II 111th CONGRESS 2d Session S. 3586 IN THE SENATE OF THE UNITED STATES July 14, 2010 Mr. Reid (for himself, Mr. Tester, Mr. Merkley, Mr. Udall of Colorado, and Mr. Begich) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To promote the mapping and development of United States geothermal resources by establishing a direct loan program for high risk geothermal exploration wells.
1.
Short title
This Act may be cited as the Geothermal Exploration Act of 2010.
2.
Geothermal exploratory drilling loan program
(a)
Definitions
In this section: (1)
Fund
The term Fund means the Geothermal Investment Fund established under subsection (h). (2)
Program
The term program means the direct loan program for high risk geothermal exploration wells established under this section. (3)
Secretary
The term Secretary means the Secretary of Energy. (b)
Establishment
The Secretary shall establish a direct loan program for high risk geothermal exploration wells. (c)
Applications
An applicant that seeks to receive a loan under the program may submit to the Secretary an application for the loan at such time, in such form, and containing such information as the Secretary may prescribe. (d)
Project criteria
(1)
In general
In selecting applicants for loans under this section to carry out projects under the program, the Secretary shall consider— (A)the potential for unproven geothermal resources that would be explored and developed under a project; (B)the expertise and experience of an applicant in developing geothermal resources; and (C)the importance of the project in meeting the goals of the Department of Energy. (2)
Preference
In selecting applicants for loans under this section to carry out projects under the program, the Secretary shall provide a preference for previously unexplored, underexplored, or unproven geothermal resources in a variety of geologic and geographic settings. (e)
Data sharing
Data from all exploratory wells that are carried out under the program shall be provided to the Secretary and the Secretary of the Interior for use in mapping national geothermal resources and other uses, including— (1)subsurface geologic data; (2)metadata; (3)borehole temperature data; and (4)inclusion in the National Geothermal Data System of the Department of Energy. (f)
Administration
(1)
Cost share
(A)
In general
The Secretary shall determine the cost share for a loan made under this section. (B)
Higher risks
The Secretary may base the cost share percentage for loans made under this section on a sliding scale, with higher Federal shares awarded to projects with higher risks. (2)
Number of wells
The Secretary shall determine the number of wells for each selected geothermal project for which a loan may be made under this section. (3)
Unproductive projects
The Secretary may grant further delays or dispense with the repayment obligation on a demonstration that a selected geothermal project is unproductive. (g)
Loan repayment
(1)
Commencement
The recipient of a loan made under this section for a geothermal facility shall commence repayment of the loan beginning on the earlier of— (A)the date that is 4 years after the date the loan is made; or (B)the date on which the geothermal facility enters into commercial production. (2)
Term
(A)
In general
Except as provided in subparagraph (B), the term of a loan made under this section shall be 4 years beginning on the applicable loan repayment commencement date under paragraph (1). (B)
Extension
The Secretary may extend the term of a loan under this section for not more than 4 years. (3)
Use of loan repayments
Amounts repaid on loans made under this section shall be deposited in the Fund. (h)
Geothermal Investment Fund
(1)
Establishment of Fund
There is established in the Treasury of the United States a fund to be known as the Geothermal Investment Fund, to be administered by the Secretary, to be available without fiscal year limitation and not subject to appropriation, to carry out this section. (2)
Transfers to Fund
The Fund shall consist of such amounts as are appropriated to the Fund under subsection (j). (3)
Prohibition
Amounts in the Fund may not be made available for any purpose other than a purpose described in paragraph (1). (4)
Annual reports
(A)
In general
Not later than 60 days after the end of each fiscal year beginning with fiscal year 2011, the Secretary of Energy shall submit to the the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the operation of the Fund during the fiscal year. (B)
Contents
Each report shall include, for the fiscal year covered by the report, the following: (i)A statement of the amounts deposited into the Fund. (ii)A description of the expenditures made from the Fund for the fiscal year, including the purpose of the expenditures. (iii)Recommendations for additional authorities to fulfill the purpose of the Fund. (iv)A statement of the balance remaining in the Fund at the end of the fiscal year. (i)
Guidelines
Not later than 180 days after the date of enactment of this Act, the Secretary shall develop guidelines for the implementation of the program. (j)
Authorization of appropriations
There are authorized to be appropriated to carry out this section such sums as are necessary for each of fiscal years 2011 through 2020.