HB 74-GEOTHERMAL RESOURCES  10:18:11 AM CHAIR RAUSCHER announced that the first order of business would be HOUSE BILL NO. 74, "An Act relating to geothermal resources; relating to the definition of 'geothermal resources'; and providing for an effective date." 10:18:26 AM REPRESENTATIVE CARRICK asked how HB 74 would affect the current tax structure, penalties, and permit structure. 10:20:55 AM AARON O'QUINN, Leasing Manager, Division of Oil and Gas, Department of Natural Resources (DNR), answered that the proposed legislation would change "permits" to "licenses", and this would match the regulations for other types of resources. He continued that the time period would be changed from two to five years, and the requirement for renewal would be based on the investment. Once the requirements are met, a lease will be granted. 10:23:39 AM REPRESENTATIVE CARRICK requested an explanation of the name change. MR. O'QUINN answered that currently a permit could be used to obtain a lease, but DNR plans to change this permit to a license. In response to a follow-up question, he stated that geothermal production facilities would face many of the same taxes as other industries, such as property taxes and corporate income taxes. He noted that since last year, Mount Spurr has generated $93,000 in rent and Augustine Island has generated approximately $9,300 in rent. 10:28:47 AM REPRESENTATIVE MCKAY moved to report HB 74 out of committee with individual recommendations and the accompanying zero fiscal notes. 10:29:32 AM The committee took an at-ease from 10:29 a.m. to 10:30 a.m. 10:30:19 AM REPRESENTATIVE MCKAY withdrew his motion to move HB 74. There being no objection, the motion to move HB 74 was withdrawn. 10:30:41 AM REPRESENTATIVE MCKAY moved to report HB 74 out of committee with individual recommendations and the accompanying fiscal notes. 10:31:02 AM REPRESENTATIVE SCHRAGE objected and asked for the number of fiscal notes accompanying the bill. CHAIR RAUSCHER answered that there were two. 10:31:35 AM REPRESENTATIVE SCHRAGE removed his objection. There being no further objection, HB 74 was reported out of the House Special Committee on Energy.