[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 362 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 362

  To promote the mapping and development of United States geothermal 
     resources by establishing a direct loan program for high risk 
  geothermal exploration wells, to amend the Energy Independence and 
   Security Act of 2007 to improve geothermal energy technology and 
    demonstrate the use of geothermal energy in large scale thermal 
                 applications, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 14, 2013

Mr. Tester (for himself 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, to amend the Energy Independence and 
   Security Act of 2007 to improve geothermal energy technology and 
    demonstrate the use of geothermal energy in large scale thermal 
                 applications, 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 ``Geothermal Exploration and 
Technology Act of 2013''.

SEC. 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 projects likely to 
        lead to successful new geothermal development leading to 
        electricity production.
    (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--
                    (A) such amounts as are appropriated to the Fund 
                under subsection (j); and
                    (B) amounts repaid on loans under subsection 
                (g)(3).
            (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 
                2013, 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.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall issue guidelines for 
        the implementation of the program.
            (2) Administration.--The guidelines shall--
                    (A) specify--
                            (i) the terms and conditions that would 
                        require a higher or lower level of cost sharing 
                        under this section;
                            (ii) the conditions under which the 
                        Secretary will allow loan modifications or 
                        forgiveness in cases in which a well cannot be 
                        used for production or injection; and
                            (iii) the information necessary to provide 
                        a loan applicant with certainty about 
                        application of subsection (f), including the 
                        level of cost and risk that the applicant and 
                        the Secretary will assume; and
                    (B) require that--
                            (i) loans be provided under this section 
                        only after the developer has committed the 
                        share of the developer for expenditures for 
                        drilling costs; and
                            (ii) loans for successful wells shall be 
                        repaid by the developer within a 10-year 
                        period.
    (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 2013 through 2022.

SEC. 3. LARGE-SCALE GEOTHERMAL ENERGY.

    Title VI of the Energy Independence and Security Act of 2007 is 
amended by inserting after section 616 (42 U.S.C. 17195) the following:

``SEC. 616A. LARGE-SCALE GEOTHERMAL ENERGY.

    ``(a) Findings.--Congress finds that--
            ``(1) the Geothermal Technologies Program of the Office of 
        Energy Efficiency and Renewable Energy of the Department has 
        included a focus on direct use of geothermal energy in the low-
        temperature geothermal energy subprogram (including in the 
        development of a research and development plan for the 
        program);
            ``(2) the Building Technologies Program of the Office of 
        Energy Efficiency and Renewable Energy of the Department--
                    ``(A) is focused on the energy demand and energy 
                efficiency of buildings; and
                    ``(B) includes geothermal heat pumps as a component 
                technology in the residential and commercial deployment 
                activities of the program; and
            ``(3) geothermal heat pumps and direct use of geothermal 
        energy, especially in large-scale applications, can make a 
        significant contribution to the use of renewable energy but are 
        underrepresented in research, development, demonstration, and 
        commercialization.
    ``(b) Purposes.--The purposes of this section are--
            ``(1) to improve the components, processes, and systems 
        used for geothermal heat pumps and the direct use of geothermal 
        energy; and
            ``(2) to increase the energy efficiency, lower the cost, 
        increase the use, and improve and demonstrate the applicability 
        of geothermal heat pumps to, and the direct use of geothermal 
        energy in, large buildings, commercial districts, residential 
        communities, and large municipal, agricultural, or industrial 
        projects.
    ``(c) Definitions.--In this section:
            ``(1) Direct use of geothermal energy.--The term `direct 
        use of geothermal energy' means systems that use water that is 
        at a temperature between approximately 38 degrees Celsius and 
        149 degrees Celsius directly or through a heat exchanger to 
        provide--
                    ``(A) heating to buildings; or
                    ``(B) heat required for industrial processes, 
                agriculture, aquaculture, and other facilities.
            ``(2) Geothermal heat pump.--The term `geothermal heat 
        pump' means a system that provides heating and cooling by 
        exchanging heat from shallow ground or surface water using--
                    ``(A) a closed loop system, which transfers heat by 
                way of buried or immersed pipes that contain a mix of 
                water and antifreeze; or
                    ``(B) an open loop system, which circulates ground 
                or surface water directly into the building and returns 
                the water to the same aquifer or surface water source.
            ``(3) Large-scale application.--The term `large-scale 
        application' means an application for space or process heating 
        or cooling for large entities with a name-plate capacity, 
        expected resource, or rating of 10 or more megawatts, such as a 
        large building, commercial district, residential community, or 
        a large municipal, agricultural, or industrial project.
            ``(4) Secretary.--The term `Secretary' means Secretary of 
        Energy, acting through the Assistant Secretary for Energy 
        Efficiency and Renewable Energy.
    ``(d) Program.--
            ``(1) In general.--The Secretary shall establish a program 
        of research, development, demonstration, and commercial 
        application for geothermal heat pumps and the direct use of 
        geothermal energy.
            ``(2) Areas.--The program may include research, 
        development, demonstration, and commercial application of--
                    ``(A) geothermal ground loop efficiency 
                improvements through more efficient heat transfer 
                fluids;
                    ``(B) geothermal ground loop efficiency 
                improvements through more efficient thermal grouts for 
                wells and trenches;
                    ``(C) geothermal ground loop installation cost 
                reduction through--
                            ``(i) improved drilling methods;
                            ``(ii) improvements in drilling equipment;
                            ``(iii) improvements in design methodology 
                        and energy analysis procedures; and
                            ``(iv) improved methods for determination 
                        of ground thermal properties and ground 
                        temperatures;
                    ``(D) installing geothermal ground loops near the 
                foundation walls of new construction to take advantage 
                of existing structures;
                    ``(E) using gray or black wastewater as a method of 
                heat exchange;
                    ``(F) improving geothermal heat pump system 
                economics through integration of geothermal systems 
                with other building systems, including providing hot 
                and cold water and rejecting or circulating industrial 
                process heat through refrigeration heat rejection and 
                waste heat recovery;
                    ``(G) advanced geothermal systems using variable 
                pumping rates to increase efficiency;
                    ``(H) geothermal heat pump efficiency improvements;
                    ``(I) use of hot water found in mines and mine 
                shafts and other surface waters as the heat exchange 
                medium;
                    ``(J) heating of districts, neighborhoods, 
                communities, large commercial or public buildings 
                (including office, retail, educational, government, and 
                institutional buildings and multifamily residential 
                buildings and campuses), and industrial and 
                manufacturing facilities;
                    ``(K) geothermal system integration with solar 
                thermal water heating or cool roofs and solar-
                regenerated desiccants to balance loads and use 
                building hot water to store geothermal energy;
                    ``(L) use of hot water coproduced from oil and gas 
                recovery;
                    ``(M) use of water sources at a temperature of less 
                than 150 degrees Celsius for direct use;
                    ``(N) system integration of direct use with 
                geothermal electricity production; and
                    ``(O) coproduction of heat and power, including on-
                site use.
            ``(3) Environmental impacts.--In carrying out the program, 
        the Secretary shall identify and mitigate potential 
        environmental impacts in accordance with section 614(c).
    ``(e) Grants.--
            ``(1) In general.--The Secretary shall make grants 
        available to State and local governments, institutions of 
        higher education, nonprofit entities, utilities, and for-profit 
        companies (including manufacturers of heat-pump and direct-use 
        components and systems) to promote the development of 
        geothermal heat pumps and the direct use of geothermal energy.
            ``(2) Priority.--In making grants under this subsection, 
        the Secretary shall give priority to proposals that apply to 
        large buildings (including office, retail, educational, 
        government, institutional, and multifamily residential 
        buildings and campuses and industrial and manufacturing 
        facilities), commercial districts, and residential communities.
            ``(3) National solicitation.--Not later than 180 days after 
        the date of enactment of this section, the Secretary shall 
        conduct a national solicitation for applications for grants 
        under this section.
    ``(f) Reports.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of this section and annually thereafter, the 
        Secretary shall submit to the Committee on Energy and Natural 
        Resources of the Senate and the Committee on Science and 
        Technology of the House of Representatives a report on progress 
        made and results obtained under this section to develop 
        geothermal heat pumps and direct use of geothermal energy.
            ``(2) Areas.--Each of the reports required under this 
        subsection shall include--
                    ``(A) an analysis of progress made in each of the 
                areas described in subsection (d)(2); and
                    ``(B)(i) a description of any relevant 
                recommendations made during a review of the program; 
                and
                    ``(ii) any plans to address the recommendations 
                under clause (i).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section such sums as 
are necessary for each of fiscal years 2013 through 2017.''.

SEC. 4. FACILITATION OF COPRODUCTION OF GEOTHERMAL ENERGY ON OIL AND 
              GAS LEASES.

    Section 4(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 
1003(b)) is amended by adding at the end the following:
            ``(4) Land subject to oil and gas lease.--Land under an oil 
        and gas lease issued pursuant to the Mineral Leasing Act (30 
        U.S.C. 181 et seq.) or the Mineral Leasing Act for Acquired 
        Lands (30 U.S.C. 351 et seq.) that is subject to an approved 
        application for permit to drill and from which oil and gas 
        production is occurring may be available for leasing under 
        subsection (c) by the holder of the oil and gas lease--
                    ``(A) on a determination that--
                            ``(i) geothermal energy will be produced 
                        from a well producing or capable of producing 
                        oil and gas; and
                            ``(ii) the public interest will be served 
                        by the issuance of such a lease; and
                    ``(B) in order to provide for the coproduction of 
                geothermal energy with oil and gas.''.
                                 <all>