[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2304 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2304

  To direct the Secretary of Energy to conduct a program of research, 
 development, demonstration, and commercial application for geothermal 
                    energy, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 2007

 Mr. McNerney (for himself, Mr. Gordon of Tennessee, and Mr. Lampson) 
 introduced the following bill; which was referred to the Committee on 
                         Science and Technology

_______________________________________________________________________

                                 A BILL


 
  To direct the Secretary of Energy to conduct a program of research, 
 development, demonstration, and commercial application for geothermal 
                    energy, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Advanced Geothermal Energy Research 
and Development Act of 2007''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The United States has a critical national interest in 
        developing clean, domestic, renewable sources of energy in 
        order to mitigate the causes of climate change, reduce other 
        environmental impacts of energy production, increase national 
        security, improve public health, and bolster economic 
        stability.
            (2) Geothermal energy is a renewable energy resource.
            (3) Geothermal energy is unusual among renewable energy 
        sources because of its ability to provide an uninterrupted 
        supply of baseload electricity.
            (4) Recently published assessments by reputable experts, 
        including the Massachusetts Institute of Technology, the 
        Western Governors Association, and the National Renewable 
        Energy Laboratory, indicate that the Nation's geothermal 
        resources are widely distributed, vast in size, and barely 
        tapped.
            (5) Sustained and expanded research, development, 
        demonstration, and commercial application programs are needed 
        to locate and characterize geothermal resources, and to develop 
        the technologies that will enable their widespread commercial 
        development.
            (6) Federal support is critical to reduce the financial 
        risk associated with developing new geothermal technologies, 
        thereby encouraging the private sector investment necessary to 
        make geothermal resources commercially viable as a source of 
        electric power and for other applications.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Enhanced geothermal systems.--The term ``enhanced 
        geothermal systems'' means geothermal reservoir systems that 
        are engineered, as opposed to occurring naturally.
            (2) Geofluid.--The term ``geofluid'' means any fluid used 
        to extract thermal energy from the Earth which is transported 
        to the surface for direct use or electric power generation, 
        except that such term shall not include oil or natural gas.
            (3) Geothermal.--The term ``geothermal'' refers to heat 
        energy stored in the Earth's crust that can be accessed for 
        direct use or electric power generation.
            (4) Hydrothermal.--The term ``hydrothermal'' refers to 
        naturally occurring subsurface reservoirs of hot water or 
        steam.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (6) Systems approach.--The term ``systems approach'' means 
        an approach to solving problems or designing systems that 
        considers the entire system, rather than a particular component 
        of the system.

SEC. 4. HYDROTHERMAL RESEARCH AND DEVELOPMENT.

    (a) In General.--The Secretary shall support programs of research, 
development, demonstration, and commercial application to expand the 
use of geothermal energy production from hydrothermal systems, 
including the programs described in subsection (b).
    (b) Programs.--
            (1) Advanced hydrothermal resource tools.--The Secretary, 
        in consultation with other appropriate agencies, shall support 
        a program to develop advanced geophysical, geochemical, and 
        geologic tools to assist in locating hidden hydrothermal 
        resources, and to increase the reliability of site 
        characterization before, during, and after initial drilling. 
        The program shall develop new prospecting techniques to assist 
        in prioritization of targets for characterization. The program 
        shall include a field component.
            (2) Industry coupled exploratory drilling.--The Secretary 
        shall support a program of cost-shared field demonstration 
        programs, to be pursued, simultaneously and independently, in 
        collaboration with industry partners, for the demonstration of 
        technologies and techniques of exploratory drilling for 
        undiscovered resources in a variety of geologic settings. The 
        program shall include incentives to encourage the use of 
        advanced technologies and techniques.

SEC. 5. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

    (a) Subsurface Components and Systems.--The Secretary shall support 
a program of research, development, demonstration, and commercial 
application of components and systems capable of withstanding extreme 
geothermal environments and necessary to cost-effectively develop, 
produce, and monitor geothermal reservoirs and produce geothermal 
energy. These components and systems shall include advanced casing 
systems (expandable tubular casing, low-clearance casing designs, and 
others), high-temperature cements, high-temperature submersible pumps, 
and high-temperature packers, as well as technologies for under-
reaming, multilateral completions, high-temperature logging, and 
logging while drilling.
    (b) Reservoir Performance Modeling.--The Secretary shall support a 
program of research, development, demonstration, and commercial 
application of models of geothermal reservoir performance, with an 
emphasis on accurately modeling performance over time. Models shall be 
developed to assist both in the development of geothermal reservoirs 
and to more accurately account for stress-related effects in stimulated 
hydrothermal and enhanced geothermal systems production environments.

SEC. 6. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

    (a) In General.--The Secretary shall support a program of research, 
development, demonstration, and commercial application for enhanced 
geothermal systems, including the programs described in subsection (b).
    (b) Programs.--
            (1) Enhanced geothermal systems technologies.--The 
        Secretary shall support a program of research, development, 
        demonstration, and commercial application of the technologies 
        and knowledge necessary for enhanced geothermal systems to 
        advance to a state of commercial readiness, including advances 
        in--
                    (A) reservoir stimulation;
                    (B) reservoir characterization, monitoring, and 
                modeling;
                    (C) stress mapping;
                    (D) tracer development;
                    (E) three-dimensional tomography; and
                    (F) understanding seismic effects of deep drilling 
                and reservoir engineering.
            (2) Enhanced geothermal systems reservoir stimulation.--
                    (A) Program.--In collaboration with industry 
                partners, the Secretary shall support a program of 
                research, development, and demonstration of enhanced 
                geothermal systems reservoir stimulation technologies 
                and techniques. A minimum of 5 sites shall be selected 
                in locations that show particular promise for enhanced 
                geothermal systems development. Each site shall--
                            (i) represent subsurface geological 
                        conditions; and
                            (ii) take advantage of an existing site 
                        where subsurface characterization has been 
                        conducted or existing drill holes can be 
                        utilized, if possible.
                    (B) Consideration of existing sites.--The following 
                2 sites, where Department of Energy and industry 
                cooperative enhanced geothermal systems projects are 
                already underway, may be considered for inclusion among 
                the sites selected under subparagraph (A):
                            (i) Desert Peak, Nevada.
                            (ii) Coso, California.

SEC. 7. COST SHARING.

    (a) Applicability.--In carrying out the research, development, 
demonstration, and commercial application programs under this Act, the 
Secretary shall require cost-sharing as follows:
            (1) In general.--For the programs described in sections 
        4(b)(1), 5(a), 5(b), and 6(b)(1), except as provided in 
        paragraph (2) of this subsection, the Secretary shall require 
        that not less than 20 percent of the cost of an activity be 
        provided by non-Federal sources. For the programs described in 
        sections 4(b)(2) and 6(b)(2), except as provided in paragraph 
        (2) of this subsection, the Secretary shall require that not 
        less than 50 percent of the cost of an activity be provided by 
        non-Federal sources.
            (2) Reduction of non-federal share.--The Secretary may 
        reduce or eliminate the requirement of paragraph (1) for an 
        activity if the Secretary determines that the reduction is 
        necessary and appropriate.
    (b) Non-Federal Contributions.--Non-Federal contributions required 
under subsection (a)--
            (1) may include--
                    (A) personnel costs;
                    (B) the value of a service, other resource, or 
                third party in-kind contribution; and
                    (C) indirect costs or facilities and administrative 
                costs; and
            (2) shall not include--
                    (A) revenues or royalties from the prospective 
                operation of an activity beyond the duration of the 
                award; or
                    (B) proceeds from the prospective sale of an asset 
                of an activity.
    (c) Repayment of Federal Share.--The Secretary shall not require 
repayment of the Federal share of a cost-shared activity under this 
section as a condition of making an award.
    (d) Organization and Administration of Programs.--Programs under 
this Act shall incorporate the following organizational and 
administrative elements:
            (1) Non-Federal participants shall be chosen through a 
        competitive selection process.
            (2) The request for proposals for each program shall 
        stipulate, at a minimum, the following:
                    (A) The non-Federal funding requirements for 
                projects.
                    (B) The funding mechanism to be used (i.e. grants, 
                contracts, or cooperative agreements).
                    (C) Milestones and a schedule for completion.
                    (D) Criteria for evaluating proposals.
            (3) In evaluating proposals, the Secretary shall give 
        priority to proposals that draw on relevant expertise from 
        industry, academia, and the national laboratories, as 
        appropriate.
            (4) In evaluating proposals, the Secretary shall consult 
        with relevant experts from industry, academia, and the national 
        laboratories, as appropriate.
            (5) In evaluating proposals, the Secretary shall give 
        priority to proposals that demonstrate clear evidence of 
        employing a systems approach.
            (6) Data collected by the Secretary as a result of any 
        project supported with funds provided under this Act shall be 
        made available to the public, except to the extent that they 
        contain information that is protected from disclosure under 
        section 552(b) of title 5, United States Code.

SEC. 8. CENTERS FOR GEOTHERMAL TECHNOLOGY TRANSFER.

    (a) In General.--The Secretary shall award grants to institutions 
of higher education (or consortia thereof) to establish 2 Centers for 
Geothermal Technology Transfer.
    (b) Centers.--
            (1) Hydrothermal center.--The purpose of one Technology 
        Transfer Center shall be to serve as an information 
        clearinghouse for the geothermal industry, collecting and 
        disseminating information on best practices in all areas 
        related to developing and managing hydrothermal resources, 
        including data available for disclosure as provided under 
        section 7(d)(6). This Center shall be based at the institution 
        west of the Mississippi River that the Secretary considers to 
        be best suited to the purpose. The Center shall collect and 
        disseminate information on all subjects germane to the 
        development of hydrothermal systems, including--
                    (A) resource location;
                    (B) reservoir characterization, monitoring, and 
                modeling;
                    (C) drilling techniques; and
                    (D) reservoir management techniques.
            (2) Enhanced geothermal systems center.--The purpose of a 
        second Technology Transfer Center shall be to serve as an 
        information clearinghouse for the geothermal industry, 
        collecting and disseminating information on best practices in 
        all areas related to developing and managing enhanced 
        geothermal systems resources, including data available for 
        disclosure as provided under section 7(d)(6). This Center shall 
        be based at an academic institution east of the Mississippi 
        River which, in the opinion of the Secretary is best suited to 
        provide national leadership on enhanced geothermal systems-
        related issues.
    (c) Award Duration.--An award made by the Secretary under this 
section shall be for an initial period of 5 years, and may be renewed 
for additional 5-year periods on the basis of--
            (1) satisfactory performance in meeting the goals of the 
        research plan proposed by the Center; and
            (2) other requirements as specified by the Secretary.

SEC. 9. STUDY ON ADVANCED USES OF GEOTHERMAL ENERGY.

    Not later than 1 year, 3 years, and 5 years, after the date of 
enactment of this Act, the Secretary shall report to the Committee on 
Science and Technology of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate on advanced 
concepts and technologies to maximize the geothermal resource potential 
of the United States. The reports shall include--
            (1) the use of carbon dioxide as an alternative geofluid 
        with potential carbon sequestration benefits;
            (2) mineral recovery from geofluids;
            (3) use of geothermal energy to produce hydrogen;
            (4) use of geothermal energy to produce biofuels;
            (5) use of geothermal heat for oil recovery from oil shales 
        and tar sands;
            (6) coproduction of geofluids for direct use or electric 
        power generation in conjunction with existing oil and gas 
        extraction operations; and
            (7) other advanced geothermal technologies, including 
        advanced drilling technologies and advanced power conversion 
        technologies.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to carry 
out this Act $80,000,000 for each of the fiscal years 2008 through 
2012.
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