[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2657 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2657

To support innovation in advanced geothermal research and development, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 22, 2019

 Ms. Murkowski (for herself and Mr. Manchin) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
To support innovation in advanced geothermal research and development, 
                        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 Innovation 
Leadership Act of 2019'' or the ``AGILE Act of 2019''.

SEC. 2. UPDATE TO GEOTHERMAL RESOURCE ASSESSMENT.

    Section 2501 of the Energy Policy Act of 1992 (30 U.S.C. 1028) is 
amended--
            (1) by redesignating subsections (a) and (b) as subsections 
        (b) and (d), respectively;
            (2) by inserting before subsection (b) (as so redesignated) 
        the following:
    ``(a) Definition of Enhanced Geothermal Systems.--In this section, 
the term `enhanced geothermal systems' has the meaning given the term 
in section 612 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17191).'';
            (3) by inserting after subsection (b) (as so redesignated) 
        the following:
    ``(c) Update to Geothermal Resource Assessment.--The Secretary of 
the Interior, acting through the United States Geological Survey, and 
in consultation with the Secretary of Energy, shall update the United 
States geothermal resource assessment carried out by the United States 
Geological Survey, including by focusing on--
            ``(1) with respect to areas previously identified by the 
        Department of Energy or the United States Geological Survey as 
        having significant potential for hydrothermal energy or 
        enhanced geothermal systems energy--
                    ``(A) improving the resolution of resource 
                potential at systematic temperatures and depths, 
                including temperatures and depths appropriate for power 
                generation and direct use applications;
                    ``(B) quantifying the total potential to coproduce 
                geothermal energy and minerals;
                    ``(C) incorporating data relevant to underground 
                thermal energy storage and exchange, such as aquifer 
                and soil properties; and
                    ``(D) producing high resolution maps, including--
                            ``(i) maps that indicate key subsurface 
                        parameters for electric and direct use 
                        resources; and
                            ``(ii) risk maps for induced seismicity 
                        based on geologic, geographic, and operational 
                        parameters; and
            ``(2) to the maximum extent practicable, expanding 
        geothermal assessments, including enhanced geothermal systems 
        assessments, to include assessments for the Commonwealth of 
        Puerto Rico and the States of Alaska and Hawaii.''; and
            (4) in subsection (d) (as so redesignated), by striking 
        ``necesary'' and inserting ``necessary''.

SEC. 3. GENERAL GEOTHERMAL RESEARCH AND DEVELOPMENT PROGRAMS.

    Section 614 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17193) is amended by adding at the end the following:
    ``(d) Oil and Gas Technology Transfer Initiative.--
            ``(1) In general.--The Secretary shall support an 
        initiative among the Office of Fossil Energy, the Office of 
        Energy Efficiency and Renewable Energy, and the private sector 
        to modify, improve, and demonstrate the use in geothermal 
        energy development of relevant advanced technologies and 
        operation techniques used in the oil and gas sector.
            ``(2) Priorities.--In carrying out paragraph (1), the 
        Secretary shall prioritize technologies with the greatest 
        potential to significantly increase the use and lower the cost 
        of geothermal energy in the United States, including the cost 
        and speed of geothermal drilling.
    ``(e) Secondary Use Subprogram.--
            ``(1) In general.--The Secretary shall support within the 
        Geothermal Technologies Office a program of research, 
        development, and demonstration in the secondary use of 
        geothermal energy other than for electricity, direct use, or 
        geothermal exchange heat pumps.
            ``(2) Program areas.--The program under paragraph (1) shall 
        include the following areas:
                    ``(A) Minerals recovery, including lithium, silica, 
                and rare earth elements.
                    ``(B) Geothermal-powered desalination.
                    ``(C) Industrial applications of geothermal energy.
                    ``(D) The use of geothermal energy as a grid 
                management resource or seasonal energy storage.
                    ``(E) Other cost competitive secondary uses of 
                geothermal energy, as determined by the Secretary.
                    ``(F) Systems that utilize a combination of the 
                techniques and uses described in subparagraphs (A) 
                through (E) with geothermal heat or power.
            ``(3) Coproduction of geothermal energy and minerals 
        production prize competition.--
                    ``(A) In general.--The Secretary shall carry out a 
                prize competition under which the Secretary shall award 
                prizes to demonstrate the coproduction of critical 
                minerals (as defined by the Secretary of the Interior 
                on the date of enactment of the AGILE Act of 2019) from 
                geothermal resources.
                    ``(B) Requirements.--A demonstration awarded a 
                prize under subparagraph (A) shall--
                            ``(i) improve the cost-effectiveness of 
                        removing minerals from geothermal brines as 
                        part of the coproduction process;
                            ``(ii) increase recovery rates of the 
                        targeted mineral commodity;
                            ``(iii) decrease water use and other 
                        environmental impacts, as determined by the 
                        Secretary; and
                            ``(iv) demonstrate a path to commercial 
                        viability.
                    ``(C) Maximum prize amount.--The maximum amount of 
                a prize awarded under subparagraph (A) shall be 
                $10,000,000.
                    ``(D) Authorization of appropriations.--There is 
                authorized to be appropriated to the Secretary to carry 
                out this paragraph $5,000,000 for each of fiscal years 
                2020 through 2023.''.

SEC. 4. MODIFYING THE DEFINITION OF RENEWABLE ENERGY TO INCLUDE THERMAL 
              ENERGY.

    (a) In General.--Section 203 of the Energy Policy Act of 2005 (42 
U.S.C. 15852) is amended--
            (1) in subsection (b)--
                    (A) by redesignating paragraph (2) as paragraph 
                (3);
                    (B) by inserting after paragraph (1) the following:
            ``(2) Qualified waste heat resource.--The term `qualified 
        waste heat resource' means--
                    ``(A) exhaust heat or flared gas from any 
                industrial process;
                    ``(B) waste gas or industrial tail gas that would 
                otherwise be flared, incinerated, or vented;
                    ``(C) a pressure drop in any gas as part of an 
                industrial or commercial process; or
                    ``(D) such other forms of waste heat as the 
                Secretary determines appropriate.''; and
                    (C) in paragraph (3) (as so redesignated)--
                            (i) by striking ``generated from'' and 
                        inserting ``produced from, or, in the case of 
                        thermal energy resulting from a thermal energy 
                        project placed in service after December 31, 
                        2018, thermal energy generated from, or avoided 
                        by,''; and
                            (ii) by inserting ``qualified waste heat 
                        resource,'' before ``or new''; and
            (2) in subsection (c)--
                    (A) by redesignating paragraphs (1) through (3) as 
                subparagraphs (A) through (C), respectively, and 
                indenting appropriately;
                    (B) in the matter preceding subparagraph (A) (as so 
                redesignated), by striking ``For purposes'' and 
                inserting the following:
            ``(1) In general.--For purposes''; and
                    (C) by adding at the end the following:
            ``(2) Separate calculation.--
                    ``(A) In general.--For purposes of determining 
                compliance with the requirement of this section, any 
                energy consumption that is avoided through the use of 
                renewable energy shall be considered to be renewable 
                energy produced.
                    ``(B) Denial of double benefit.--Avoided energy 
                consumption that is considered to be renewable energy 
                produced under subparagraph (A) shall not also be 
                counted for purposes of achieving compliance with 
                another Federal energy efficiency goal.''.
    (b) Conforming Amendment.--Section 2410q(a) of title 10, United 
States Code, is amended by striking ``section 203(b)(2) of the Energy 
Policy Act of 2005 (42 U.S.C. 15852(b)(2))'' and inserting ``section 
203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))''.

SEC. 5. ENHANCED GEOTHERMAL RESEARCH AND DEVELOPMENT.

    (a) Definition of Engineered.--Section 612(1) of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17191(1)) is amended 
in the matter preceding subparagraph (A) by striking ``subjected to 
intervention, including intervention'' and inserting ``designed to 
access subsurface heat, including nonstimulation technologies,''.
    (b) Programs.--Section 615(b) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17194(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (C), by striking ``mapping'' 
                and inserting ``and fracture mapping, including real-
                time modeling'';
                    (B) in subparagraph (E), by striking ``and'' at the 
                end;
                    (C) by redesignating subparagraph (F) as 
                subparagraph (K); and
                    (D) by inserting after subparagraph (E) the 
                following:
                    ``(F) well placement and orientation;
                    ``(G) long-term reservoir management;
                    ``(H) drilling technologies, methods, and tools;
                    ``(I) improved exploration tools;
                    ``(J) zonal isolation; and''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Frontier observatories for research in geothermal 
        energy.--
                    ``(A) Program.--The Secretary shall support 2 field 
                research sites operated by public or academic entities, 
                which shall each be known as a `Frontier Observatory 
                for Research in Geothermal Energy' or `FORGE' site, to 
                develop, test, and enhance techniques and tools for 
                enhanced geothermal energy.
                    ``(B) Site selection.--Of the FORGE sites referred 
                to in subparagraph (A)--
                            ``(i) 1 shall be the existing research site 
                        in Milford, Utah; and
                            ``(ii) 1 shall be selected by the Secretary 
                        through a competitive selection process.
                    ``(C) Site duration.--The FORGE site selected under 
                subparagraph (B)(ii) shall operate for an initial term 
                of not more than 7 years after the date on which site 
                preparation is complete.
                    ``(D) Additional terms.--
                            ``(i) In general.--At the end of an 
                        operational term described in clause (ii), a 
                        FORGE site may--
                                    ``(I) be transferred to the private 
                                sector for further enhanced geothermal 
                                testing; or
                                    ``(II) subject to appropriations 
                                and a merit review by the Secretary, 
                                operate for an additional term of not 
                                more than 7 years.
                            ``(ii) Operational term described.--An 
                        operational term referred to in clause (i)--
                                    ``(I) in the case of the FORGE site 
                                designated under subparagraph (B)(i), 
                                is the existing operational term; and
                                    ``(II) in the case of the FORGE 
                                site selected under subparagraph 
                                (B)(ii), is the initial term under 
                                subparagraph (C) or an additional term 
                                under clause (i)(II).
            ``(3) Enhanced geothermal systems demonstrations.--
                    ``(A) In general.--Beginning on the date of 
                enactment of the AGILE Act of 2019, the Secretary, in 
                collaboration with industry partners and institutions 
                of higher education, shall support an initiative for 
                demonstration of enhanced geothermal systems for power 
                production or direct use.
                    ``(B) Projects.--
                            ``(i) In general.--Under the initiative 
                        described in subparagraph (A), not less than 4 
                        demonstration projects shall be carried out in 
                        locations that are commercially viable for 
                        enhanced geothermal systems development, as 
                        determined by the Secretary.
                            ``(ii) Requirements.--Demonstration 
                        projects under clause (i) shall--
                                    ``(I) collectively demonstrate--
                                            ``(aa) different geologic 
                                        settings, such as hot 
                                        sedimentary aquifers, layered 
                                        geologic systems, supercritical 
                                        systems, and basement rock 
                                        systems; and
                                            ``(bb) a variety of 
                                        development techniques, 
                                        including open hole and cased 
                                        hole completions, differing 
                                        well orientations, and 
                                        stimulation mechanisms;
                                    ``(II) to the extent practicable, 
                                use existing sites where subsurface 
                                characterization or geothermal energy 
                                integration analysis has been 
                                conducted; and
                                    ``(III) each be carried out in 
                                accordance with section 988 of the 
                                Energy Policy Act of 2005 (42 U.S.C. 
                                16352).
                            ``(iii) Eastern demonstration.--Not less 
                        than 1 demonstration project under clause (i) 
                        shall be located in an area east of the 
                        Mississippi River that is suitable for enhanced 
                        geothermal demonstration for power, heat, or a 
                        combination of power and heat.
                    ``(C) Optional program structure.--
                            ``(i) In general.--The Secretary may, 
                        pursuant to section 646(g) of the Department of 
                        Energy Organization Act (42 U.S.C. 7256(g)), 
                        structure the initiative described in 
                        subparagraph (A) as a cost share milestone-
                        based payment initiative (similar to the 
                        National Aeronautics and Space Administration 
                        Commercial Orbital Transportation Services 
                        program).
                            ``(ii) Requirements.--If the Secretary 
                        elects to carry out clause (i), the Secretary 
                        shall--
                                    ``(I) request proposals from 
                                eligible entities, as determined by the 
                                Secretary, that include--
                                            ``(aa) a business plan;
                                            ``(bb) technical details; 
                                        and
                                            ``(cc) proposed milestones 
                                        and associated payments; and
                                    ``(II) select projects--
                                            ``(aa) based on the 
                                        demonstrated ability of the 
                                        eligible entity to meet the 
                                        milestones and associated 
                                        payments described in the 
                                        proposal of that eligible 
                                        entity; and
                                            ``(bb) that have the 
                                        greatest potential commercial 
                                        applicability.''.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    Section 623 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17202) is amended by striking ``$90,000,000'' in the first 
sentence and all that follows through the period at the end of the 
second sentence and inserting ``$150,000,000 for each of fiscal years 
2020 through 2024.''.

SEC. 7. REAUTHORIZATION OF HIGH COST REGION GEOTHERMAL ENERGY GRANT 
              PROGRAM.

    Section 625 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17204) is amended--
            (1) in subsection (a)(2), by inserting ``or heat'' after 
        ``electrical power''; and
            (2) by striking subsection (e) and inserting the following:
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2020 through 2024.''.

SEC. 8. PROGRAM TO IMPROVE FEDERAL GEOTHERMAL PERMIT COORDINATION.

    (a) Definitions.--In this section:
            (1) Program.--The term ``Program'' means the Geothermal 
        Energy Permitting Coordination Program established under 
        subsection (b).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
    (b) Establishment of Program.--Not later than 90 days after the 
date of enactment of this Act, the Secretary shall establish a program, 
to be known as the ``Geothermal Energy Permitting Coordination 
Program'', to improve Federal permit coordination and reduce regulatory 
timelines with respect to geothermal energy projects on Federal land by 
increasing the expertise of officials administering and approving 
permits.
    (c) Establishment of Program Offices.--To carry out the Program, 
the Secretary shall establish one or more Program offices at State or 
district offices of the Department of the Interior.
    (d) Memorandum of Understanding.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall enter into a 
        memorandum of understanding for purposes of this section with--
                    (A) the Secretary of Agriculture;
                    (B) the Administrator of the Environmental 
                Protection Agency; and
                    (C) the Secretary of Defense.
            (2) State participation.--The Secretary may request that 
        the Governor of any State be a signatory to the memorandum of 
        understanding under paragraph (1).
    (e) Designation of Qualified Staff.--
            (1) In general.--Not later than 30 days after the date on 
        which the memorandum of understanding under subsection (d) is 
        executed, all Federal signatories, as appropriate, shall assign 
        to each Program office established under subsection (c) one or 
        more employees who have expertise in the regulatory issues 
        relating to the office or agency in which the employee is 
        employed, including, as applicable, particular expertise in--
                    (A) consultation regarding, and preparation of, 
                biological opinions under section 7 of the Endangered 
                Species Act of 1973 (16 U.S.C. 1536);
                    (B) permits under section 404 of the Federal Water 
                Pollution Control Act (33 U.S.C. 1344);
                    (C) regulatory matters under the Clean Air Act (42 
                U.S.C. 7401 et seq.);
                    (D) the Federal Land Policy and Management Act of 
                1976 (43 U.S.C. 1701 et seq.);
                    (E) planning under section 14 of the National 
                Forest Management Act of 1976 (16 U.S.C. 472a);
                    (F) developing geothermal resources under the 
                Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.); 
                and
                    (G) the preparation of analyses under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.).
            (2) Duties.--Each employee assigned under paragraph (1) 
        shall--
                    (A) not later than 90 days after the date on which 
                the employee is assigned, report to the State Director 
                of the Bureau of Land Management for the State in which 
                the office to which the employee is assigned is 
                located;
                    (B) be responsible for all issues relating to the 
                jurisdiction of the home office or agency of the 
                employee; and
                    (C) participate as part of the team of personnel 
                working on proposed energy projects, planning, and 
                environmental analyses.
    (f) Additional Personnel.--The Secretary shall assign to each 
Program office any additional personnel that are necessary to ensure 
the effective implementation of--
            (1) the Program; and
            (2) any program administered by the Program office, 
        including inspection and enforcement relating to energy 
        development on Federal land, in accordance with the multiple 
        use mandate of the Federal Land Policy and Management Act of 
        1976 (43 U.S.C. 1701 et seq.).
    (g) Transfer of Funds.--To facilitate the coordination and 
processing of geothermal permits on Federal land under the 
administration of a Program office, the Secretary may authorize the 
expenditure or transfer of any funds that are necessary to--
            (1) the United States Fish and Wildlife Service;
            (2) the Bureau of Indian Affairs;
            (3) the Forest Service;
            (4) the Environmental Protection Agency;
            (5) the Corps of Engineers;
            (6) the Department of Defense; or
            (7) any State in which a geothermal project is located.
    (h) Reports.--Not later than 3 years after the date of enactment of 
this Act, the Secretary shall submit to Congress a report that 
describes--
            (1) the progress of the Program; and
            (2) any problems relating to leasing, permitting, or siting 
        with respect to geothermal energy development on Federal land.
    (i) Savings Clause.--Nothing in this section affects--
            (1) the operation of any Federal or State law; or
            (2) any delegation of authority made by the head of a 
        Federal agency any employee of which is participating in the 
        Program.
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