’s rights to the economic benefits of geothermal resource development on Hawaiian home lands.

Full media release from the Office of the Attorney General:

HONOLULU – Attorney General David M. Louie announced today that he has issued a Formal Opinion concluding that 100% of the royalties derived from geothermal resources development on Hawaiian home lands must be used for the benefit of native Hawaiians.

Attorney General Louie has announced that he has issued Formal Opinion No. 14-1 (Op. No. 14-1) in which he has concluded that pursuant to article XII, sections 1 and 3, of the Hawaii State Constitution, and section 4 of the Admissions Act, 100% of the royalties derived from geothermal resource development on Hawaiian home lands must be paid to the Department of Hawaiian Home Lands (DHHL) to be used for the benefit of native Hawaiians.

As a compact with the United States upon admission of Hawaii as a state, Hawaii accepted responsibility to manage and dispose of the Hawaiian home lands under the terms of the Hawaiian Homes Commission Act, 1920, as amended (HHCA). Section 203 of the HHCA describes the lands that comprise the Hawaiian Home lands (also known as the “available lands”). The Admissions Act provides that “all proceeds and income from the ‘available lands’, as defined by the [HHCA], shall be used only in carrying out the provisions of [the HHCA].”

Attorney General Louie stated that “following a comprehensive legal analysis by the capable deputy attorneys general in my office, I have concluded that the DHHL has the right to receive all proceeds and income from the available lands, including 100% of the royalties derived from geothermal resource development.” Based on the analysis of sections 204 and 206 of the HHCA, the opinion also concludes that DHHL is the state entity authorized to manage geothermal resources on Hawaiian home lands.

“I hope that by issuing Op. No. 14-1, the Legislature and the community will have a greater appreciation of the constitutional and legal foundation for DHHL’s rights to the economic benefits of geothermal resource development on Hawaiian home lands.”

A copy of Op. No. 14-1 can be reviewed and downloaded at Op. No. 14-1 Letter to the Honorable Jobie M.K. Masagatani, Chairman, Hawaiian Home Commission, Regarding Management and Disposition of Geothermal Resources on DHHL Lands.Office of the Attorney General media release – March 18, 2014

LINK: Attorney General Op. No. 14-1