[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2657 Reported in Senate (RS)]
<DOC>
Calendar No. 357
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
December 17, 2019
Reported by Ms. Murkowski, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
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,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Advanced Geothermal
Innovation Leadership Act of 2019'' or the ``AGILE Act of
2019''.</DELETED>
<DELETED>SEC. 2. UPDATE TO GEOTHERMAL RESOURCE ASSESSMENT.</DELETED>
<DELETED> Section 2501 of the Energy Policy Act of 1992 (30 U.S.C.
1028) is amended--</DELETED>
<DELETED> (1) by redesignating subsections (a) and (b) as
subsections (b) and (d), respectively;</DELETED>
<DELETED> (2) by inserting before subsection (b) (as so
redesignated) the following:</DELETED>
<DELETED> ``(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).'';</DELETED>
<DELETED> (3) by inserting after subsection (b) (as so
redesignated) the following:</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(A) improving the resolution of resource
potential at systematic temperatures and depths,
including temperatures and depths appropriate for power
generation and direct use applications;</DELETED>
<DELETED> ``(B) quantifying the total potential to
coproduce geothermal energy and minerals;</DELETED>
<DELETED> ``(C) incorporating data relevant to
underground thermal energy storage and exchange, such
as aquifer and soil properties; and</DELETED>
<DELETED> ``(D) producing high resolution maps,
including--</DELETED>
<DELETED> ``(i) maps that indicate key
subsurface parameters for electric and direct
use resources; and</DELETED>
<DELETED> ``(ii) risk maps for induced
seismicity based on geologic, geographic, and
operational parameters; and</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> (4) in subsection (d) (as so redesignated), by
striking ``necesary'' and inserting ``necessary''.</DELETED>
<DELETED>SEC. 3. GENERAL GEOTHERMAL RESEARCH AND DEVELOPMENT
PROGRAMS.</DELETED>
<DELETED> 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:</DELETED>
<DELETED> ``(d) Oil and Gas Technology Transfer Initiative.--
</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(e) Secondary Use Subprogram.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(2) Program areas.--The program under paragraph
(1) shall include the following areas:</DELETED>
<DELETED> ``(A) Minerals recovery, including
lithium, silica, and rare earth elements.</DELETED>
<DELETED> ``(B) Geothermal-powered
desalination.</DELETED>
<DELETED> ``(C) Industrial applications of
geothermal energy.</DELETED>
<DELETED> ``(D) The use of geothermal energy as a
grid management resource or seasonal energy
storage.</DELETED>
<DELETED> ``(E) Other cost competitive secondary
uses of geothermal energy, as determined by the
Secretary.</DELETED>
<DELETED> ``(F) Systems that utilize a combination
of the techniques and uses described in subparagraphs
(A) through (E) with geothermal heat or
power.</DELETED>
<DELETED> ``(3) Coproduction of geothermal energy and
minerals production prize competition.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(B) Requirements.--A demonstration
awarded a prize under subparagraph (A) shall--
</DELETED>
<DELETED> ``(i) improve the cost-
effectiveness of removing minerals from
geothermal brines as part of the coproduction
process;</DELETED>
<DELETED> ``(ii) increase recovery rates of
the targeted mineral commodity;</DELETED>
<DELETED> ``(iii) decrease water use and
other environmental impacts, as determined by
the Secretary; and</DELETED>
<DELETED> ``(iv) demonstrate a path to
commercial viability.</DELETED>
<DELETED> ``(C) Maximum prize amount.--The maximum
amount of a prize awarded under subparagraph (A) shall
be $10,000,000.</DELETED>
<DELETED> ``(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.''.</DELETED>
<DELETED>SEC. 4. MODIFYING THE DEFINITION OF RENEWABLE ENERGY TO
INCLUDE THERMAL ENERGY.</DELETED>
<DELETED> (a) In General.--Section 203 of the Energy Policy Act of
2005 (42 U.S.C. 15852) is amended--</DELETED>
<DELETED> (1) in subsection (b)--</DELETED>
<DELETED> (A) by redesignating paragraph (2) as
paragraph (3);</DELETED>
<DELETED> (B) by inserting after paragraph (1) the
following:</DELETED>
<DELETED> ``(2) Qualified waste heat resource.--The term
`qualified waste heat resource' means--</DELETED>
<DELETED> ``(A) exhaust heat or flared gas from any
industrial process;</DELETED>
<DELETED> ``(B) waste gas or industrial tail gas
that would otherwise be flared, incinerated, or
vented;</DELETED>
<DELETED> ``(C) a pressure drop in any gas as part
of an industrial or commercial process; or</DELETED>
<DELETED> ``(D) such other forms of waste heat as
the Secretary determines appropriate.''; and</DELETED>
<DELETED> (C) in paragraph (3) (as so
redesignated)--</DELETED>
<DELETED> (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</DELETED>
<DELETED> (ii) by inserting ``qualified
waste heat resource,'' before ``or new'';
and</DELETED>
<DELETED> (2) in subsection (c)--</DELETED>
<DELETED> (A) by redesignating paragraphs (1)
through (3) as subparagraphs (A) through (C),
respectively, and indenting appropriately;</DELETED>
<DELETED> (B) in the matter preceding subparagraph
(A) (as so redesignated), by striking ``For purposes''
and inserting the following:</DELETED>
<DELETED> ``(1) In general.--For purposes''; and</DELETED>
<DELETED> (C) by adding at the end the
following:</DELETED>
<DELETED> ``(2) Separate calculation.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(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.''.</DELETED>
<DELETED> (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))''.</DELETED>
<DELETED>SEC. 5. ENHANCED GEOTHERMAL RESEARCH AND
DEVELOPMENT.</DELETED>
<DELETED> (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,''.</DELETED>
<DELETED> (b) Programs.--Section 615(b) of the Energy Independence
and Security Act of 2007 (42 U.S.C. 17194(b)) is amended--</DELETED>
<DELETED> (1) in paragraph (1)--</DELETED>
<DELETED> (A) in subparagraph (C), by striking
``mapping'' and inserting ``and fracture mapping,
including real-time modeling'';</DELETED>
<DELETED> (B) in subparagraph (E), by striking
``and'' at the end;</DELETED>
<DELETED> (C) by redesignating subparagraph (F) as
subparagraph (K); and</DELETED>
<DELETED> (D) by inserting after subparagraph (E)
the following:</DELETED>
<DELETED> ``(F) well placement and
orientation;</DELETED>
<DELETED> ``(G) long-term reservoir
management;</DELETED>
<DELETED> ``(H) drilling technologies, methods, and
tools;</DELETED>
<DELETED> ``(I) improved exploration
tools;</DELETED>
<DELETED> ``(J) zonal isolation; and'';
and</DELETED>
<DELETED> (2) by striking paragraph (2) and inserting the
following:</DELETED>
<DELETED> ``(2) Frontier observatories for research in
geothermal energy.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(B) Site selection.--Of the FORGE sites
referred to in subparagraph (A)--</DELETED>
<DELETED> ``(i) 1 shall be the existing
research site in Milford, Utah; and</DELETED>
<DELETED> ``(ii) 1 shall be selected by the
Secretary through a competitive selection
process.</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(D) Additional terms.--</DELETED>
<DELETED> ``(i) In general.--At the end of
an operational term described in clause (ii), a
FORGE site may--</DELETED>
<DELETED> ``(I) be transferred to
the private sector for further enhanced
geothermal testing; or</DELETED>
<DELETED> ``(II) subject to
appropriations and a merit review by
the Secretary, operate for an
additional term of not more than 7
years.</DELETED>
<DELETED> ``(ii) Operational term
described.--An operational term referred to in
clause (i)--</DELETED>
<DELETED> ``(I) in the case of the
FORGE site designated under
subparagraph (B)(i), is the existing
operational term; and</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED> ``(3) Enhanced geothermal systems
demonstrations.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(B) Projects.--</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(ii) Requirements.--
Demonstration projects under clause (i) shall--
</DELETED>
<DELETED> ``(I) collectively
demonstrate--</DELETED>
<DELETED> ``(aa) different
geologic settings, such as hot
sedimentary aquifers, layered
geologic systems, supercritical
systems, and basement rock
systems; and</DELETED>
<DELETED> ``(bb) a variety
of development techniques,
including open hole and cased
hole completions, differing
well orientations, and
stimulation
mechanisms;</DELETED>
<DELETED> ``(II) to the extent
practicable, use existing sites where
subsurface characterization or
geothermal energy integration analysis
has been conducted; and</DELETED>
<DELETED> ``(III) each be carried
out in accordance with section 988 of
the Energy Policy Act of 2005 (42
U.S.C. 16352).</DELETED>
<DELETED> ``(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.</DELETED>
<DELETED> ``(C) Optional program structure.--
</DELETED>
<DELETED> ``(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).</DELETED>
<DELETED> ``(ii) Requirements.--If the
Secretary elects to carry out clause (i), the
Secretary shall--</DELETED>
<DELETED> ``(I) request proposals
from eligible entities, as determined
by the Secretary, that include--
</DELETED>
<DELETED> ``(aa) a business
plan;</DELETED>
<DELETED> ``(bb) technical
details; and</DELETED>
<DELETED> ``(cc) proposed
milestones and associated
payments; and</DELETED>
<DELETED> ``(II) select projects--
</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> ``(bb) that have
the greatest potential
commercial
applicability.''.</DELETED>
<DELETED>SEC. 6. AUTHORIZATION OF APPROPRIATIONS.</DELETED>
<DELETED> 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.''.</DELETED>
<DELETED>SEC. 7. REAUTHORIZATION OF HIGH COST REGION GEOTHERMAL ENERGY
GRANT PROGRAM.</DELETED>
<DELETED> Section 625 of the Energy Independence and Security Act of
2007 (42 U.S.C. 17204) is amended--</DELETED>
<DELETED> (1) in subsection (a)(2), by inserting ``or heat''
after ``electrical power''; and</DELETED>
<DELETED> (2) by striking subsection (e) and inserting the
following:</DELETED>
<DELETED> ``(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.''.</DELETED>
<DELETED>SEC. 8. PROGRAM TO IMPROVE FEDERAL GEOTHERMAL PERMIT
COORDINATION.</DELETED>
<DELETED> (a) Definitions.--In this section:</DELETED>
<DELETED> (1) Program.--The term ``Program'' means the
Geothermal Energy Permitting Coordination Program established
under subsection (b).</DELETED>
<DELETED> (2) Secretary.--The term ``Secretary'' means the
Secretary of the Interior.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (d) Memorandum of Understanding.--</DELETED>
<DELETED> (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--
</DELETED>
<DELETED> (A) the Secretary of
Agriculture;</DELETED>
<DELETED> (B) the Administrator of the Environmental
Protection Agency; and</DELETED>
<DELETED> (C) the Secretary of Defense.</DELETED>
<DELETED> (2) State participation.--The Secretary may
request that the Governor of any State be a signatory to the
memorandum of understanding under paragraph (1).</DELETED>
<DELETED> (e) Designation of Qualified Staff.--</DELETED>
<DELETED> (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--</DELETED>
<DELETED> (A) consultation regarding, and
preparation of, biological opinions under section 7 of
the Endangered Species Act of 1973 (16 U.S.C.
1536);</DELETED>
<DELETED> (B) permits under section 404 of the
Federal Water Pollution Control Act (33 U.S.C.
1344);</DELETED>
<DELETED> (C) regulatory matters under the Clean Air
Act (42 U.S.C. 7401 et seq.);</DELETED>
<DELETED> (D) the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1701 et seq.);</DELETED>
<DELETED> (E) planning under section 14 of the
National Forest Management Act of 1976 (16 U.S.C.
472a);</DELETED>
<DELETED> (F) developing geothermal resources under
the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et
seq.); and</DELETED>
<DELETED> (G) the preparation of analyses under the
National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).</DELETED>
<DELETED> (2) Duties.--Each employee assigned under
paragraph (1) shall--</DELETED>
<DELETED> (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;</DELETED>
<DELETED> (B) be responsible for all issues relating
to the jurisdiction of the home office or agency of the
employee; and</DELETED>
<DELETED> (C) participate as part of the team of
personnel working on proposed energy projects,
planning, and environmental analyses.</DELETED>
<DELETED> (f) Additional Personnel.--The Secretary shall assign to
each Program office any additional personnel that are necessary to
ensure the effective implementation of--</DELETED>
<DELETED> (1) the Program; and</DELETED>
<DELETED> (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.).</DELETED>
<DELETED> (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--</DELETED>
<DELETED> (1) the United States Fish and Wildlife
Service;</DELETED>
<DELETED> (2) the Bureau of Indian Affairs;</DELETED>
<DELETED> (3) the Forest Service;</DELETED>
<DELETED> (4) the Environmental Protection Agency;</DELETED>
<DELETED> (5) the Corps of Engineers;</DELETED>
<DELETED> (6) the Department of Defense; or</DELETED>
<DELETED> (7) any State in which a geothermal project is
located.</DELETED>
<DELETED> (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--</DELETED>
<DELETED> (1) the progress of the Program; and</DELETED>
<DELETED> (2) any problems relating to leasing, permitting,
or siting with respect to geothermal energy development on
Federal land.</DELETED>
<DELETED> (i) Savings Clause.--Nothing in this section affects--
</DELETED>
<DELETED> (1) the operation of any Federal or State law;
or</DELETED>
<DELETED> (2) any delegation of authority made by the head
of a Federal agency any employee of which is participating in
the Program.</DELETED>
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--
``(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, by focusing on--
``(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, by coordinating
with relevant State officials and institutions of higher
education to expand 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 small- and large-scale geothermal drilling.
``(e) Coproduction of Geothermal Energy and Minerals Production
Prize Competition.--
``(1) 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.
``(2) Requirements.--A demonstration awarded a prize under
paragraph (1) shall--
``(A) improve the cost-effectiveness of removing
minerals from geothermal brines as part of the
coproduction process;
``(B) increase recovery rates of the targeted
mineral commodity;
``(C) decrease water use and other environmental
impacts, as determined by the Secretary; and
``(D) demonstrate a path to commercial viability.
``(3) Maximum prize amount.--The maximum amount of a prize
awarded under paragraph (1) shall be $10,000,000.
``(f) Drilling Data Repository.--
``(1) In general.--The Secretary shall, in coordination
with the Secretary of the Interior, establish and operate a
voluntary, industry-wide repository of geothermal drilling
information to lower the cost of future geothermal drilling.
``(2) Repository.--
``(A) In general.--In carrying out paragraph (1),
the Secretary shall collaborate with geothermally
significant countries, such as Iceland, Switzerland,
Kenya, Australia, the Philippines, and any other
relevant country, as determined by the Secretary.
``(B) Data system.--The repository established
under paragraph (1) shall be integrated with the
National Geothermal Data System.''.
SEC. 4. 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--
``(I) selected by the Secretary
through a competitive selection
process; and
``(II) located in a different
geologic type than the existing
research site described in clause (i).
``(C) Site operation.--
``(i) Initial 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.
``(ii) Performance metrics.--The Secretary
shall establish performance metrics for each
FORGE site supported under this paragraph,
which may be used by the Secretary to determine
whether a FORGE site should continue to receive
funding.
``(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 other
public or private entities 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 potentially 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)),
impose a cost share milestone-based payment
structure (similar to the structure used in the
National Aeronautics and Space Administration
Commercial Orbital Transportation Services
program) on a demonstration project described
in subparagraph (B).
``(ii) Requirements.--If the Secretary
elects to carry out clause (i) for a
demonstration project, 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. 5. GEOTHERMAL HEAT PUMPS AND DIRECT USE.
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. GEOTHERMAL HEAT PUMPS AND DIRECT USE RESEARCH AND
DEVELOPMENT.
``(a) 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.
``(b) Definitions.--In this section:
``(1) Direct use of geothermal energy.--The term `direct
use of geothermal energy' means systems that use water 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) Economically distressed area.--The term `economically
distressed area' means an area described in section 301(a) of
the Public Works and Economic Development Act of 1965 (42
U.S.C. 3161(a)).
``(3) 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 working fluid; 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.
``(c) Program.--
``(1) In general.--The Secretary shall support within the
Geothermal Technologies Office a program of research,
development, and demonstration for geothermal heat pumps and
the direct use of geothermal energy.
``(2) Areas.--The program under paragraph (1) may include
research, development, demonstration, and commercial
application of--
``(A) geothermal ground loop efficiency
improvements, cost reductions, and improved
installation and operations methods;
``(B) the use of geothermal energy for building-
scale energy storage;
``(C) the use of geothermal energy as a grid
management resource or seasonal energy storage;
``(D) geothermal heat pump efficiency improvements;
``(E) the use of alternative fluids as a heat
exchange medium, such as hot water found in mines and
mine shafts, graywater, or other fluids that may
improve the economics of geothermal heat pumps;
``(F) heating of districts, neighborhoods,
communities, large commercial or public buildings, and
industrial and manufacturing facilities;
``(G) the use of water sources at a temperature of
less than 150 degrees Celsius for direct use; and
``(H) system integration of direct use with
geothermal electricity production.
``(3) Environmental impacts.--In carrying out the program,
the Secretary shall identify and mitigate potential
environmental impacts in accordance with section 614(c).
``(d) Grants.--
``(1) In general.--The Secretary shall make grants
available to State, local, and Tribal governments, institutions
of higher education, nonprofit entities, National Laboratories,
utilities, and for-profit companies 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, commercial districts, and residential
communities that are located in economically distressed
areas.''.
SEC. 6. 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)(2), 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
(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. 7. 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 the following: ``$165,000,000 for each of
fiscal years 2020 through 2024, of which--
``(1) $5,000,000 for each of fiscal years 2020 through 2023
shall be for the prize competition under section 614(e); and
``(2) $1,000,000 each fiscal year shall be for the drilling
data repository under section 614(f).''.
SEC. 8. 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. 9. NATIONAL GOALS FOR PRODUCTION ON FEDERAL LAND.
(a) In General.--Not later than September 1, 2021, the Secretary of
the Interior shall, in consultation with the Secretary of Energy, the
Secretary of Agriculture, and other heads of relevant Federal agencies,
establish national goals for geothermal energy capacity on public land.
(b) Geothermal Energy Development.--The Director of the Bureau of
Land Management, in consultation with other appropriate Federal
officials, shall take any actions that the Director of the Bureau of
Land Management determines necessary to facilitate geothermal energy
development, consistent with applicable laws.
SEC. 10. 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 noncompetitive
leasing under this section to 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) national energy security will be
improved by the issuance of such a lease; and
``(B) to provide for the coproduction of geothermal
energy with oil and gas.''.
SEC. 11. GEOTHERMAL RESOURCE CONFIRMATION TEST PROJECTS.
(a) In General.--The Geothermal Steam Act of 1970 (30 U.S.C. 1001
et seq.) is amended by adding at the end the following:
``SEC. 30. GEOTHERMAL RESOURCE CONFIRMATION TEST PROJECTS.
``(a) Definitions.--In this section:
``(1) Extraordinary circumstances.--The term `extraordinary
circumstances' has the same meaning given the term in the
Department of the Interior Departmental Manual, 516 DM 2.3A(3)
and 516 DM 2, Appendix 2 (or successor provisions).
``(2) Geothermal resource confirmation test project.--The
term `geothermal resource confirmation test project' means a
project of drilling not more than 3 wells into a reservoir to
test or explore for geothermal resources--
``(A) on land for which the Secretary has issued a
lease under this Act; and
``(B) that--
``(i) is carried out by the holder of the
lease;
``(ii) allows for well testing, such as to
confirm temperature, pressure, chemistry, flow
rate, and near-wellbore and overall reservoir
permeability;
``(iii) causes--
``(I) less than 2.5 acres of soil
or vegetation disruption at the
location of each geothermal exploration
well; and
``(II) not more than an additional
5 acres of soil or vegetation
disruption during access to or egress
from the test site;
``(iv) is less than 9 inches in bottom-hole
diameter;
``(v) is developed--
``(I) in a manner that does not
require off-road motorized access other
than to and from the well site along an
identified off-road route; and
``(II) without the use of high-
pressure well stimulation;
``(vi) includes the removal of any surface
infrastructure other than the wellhead from the
site not later than 90 days after the project
is completed; and
``(vii) requires, not later than 42 months
after the date on which the first exploration
drilling began, the restoration of the project
site to approximately the condition that
existed at the time the project begins, unless
the site is subsequently used as part of an
energy development under the lease.
``(b) Categorical Exclusion.--Unless extraordinary circumstances
exist, a project that the Secretary determines under subsection (c) is
a geothermal resource confirmation test project shall be categorically
excluded from the requirements for an environmental assessment or an
environmental impact statement under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.) or section 1508.4 of title 40,
Code of Federal Regulations (or a successor regulation).
``(c) Process.--
``(1) Requirement to provide notice.--A leaseholder shall
provide notice to the Secretary of the intent of the
leaseholder to carry out a geothermal resource confirmation
test project at least 30 days before the start of drilling
under the project.
``(2) Review and determination.--Not later than 30 days
after receipt of a notice of intent under paragraph (1), the
Secretary shall, with respect to the project described in the
notice of intent--
``(A) determine if the project is a geothermal
resource confirmation test project;
``(B) notify the leaseholder of such determination;
and
``(C) provide public notice of the determination.
``(3) Opportunity to remedy.--If the Secretary determines
under paragraph (2)(A) that the project is not a geothermal
resource confirmation test project, the Secretary shall--
``(A) include in such notice clear and detailed
findings on any deficiencies in the project that
resulted in such determination; and
``(B) allow the leaseholder to remedy any such
deficiencies and resubmit the notice of intent under
paragraph (1).''.
(b) Repeal.--The Geothermal Energy Research, Development, and
Demonstration Act of 1974 (30 U.S.C. 1101 et seq.) is repealed.
SEC. 12. 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 1 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) 1 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.
Calendar No. 357
116th CONGRESS
1st Session
S. 2657
_______________________________________________________________________
A BILL
To support innovation in advanced geothermal research and development,
and for other purposes.
_______________________________________________________________________
December 17, 2019
Reported with an amendment