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






                                                 Union Calendar No. 122
110th CONGRESS
  1st Session
                                H. R. 2304

                          [Report No. 110-203]

  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

                             June 21, 2007

 Additional sponsors: Mr. Honda, Mr. Inslee, Mr. Hall of New York, Ms. 
 Matsui, Ms. Woolsey, Mr. Matheson, Mr. Miller of North Carolina, Ms. 
 Jackson-Lee of Texas, Ms. Berkley, Mr. Marshall, Mr. Schiff, and Mr. 
                            Walden of Oregon

                             June 21, 2007

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on May 14, 
                                 2007]

_______________________________________________________________________

                                 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) Engineered.--When referring to enhanced geothermal 
        systems, the term ``engineered'' means subjected to 
        intervention, including intervention to address one or more of 
        the following issues:
                    (A) Lack of effective permeability or porosity or 
                open fracture connectivity within the reservoir.
                    (B) Insufficient contained geofluid in the 
                reservoir.
                    (C) A low average geothermal gradient, which 
                necessitates deeper drilling.
            (2) Enhanced geothermal systems.--The term ``enhanced 
        geothermal systems'' means geothermal reservoir systems that 
        are engineered, as opposed to occurring naturally.
            (3) 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.
            (4) Geopressured resources.--The term ``geopressured 
        resources'' mean geothermal deposits found in sedimentary rocks 
        under higher than normal pressure and saturated with gas or 
        methane.
            (5) 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.
            (6) Hydrothermal.--The term ``hydrothermal'' refers to 
        naturally occurring subsurface reservoirs of hot water or 
        steam.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (8) Systems approach.--The term ``systems approach'' means 
        an approach to solving problems or designing systems that 
        attempts to optimize the performance of the overall 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 siting and 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.
    (c) Environmental Impacts.--The Secretary shall--
            (1) support a program of research, development, 
        demonstration, and commercial application of technologies and 
        practices designed to mitigate or preclude potential adverse 
        environmental impacts of geothermal energy development, 
        production or use, and seek to ensure that geothermal energy 
        development is consistent with the highest practicable 
        standards of environmental stewardship; and
            (2) in conjunction with the Assistant Administrator for 
        Research and Development at the Environmental Protection 
        Agency, support a research program to identify potential 
        environmental impacts of geothermal energy development, 
        production, and use, and ensure that the program described in 
        paragraph (1) addresses such impacts, including effects on 
        groundwater and local hydrology.
Any potential environmental impacts identified as part of the 
development, production, and use of geothermal energy shall be measured 
and examined against the potential emissions offsets of greenhouses 
gases gained by geothermal energy development, production, and use.

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;
                    (F) understanding seismic effects of reservoir 
                engineering and stimulation; and
                    (G) laser-based drilling technology.
            (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 a different class of 
                        subsurface geologic environments; 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. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS FIELDS AND 
              RECOVERY AND PRODUCTION OF GEOPRESSURED GAS RESOURCES.

    (a) In General.--The Secretary shall establish a program of 
research, development, demonstration, and commercial application to 
support development of geothermal energy production from oil and gas 
fields and production and recovery of energy from geopressured 
resources. In addition, the Secretary shall conduct such supporting 
activities including research, resource characterization, and 
technology development as necessary.
    (b) Geothermal Energy Production From Oil and Gas Fields.--The 
Secretary shall implement a grant program in support of geothermal 
energy production from oil and gas fields. The program shall include 
grants for a total of not less than three demonstration projects of the 
use of geothermal techniques such as organic rankine cycle systems at 
marginal, unproductive, and productive oil and gas wells. The Secretary 
shall, to the extent practicable and in the public interest, make 
awards that--
            (1) include not less than five oil or gas well sites per 
        project award;
            (2) use a range of oil or gas well hot water source 
        temperatures from 150 degrees Fahrenheit to 300 degrees 
        Fahrenheit;
            (3) cover a range of sizes up to one megawatt;
            (4) are located at a range of sites;
            (5) can be replicated at a wide range of sites;
            (6) facilitate identification of optimum techniques among 
        competing alternatives;
            (7) include business commercialization plans that have the 
        potential for production of equipment at high volumes and 
        operation and support at a large number of sites; and
            (8) satisfy other criteria that the Secretary determines 
        are necessary to carry out the program and collect necessary 
        data and information.
The Secretary shall give preference to assessments that address 
multiple elements contained in paragraphs (1) through (8).
    (c) Grant Awards.--Each grant award for demonstration of geothermal 
technology such as organic rankine cycle systems at oil and gas wells 
made by the Secretary under subsection (b) shall include--
            (1) necessary and appropriate site engineering study;
            (2) detailed economic assessment of site specific 
        conditions;
            (3) appropriate feasibility studies to determine whether 
        the demonstration can be replicated;
            (4) design or adaptation of existing technology for site 
        specific circumstances or conditions;
            (5) installation of equipment, service, and support;
            (6) operation for a minimum of one year and monitoring for 
        the duration of the demonstration; and
            (7) validation of technical and economic assumptions and 
        documentation of lessons learned.
    (d) Geopressured Gas Resource Recovery and Production.--(1) The 
Secretary shall implement a program to support the research, 
development, demonstration, and commercial application of cost-
effective techniques to produce energy from geopressured resources 
situated in and near the Gulf of Mexico.
    (2) The Secretary shall solicit preliminary engineering designs for 
geopressured resources production and recovery facilities.
    (3) Based upon a review of the preliminary designs, the Secretary 
shall award grants, which may be cost-shared, to support the detailed 
development and completion of engineering, architectural and technical 
plans needed to support construction of new designs.
    (4) Based upon a review of the final design plans above, the 
Secretary shall award cost-shared development and construction grants 
for demonstration geopressured production facilities that show 
potential for economic recovery of the heat, kinetic energy and gas 
resources from geopressured resources.
    (e) Competitive Grant Selection.--Not less than 90 days after the 
date of the enactment of this Act, the Secretary shall conduct a 
national solicitation for applications for grants under the programs 
outlined in subsections (b) and (d). Grant recipients shall be selected 
on a competitive basis based on criteria in the respective subsection.
    (f) Well Drilling.--No funds may be used under this section for the 
purpose of drilling new wells.

SEC. 8. COST SHARING AND PROPOSAL EVALUATION.

    (a) Federal Share.--(1) The Federal share of costs of projects 
funded under this Act shall be in accordance with section 988 of the 
Energy Policy Act of 2005.
    (2) The Secretary may waive the Federal cost share requirement for 
grants awarded to universities, national laboratories, or similar 
noncommercial entities awarded grants under this Act.
    (3) The Secretary shall allow for a competitive bidding process to 
play a role in determining the final cost-share ratio.
    (b) 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) The Secretary shall coordinate with, and where 
        appropriate may provide funds in furtherance of the purposes of 
        this Act to, other Department of Energy research and 
        development programs focused on drilling, subsurface 
        characterization, and other related technologies.
            (5) In evaluating proposals, the Secretary shall consult 
        with relevant experts from industry, academia, and the national 
        laboratories, as appropriate.
            (6) In evaluating proposals, the Secretary shall give 
        priority to proposals that demonstrate clear evidence of 
        employing a systems approach.
            (7) In evaluating proposals for projects with a field 
        component, the Secretary shall, where appropriate, give 
        priority consideration to proposals that contain provisions to 
        study local environmental impacts of the technologies developed 
        or the operations undertaken.
            (8) 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. 9. 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 8(b)(8). 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 and user of hydrothermal systems, including--
                    (A) resource location;
                    (B) reservoir characterization, monitoring, and 
                modeling;
                    (C) drilling techniques;
                    (D) reservoir management techniques; and
                    (E) technologies for electric power conversion or 
                direct use of geothermal energy.
            (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 8(b)(8). This Center is 
        encouraged to seek opportunities to coordinate efforts and 
        share information with international partners engaged in 
        research and development of enhanced geothermal systems or 
        engaged in collection of data related to enhanced geothermal 
        systems development. This Center shall be based at an academic 
        institution east of the Rocky Mountains which, in the opinion 
        of the Secretary, is best suited to provide national leadership 
        on enhanced geothermal systems-related issues. The Center shall 
        collect and disseminate information on all subjects germane to 
        the development and use of enhanced geothermal systems.
    (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. 10. GEOPOWERING AMERICA.

    The Secretary shall expand the Department of Energy's GeoPowering 
the West program to extend its geothermal technology transfer 
activities throughout the entire United States. The program shall be 
renamed ``GeoPowering America''. The program shall continue to be based 
in the Department of Energy office in Golden, Colorado.

SEC. 11. REPORTS.

    (a) Reports 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; and
            (6) other advanced geothermal technologies, including 
        advanced drilling technologies and advanced power conversion 
        technologies.
    (b) Progress Reports.--(1) Not later than 36 months after the date 
of enactment of this Act, the Secretary shall submit to the Committee 
on Science and Technology of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate an interim 
report describing the progress made under this Act. At the end of 60 
months, the Secretary shall submit to Congress a report on the results 
of projects undertaken under this Act and other such information the 
Secretary considers appropriate.
    (2) As necessary, the Secretary shall report to the Congress on any 
legal, regulatory, or other barriers encountered that hinder economic 
development of these resources, and provide recommendations on 
legislative or other actions needed to address such impediments.

SEC. 12. APPLICABILITY OF OTHER LAWS.

    Nothing in this Act shall be construed as waiving the applicability 
of any requirement under any environmental or other Federal or State 
law.

SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to carry 
out this Act $90,000,000 for each of the fiscal years 2008 through 
2012, of which $10,000,000 for each fiscal year shall be for carrying 
out section 7.
                                                 Union Calendar No. 122

110th CONGRESS

  1st Session

                               H. R. 2304

                          [Report No. 110-203]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                             June 21, 2007

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed