    [House Report 110-203]
    [From the U.S. Government Publishing Office]

    110th Congress                                                   Report
                            HOUSE OF REPRESENTATIVES
     1st Session                                                    110-203

    ======================================================================

        ADVANCED GEOTHERMAL ENERGY RESEARCH AND DEVELOPMENT ACT OF 2007

                                    _______

     June 21, 2007.--Committed to the Committee of the Whole House on the
                  State of the Union and ordered to be printed

                                    _______

    Mr. Gordon of Tennessee, from the Committee on Science and Technology,
                            submitted the following

                                  R E P O R T

                            [To accompany H.R. 2304]

          [Including cost estimate of the Congressional Budget Office]

      The Committee on Science and Technology, to whom was referred
    the bill (H.R. 2304) to direct the Secretary of Energy to
    conduct a program of research, development, demonstration, and
    commercial application for geothermal energy, and for other
    purposes, having considered the same, report favorably thereon
    with an amendment and recommend that the bill as amended do
    pass.

                                    CONTENTS

                                                                       Page
       I. Amendment.......................................................1
      II. Purpose of the Bill.............................................6
     III. Background and Need for the Legislation.........................7
      IV. Hearing Summary.................................................8
       V. Committee Actions...............................................9
      VI. Summary of Major Provisions of the Bill, as Reported...........10
     VII. Section-by-Section Analysis (by Title and Section), as Reported11
    VIII. Cost Estimate..................................................15
      IX. Congressional Budget Office Cost Estimate......................16
       X. Compliance With Public Law 104-4...............................17
      XI. Committee Oversight Findings and Recommendations...............18
     XII. Statement on General Performance Goals and Objectives..........18
    XIII. Constitutional Authority Statement.............................18
     XIV. Federal Advisory Committee Statement...........................18
      XV. Congressional Accountability Act...............................18
     XVI. Earmark Identification.........................................18
    XVII. Statement on Preemption of State, Local, or Tribal Law.........18
    XVIII.Changes in Existing Law Made by the Bill, as Reported..........18

     XIX. Committee Recommendations......................................18
      XX. Proceedings of the Subcommittee Markup.........................19
     XXI. Proceedings of the Full Committee Markup.......................51

                                  I. AMENDMENT

      The amendment is as follows:
      Strike all after the enacting clause and insert the
    following:

    SECTION 1. SHORT TITLE.

      This Act may be cited as the ``Advanced Geothermal Energy Research
    and Development Act of 2007''.

    SEC. 2. FINDINGS.

      The Congress finds the following:
              (1) The United States has a critical national interest in
            developing clean, domestic, renewable sources of energy in
            order to mitigate the causes of climate change, reduce other
            environmental impacts of energy production, increase national
            security, improve public health, and bolster economic
            stability.
              (2) Geothermal energy is a renewable energy resource.
              (3) Geothermal energy is unusual among renewable energy
            sources because of its ability to provide an uninterrupted
            supply of baseload electricity.
              (4) Recently published assessments by reputable experts,
            including the Massachusetts Institute of Technology, the
            Western Governors Association, and the National Renewable
            Energy Laboratory, indicate that the Nation's geothermal
            resources are widely distributed, vast in size, and barely
            tapped.
              (5) Sustained and expanded research, development,
            demonstration, and commercial application programs are needed
            to locate and characterize geothermal resources, and to develop
            the technologies that will enable their widespread commercial
            development.
              (6) Federal support is critical to reduce the financial risk
            associated with developing new geothermal technologies, thereby
            encouraging the private sector investment necessary to make
            geothermal resources commercially viable as a source of
            electric power and for other applications.

    SEC. 3. DEFINITIONS.

      For purposes of this Act:
              (1) Engineered.--When referring to enhanced geothermal
            systems, the term ``engineered'' means subjected to
            intervention, including intervention to address one or more of
            the following issues:
                      (A) Lack of effective permeability or porosity or
                    open fracture connectivity within the reservoir.
                      (B) Insufficient contained geofluid in the reservoir.
                      (C) A low average geothermal gradient, which
                    necessitates deeper drilling.
              (2) Enhanced geothermal systems.--The term ``enhanced
            geothermal systems'' means geothermal reservoir systems that
            are engineered, as opposed to occurring naturally.
              (3) Geofluid.--The term ``geofluid'' means any fluid used to
            extract thermal energy from the Earth which is transported to
            the surface for direct use or electric power generation, except
            that such term shall not include oil or natural gas.
              (4) Geopressured resources.--The term ``geopressured
            resources'' mean geothermal deposits found in sedimentary rocks
            under higher than normal pressure and saturated with gas or
            methane.
              (5) Geothermal.--The term ``geothermal'' refers to heat
            energy stored in the Earth's crust that can be accessed for
            direct use or electric power generation.
              (6) Hydrothermal.--The term ``hydrothermal'' refers to
            naturally occurring subsurface reservoirs of hot water or
            steam.
              (7) Secretary.--The term ``Secretary'' means the Secretary of
            Energy.
              (8) Systems approach.--The term ``systems approach'' means an
            approach to solving problems or designing systems that attempts
            to optimize the performance of the overall system, rather than
            a particular component of the system.

    SEC. 4. HYDROTHERMAL RESEARCH AND DEVELOPMENT.

      (a) In General.--The Secretary shall support programs of research,
    development, demonstration, and commercial application to expand the
    use of geothermal energy production from hydrothermal systems,
    including the programs described in subsection (b).
      (b) Programs.--
              (1) Advanced hydrothermal resource tools.--The Secretary, in
            consultation with other appropriate agencies, shall support a
            program to develop advanced geophysical, geochemical, and
            geologic tools to assist in locating hidden hydrothermal
            resources, and to increase the reliability of site
            characterization before, during, and after initial drilling.
            The program shall develop new prospecting techniques to assist
            in prioritization of targets for characterization. The program
            shall include a field component.
              (2) Industry coupled exploratory drilling.--The Secretary
            shall support a program of cost-shared field demonstration
            programs, to be pursued, simultaneously and independently, in
            collaboration with industry partners, for the demonstration of
            technologies and techniques of siting and exploratory drilling
            for undiscovered resources in a variety of geologic settings.
            The program shall include incentives to encourage the use of
            advanced technologies and techniques.

    SEC. 5. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

      (a) Subsurface Components and Systems.--The Secretary shall support a
    program of research, development, demonstration, and commercial
    application of components and systems capable of withstanding extreme
    geothermal environments and necessary to cost-effectively develop,
    produce, and monitor geothermal reservoirs and produce geothermal
    energy. These components and systems shall include advanced casing
    systems (expandable tubular casing, low-clearance casing designs, and
    others), high-temperature cements, high-temperature submersible pumps,
    and high-temperature packers, as well as technologies for under-
    reaming, multilateral completions, high-temperature logging, and
    logging while drilling.
      (b) Reservoir Performance Modeling.--The Secretary shall support a
    program of research, development, demonstration, and commercial
    application of models of geothermal reservoir performance, with an
    emphasis on accurately modeling performance over time. Models shall be
    developed to assist both in the development of geothermal reservoirs
    and to more accurately account for stress-related effects in stimulated
    hydrothermal and enhanced geothermal systems production environments.
      (c) Environmental Impacts.--The Secretary shall--
              (1) support a program of research, development,
            demonstration, and commercial application of technologies and
            practices designed to mitigate or preclude potential adverse
            environmental impacts of geothermal energy development,
            production or use, and seek to ensure that geothermal energy
            development is consistent with the highest practicable
            standards of environmental stewardship; and
              (2) in conjunction with the Assistant Administrator for
            Research and Development at the Environmental Protection
            Agency, support a research program to identify potential
            environmental impacts of geothermal energy development,
            production, and use, and ensure that the program described in
            paragraph (1) addresses such impacts, including effects on
            groundwater and local hydrology.
    Any potential environmental impacts identified as part of the
    development, production, and use of geothermal energy shall be measured
    and examined against the potential emissions offsets of greenhouses
    gases gained by geothermal energy development, production, and use.

    SEC. 6. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

      (a) In General.--The Secretary shall support a program of research,
    development, demonstration, and commercial application for enhanced
    geothermal systems, including the programs described in subsection (b).
      (b) Programs.--
              (1) Enhanced geothermal systems technologies.--The Secretary
            shall support a program of research, development,
            demonstration, and commercial application of the technologies
            and knowledge necessary for enhanced geothermal systems to
            advance to a state of commercial readiness, including advances
            in--
                      (A) reservoir stimulation;
                      (B) reservoir characterization, monitoring, and
                    modeling;
                      (C) stress mapping;
                      (D) tracer development;
                      (E) three-dimensional tomography;
                      (F) understanding seismic effects of reservoir
                    engineering and stimulation; and
                      (G) laser-based drilling technology.
              (2) Enhanced geothermal systems reservoir stimulation.--
                      (A) Program.--In collaboration with industry
                    partners, the Secretary shall support a program of
                    research, development, and demonstration of enhanced
                    geothermal systems reservoir stimulation technologies
                    and techniques. A minimum of 5 sites shall be selected
                    in locations that show particular promise for enhanced
                    geothermal systems development. Each site shall--
                              (i) represent a different class of subsurface
                            geologic environments; and
                              (ii) take advantage of an existing site where
                            subsurface characterization has been conducted
                            or existing drill holes can be utilized, if
                            possible.
                      (B) Consideration of existing sites.--The following 2
                    sites, where Department of Energy and industry
                    cooperative enhanced geothermal systems projects are
                    already underway, may be considered for inclusion among
                    the sites selected under subparagraph (A):
                              (i) Desert Peak, Nevada.
                              (ii) Coso, California.

    SEC. 7. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS FIELDS AND
                        RECOVERY AND PRODUCTION OF GEOPRESSURED GAS
                        RESOURCES.

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

    SEC. 8. COST SHARING AND PROPOSAL EVALUATION.

      (a) Federal Share.--(1) The Federal share of costs of projects funded
    under this Act shall be in accordance with section 988 of the Energy
    Policy Act of 2005.
      (2) The Secretary may waive the Federal cost share requirement for
    grants awarded to universities, national laboratories, or similar
    noncommercial entities awarded grants under this Act.
      (3) The Secretary shall allow for a competitive bidding process to
    play a role in determining the final cost-share ratio.
      (b) Organization and Administration of Programs.--Programs under this
    Act shall incorporate the following organizational and administrative
    elements:
              (1) Non-Federal participants shall be chosen through a
            competitive selection process.
              (2) The request for proposals for each program shall
            stipulate, at a minimum, the following:
                      (A) The non-Federal funding requirements for
                    projects.
                      (B) The funding mechanism to be used (i.e. grants,
                    contracts, or cooperative agreements).
                      (C) Milestones and a schedule for completion.
                      (D) Criteria for evaluating proposals.
              (3) In evaluating proposals, the Secretary shall give
            priority to proposals that draw on relevant expertise from
            industry, academia, and the national laboratories, as
            appropriate.
              (4) The Secretary shall coordinate with, and where
            appropriate may provide funds in furtherance of the purposes of
            this Act to, other Department of Energy research and
            development programs focused on drilling, subsurface
            characterization, and other related technologies.
              (5) In evaluating proposals, the Secretary shall consult with
            relevant experts from industry, academia, and the national
            laboratories, as appropriate.
              (6) In evaluating proposals, the Secretary shall give
            priority to proposals that demonstrate clear evidence of
            employing a systems approach.
              (7) In evaluating proposals for projects with a field
            component, the Secretary shall, where appropriate, give
            priority consideration to proposals that contain provisions to
            study local environmental impacts of the technologies developed
            or the operations undertaken.
              (8) Data collected by the Secretary as a result of any
            project supported with funds provided under this Act shall be
            made available to the public, except to the extent that they
            contain information that is protected from disclosure under
            section 552(b) of title 5, United States Code.

    SEC. 9. CENTERS FOR GEOTHERMAL TECHNOLOGY TRANSFER.

      (a) In General.--The Secretary shall award grants to institutions of
    higher education (or consortia thereof) to establish 2 Centers for
    Geothermal Technology Transfer.
      (b) Centers.--
              (1) Hydrothermal center.--The purpose of one Technology
            Transfer Center shall be to serve as an information
            clearinghouse for the geothermal industry, collecting and
            disseminating information on best practices in all areas
            related to developing and managing hydrothermal resources,
            including data available for disclosure as provided under
            section 8(b)(8). This Center shall be based at the institution
            west of the Mississippi River that the Secretary considers to
            be best suited to the purpose. The Center shall collect and
            disseminate information on all subjects germane to the
            development and user of hydrothermal systems, including--
                      (A) resource location;
                      (B) reservoir characterization, monitoring, and
                    modeling;
                      (C) drilling techniques;
                      (D) reservoir management techniques; and
                      (E) technologies for electric power conversion or
                    direct use of geothermal energy.
              (2) Enhanced geothermal systems center.--The purpose of a
            second Technology Transfer Center shall be to serve as an
            information clearinghouse for the geothermal industry,
            collecting and disseminating information on best practices in
            all areas related to developing and managing enhanced
            geothermal systems resources, including data available for
            disclosure as provided under section 8(b)(8). This Center is
            encouraged to seek opportunities to coordinate efforts and
            share information with international partners engaged in
            research and development of enhanced geothermal systems or
            engaged in collection of data related to enhanced geothermal
            systems development. This Center shall be based at an academic
            institution east of the Rocky Mountains which, in the opinion
            of the Secretary, is best suited to provide national leadership
            on enhanced geothermal systems-related issues. The Center shall
            collect and disseminate information on all subjects germane to
            the development and use of enhanced geothermal systems.
      (c) Award Duration.--An award made by the Secretary under this
    section shall be for an initial period of 5 years, and may be renewed
    for additional 5-year periods on the basis of--
              (1) satisfactory performance in meeting the goals of the
            research plan proposed by the Center; and
              (2) other requirements as specified by the Secretary.

    SEC. 10. GEOPOWERING AMERICA.

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

    SEC. 11. REPORTS.

      (a) Reports on Advanced Uses of Geothermal Energy.--Not later than 1
    year, 3 years, and 5 years, after the date of enactment of this Act,
    the Secretary shall report to the Committee on Science and Technology
    of the House of Representatives and the Committee on Energy and Natural
    Resources of the Senate on advanced concepts and technologies to
    maximize the geothermal resource potential of the United States. The
    reports shall include--
              (1) the use of carbon dioxide as an alternative geofluid with
            potential carbon sequestration benefits;
              (2) mineral recovery from geofluids;
              (3) use of geothermal energy to produce hydrogen;
              (4) use of geothermal energy to produce biofuels;
              (5) use of geothermal heat for oil recovery from oil shales
            and tar sands; and
              (6) other advanced geothermal technologies, including
            advanced drilling technologies and advanced power conversion
            technologies.
      (b) Progress Reports.--(1) Not later than 36 months after the date of
    enactment of this Act, the Secretary shall submit to the Committee on
    Science and Technology of the House of Representatives and the
    Committee on Energy and Natural Resources of the Senate an interim
    report describing the progress made under this Act. At the end of 60
    months, the Secretary shall submit to Congress a report on the results
    of projects undertaken under this Act and other such information the
    Secretary considers appropriate.
      (2) As necessary, the Secretary shall report to the Congress on any
    legal, regulatory, or other barriers encountered that hinder economic
    development of these resources, and provide recommendations on
    legislative or other actions needed to address such impediments.

    SEC. 12. APPLICABILITY OF OTHER LAWS.

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

    SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

      There are authorized to be appropriated to the Secretary to carry out
    this Act $90,000,000 for each of the fiscal years 2008 through 2012, of
    which $10,000,000 for each fiscal year shall be for carrying out
    section 7.

                                  II. PURPOSE

        The purpose of the H.R. 2304 is to direct the Secretary of
    Energy to conduct a program of research, development,
    demonstration, and commercial application for geothermal
    energy, and to establish technology transfer centers to
    facilitate the collection and dissemination of technological,
    scientific, and best practices information relevant to
    geothermal energy development and use.

                  III. BACKGROUND AND NEED FOR THE LEGISLATION

        Geothermal energy is heat from the Earth's core that is
    trapped in the Earth's crust. It can be tapped and used either
    to generate electricity or for direct use (e.g. heating
    buildings, greenhouses, or aquaculture operations). It is very
    attractive as an energy resource because it is not only
    renewable and emits no greenhouse gases, but can also provide
    continuously dispatchable, baseload power, day and night, 365
    days a year. Geothermal energy is also a domestic resource,
    creating domestic jobs and increasing national security.
        In locations where high temperatures coincide with
    naturally-occurring, underground, fluid-filled reservoirs, the
    resulting hot water or steam can be tapped directly to run a
    geothermal power plant. Such locations are referred to as
    hydrothermal (hot water) resources, and they have been the
    focus of traditional geothermal energy development. The United
    States is the world's largest producer of electric power from
    geothermal energy with approximately 2,800 megawatts (MW) of
    geothermal electrical generating capacity currently connected
    to the grid, mostly in California and the Intermountain West,
    where high grade hydrothermal systems have been found close to
    the surface. However, significant hydrothermal potential
    remains untapped. The U.S. Geological Survey (USGS) estimates
    there are between 95,000 MW and 127,000 MW of hydrothermal
    resources sufficient for electrical power generation in the
    United States. However, many of these resources remain
    undiscovered and unconfirmed, as they are in locations without
    obvious surface manifestations.
        Even that large number, however, pales in comparison to the
    potential of Enhanced Geothermal Systems (EGS). EGS differ from
    hydrothermal systems in that they lack either a natural
    reservoir (i.e. the cracks and spaces in the rock through which
    fluid can circulate), the fluid to circulate through the
    reservoir, or both. In EGS development, sometimes referred to
    as ``heat mining'', an injection well is drilled to a depth
    where temperatures are sufficiently high; if necessary, a
    reservoir is created, or ``cracked'', in the rock using one of
    various methods to apply pressure; and a fluid is introduced to
    circulate through the reservoir and absorb the heat. The fluid
    is extracted through a production well, the heat is used to run
    a geothermal power plant or for some direct use application and
    the fluid is reinjected to start the loop all over again.
        Although it has been the subject of preliminary
    investigations in the United States, Europe, and Australia, the
    EGS concept has yet to be demonstrated as a commercially viable
    source of power production. However, experts familiar with the
    resource and the associated technologies believe the technical
    and economic hurdles are surmountable. In January 2007, a panel
    led by the Massachusetts Institute of Technology produced a
    report entitled The Future of Geothermal Energy, which
    contained an updated assessment of EGS potential in the United
    States. The authors of the report conservatively estimate that
    two percent of the EGS resource could be economically
    recoverable--an amount more than 2,000 times larger than all
    the primary energy consumed in the United States in 2005.\1\ If
    the technological and economic hurdles to EGS development can
    be overcome, the potential of the resource is enormous. The
    authors of the report believe it is reasonable to develop 100
    Gigawatts of electric generating capacity from EGS resources by
    2050.
    ---------------------------------------------------------------------------
        \1\ The Future of Geothermal Energy; Massachusetts Institute of
    Technology, 2006; p. 1-17.
    ---------------------------------------------------------------------------
        The United States has been involved in geothermal energy
    R&D since the 1970s. The program reached a high point, in terms
    of funding, in FY 1980, when it received approximately $310
    million (2006 dollars). Since then, funding has gradually
    declined to its present level of $5 million (2006 dollars) in
    FY 2007. The current Administration has attempted to phase out
    the geothermal program entirely, requesting zero dollars in FY
    2007 and FY 2008.
        As justification for terminating the geothermal program,
    the Administration asserts that geothermal technologies are
    mature--a claim strongly disputed by researchers and the
    geothermal industry. Proponents point out that geothermal is
    not a single technology, but a complex resource, available in
    different grades in different places. While the technologies to
    tap the highest grade resources may indeed be mature (some have
    provided electric power at competitive rates for decades) these
    high grade locations, that are easily identifiable from the
    surface, represent a very small fraction of the total resource.
    To develop technologies capable of tapping lower grade
    resources, both hydrothermal and EGS, further research and
    development is essential. Recent indications suggest DOE
    officials may be open to reexamining investment in geothermal
    research and development, particularly in light of the
    opportunities in Enhanced Geothermal Systems that were
    highlighted in the recent MIT report: The Future of Geothermal
    Energy.
        H.R. 2304 is intended to reinvigorate geothermal energy R&D
    in the United States in order to unlock the potential of this
    vast resource, across the full spectrum of grades, for the
    benefit of the nation.

                              IV. HEARING SUMMARY

        The Energy and Environment Subcommittee held a hearing on
    Thursday, May 17, 2007 to hear testimony on H.R. 2304 (and also
    H.R. 2313, The Marine Renewable Energy Research and Development
    Act of 2007) from the following witnesses:
         Dr. Jefferson Tester, the HP Meissner Professor of
    Chemical Engineering at the Massachusetts Institute of
    Technology, an internationally recognized expert in Enhanced
    Geothermal Systems and chair of the MIT-led panel that produced
    the report: The Future of Geothermal Energy, released in
    January 2007.
         Mr. Paul Thomsen, Public Policy Manager for Ormat
    Technologies, Inc., a leading provider of geothermal
    exploration, development, and power conversion technologies.
    Mr. Thomsen testified on behalf of both Ormat and the
    Geothermal Energy Association.
         Mr. Nathanael Greene, a Sr. Energy Policy
    Specialist with the Natural Resources Defense Council with
    expertise in utility regulation, renewable energy, energy
    taxes, energy efficiency, and the environmental impacts of
    energy production.
        The following witnesses testified at the hearing, but their
    testimony was directed to H.R. 2313, The Marine Renewable
    Energy Research and Development Act of 2007.
         Dr. Annette von Jouanne, Professor of Energy
    Systems and Power Electronics in the School of Electrical
    Engineering and Computer Science at Oregon State University
    (OSU). Dr. von Jouanne also leads the Wave Energy program at
    OSU.
         Mr. Sean O'Neill, President of the Ocean Renewable
    Energy Coalition (OREC), a trade association representing the
    marine renewable energy industry.

                              V. COMMITTEE ACTIONS

        On May 14, 2007, Rep. Jerry McNerney, for himself, Science
    and Technology Committee Chairman Bart Gordon, and Energy and
    Environment Subcommittee Chairman Nick Lampson, introduced H.R.
    2304, The Advanced Geothermal Energy Research and Development
    Act of 2007. The bill was referred to the House Committee on
    Science and Technology, Subcommittee on Energy and Environment.
        The Subcommittee on Energy and Environment met to consider
    H.R. 2304 on June 6, 2007 and consider the following amendment
    to the bill:
        1. On behalf of Mr. McNerney which, in addition to changes
    of a technical nature, revises instructions for establishing
    the Federal/non-Federal cost-share ratios for projects funded
    under the Act to provide greater leeway to tailor cost-share
    levels to individual projects; allows for a competitive bidding
    process to play a role in determining the cost-share ratio for
    a projects; eliminates cost-share requirements for research
    that is of a ``fundamental or basic nature''; establishes an
    R&D program to develop technologies and techniques to mitigate
    or avoid adverse environmental impacts of geothermal energy
    development, production, or use; directs the Secretary to
    coordinate with the Environmental Protection Agency to study
    the environmental impacts of geothermal energy development,
    production, and use; directs the Secretary to give priority
    consideration for funding, where appropriate, to project
    proposals that include provisions to study the project's
    environmental impacts; encourages the Enhanced Geothermal
    Systems Technology Transfer Center established in the bill to
    seek opportunities for coordination with appropriate
    international partners; and expands the scope of an existing,
    domestic geothermal technology transfer program from the
    western U.S. to the entire country. The amendment was agreed to
    by voice vote.
        Following consideration of the amendments, the bill, as
    amended, was passed by voice vote.
        Mr. Inglis then moved that the Subcommittee favorably
    report the bill, H.R. 2304, to the full Committee on Science
    and Technology. The motion was agreed to by voice vote.
        The House Committee on Science and Technology met to
    consider H.R. 2304 on June 13, 2007 and considered the
    following amendments to the bill:
        1. On behalf of Mr. Hall, which adds a section on co-
    produced (with oil and gas operations) and geopressured
    resources. It also adds $10 million for those activities in
    authorized appropriations to the bill. It also streamlines the
    instructions for determining cost-share ratios for projects,
    and calls for interim progress reports on projects funded under
    the Act. The amendment was agreed to by voice vote.
        The following three amendments were offered and considered
    en bloc:
        2. On behalf of Mr. Bartlett, which replaces ``Study on
    Advanced Uses of Geothermal Energy'' with ``Reports on Advanced
    Uses of Geothermal Energy''. The amendment was agreed to by
    voice vote.
        3. On behalf of Mr. Bartlett, which replaces ``Geopower
    America'' with ``Geopowering America''. The amendment was
    agreed to by voice vote.
        4. On behalf of Mr. Bartlett, which requires environmental
    impacts from geothermal energy production to be measured and
    examined against the potential for geothermal energy production
    to offset greenhouse gas emissions. The amendment was agreed to
    by voice vote.
        The following two amendments were offered and considered en
    bloc:
        5. On behalf of Mr. McCaul, which requires the Secretary of
    Energy to coordinate with other DOE research and development
    programs focused on drilling and related activities. The
    amendment was agreed to by voice vote.
        6. On behalf of Mr. McCaul, which adds ``laser-based
    drilling technology'' to the EGS research and development
    program. The amendment was agreed to by voice vote.
        7. On behalf of Ms. Biggert, which strikes the section
    establishing two university-based, geothermal technology
    transfer centers and transfers these responsibilities to the
    Geopowering America program. The amendment was rejected by
    voice vote.
        8. On behalf of Ms. Biggert, which instructs the Secretary
    to choose a location for the EGS Technology Transfer Center
    east of the ``Rocky Mountains'', rather than east of the
    ``Mississippi River''. The amendment was agreed to by voice
    vote.
        9. On behalf of Mr. Matheson, which increases the total
    authorization by $5,000,000 for each of the five fiscal years
    2008 through 2012, to fund the Intermountain West Geothermal
    Consortium. The amendment was offered and withdrawn.
        Following consideration of the amendments, the bill, as
    amended, was passed by voice vote.
        Mr. Hall then moved that the committee favorably report the
    bill, H.R. 2304, as amended, to the House for consideration.
    The motion was agreed to by a voice vote.

            VI. SUMMARY OF MAJOR PROVISIONS OF THE BILL, AS REPORTED

        H.R. 2304 authorizes $90 million a year for each of the
    fiscal years 2008-2012 ($450 million total) for research,
    development, demonstration, and commercial application of
    technologies to locate, characterize, and develop geothermal
    resources for energy production. Of the $90 million annual
    authorization, $10 million per year is specifically authorized
    for projects to develop co-produced and geopressured resources.
    The bill also establishes a research program, to be coordinated
    with EPA, to identify potential environmental impacts of
    geothermal energy production, and a program of research,
    development, demonstration, and commercial application of
    technologies to mitigate or avoid adverse environmental
    impacts. The bill provides guidance for the Secretary to use in
    evaluation of project proposals, and calls for the inclusion of
    a competitive bidding process in the process used for
    establishing Federal/non-Federal cost-share ratios for
    projects. The bill establishes or expands several technology
    transfer programs to promote dissemination of technological and
    scientific information and best practices on geothermal energy
    development and use. Finally, the bill requires DOE to issue
    several reports: the first, to be issued 36 and 60 months after
    enactment, is a report on the progress made under the Act; the
    second, to be issued 12, 36, and 60 months after enactment, is
    a report tracking the development of advanced concepts and
    technologies related to geothermal energy development but not
    funded under the Act; the third, to be issued when and if
    necessary, is a report to Congress on any barriers
    encountered--legal, regulatory, or otherwise--that hinder
    economic development of geothermal resources.

                        VII. SECTION-BY-SECTION ANALYSIS

    Section 1. Short title

        Act may be cited as the ``Advanced Geothermal Energy
    Research and Development Act of 2007''

    Section 2. Findings

        Geothermal energy is a renewable resource capable of
    providing baseload power generation (and other applications)
    with minimal environmental impact. The geothermal energy
    potential in the United States is widely distributed and vast
    in size, yet it remains barely tapped. Sustained and expanded
    funding for research, development, demonstration, and
    commercial application programs is needed to improve the
    technologies to locate, characterize, and develop geothermal
    resources.

    Section 3. Definitions

        Provides definitions for the following terms used in the
    Act: `Engineered' (as it pertains to enhanced geothermal
    systems), `Enhanced Geothermal Systems', `Geofluid',
    `Geopressured Resources', `Geothermal', `Hydrothermal',
    `Secretary', and `Systems Approach'

    Section 4. Hydrothermal research and development

        Instructs the Secretary to support research, development,
    demonstration, and commercial application of technologies
    designed to assist in locating and characterizing undiscovered
    hydrothermal resources.
        Section 4(b)(1) instructs the Secretary to support the
    development of geoscientific tools and technologies that can
    assist in the process of locating hidden hydrothermal resources
    that do not exhibit obvious manifestations at the earth's
    surface. This research and tool development would likely be
    carried out by researchers at universities and national labs,
    though qualified candidates based at other institutions or
    organizations may also apply for funding. The bill specifies
    that this program shall include a field component, to encourage
    development of these tools under real world conditions, but
    this is not intended to suggest that only field-based research
    may qualify for funding under this Section.
        Section 4(b)(2) establishes an ``industry-coupled
    exploratory drilling'' program, which is a cost-shared program
    with industry partners to demonstrate and apply advanced
    exploration technologies in the field. This is not intended as
    research and development program for drilling technologies per
    se; rather, it is intended as a demonstration program to apply
    existing technologies--especially the most advanced
    technologies available--in a practical setting to discover and
    confirm hidden hydrothermal resources and expand the confirmed
    hydrothermal resource base.

    Section 5. General geothermal systems research and development

        The programs under Section 5 are intended to support the
    development of technologies applicable to the locating,
    developing, and using all geothermal systems, whether they are
    hydrothermal systems, Enhanced Geothermal Systems, or a hybrid
    of the two. Subsection (a) establishes a program of research,
    development, demonstration, and commercial application of
    system components and materials capable of withstanding the
    extreme environment (high temperatures and corrosiveness) in
    geothermal wells. The Section includes a list of specific types
    of components and systems that shall qualify for funding under
    this Section, though in practice, any subsurface component that
    is essential to drilling to extreme depths and temperatures
    shall qualify for research, development, demonstration, and
    commercial applications funding under this section.
        Subsection (b) establishes a program of research,
    development, demonstration, and commercial application of
    improved models of geothermal reservoir performance. The intent
    is to improve upon the accuracy of existing models. The models
    can be of any useful type, whether numerical, computer-based,
    or other.
        Subsection (c)(1) establishes a program of research,
    development, demonstration, and commercial application of
    technologies to mitigate or preclude adverse environmental
    impacts from geothermal energy development, production or use.
    Subsection (c)(2) directs the Secretary, in conjunction with
    the Office of Research and Development at EPA, to study what
    such impacts of geothermal energy development might be, and
    ensure that the program in (c)(1) addresses such impacts. The
    intent is to ensure that all reasonable efforts are undertaken
    to ensure that geothermal energy development may proceed with
    the smallest possible environmental impact. This subsection
    also calls for any identified potential adverse environmental
    impacts of geothermal energy development to be weighed against
    the potential benefit of providing power production without
    greenhouse gas emissions.

    Section 6. Enhanced geothermal systems research and development

        Subsection (a) instructs the Secretary to support a program
    of research, development, demonstration, and commercial
    application of technologies necessary to advance EGS to a state
    of commercial readiness.
        Subsection (b) establishes a cost-shared, field-based
    program of research, development, and demonstration of
    technologies to create and stimulate EGS reservoirs. The
    purpose of this subsection is to promote research, development,
    and demonstration of functional EGS systems capable of
    producing hot geofluid that could be used for electric power
    production or direct use. (However, this section deliberately
    stops short of authorizing demonstration of the actual power
    conversion step, which is already considered commercially
    viable. The aim of this section is strictly to engineer a
    productive reservoir.) The subsection stipulates that a minimum
    of 5 sites be selected, each representing geologic conditions
    that are different from other sites and also showing potential
    for EGS development. The intent is to prove the viability of
    EGS technology in as many different geological settings as
    possible. The Secretary may pursue EGS reservoir stimulation
    work at more than 5 sites, and s/he is encouraged to do so if
    sufficient funds are available.
        Finally, two sites where DOE has already sponsored some EGS
    research (Coso, CA and Desert Peak, NV) are listed as candidate
    sites that may be considered for further funding under this
    section, if the Secretary deems it appropriate to invest
    further in those sites. This decision, however, is left to the
    Secretary's discretion and should be based on the potential for
    these sites to yield additional useful information or
    developments.

    Section 7. Geothermal energy production from oil and gas fields and
            recovery and production of geopressured gas resources

        Establishes a demonstration program to prove the
    feasibility of co-producing geothermal power from hot water
    ``co-produced'' from oil and gas fields. This section also
    directs the Secretary of Energy to hold a design competition to
    produce preliminary designs for state-of-the-art approaches to
    recovering the energy contained in geopressured resources--
    which contain heat, pressure, and dissolved methane--in and
    near the Gulf of Mexico. The Secretary shall select the most
    promising preliminary designs submitted and award grants (which
    may be cost-shared) for the completion of the full engineering
    and other technical design work. Then, based upon an evaluation
    of the final designs, the Secretary is authorized to select the
    design that shows the greatest potential for economic recovery
    of the heat, kinetic energy and gas (the chosen design must
    effectively tap all three sources of energy) from geopressured
    resources, and award cost-shared grants for construction of a
    demonstration facility based on that design. The authorization
    for the overall bill includes $10 million per year specifically
    for this Section. None of the appropriated funds may be used to
    drill new wells. This is to encourage developers to take
    advantage of the many existing wells already drilled.

    Section 8. Cost sharing and proposal evaluation

        Instructs the Secretary to use the guidelines established
    in Section 988 of the Energy Policy Act of 2005 to determine
    the Federal/non-Federal cost-share ratios for projects funded
    under this Act, but, in addition, to incorporate a competitive
    bidding process into the process of determining the cost-share
    ratio for each project. The intent of the competitive bidding
    process is to encourage funding applicants to offer to finance
    the greatest possible portion of a project's total costs that
    they can afford. In addition, the cost-share guidelines allow
    the Secretary to waive cost-share requirements for projects
    awarded to non-commercial entities, such as universities or
    national laboratories.

    Section 9. Centers for geothermal technology transfer

        Provides for the creation of two Centers of technology
    transfer to function as information clearinghouses for the
    benefit of geothermal researchers and the geothermal industry.
    These centers shall be dedicated to collecting and
    disseminating all available information relevant to locating,
    developing, and managing geothermal resources to produce
    energy. Relevant information is intended to include, but not be
    limited to, operational best practices in all stages of
    geothermal energy development, technological advances, and
    scientific data collected as a result of projects funded under
    the Act. One of the centers is to be located west of the
    Mississippi River, probably west of the Rocky Mountains, and
    shall be dedicated to managing information relevant to
    hydrothermal systems development; the other center shall be
    located east of the Rocky Mountains, and shall be dedicated to
    managing information relevant to Enhanced Geothermal Systems
    development.
        It was decided that two Centers should be established,
    rather than one, for two reasons. First, the regions for the
    two Centers were chosen to match each Center's mission. The
    western Center is to be dedicated to collecting and
    disseminating information related to developing hydrothermal
    systems because the West is the geologically suited to be the
    center of hydrothermal development. The eastern Center is to be
    dedicated to Enhanced Geothermal Systems to emphasize the
    applicability of this enormous resource to the entire nation,
    including in the East--a region not commonly associated with
    geothermal energy development.
        The second reason for establishing two Centers is that
    there are different engineering and scientific issues
    associated with developing the different types of resources. To
    the extent that those areas of expertise overlap, it may be
    appropriate and useful for the two Centers to handle duplicate
    information, and such appropriate duplication is not
    discouraged. Both centers are intended to serve the entire
    nation in their respective areas of expertise, not just their
    respective region. The eastern Center is specifically
    encouraged to seek opportunities for international cooperation
    because there is significant EGS research happening in other
    countries.
        The rationale for locating the Centers at universities is
    two-fold: first, the close proximity of the Centers to
    university faculty and students is intended to create a
    valuable asset to the university research community and
    encourage the development of a new generation of geothermal
    scientists and engineers; second, there are numerous
    universities with strong programs in the geosciences that would
    make very attractive candidates for hosting these facilities.
        It should be noted that these Centers are not intended as
    research Centers per se. Rather, they are intended as
    information clearinghouses or repositories--sort of specialized
    libraries that will actively seek to collect and disseminate
    relevant data. It is hoped that they will be of significant
    value to researchers, as well as the geothermal development
    industry, but their mandate does not include conducting
    original research themselves.

    Section 10. Geopowering America

        Expands the scope of an existing, domestic geothermal
    technology transfer program from the western U.S. to the entire
    country, so as to encourage the transfer and adoption of
    appropriate geothermal energy technologies throughout the
    entire United States.

    Section 11. Reports

        Subsection 11(a) requires the Secretary to track
    technological advances impacting geothermal energy development
    and advanced uses of geothermal energy and fluids, and report
    back to the Committee every other year for the next five years
    (a total of three times). This report is intended to focus on
    areas of potential future interest for the geothermal program,
    but these areas are not considered appropriate candidates for
    Federal research, development, demonstration, and commercial
    application support at the current time, owing to their early
    stages of development and speculative nature. The report is not
    intended to be limited to the topics listed here. The bi-annual
    tracking effort is intended to highlight when these
    technologies become less speculative and more appropriate for
    Federal support.
        Subsection 11(b)(1) requires the Secretary to report back
    to the Committee after 3 years describing the progress made
    under this Act up to that point. At the end of 5 years, the
    Secretary shall report on the results of projects undertaken
    under this Act.
        Subsection 11(b)(2) requires the Secretary to report back
    to Congress, as necessary, on any legal, regulatory, or other
    barriers encountered that hinder economic development of
    geothermal resources and provide recommendations on legislative
    or other actions needed to address such impediments.

    Section 12. Applicability of other laws

        Affirms the applicability of all requirements under Federal
    and State laws, including environmental laws, to projects
    undertaken under this Act.

    Section 13. Authorization of appropriations

        Authorizes appropriations of $90,000,000 for each of the
    fiscal years 2008 through 2012, of which $10,000,000 for each
    fiscal year shall be for carrying out section 7.

                              VIII. COST ESTIMATE

        A cost estimate and comparison prepared by the Director of
    the Congressional Budget Office under section 402 of the
    Congressional Budget Act of 1974 has been timely submitted to
    the Committee on Science and Technology prior to the filing of
    this report and is included in Section X of this report
    pursuant to House Rule XIII, clause 3(c)(3).
        H.R. 2304 does not contain new budget authority, credit
    authority, or changes in revenues or tax expenditures. Assuming
    that the sums authorized under the bill are appropriated, H.R.
    2304 does authorize additional discretionary spending, as
    described in the Congressional Budget Office report on the
    bill, which is contained in Section X of this report.

                 IX. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    H.R. 2304--Advanced Geothermal Energy Research and Development Act of
            2007

        Summary: H.R. 2304 would authorize the appropriation of
    $450 million over the 2008-2012 period for the Department of
    Energy (DOE) to support research and development activities
    related to the production and use of geothermal energy (heat
    energy stored in the Earth's surface). Funds authorized by the
    bill would also be used to establish two Centers for Geothermal
    Technology Transfer within institutions of higher education to
    act as information clearinghouses for industry on geothermal
    energy development and management. CBO estimates that
    implementing H.R. 2304 would cost $396 million over the 2008-
    2012 period, assuming the appropriation of the specified funds.
    Enacting H.R. 2304 would have no effect on direct spending or
    revenues.
        H.R. 2304 contains no intergovernmental or private-sector
    mandates as defined in the Unfunded Mandates Reform Act (UMRA)
    and would benefit public institutions of higher education.
        Estimated cost to the Federal Government: The estimated
    budgetary impact of H.R. 2304 is shown in the following table.
    The costs of this legislation fall within budget function 250
    (general science, space, and technology).

    ------------------------------------------------------------------------
                                          By fiscal year, in millions of
                                                     dollars--
                                     ---------------------------------------
                                       2008    2009    2010    2011    2012
    ------------------------------------------------------------------------
                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

    Geothermal Energy Research and
     Development Programs:
        Authorization Level.........      80      80      80      80      80
        Estimated Outlays...........      44      68      80      80      80
    Other Geothermal Energy
     Programs:
        Authorization Level.........      10      10      10      10      10
        Estimated Outlays...........       6       8      10      10      10
        Total Changes:
            Authorization Level.....      90      90      90      90      90
            Estimated Outlays.......      50      76      90      90      90
    ------------------------------------------------------------------------

        Basis of estimate: For this estimate, CBO assumes that the
    bill will be enacted in fiscal year 2007 and that the amounts
    specified by the bill will be appropriated for each fiscal
    year.

              GEOTHERMAL ENERGY RESEARCH AND DEVELOPMENT PROGRAMS

        H.R. 2304 would authorize the appropriation of $80 million
    for each of fiscal years 2008 through 2012 for DOE to support
    research and development programs that expand the production of
    geothermal energy. Funds authorized by this legislation would
    be used to:
         Develop tools to locate hydrothermal resources
    (naturally occurring bodies of hot water or steam located below
    the earth's surface) and improve site characterization;
         Establish field demonstration programs, in
    cooperation with industry partners, to demonstrate techniques
    and technologies used in exploratory drilling;
         Develop components and systems capable of
    sustaining the extreme geological environments necessary to
    produce geothermal energy;
         Model geothermal resource performance;
         Examine the environmental impacts of geothermal
    energy development, production and use, as well as technologies
    and practices to mitigate such impacts;
         Develop technologies to advance enhanced
    geothermal systems (sources of geothermal energy which require
    human invention to facilitate production) to the stage of
    commercial readiness;
         Establish at least five demonstration programs to
    develop geothermal energy stimulation techniques and
    technologies;
         Award five-year renewable grants to institutions
    of higher education to establish two Centers for Geothermal
    Technology Transfer to act as an information clearinghouse for
    industry on best practices to develop and manage hydrothermal
    resources and enhanced geothermal systems resources; and
         Expand the GeoPowering the West program to address
    the private market and institutional barriers of bringing
    geothermal energy to all areas of the United States.
        Under the legislation, the federal share of such projects
    would be limited to 80 percent. Based on information from DOE,
    CBO expects that funds authorized to be appropriated by the
    bill would be used to establish new programs within DOE, as
    well as fund research projects already in existence. Assuming
    the appropriation of the specified funds, and based on the
    historical spending of DOE research and development programs,
    CBO estimates that implementing these provisions would cost $44
    million in 2008 and $352 million over the 2008-2012 period.

                        OTHER GEOTHERMAL ENERGY PROGRAMS

        H.R. 2304 would authorize the appropriation of $10 million
    for each of fiscal years 2008 through 2012 for DOE to make
    grants to establish three demonstration projects that use
    geothermal techniques at oil and gas wells. Funds authorized by
    this legislation would also be used to support the research and
    development of techniques to produce energy from geopressured
    sources (rock deposits under high pressure and saturated with
    gas or methane) in and near the Gulf of Mexico. Based on
    information from DOE, CBO estimates that implementing these
    programs would cost $6 million in 2008 and $44 million over the
    2008-2012 period.
        Intergovernmental and private-sector impact: H.R. 2304
    contains no intergovernmental or private-sector mandates as
    defined in UMRA and would benefit participating public
    institutions of higher education. The bill would authorize
    several grant programs for geothermal energy research,
    development, and demonstration. It would also authorize funding
    for information clearinghouses at institutions of higher
    education. Any costs incurred by public institutions applying
    to host the centers would be incurred voluntarily.
        Estimate prepared by: Federal Costs: Daniel Hoople; Impact
    on State, Local, and Tribal Governments: Neil Hood; Impact on
    the Private Sector: Amy Petz.
        Estimate approved by: Peter H. Fontaine, Deputy Assistant
    Director for Budget Analysis.

                      X. COMPLIANCE WITH PUBLIC LAW 104-4

        H.R. 2304 contains no unfunded mandates.

              XI. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

        The oversight findings and recommendations of the Committee
    on Science and Technology are reflected in the body of this
    report.

           XII. STATEMENT ON GENERAL PERFORMANCE GOALS AND OBJECTIVES

        Pursuant to clause (3)(c) of House Rule XIII, the goal of
    H.R. 2304 is to advance geothermal research and development
    through programs of hydrothermal research and development,
    general geothermal systems research and development, enhanced
    geothermal systems research and development; the establishment
    of centers for geothermal technology transfer; and a report on
    advanced uses of geothermal energy.

                    XIII. CONSTITUTIONAL AUTHORITY STATEMENT

        Article I, section 8 of the Constitution of the United
    States grants Congress the authority to enact H.R. 2304.

                   XIV. FEDERAL ADVISORY COMMITTEE STATEMENT

        H.R. 2304 does not establish nor authorize the
    establishment of any advisory committee.

                      XV. CONGRESSIONAL ACCOUNTABILITY ACT

        The Committee finds that H.R. 2304 does not relate to the
    terms and conditions of employment or access to public services
    or accommodations within the meaning of section 102(b)(3) of
    the Congressional Accountability Act (Public Law 104-1).

                          XVI. EARMARK IDENTIFICATION

        H.R. 2304 does not contain any congressional earmarks,
    limited tax benefits, or limited tariff benefits as defined in
    clause 9(d), 9(e), or 9(f) of rule XXI.

          XVII. STATEMENT ON PREEMPTION OF STATE, LOCAL, OR TRIBAL LAW

        This bill is not intended to preempt any state, local, or
    tribal law.

          XVIII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

        The bill does not change existing law.

                         XIX. COMMITTEE RECOMMENDATIONS

        On June 13, 2007, the Committee on Science and Technology
    favorably reported H.R. 2304, as amended, by a voice vote and
    recommended its enactment.

        XX. PROCEEDINGS OF THE MARKUP BY THE SUBCOMMITTEE ON ENERGY AND
     ENVIRONMENT ON H.R. 2304, THE ADVANCED GEOTHERMAL ENERGY RESEARCH AND
                            DEVELOPMENT ACT OF 2007

                                  ----------

                            WEDNESDAY, JUNE 6, 2007

                      House of Representatives,
                Subcommittee on Energy and Environment,
                           Committee on Science and Technology,
                                                        Washington, DC.

        The Subcommittee met, pursuant to call, at 9:44 a.m., in
    Room 2318 of the Rayburn House Office Building, Hon. Nick
    Lampson [Chairman of the Subcommittee] presiding.
        Chairman Lampson. Good morning. The Subcommittee on Energy
    and Environment will come to order. Pursuant to notice, the
    Subcommittee on Energy and Environment meets to consider the
    following measures: H.R. 906, the Global Change Research and
    Data Management Act of 2007; H.R. 2304, the Advanced Geothermal
    Energy Research and Development Act of 2007; and H.R. 2313, the
    Marine Renewable Energy Research and Development Act of 2007.
        We will now proceed with the markup beginning with opening
    statements, and I will begin.
        Today the Subcommittee will consider three bills: H.R. 906,
    the Global Change Research and Data Management Act; H.R. 2304,
    the Advanced Geothermal Energy Research and Development Act;
    and H.R. 2313, the Marine Renewable Energy Research and
    Development Act of 2007.
        First, we will take up H.R. 906, the Global Change Research
    and Data Management Act of 2007, which will re-orient the
    current interagency climate research program to produce
    information that supports efforts of resource managers,
    businesses and individuals to understand and reduce our
    vulnerability to extreme weather events and climate change.
        The U.S. Global Change Research Program has been in
    existence in some form since the late 1970s. This important
    program has vastly expanded our knowledge of Earth's land,
    water and atmospheric systems. However, fires, droughts,
    hurricanes and other natural events have highlighted our
    increasing vulnerability to extreme weather and climate
    changes. With better planning and implementation adaptation
    strategies, these costs can be reduced.
        Next, we will consider two pieces of legislation to expand
    our country's renewable energy portfolio in the areas of
    geothermal and ocean power. These resources are both
    potentially vast in size and have potential to provide clean
    power at competitive rates but they require support to advance
    to the stage of commercial viability.
        H.R. 2304, the Advanced Geothermal Energy Research and
    Development Act of 2007, would reinvigorate geothermal research
    and development in this country. It would provide support and
    guidance for researchers to develop technologies capable of
    tapping into the vast quantities of thermal energy that is
    stored in the Earth's crust.
        H.R. 2313, the Marine Renewable Energy Research and
    Development Act of 2007, would support renewable energy
    development by exploiting the energy of ocean tides and
    currents. Today this promising industry is at roughly the same
    development stage that wind was back 20 years ago. With the
    support provided by this bill, this industry is posed to grow
    into a significant contributor of clean electricity to our
    nation's power grid.
        In short, these bills are about addressing overlooked
    opportunities in our collective efforts to create good American
    jobs, diversify our energy supply, increase our security and
    reduce the environmental impact of energy production. All three
    pieces of legislation are important to our environment and our
    economy. Therefore, I urge their passage and I look forward to
    getting them to the House Floor.
        [The prepared statement of Chairman Lampson follows:]

                  Prepared Statement of Chairman Nick Lampson

       Today, the Subcommittee we will consider three bills, H.R. 906, the
    Global Change Research and Data Management Act; H.R. 2304, the Advanced
    Geothermal Energy Research and Development Act; and H.R. 2313, the
    Marine Renewable Energy Research and Development Act.
        First, we will take up H.R. 906, the Global Change Research and
    Data Management Act of 2007, which will re-orient the current
    interagency climate research program to produce information that
    supports efforts of resource managers, businesses, and individuals to
    understand and reduce our vulnerability to extreme weather events and
    to climate change.
        The U.S. Global Change Research Program has been in existence in
    some form since the late 1970s. This important program has vastly
    expanded our knowledge of Earth's land, water, and atmospheric systems.
        However, fires, droughts, hurricanes, and other natural events have
    highlighted our increasing vulnerability to extreme weather and climate
    changes. With better planning and implementation of adaptation
    strategies these costs can be reduced.
        Next, we will consider two pieces of legislation to expand our
    country's renewable energy portfolio in the areas of geothermal and
    ocean power. These resources are both potentially vast in size and have
    potential to provide clean power at competitive rates, but they require
    support to advance to the stage of commercial viability.
        H.R. 2304, the Advanced Geothermal Energy Research and Development
    Act of 2007, would reinvigorate geothermal research and development in
    this country. It would provide support and guidance for researchers to
    develop technologies capable of tapping into the vast quantities of
    thermal energy that is stored in the Earth's crust.
        H.R. 2313, the Marine Renewable Energy Research and Development Act
    of 2007, would support renewable energy development by exploiting the
    energy of ocean tides and currents.
        Today, this promising industry is at roughly the same developmental
    stage that wind was at 20 years ago. With the support provided by this
    bill, this industry is poised to grow into a significant contributor of
    clean electricity to our nation's power grid.
        In short, these bills are about addressing overlooked opportunities
    in our collective efforts to create good American jobs, diversify our
    energy supply, increase our security, and reduce the environmental
    impact of energy production.
        All three pieces of legislation are important to our environment
    and our economy. Therefore, I urge their passage, and look forward to
    getting them to the House Floor.

        Chairman Lampson. At this time I will recognize Mr. Inglis
    to present his opening remarks.
        Mr. Inglis. Thank you, Mr. Chairman, and thank you for
    holding this markup.
        I am happy to be a co-sponsor of Mr. Udall's bill, the
    Global Change Research and Data Management Act. For a number of
    years, the U.S. Global Research Program has coordinated a
    successful interagency research program on global environmental
    change and implications of a changing climate for society. H.R.
    906 continues support for this research and makes that research
    user-friendly for federal, State and local decision-makers who
    are tasked with the job of creating policies that address the
    challenges associated with climate change.
        We also have an opportunity to address the development of
    clean, renewable energy sources in today's markup of H.R. 2304,
    the Advanced Geothermal Energy Research and Development Act,
    and H.R. 2313, the Marine Renewable Energy Research and
    Development Act. Geothermal and marine-related energy should be
    sources of energy for us and I am looking forward to promoting
    research that will make these alternatives commercially
    feasible. I hope we can build on what we have already learned
    and that experience scientists in that program have already
    achieved and move forward to even greater use of these sources
    of energy.
        And Mr. Chairman, I hope that by the time that we have
    concluded opening statements, that more Members will appear
    from the Republican conference that is still underway, and when
    they do, I suppose we will have a quorum for votes on these
    bills.
        [The prepared statement of Mr. Inglis follows:]

                Prepared Statement of Representative Bob Inglis

        Thank you for holding this markup, Mr. Chairman.
        I'm happy to be a co-sponsor of Mr. Udall's bill, the Global Change
    Research and Data Management Act. For many years, the United States
    Global Research Program has coordinated a successful interagency
    research program on global environment change and implications of a
    changing climate for society. H.R. 906 continues support for this
    research, and makes that research ``user-friendly'' for federal, State,
    and local decision-makers who are tasked with the job of creating
    policies that address the challenges associated with climate change.
        We also have an opportunity to address the development of clean,
    renewable energy sources in today's markup of H.R. 2304, the Advanced
    Geothermal Energy Research and Development Act, and H.R. 2313, the
    Marine Renewable Energy Research and Development Act. Geothermal and
    marine-related energy should be sources of energy for us, and I'm
    looking forward to promoting research that will make these alternatives
    commercially affordable. I hope that we can build on what we've already
    learned and that experienced scientists and other professionals are
    included so that duplication.
        Thank you again, Mr. Chairman, and I look forward to working with
    you to advance this legislation.

        Chairman Lampson. We will be ready for the votes when they
    come in. We may get a little ahead of them.
        Without objection, Members may place statements in the
    record at this point.
        We will now consider H.R. 2304, the Advanced Geothermal
    Energy Research and Development Act of 2007. I yield Mr.
    McNerney five minutes to describe his bill.
        Mr. McNerney. Thank you, Mr. Chairman, for your support of
    my bill, H.R. 2304, the Advanced Geothermal Energy Research and
    Development Act of 2007, and for holding this markup today.
        Geothermal energy derived from the Earth's heat is an
    under-utilized renewable energy resource. Studies show that new
    geothermal sources known as enhanced geothermal energy systems,
    or EGS, offer the potential to generate as much as 100
    gigawatts of power in the next 50 years. Utilizing EGS involves
    creating underground reservoirs that do not occur naturally but
    rather are mechanically or chemically engineered out of hot
    rock. Fluid is introduced to circulate and absorb the heat and
    then pumped out to extra energy. EGS is in the early stages of
    its maturation and federal support is necessary to ensure that
    full potential of this resource is utilized.
        My bill authorizes further research, development,
    demonstration and commercial application of advanced
    technologies to develop more traditional geothermal sources and
    EGS. H.R. 2304 specifically authorizes the research and
    development of both the technologies and techniques necessary
    to fully utilize EGS. Geothermal energy should be an important
    component of our country's efforts to combat climate change and
    achieve energy independence. As a domestically produced energy
    source, expanding geothermal will also create high-paying jobs
    here at home. I hope that my colleagues here today will join me
    in supporting H.R. 2304 and I thank Mr. Lampson for holding
    this markup.
        I yield back the balance of my time.
        [The prepared statement of Mr. McNerney follows:]

              Prepared Statement of Representative Jerry McNerney

        Thank you, Chairman Lampson, for your support for my bill, H.R.
    2304, the Advanced Geothermal Energy Research and Development Act of
    2007, and for holding this markup today.
        Geothermal energy derived from the Earth's heat is an under-
    utilized renewable energy source. Studies show that new geothermal
    resources, known as Enhanced Geothermal Systems, or EGS, offer the
    potential to generate as much as 100 Gigawatts of power in the next 50
    years. Utilizing EGS involves creating underground reservoirs that do
    not occur naturally, but rather are mechanically or chemically
    engineered out of hot rock. Fluid is introduced to circulate and absorb
    the heat, and is then pumped out to extract the energy. EGS is in early
    stages of its maturation, and federal support is necessary to ensure
    that the full potential of this resource is realized.
        My bill authorizes further research, development, demonstration,
    and commercial application of advanced technologies to develop both
    traditional geothermal sources and EGS. H.R. 2304 specifically
    authorizes the research and development of both the technologies and
    techniques necessary to fully utilize EGS.
        Geothermal energy should be an important component of our country's
    efforts to combat climate change and achieve energy independence. As a
    domestically-produced energy source, expanding geothermal will also
    create high paying jobs at home. I hope that my colleagues here today
    will join me in supporting H.R. 2304, and I thank Chairman Lampson
    again for holding this markup. I yield back the balance of my time.

        Chairman Lampson. Thank you, Mr. McNerney.
        I now recognize Mr. Inglis to present any remarks on the
    bill.
        Mr. Inglis. As I said in my opening statement, Mr.
    Chairman, this too is a good bill and I am happy to be
    supporting it, and look forward to development of this
    resource.
        Chairman Lampson. Thank you very much.
        Does anyone else wish to be recognized?
        I ask unanimous consent that the bill is considered as read
    and open to amendment at any point, and that the Members
    proceed with amendments in the order of the roster. Without
    objection, so ordered.
        The first amendment on the roster is an amendment offered
    by the gentleman from California, Mr. McNerney. Are you ready
    to proceed with your amendment?
        Mr. McNerney. Yes, I am, Mr. Chairman.
        Chairman Lampson. The Clerk will report the amendment.
        The Clerk. Amendment to H.R. 2304 offered by Mr. McNerney
    of California.
        Chairman Lampson. I ask unanimous consent to dispense with
    the reading. Without objection, so ordered.
        I recognize Mr. McNerney for five minutes to explain the
    amendment.
        Mr. McNerney. Thank you, Mr. Chairman.
        This amendment, like the prior one, takes into account
    suggestions made by our witnesses at legislative hearings held
    on May 17 as well as numerous comments from outside experts in
    geothermal energy, industry, researchers and the environmental
    community. Most of the changes are simple housekeeping measures
    intended to refine or clarify language but there are some
    substantive changes as well.
        First among these is a revision to the instructions for
    establishing federal/non-federal cost-sharing ratios for the
    projects. Revision instructions are intended to make the
    process more flexible both for the administrators and the
    participants. The revised instructions provide greater leeway
    for program administrators to tailor cost-sharing levels to
    individual projects depending on the project's risk profile and
    the opportunities for commercial benefits. It allows for a
    competitive bidding process to play a role in determining the
    cost-sharing ratio for a project so as to encourage
    participating entities to invest as much of their own capital
    as they can.
        The amendment also strengths the environmental provisions
    of the bill considerably. It directs the Secretary to support
    an R&D program to develop technologies and techniques to
    mitigate or avoid adverse environmental impacts of geothermal
    energy production or use. It also directs the Secretary to
    coordinate with the Environmental Protection Agency to study
    the environmental impacts of geothermal energy development,
    production and use. In addition, the amendment directs the
    Secretary to give priority consideration for funding where
    appropriate to project proposals that include provisions to
    study the project's environmental impacts.
        Finally, the amendment strengthens some geothermal
    technology transfer programs. It encourages the Enhanced
    Geothermal Systems Technology Transfer Center established in
    the bill to seek opportunities for coordination with
    appropriate international partners so we can benefit from
    lessons learned by other countries as they are advancing the
    frontier of EGS technology. The amendment also expands the
    scope of an existing domestic geothermal technology transfer
    program from the Western United States to the entire country so
    as to encourage the transfer and adoption of appropriate
    geothermal energy technologies throughout the United States. As
    indicated before, this amendment is a product of close
    collaboration with witnesses and other experts and it makes
    some solid improvements in the original bill.
        I strongly encourage my colleagues to vote for its passage,
    and I yield the balance of my time.
        [The prepared statement of Mr. McNerney follows:]

              Prepared Statement of Representative Jerry McNerney

        Thank you, Mr. Chairman. This amendment takes into account
    suggestions made by our witnesses at the legislative hearing held on
    May 17, as well as numerous comments from outside experts in the
    geothermal industry, researchers, and the environmental community. Most
    of the changes are simple ``housekeeping'' measures intended to refine
    or clarify language, but there are a few substantive changes as well:

        First among these is a revision to the instructions for
    establishing the federal/non-federal cost-sharing ratios for projects.
    The revised instructions are intended to make the process more
    flexible, both for administrators and participants. The revised
    instructions provide greater leeway for program administrators to
    tailor cost-sharing levels to individual projects, depending on the
    project's risk profile and the opportunities for commercial benefits.
    It also allows for a competitive bidding process to play a role in
    determining the cost-share ratio for a project, so as to encourage
    participating entities to invest as much of their own capital as they
    can.
        This amendment also strengthens the environmental provisions of the
    bill considerably. It directs the Secretary to support an R&D program
    to develop technologies and techniques to mitigate or avoid adverse
    environmental impacts of geothermal energy development, production, or
    use. It also directs the Secretary to coordinate with the Environmental
    Protection Agency to study the environmental impacts of geothermal
    energy development, production, and use. In addition, the amendment
    directs the Secretary to give priority consideration for funding--where
    appropriate--to project proposals that include provisions to study the
    project's environmental impacts.
        Finally, the amendment strengthens some geothermal technology
    transfer programs. It encourages the Enhanced Geothermal Systems
    Technology Transfer Center established in the bill to seek
    opportunities for coordination with appropriate international partners,
    so we can benefit from lessons learned by other countries that are
    advancing the frontier of EGS knowledge. The amendment also expands the
    scope of an existing, domestic geothermal technology transfer program
    from the western U.S. to the entire country, so as to encourage the
    transfer and adoption of appropriate geothermal energy technologies
    throughout the entire United States.
        As indicated before, this amendment is the product of close
    collaboration with witnesses and other experts, and it makes some solid
    improvements to the original bill. I strongly encourage my colleagues
    to vote for its passage. I yield the balance of my time.

        Chairman Lampson. Thank you. Is there further discussion on
    the amendment? Further discussion on the amendment? If not, the
    vote occurs on the amendment. All in favor say aye. Those
    opposed say no. The ayes have it and the amendment is agreed
    to.
        Are there other amendments? Hearing none, the vote is on
    the bill, H.R. 2304, the Advanced Geothermal Energy Research
    and Development Act of 2007, as amended. All those in favor--
    yes, ma'am, Ms. Biggert?
        Ms. Biggert. If I could ask a question on the bill. In
    section 8, the Centers for geothermal technology transfers, my
    concern with the two Centers is that it splits the Midwest into
    two by dividing it at the Mississippi River. Was there any
    reason for that designation? One is to be in the western and
    the other Center in the Eastern United States, and the poor
    Midwest gets split in two.
        Mr. McNerney. Thank you for the question. What this bill
    does is, it gives the Secretary quite a bit of flexibility in
    where these two Centers will go. We wanted to make sure that
    the western half of the country had a Center because of the
    geothermal properties in the West are significantly different
    than the East, so we didn't intend to split it exactly on the
    line but I think the Secretary will have a lot of flexibility
    in where those two Centers go.
        Ms. Biggert. It won't necessarily be just where it leaves
    the Mississippi, they can't use that Center if you are on one
    side of the Mississippi?
        Mr. McNerney. No, it doesn't have that intent, and that
    wasn't the intent at all.
        Ms. Biggert. Okay. Is there any difference in the geology
    in the Midwest versus the West or the East?
        Mr. McNerney. Well, in the western part of the country we
    have the most accessible geothermal energy. In the eastern, it
    is going to require more of the EGS technology so it is
    important that we develop that technology so that we can use
    this sort of energy source throughout the country because there
    is significant resource throughout the United States but the
    part in the western is more accessible with this existing
    technology, which is again why it is so important for us to
    develop the EGS within the bill, that is identified within the
    bill.
        Ms. Biggert. Having been up in Iceland and seeing what they
    do up there, it is amazing, the geology up there, that this can
    then be created by----
        Mr. McNerney. That is right. In Iceland they have the
    resources really near the surface of the Earth. The rock
    formations are particularly well suited for geothermal. What is
    missing in most of our resources that the rock formations are
    not appropriate. They are little deeper so we have to develop
    technology to crack the rocks or to open up the reservoirs deep
    underground.
        Ms. Biggert. Thank you. I yield back.
        Chairman Lampson. Are there any other questions?
        The vote then will be on the bill. All those in favor, say
    aye. Those opposed, no. In the opinion of the Chair, the ayes
    have it.
        I recognize Mr. Inglis to offer a motion.
        Mr. Inglis. Mr. Chairman, I move that the Subcommittee
    favorably report H.R. 2304 as amended to the Full Committee.
    Furthermore, I move that the staff be instructed to prepare the
    Subcommittee legislative report and make necessary technical
    and conforming changes to the bill as amended in accordance
    with the recommendations of the Subcommittee.
        Chairman Lampson. The question is on the motion to report
    the bill favorably. Those in favor of the motion will signify
    by saying aye. Opposed, no. The ayes have it, and the bill is
    favorably reported.
        Without objection the motion to reconsider is laid upon the
    table. Subcommittee Members may submit additional or minority
    views on the measure.
        I want to thank the Members for their attendance, and this
    concludes our Subcommittee markup. We are adjourned.
        [Whereupon, at 10:25 a.m., the Subcommittee was adjourned.]

                                   Appendix:

                                  ----------

            H.R. 2304, Section-by-Section Analysis, Amendment Roster

                   Section-by-Section Analysis of H.R. 2304,
                    Advanced Geothermal Energy Research and
                            Development Act of 2007

    Summary

        H.R. 2304 directs the Secretary of Energy to support programs of
    research, development, demonstration, and commercial application in
    advanced geothermal energy technologies. It also establishes or expands
    several programs for technology transfer and information sharing on
    geothermal energy.

    Section-by-Section

    Section 1. Short Title

        Act may be cited as the ``Advanced Geothermal Energy Research and
    Development Act of 2007.''

    Section 2. Findings

        Geothermal energy is a renewable resource capable of providing
    baseload power generation (and other applications) with minimal
    environmental impact. The geothermal energy potential in the United
    States is widely distributed and vast in size, yet it remains barely
    tapped. Sustained and expanded funding for research, development,
    demonstration, and commercial application programs is needed to improve
    the technologies to locate, characterize, and develop geothermal
    resources.

    Section 3. Definitions

        Provides definitions for the following terms used in the Act:
    `Enhanced Geothermal Systems,' `Geofluid,' `Geothermal,'
    `Hydrothermal,' `Secretary,' and `Systems Approach.'

    Section 4. Hydrothermal Research and Development

        Instructs the Secretary to support research, development,
    demonstration, and commercial application of technologies designed to
    assist in locating and characterizing undiscovered hydrothermal
    resources. Establishes an ``industry-coupled exploratory drilling''
    program, which is a cost-shared program with industry partners to
    demonstrate and apply advanced exploration technologies.

    Section 5. General Geothermal Systems Research and Development

        Establishes a program of research, development, demonstration, and
    commercial application of system components and materials capable of
    withstanding the extreme environment (high temperatures and
    corrosiveness) in geothermal wells. Also establishes a program of
    RDD&CA of improved models of geothermal reservoir performance.

    Section 6. Enhanced Geothermal Systems (EGS) Research and Development

        Instructs the Secretary to support a program of RDD&CA of
    technologies necessary to advance EGS to a state of commercial
    readiness. Also establishes a cost-shared, field based program of
    research, development, and demonstration of technologies to create and
    stimulate EGS reservoirs.

    Section 7. Cost Sharing

        Establishes guidelines for the ratio of federal/non-federal
    contributions to cost-shared programs established under this Act. Also
    describes certain organizational and administrative elements to be
    integrated into the structure of cost-shared programs.

    Section 8. Centers for Geothermal Technology Transfer

        Provides for the creation of two Centers of technology transfer to
    function as information clearinghouses for the geothermal industry,
    dedicated to collecting and sharing industry-relevant information. One
    Center, to be located in the western U.S., shall be dedicated to
    hydrothermal-specific development information; the other Center,
    located in the eastern U.S., shall be dedicated to EGS-specific
    development information.

    Section 9. Study on Advanced Uses of Geothermal Energy

        Requires the Secretary to track technological advances impacting
    geothermal energy development and advanced uses of geothermal energy
    and fluids, and report back to the Committee every other year for the
    next five years (a total of three times).

    Section 10. Authorization of Appropriations

        Authorizes appropriations of $80,000,000 for each of the fiscal
    years 2008 through 2012.

        XXI. PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 2304, THE
        ADVANCED GEOTHERMAL ENERGY RESEARCH AND DEVELOPMENT ACT OF 2007

                                  ----------

                            WEDNESDAY, JUNE 13, 2007

                              House of Representatives,
                           Committee on Science and Technology,
                                                        Washington, DC.

        The Committee met, pursuant to call, at 10:12 a.m., in Room
    2318 of the Rayburn House Office Building, Hon. Bart Gordon
    [Chairman of the Committee] presiding.
        Chairman Gordon. Pursuant to notice, the Committee meets to
    consider the following measures: H.R. 2304, the Advanced
    Geothermal Energy Research and Development Act of 2007, and
    H.R. 2313, the Marine Renewable Energy Research and Development
    Act of 2007.
        We will now proceed with the markup. I begin with a brief
    statement.
        Today the Committee will consider two bills, H.R. 2304, the
    Advanced Geothermal Energy Research and Development Act,
    introduced by Mr. McNerney, and H.R. 2313, the Marine Renewable
    Energy Research and Development Act, introduced by Ms. Hooley
    and co-sponsored by Mr. Rohrabacher who has had a great deal of
    input into this bill. Each of these two bills is designed to
    expand our country's renewable energy production portfolio.
    Both geothermal energy and marine energy are enormous resources
    that have great potential to make significant contributions to
    meeting our nation's energy needs at a competitive cost. But
    they require more support for research and development in order
    to advance to a state of commercial readiness.
        Geothermal energy is the energy stored as heat in the
    Earth's crust. It is a resource of truly vast potential. Yet
    most of this potential goes untapped due to a lack of resources
    to develop the technologies that would make geothermal energy
    widely accessible.
        H.R. 2304, the Advanced Geothermal Energy Research and
    Development Act of 2007, will build on and expand the existing
    geothermal energy programs and provide support to develop a
    wide range of hydrothermal and enhanced geothermal systems. In
    the process, the bill would reinvigorate geothermal research
    and development in the United States and elevate geothermal
    energy to a position as a major contributor to our nation's
    power production portfolio.
        Marine renewable energy technologies today are at a stage
    of development similar to where wind power was about 20 years
    ago. The prototype technologies show great promise, and the
    resource is huge, potentially able to provide as much as 10
    percent of our nation's energy needs. But here again,
    researchers and industry require more support if they are going
    to move these technologies from the experimental stage to
    commercial viability. H.R. 2313, the Marine Renewable Energy
    Research and Development Act, is designed to do just that.
        Both of these bills are designed to address overlooked
    opportunities in our efforts to create a 21st century energy
    policy that emphasizes good American jobs, diversity of supply,
    increased national security, and reduced environmental impact.
        I want to thank my colleagues, Mr. McNerney and Mrs. Hooley
    for introducing them. I urge their passage and look forward to
    getting them to the House Floor.
        I would also like to make one final comment, and before we
    get down to business I want to offer my sincere thanks and
    appreciation to my friend and colleague and our Ranking Member,
    Mr. Hall, and his colleagues on the Minority side for proposing
    some very thoughtful, meaningful amendments to today's bills
    for our consideration.
        I cannot guarantee that we will be supporting all of them,
    but we will definitely be supporting many of them; and the
    Committee staff informs me that the amendments have contributed
    significantly to the quality of this legislation.
        I think this is another very good example of the bipartisan
    spirit with which we will strive to conduct the business of the
    Science and Technology Committee.
        [The prepared statement of Chairman Gordon follows:]

                   Prepared Statement of Chairman Bart Gordon

        Today, the Committee will consider two bills, H.R. 2304, the
    Advanced Geothermal Energy Research and Development Act, introduced by
    Mr. McNerney, and H.R. 2313, the Marine Renewable Energy Research and
    Development Act, introduced by Ms. Hooley and Mr. Rohrabacher.
        Each of these two bills is designed to expand our country's
    renewable energy production portfolio. Both geothermal energy and
    marine energy are enormous resources that have great potential to make
    significant contributions to meeting our nation's energy needs at a
    competitive cost. But they require support for research and development
    in order to advance to a state of commercial readiness.
        Geothermal energy is the energy stored as heat in the Earth's
    crust, and it is a resource of truly vast potential. Yet most of this
    potential goes untapped due to lack of resources to develop the
    technologies and techniques that would make geothermal energy widely
    accessible.
        H.R. 2304, the Advanced Geothermal Energy Research and Development
    Act of 2007, will build on and expand the existing DOE geothermal
    energy program and provide the support to develop a wide range of
    Hydrothermal and Enhanced Geothermal Systems. In the process, the bill
    would reinvigorate geothermal research and development in the United
    States, and elevate geothermal energy to a position as major
    contributor to our nation's power production portfolio.
        Marine renewable energy technologies today are at a stage of
    development similar to where wind power was about 20 years ago. The
    prototype technologies show great promise, and the resource is huge,
    potentially able to provide as much as 10 percent of our nation's
    electricity needs. But here again, researchers and industry require
    more support if they are going to move these technologies from the
    experimental stage to commercial viability. H.R. 2313, the Marine
    Renewable Energy Research and Development Act of 2007, is designed to
    do just that.
        Both of these bills are designed to address overlooked
    opportunities in our efforts to create a 21st century energy policy
    that emphasizes good American jobs, diversity of supply, increased
    national security, and reduced environmental impact.
        I want to thank my colleagues, Mr. McNerney and Ms. Hooley and Mr.
    Rohrabacher, for introducing them. I urge their passage, and look
    forward to getting them to the House Floor.
        I would like to make one final comment before we get down to
    business. I want to offer my sincere thanks and appreciation to my
    friend and colleague, the Ranking Member Mr. Hall, and his colleagues
    on the Minority side for proposing some very thoughtful amendments to
    these bills for our consideration today.
        I can't guarantee that we'll be supporting all of them, but we will
    definitely be supporting some of them, and the Committee staff informs
    me that the amendments have contributed significantly to the quality of
    this legislation.
        I think this is another fine example of the bipartisan spirit with
    which we strive to conduct the business of the Science and Technology
    Committee.
        Thank you to everyone for your thorough consideration of these
    important bills, and for your substantive contributions to make them
    even better.

        Chairman Gordon. Now, I recognize Mr. Hall to present his
    opening statement.
        Mr. Hall. Thank you, Mr. Chairman. The two renewable energy
    research and development bills before us today are two more
    ways that the Science Committee is going to help to further our
    country's effort to become energy independent. It is no secret,
    I am an oil and gas guy. I am from an oil and gas state, fossil
    fuel state; and for those that think we can do away with fossil
    fuels are just dreaming. These lights would go out, the
    stations would stop, roads would not be built. We cannot do
    without fossil fuels, and there is an attack on energy today in
    general; and certainly there is an attack on fossil fuels,
    there is an attack on nuclear, even on wind. I think I would
    like to see our country do this in conjunction with our
    renewable and alternative thrust. We still need affordable,
    reliable energy that comes from fossil fuels while we do
    research, such as that in the bills we are marking up today in
    order for our country to continue to be a leader in all the
    areas in the global community. Both bills are going to spur the
    use of domestic, renewable resources available to us within our
    borders and in our waters for the production of energy. While I
    support the thrust of these bills, I do have some concern with
    them that will be addressed through amendments.
        I have one to the geothermal bill that will address the
    production of geothermal energy from oil and gas wells and
    production of geopressured gas resources. It is my
    understanding that the Chairman is prepared to accept this
    amendment. He spoke kindly about it, and whether the kind words
    are going to come into reality remains to be seen. To be
    continued, I guess. And I thank him for it. In addition, I will
    be offering an amendment to the ocean energy bill that will
    expand the areas of the country, parts of the country, that
    participate in research and development activities on marine
    renewable energy. I will go into these amendments in further
    detail as they are brought up for consideration. As always, I
    look forward to the ensuing debate, and I yield back the
    balance of my time.
        [The prepared statement of Mr. Hall follows:]

               Prepared Statement of Representative Ralph M. Hall

        Thank you, Mr. Chairman. The two renewable energy research and
    development bills before us today are two more ways the Science
    Committee is helping to further our country's efforts to become energy
    independent. It's no secret that I'm an oil and gas guy, and that I
    fully support increasing our domestic supply of oil and gas. I would
    like to see our country do this in conjunction with our renewable and
    alternatives thrust. We still need affordable, reliable energy that
    comes from fossil fuels, while we do research such as that in the bills
    we are marking up today, in order for our county to continue to be a
    leader in all areas in the global community. Both bills will spur the
    use of domestic, renewable resources available to us within our borders
    and in our waters for the production of energy. While I support the
    thrust of the bills, I do have some concerns with them that will be
    addressed through amendments.
        I have one to the geothermal bill that will address the production
    of geothermal energy from oil and gas wells and production of
    geopressured gas resources. It is my understanding that the Chairman is
    prepared to accept this amendment and I thank him. In addition, I will
    be offering an amendment to the ocean energy bill that will expand the
    areas of the country eligible to participate in research and
    development activities on marine renewable energy. I will go into these
    amendments in further detail as they are brought up for consideration.
        As always, I look forward to the ensuing debate, and I yield back
    the balance of my time.

        Chairman Gordon. Thank you, Mr. Hall. I want to confirm two
    things. One is I am kind, and two, you are from fossil fuel
    country but you are not a fossil.
        Without objection, Members may place statements in the
    record at this point.
        We will now consider H.R. 2304, the Advanced Geothermal
    Energy Research and Development Act of 2007.
        I yield to the gentleman from California, Mr. McNerney five
    minutes to describe his bill.
        Mr. McNerney. Thank you, Mr. Chairman. I want to express my
    appreciation to both you and to Ranking Member Hall for
    supporting my bill, H.R. 2304, the Advanced Geothermal Energy
    Research and Development Act of 2007, and for holding a markup
    this morning.
        Mr. Chairman, as you know, one of our highest priorities in
    Congress should be to encourage the development of clean
    domestic and renewable sources of energy.
        Geothermal energy should be an important part of the
    equation, and unlike other renewable sources, geothermal
    provides uninterrupted base load power 365 days and nights a
    year. While it is one of the only renewable sources that can
    produce constantly available base-load power, geothermal relies
    on less accessible fuel than naturally occurring sunlight and
    wind. Current technology requires that in order to generate
    geothermal energy, we have to tap into visible sources of
    features and hope that we drill in the right place. However,
    recent study shows that potential for geothermal is vaster than
    we previously imagined. Now, geothermal sources, known as
    enhanced geothermal systems, or EGS, offer the potential to
    generate as much as 100 gigawatts of power over the next 50
    years which can provide power to 75 million homes. Utilizing
    EGS involves creating manmade underground reservoirs that are
    engineered out of hot rock deep under the surface. Once the
    rock formations are engineered, fluid is injected to absorb
    heat which is then pumped out to extract energy.
        EGS is in the very early stages of maturation, and federal
    support is needed to ensure that the full potential of this
    resource is realized. H.R. 2304 authorizes further research
    development, demonstration, and commercial application of
    advanced technologies in both traditional geothermal sources
    and EGS. This type of approach is exactly how we can and should
    be developing and expanding R&D of the technologies necessary
    to utilize EGS. Geothermal energy should be an important
    component of our country's efforts to combat climate change and
    achieve energy independence. As a domestically produced energy
    source, expanding geothermal will create high-paying jobs at
    home.
        I hope that my colleagues here today will join me in
    supporting H.R. 2304. I look forward to discussing the
    amendments, and again I thank the Chairman and the Ranking
    Member for holding this markup. I yield back the balance of my
    time.
        [The prepared statement of Mr. McNerney follows:]

              Prepared Statement of Representative Jerry McNerney

        Thank you Mr. Chairman. I want to express my appreciation to both
    you, and Ranking Member Hall, for your support of my bill, H.R. 2304,
    the Advanced Geothermal Energy Research and Development Act of 2007,
    and for holding today's markup.
        Mr. Chairman, as you know, one of our foremost priorities in
    Congress should be to encourage the development of clean, domestic, and
    renewable sources of energy.
        Geothermal should be an important part of the equation, and unlike
    other renewable resources, geothermal provides uninterrupted base-load
    power, day and night, 365 days a year.
        While it is one of the only sources that produces constantly
    available power, geothermal relies on a less-accessible fuel than
    naturally occurring sunlight or wind.
        Current technology requires that in order to generate geothermal
    energy, we have to tap into visible surface features and hope that we
    drill in the right place.
        However, recent studies show that the potential for geothermal is
    more vast than we've previously imagined. New geothermal resources,
    known as Enhanced Geothermal Systems, or EGS, offer the potential to
    generate as much as 100 Gigawatts of power in the next 50 years, which
    can power 75 million homes.
        Utilizing EGS involves creating man made underground reservoirs
    that are engineered out of hot rock. Fluid is injected to absorb the
    heat, which is then pumped out to extract energy.
        EGS is in the very early stages of maturation, and federal support
    is needed to ensure that the full potential of this resource is
    realized.
        H.R. 2304 authorizes further research, development, demonstration,
    and commercial application of advanced technologies to develop both
    traditional geothermal sources and EGS. This type of approach is
    exactly how we can, and should, be working to expand R&D of the
    technologies necessary to fully utilize EGS.
        Geothermal energy should be an important component of our country's
    efforts to combat climate change and achieve energy independence. As a
    domestically-produced energy source, expanding geothermal will also
    create high paying jobs at home. I hope that my colleagues here today
    will join me in supporting H.R. 2304, and I again thank the Chairman
    for holding this markup. I yield back the balance of my time.

        Chairman Gordon. Thank you, Mr. McNerney. Mr. Hall is
    recognized.
        Mr. Hall. Mr. Chairman, this amendment----
        Chairman Gordon. Mr. Hall tells me----
        Mr. Hall. The bill is great.
        Chairman Gordon. Are there similar remarks that anyone
    would like to make?
        We need to move on today, but let me just quickly say that
    I have seen firsthand the benefit of geothermal. In Sumner
    County, a place called Portland started using geothermal and
    now it is over a lot of the areas in my district where the
    schools are using geothermal. What they are finding is within
    about three years, through lower rates of energy, they are
    paying for putting these systems in and then it is gravy from
    then on. This needs to be expanded. It is really a good
    program.
        The other thing, just for your information, if I were you,
    I would be an advocate of this at home; but for your
    information, I have got a bill that is going through Resources
    Committee that will help really inventory our geophysical
    nature of our United States to better determine where are those
    areas where geothermal could be used, where could sequestration
    be used, all these sorts of things. So geothermal is something
    that I think we can all talk about at home. It is real and it
    is good.
        Is there anyone else that would like to speak? Ms. Woolsey
    is recognized.
        Ms. Woolsey. Thank you, Mr. Chairman, and thank you and Mr.
    McNerney for this great H.R. 2304 legislation.
        Geothermal energy, as we all know, has huge potential to
    supply us with a clean, reliable, and renewable source of
    energy. And already in some parts of the country, geothermal
    energy is making a big contribution to meeting our energy
    needs.
        Just outside of my district, north of Santa Rosa, are some
    of the largest and most readily available reserves in
    geothermal energy in the country. The geysers, as they are
    called, comprise 30 square miles along the Sonoma and Lake
    County border and provide enough electricity to meet the energy
    needs of one million homes. Imagine, one million households
    running on electricity produced by steam that naturally occurs
    in the ground.
        What is even better for Northern California and for my
    district is that in order to produce more steam, the City of
    Santa Rosa, which is the largest city in my district, pumps
    treated wastewater out to the geysers to help create more
    steam, which then produces more electricity. It is a tremendous
    use of resources, and we are really proud of it in our
    district. It actually prevents Santa Rosa from having to put
    more wastewater in the Russian River which is the drinking
    water source for my entire district. And I mention this because
    in creating clean and renewable energy, we also can point out
    the possible geothermal connection, and I am 100 percent for
    this legislation and I really commend Mr. McNerney for
    introducing this bill. Aren't we glad he is on this committee?
        [The prepared statement of Ms. Woolsey follows:]

               Prepared Statement of Representative Lynn Woolsey

        Mr. Chairman, thank you for bringing H.R. 2304, the Advanced
    Geothermal Energy Research and Development Act, before the Committee to
    be marked up.
        Geothermal energy has huge potential to supply us with a clean,
    reliable, and renewable source of energy. Already in some parts of the
    country, geothermal energy is making a big contribution to meeting our
    energy needs.
        Just outside of my district in northern California, are some of the
    largest and most readily available reserves of geothermal energy in the
    country. The geysers, as they are called, comprise 30 square miles
    along the Sonoma and Lake County border and provide enough electricity
    to meet the energy needs of one million homes. Imagine that . . . one
    million households running on electricity produced by steam that
    naturally occurs in the ground.
        What's even better is that in order to produce more steam, the city
    of SANTA ROSA, which is the largest city in my district, pumps treated
    wastewater out to the geysers to help create more steam, which then
    produces more electricity. It's a tremendous use of resources that I'm
    really proud of.
        I mention these things because I'm proud of what is being done to
    create clean and renewable energy in my own district, but also to point
    out what is possible with geothermal energy. For too long, geothermal
    energy has taken a back seat in the public's mind and in Congressional
    policy as an alternative source of energy.
        Mr. Chairman, I commend Rep. McNerney for introducing this bill and
    I am proud to support it here today. The time has come to research and
    invest in geothermal energy and H.R. 2304 is a good start to get us on
    the right path.
        Thank you and I yield back the balance of my time.

        Chairman Gordon. Thank you, Ms. Woolsey. I want you to know
    that Mr. Hall thought you said geezer, but I told him that
    wasn't the case and so we can move along with a cordial markup
    here.
        So I ask unanimous consent that the bill is considered as
    read and open to amendment at any point and that the Members
    proceed with amendments in the order of the roster. Without
    objection, so ordered.
        The first amendment on the roster is an amendment offered
    by the distinguished Ranking Member, Mr. Hall. Are you ready to
    proceed with your amendment?
        Mr. Hall. No, after I take my medicine I will. I am going
    to watch Ben Matlock.
        Mr. Chairman, I have an amendment at the desk, I think.
        The Clerk. Amendment to H.R. 2304 offered by Mr. Hall of
    Texas.
        Chairman Gordon. The gentleman is recognized to explain the
    amendment.
        Mr. Hall. Mr. Chairman, this amendment will fill a major
    gap in the pending legislation. In May of 2006, the National
    Renewable Energy Laboratory, I'll refer to it as NREL for
    brevity, held a workshop of national experts on geothermal
    energy. The workshop produced a report that estimates the
    potential of the full range of geothermal resources. Included
    in that estimate were two important resource categories that
    the pending legislation, H.R. 2304, would leave for future
    studies. That's oil field, co-production, and geopressured
    resources. The NREL workshop estimated that in the next 20
    years, these two resources, co-production and geopressured,
    could provide as much as 70,000 megawatts of new power which
    would approach 10 percent of our total national electric power
    needs. In addition, substantial supplies of gas could be
    recovered from geopressured resources. This amendment proposes
    to establish a demonstration program to prove the feasibility
    of co-producing geothermal power from oil and gas fields. Based
    upon the work of scientists at Southern Methodist University
    and other research institutions, this has become an exciting,
    new area of research into new energy production. SMU
    researchers have documented that large numbers of hot water and
    great amounts of hot water are produced by existing oil and gas
    wells. In 2002, Texas produced over 12 billion barrels of
    wastewater, often hot, as a byproduct of oil and gas extraction
    and re-injected the water into the ground at a cost to the
    producer. In West Texas, for example, for every barrel of oil
    produced, nearly 100 barrels of hot water are co-produced. To
    the oil industry, producing hot water is at best a nuisance. It
    is difficult to handle, costs money to pump, and has to be re-
    injected at an additional cost. Considering the hot water
    estimates of oil and gas wells throughout the country, Texas
    alone could produce between 400 and 2,200 megawatts of
    geothermal power assuming the average temperature produced is
    between 200 and 300 degrees Fahrenheit.
        While the extent of oil field co-production is still being
    assessed, research to date has identified numerous other states
    where significant hot water is produced from oil and gas wells
    including California, Florida, West Virginia, Colorado,
    Wyoming, Montana, North Dakota, New Mexico, Oklahoma; and Utah
    and for the Chairman's benefit, I am sure it is also in
    Tennessee. I just didn't look there.
        Geopressured resources, a combination of hot brine and
    trapped gas under high pressure, are present in several areas
    of the country ranging from California and the Dakotas to
    Texas, Louisiana, and Alabama. The prime resource is considered
    to be in the area around the Gulf of Mexico both onshore and
    offshore. From 1975 to 1990, the U.S. Department of Energy
    invested over $200 million in geothermal research. In Texas and
    Louisiana, they built a power plant using a converted gas well
    in Brazoria County during 1989 and 1990. The project was
    successful, but after six months of operation, the power plant
    was dismantled because of the low price of oil and gas at that
    time made geothermal energy uncompetitive. Today, gas prices
    are much higher than in 1990, and we are now increasingly
    importing gas from overseas. The high cost is a burden on the
    economy, and the prospect of becoming dependent upon OPEC for
    major parts of our natural gas supplies has obvious national
    security implications. Yet, in the geopressured resources of
    the Gulf and elsewhere, we have enormous untapped energy
    potential. Estimates of recoverable gas from these resources
    range from 150 TCF to 5,000. That is 5,000 trillion cubic feet.
    The U.S. consumed 22.4 TCF of gas in 2002. The geopressured
    resources hold between seven and 225 years' supply of gas for
    the entire U.S. at 2002 levels of demand. To put the
    geopressured resource potential into another perspective, when
    DOE was actively examining the geopressured geothermal resource
    in the 1980s, a leading researcher estimated that for the
    northern Gulf of Mexico, recoverable resource could exceed
    1,000 TCF of gas.
        According to the latest United States Geological Survey
    estimate from 1995, the total technically recoverable volume of
    conventional and unconventional gas in the U.S. excluding
    geopressured brines and gas hydrates is at 1,073 TCF. If the
    effort envisioned by this amendment to bring new technology to
    bear on producing geopressured resources is successful, it
    could double the total recoverable natural gas in the United
    States.
        This amendment, Mr. Chairman, directs the Secretary of
    Energy to hold a design competition to produce state-of-the-art
    approaches to recovering the energy in the geopressured
    resources. In addition to gas, these resources hold tens of
    thousands of megawatts of potential energy and hot geothermal
    fluids and hydraulic pressures. From the designs submitted, DOE
    will support completion of the full engineering and other
    technical design work. Then, based upon the evaluation of the
    final designs, the Secretary will be authorized to move forward
    to build a cost-shared demonstration plan using the best
    technology and design.
        I urge my colleagues to support this amendment that helps
    to further not only our renewable energy portfolio but also our
    domestic supply of natural gas. And I yield back my time.
        Chairman Gordon. Thank you, Mr. Hall. Is there further
    discussion on the amendment? Mr. McNerney is recognized.
        Mr. McNerney. I thank the Ranking Member for this
    amendment. Using oil field co-production, geopressured methods
    does seem to be a good addition to the intent of the bill, and
    I think it will increase the output and energy content, energy
    development, energy sources for the country, so I fully support
    the bill and thank the Ranking Member for this addition.
        Chairman Gordon. Thank you, Mr. McNerney. Let me just
    quickly conclude by saying this started off as a good bill. It
    has been well-vetted, and it is a better bill because it took
    an oil-and-gas man to----
        Mr. Hall. Fossil. Fossil.
        Chairman Gordon. A fossil fuel man to show us a new way to
    look at this. And again, this a better bill for vetting this,
    and we thank you for it.
        And if there are no other----
        Mr. Hall. Would you like another reading of my opening
    statement?
        Chairman Gordon. I will take it to bed with me, thank you.
        Mr. Gingrey. Mr. Chairman, it is your yield. Did you refer
    to him as a fossil man? Is that what I thought?
        Chairman Gordon. We were trying to determine that earlier
    today, but we decided it was fossil fuel, not fossil man.
        If there is no further discussion, the vote occurs on the
    amendment. All in favor say aye, opposed no. The ayes have it.
    The amendment is agreed to.
        The next three amendments on the roster are offered by the
    gentleman from Maryland, Mr. Bartlett.
        The Chair supports all these amendments, and in the
    interest of time, I ask unanimous consent to consider these
    amendments en bloc. Without objection, so ordered.
        The gentleman is recognized for five minutes to explain his
    amendment.
        Mr. Bartlett. Thank you, Mr. Chairman. I want to thank the
    Members and staff on both sides of the aisle for helping to
    work through these three, simple common-sense amendments. The
    first one, amendment 2, simply replaces study with reports to
    make sure that the information is disseminated. The second one
    is a clarifying amendment which changes geopower to geopowering
    America. The third amendment, amendment 4, is a very common-
    sense amendment. Obviously we will not be able to access
    geothermal energy without some insult to the environment. This
    amendment simply says that you must weigh that minimal--
    hopefully minimal impact on the environment with the enormous
    positive environmental effects of producing energy that
    provides--that produces no greenhouse gases. These are three
    very simple, common-sense amendments; and I want to thank the
    Majority very much for working with us.
        Chairman Gordon. Is there further discussion on these three
    amendments? If no, we say thank you to Mr. Bartlett for the
    additions, and the vote occurs on the amendments. All in favor
    say aye, those opposed say no. The ayes have it. The amendment
    is agreed to.
        The fifth amendment on the roster and I guess it is really
    the fifth and sixth is from the gentleman from Texas, Mr.
    McCaul. And I will also ask unanimous consent if it is to his
    satisfaction that these two amendments be taken en bloc and he
    will be allowed to describe them.
        Mr. McCaul. Thank you, Mr. Chairman, and I will be very
    brief given the late night we had last night and time
    constraints. I appreciate the opportunity to offer these two
    amendments. The first really requires amending Section 7 to
    require the Secretary to coordinate with the other DOE R&D
    programs that focus on drilling and related activities. It is
    good government and cost efficient, and then of course the
    second, amendment 6, amends Section 6 by adding laser-based
    drilling technology to the EGS program.
        And with that, Mr. Chairman, I will yield back my time.
        Chairman Gordon. Thank you. And the Clerk will please
    report this amendment and the prior amendment.
        The Clerk. Amendments to H.R. 2304 offered by Mr. McCaul.
        Chairman Gordon. I ask unanimous consent that we dispense
    with the reading. Without objection, so ordered.
        The gentleman has explained his amendments. Is there any
    comment on the amendments? If not, all those in favor of the
    amendments say aye, those opposed no. The ayes have it. The
    amendment is agreed to.
        All right. The seventh amendment on the roster is offered
    by the gentlelady from Illinois, Ms. Biggert. Are you ready to
    proceed with your amendment?
        Ms. Biggert. I have an amendment at the desk.
        Chairman Gordon. The Clerk will report the amendment.
        The Clerk. Amendment to H.R. 2304 offered by Mrs. Biggert.
        Chairman Gordon. I ask unanimous consent to dispense with
    the reading. Without objection, so ordered.
        The gentlelady is recognized for five minutes to explain
    her amendment.
        Ms. Biggert. Thank you, Mr. Chairman. In 2000, the
    distinguished Senate Majority Leader, Harry Reid, joined the
    Department of Energy in launching a new technology transfer
    outreach initiative called Geopowering the West or GPW. The
    purpose of the GPW program is to use public/private
    partnerships to bring geothermal heat and power to millions of
    homes and businesses through technology transfer and technical
    assistance. In partnership with states and local agencies,
    utilities, universities, geothermal developers, consumer and
    environmental groups said GPW complements the Department of
    Energy's Research and Development programs by helping to get
    geothermal energy technologies out of the lab and into the
    marketplace. And by all accounts, this program has been
    successful which is why the bill before us today would expand
    the program to encompass not just the western states but the
    entire United States and rename the program Geopowering
    America, or GPA. And there was a change at the Subcommittee to
    add Section 9. But this bill also duplicates much of the good
    this proven program is doing with the creation of two
    Geothermal Tech Transfer Centers, one east and one west of the
    Mississippi River. And that is why my amendment would strike
    the section of the bill, creating these two Centers and make
    the Geopowering America program explicitly responsible for
    performing these exactly the same tech transfer and technical
    assistance functions were supposed to do.
        Existing for seven years now, the GPW program already
    serves as a link between DOE's geothermal research programs and
    industry as well as others interested in geothermal energy.
    Using the information that GPW program managers have collected
    and disseminated over the course of the last seven years, the
    DOE can quickly and effectively transform the Geopowering
    America program into a true information clearing house for the
    geothermal energy industry. Therefore, the Department won't
    waste a lot of time, energy, or money bringing two new Centers
    on line.
        And finally, by using the existing GPW structure, DOE will
    be able to engage more than just two universities and tech
    transfer activities relating to the geothermal energy. In
    addition to engaging numerous universities all over the
    country, the GPA program could partner with states, cities,
    utilities, developers, entrepreneurs, and businesses large and
    small to facilitate the development and use of geothermal
    energy. So rather than create a new, let us expand and build on
    a tried and trusted program that works. I hope my colleagues
    see the value of this approach and will support my amendment.
        I yield back the balance of my time.
        [The prepared statement of Ms. Biggert follows:]

               Prepared Statement of Representative Judy Biggert

        Thank you, Mr. Chairman.
        In the year 2000, the distinguished Senate Majority Leader, Harry
    Reid, joined the Department of Energy in launching a new technology
    transfer and outreach initiative, called GeoPowering the West, or GPW.
        The purpose of the GPW program is to use public-private
    partnerships to bring geothermal heat and power to millions of homes
    and businesses through technology transfer and technical assistance.
        In partnership with states and local agencies, utilities,
    universities, geothermal developers, consumer and environmental groups,
    the GPW complements the Department of Energy's (DOE) research and
    development programs by helping get geothermal energy technologies out
    of the lab and into the marketplace.
        By all accounts, this program has been successful, which is why the
    bill before us today would expand the program to encompass not just the
    western states, but the entire United States, and rename the program
    GeoPowering America, or GPA.
        But this bill also duplicates much of the good this proven program
    is doing with the creation of two geothermal tech transfer centers--one
    east and one west of the Mississippi River.
        That's why my amendment would strike the section of the bill
    creating these two centers, and make the GeoPowering America program
    explicitly responsible for performing exactly the same tech transfer
    and technical assistance functions the centers were supposed to.
        Existing for seven years now, the GPW program already serves as a
    link between the DOE's geothermal research programs and industry, as
    well as others interested in geothermal energy.
        Using the information that GPW program managers have collected and
    disseminated over the course of the last seven years, the DOE can
    quickly and effectively transform the GeoPowering America program into
    a true information clearinghouse for the geothermal energy industry.
    Therefore, the Department won't waste a lot of time, energy, or money
    bringing two new Centers online.
        Finally, by using the existing GPW structure, DOE will be able to
    engage more than just two universities in tech transfer activities
    related to geothermal energy. In addition to engaging numerous
    universities all over the country, the GPA program could partner with
    states, cities, utilities, developers, entrepreneurs and businesses
    large and small to facilitate the development and use of geothermal
    energy.
        Rather than create anew, let's expand and build on a tried and
    tested program that works. I hope my colleagues see the value in this
    approach, and will support my amendment. I yield back the balance of my
    time.

        Chairman Gordon. Thank you, Ms. Biggert. I understand the
    gentlelady's concerns, but her amendment, at least in my
    opinion, is not a good substitute for the university-centered
    program in this bill. First, the existing Geopowering the West
    Program, which the gentlelady proposes to task with the
    scientific data collection, among the other activities, has a
    different and more narrow mission than the intended Centers. We
    don't want to try to fit a square peg into a round hole.
        In addition, during the hearings we heard on H.R. 2304
    there was discussion about developing the next generation of
    scientists, engineers, and technicians specializing in
    geothermal technologies. Dr. Jeff Tester, the lead author of
    the MIT report, The Future of Geothermal Energy, stated in his
    testimony that the prospects for geothermal development would
    be enhanced by connecting the National Research and Development
    and Demonstration Program to education in science and
    engineering at the college and university level as well as
    professional levels. Making universities a key component of the
    geothermal helps fulfill this goal. It helps to ensure that we
    have an educated workforce to understand and deploy geothermal
    technologies.
        Finally, rather than tasking the Federal Government with
    reinventing the wheel, as the gentlelady suggests in her
    amendment, the bill seeks to capitalize on longstanding
    geothermal research, data collection, and tech transfer
    expertise at universities around the country. For example,
    Southern Methodist University in Texas, the University of Utah,
    Boise State University, MIT, the Oregon Institute for
    Technology, the University of Oklahoma, and several
    universities in the University of California system. For these
    reasons, I do not support the gentlelady's amendment. However,
    if the gentlelady would like to withdraw her amendment, I would
    be willing to continue to work to address her concerns.
        Are there any additional comments on the gentlelady's
    amendments? Mr. McNerney.
        Mr. McNerney. Mr. Chairman, I would like to strike the last
    word. I, like the Chairman, I do understand the gentlelady's
    concerns, but my intent was to create two Centers, one in each
    of the very different geophysical characters of the country. On
    the east side of the country, the geothermal sources are much
    different than on the western side. I think it is important to
    establish a separate entity east of the Mississippi or east of
    the Rockies anyway that will look at developing that particular
    source, that particular kind of geothermal energy; and I also
    like the idea of having competitive bidding or within the
    Department of Energy to decide what is the best location. So I
    oppose the amendment and----
        Ms. Biggert. Will the gentleman yield?
        Mr. McNerney. Yes.
        Ms. Biggert. I do think that, you know, education is very
    important and I think that the GPW, that it is engaged in the
    tech transfer activities but it also is very much a part of it
    is the education facility. And I think it is important to
    remind my colleagues that this committee already passed the
    H.R. 85, the Energy Technology Transfer Bill, which was
    sponsored by Mr. Miller of North Carolina and me and was then
    approved by the House. And I think that rather than creating
    the transfer Centers to serve the country for each specific
    energy technology, that this directed to consider all of these.
    I just think more Centers just to focus on one is not what we
    need, but we already have the means to do that and that if
    President Bush, in the Energy Policy Act of 2005, created a
    consortium which utilizes comprehensive multi-disciplinary
    approach to geothermal research and education, focusing on
    exploration, full-scale utilization, and transfer training of
    the next generation of geothermal professionals, and that was
    in the Energy Policy Act of 2005.
        Mr. Hall. Will the gentlelady yield?
        Ms. Biggert. It is not----
        Chairman Gordon. The gentleman from California has the
    time, but certainly Mr. Hall is recognized for five minutes.
        Mr. Hall. I just want to say I totally agree with the
    author of this, and we support it on this side. And if she
    decides not to proceed with it or to withdraw it, we certainly
    want to be a part of working toward something that is favorable
    and acceptable to the author. But we on this side of the docket
    urge passage of this amendment.
        Chairman Gordon. Is there further discussion on the
    amendment? If no, the vote occurs on the amendment. All in
    favor say aye, opposed no. The no's appear to have it. The
    amendment is not agreed to.
        Ms. Biggert. Mr. Chairman, I have an amendment at the desk.
        Chairman Gordon. All right. The Clerk will report the
    amendment.
        The Clerk. Amendment to H.R. 2304 offered by Mrs. Biggert
    of Illinois.
        Chairman Gordon. I ask unanimous consent to dispense with
    the reading. Without objection, so ordered.
        The gentlelady is recognized for five minutes to describe
    her amendment.
        Ms. Biggert. Thank you, Mr. Chairman. This amendment
    addresses an issue that I raised during the Subcommittee markup
    about Section 8 of the bill which creates two new Geothermal
    Tech Transfer Centers, one east and one west of the Mississippi
    River. I am concerned that by using the Mississippi River as
    the dividing line this section of the bill splits the Midwest
    in an awkward way. According to the Illinois State Geological
    Survey, the geology of the Great Plains between the Mississippi
    River and the Rocky Mountains is more like the geology of the
    Midwest than the geology of the Rocky Mountains. And while
    there are few if any hydrothermal resources in the Great Plains
    or the Midwest, this region is home to unconventional
    geothermal energy resources that could be tapped using enhanced
    geothermal systems. That is why I believe that any university
    east of the Rocky Mountains rather than east of the Mississippi
    should be eligible to compete to host the enhanced geothermal
    system center that this bill would establish. And that is what
    my amendment would do. Schools in North and South Dakota,
    Minnesota, Nebraska, Iowa, Kansas, Missouri, Oklahoma,
    Arkansas, and Texas that would otherwise have no chance of I
    think landing the hydrothermal tech transfer center but would
    have a real chance to host the Enhanced Geothermal System Tech
    Transfer Center if my amendment passes. I wish I could say that
    this amendment was my idea but it is actually based on a
    recommendation by the Director of the Geothermal Laboratory at
    Southern Methodist University.
        So I would urge my colleagues to support this amendment. I
    yield back the balance of my time.
        [The prepared statement of Ms. Biggert follows:]

               Prepared Statement of Representative Judy Biggert

        This amendment addresses an issue I raised during the Subcommittee
    markup about Section 8 of this bill, which creates two new geothermal
    tech transfer centers--one east and one west of the Mississippi River.
        I am concerned that by using the Mississippi River as the dividing
    line, this section of the bill splits the Midwest in an awkward way.
        According to the Illinois State Geological Survey, the geology of
    the Great Plains of the Mississippi River and the Rocky Mountains is
    more like the geology of the Midwest than the geology of the Rocky
    Mountains.
        And while there are few, if any hydrothermal resources in the Great
    Plains or the Midwest, this region is home to unconventional geothermal
    energy resources that could be tapped using enhanced geothermal
    systems.
        That's why I believe any university east of the Rocky Mountains--
    rather than east of the Mississippi River--should be eligible to
    compete to host the Enhanced Geothermal Systems Center that this bill
    would establish.
        That's what my amendment would do. Schools in North and South
    Dakota, Minnesota, Nebraska, Iowa, Kansas, Missouri, Oklahoma, Arkansas
    and Texas that would otherwise have no chance of landing the
    hydrothermal tech transfer center would have a real chance to host the
    enhanced geothermal system tech transfer center if my amendment passes.
        I wish I could say this amendment was my idea, but it is actually
    based on a recommendation by the Director of the Geothermal Laboratory
    at Southern Methodist University.
        I urge my colleagues to support this amendment, and I yield back
    the balance of my time.

        Chairman Gordon. I thank the gentlelady. You know, we
    traditionally think of east of the Mississippi, west of the
    Mississippi. It took a Midwesterner to break us out of this
    mindset. You have a good amendment, and we thank you for it.
    And I would recommend its passage.
        Is there further discussion on the amendment? If no, the
    vote occurs on the amendment. All in favor say aye, opposed no.
    The aye's have it. The amendment is agreed to.
        Are there other amendments?
        Mr. Matheson. Mr. Chairman, I have an amendment at the
    desk.
        Chairman Gordon. Mr. Matheson is recognized.
        Mr. Matheson. Are we going to dispense with the reading of
    the amendment or----
        Chairman Gordon. The Minority has not had adequate time to
    see the amendment----
        Mr. Matheson. I understand.
        Chairman Gordon [continuing]. So it will not be read.
        Mr. Matheson. Let me just give about 30 seconds, and I will
    yield back to the Chairman. This is an amendment that has to do
    with recognizing the importance of the Intermountain West
    Geothermal Consortium. It was initially authorized in the
    Energy Policy Act of 2005. It is focused on providing science
    and technology to discover and develop new geothermal resources
    in the Intermountain West.
        My amendment would simply authorize $5 million annually
    through 2012 for this consortium. And I yield to the Chairman.
        Chairman Gordon. Thank you, Mr. Matheson. Let me just put
    things in context here. Mr. Matheson and his staff have put
    together what appears to be a good amendment and a good-faith
    amendment, but like all of us, it sometimes takes things to get
    them together. We did not receive this until just really a few
    moments ago. The Minority has not had the time to fully vet it,
    and I think to a good process that has made a good bill today
    and I appreciate you getting it on the table. We are going to
    now vet it and I hope that this will be a part of the manager's
    amendment when it comes to the Floor at a later date.
        Mr. Matheson. I appreciate that, and Mr. Chairman, with
    that, I understand and I am happy to withdraw the amendment.
        Chairman Gordon. I thank you, Mr. Matheson. Are there other
    amendments? If not, the vote is on the bill, H.R. 2304 as
    amended.
        Mr. Diaz-Balart. Mr. Chairman?
        Chairman Gordon. All those----
        Mr. Diaz-Balart. Mr. Chairman, I believe I have an
    amendment.
        Chairman Gordon. Who seeks recognition? Oh, excuse me.
        Mr. Diaz-Balart. I believe I have an amendment on the desk,
    Mr. Chairman.
        Chairman Gordon. I think it's on the next bill.
        Mr. Diaz-Balart. I stand corrected, Mr. Chairman. My
    apologies.
        Chairman Gordon. Okay. That's all right. I'll try again. If
    there are no further amendments, all those in favor of H.R.
    2304 say aye. All those opposed say no. In the opinion of the
    Chair, the ayes have it.
        I recognize Mr. Hall to offer a motion.
        Mr. Hall. Mr. Chairman, I move that the Committee favorably
    report H.R. 2304 as amended to the House with a recommendation
    that the bill as amended do pass. Furthermore, I move that the
    staff be instructed to prepare the legislative report, make
    necessary technical and conforming changes, and that the
    Chairman take all necessary steps to bring the bill before the
    House for consideration.
        I yield back.
        Chairman Gordon. The question is on the motion to report
    the bill favorably. Those in favor of the motion will signify
    by saying aye, opposed no. The ayes have it. The bill is
    favorably reported.
        Without objection, the motion to reconsider is laid upon
    the table. The Members will have two subsequent calendar days
    in which to submit supplemental Minority or additional views on
    the measure, ending Monday, June 18, at 9:00 a.m. I move
    pursuant to clause 1 of Rule 22 of the Rules of the House of
    Representatives that the Committee authorize the Chairman to
    offer such motions as may be necessary in the House to adopt
    and pass H.R. 2304, the Advanced Geothermal Energy Research and
    Development Act of 2007, as amended. Without objection, so
    ordered.
        That's a good bill. Everybody should go home and take
    credit for it.
        I want to thank the Members for their attendance, and this
    concludes our markup.
        [Whereupon, at 11:25 a.m., the Committee was adjourned.]

                                   Appendix:

                                  ----------

      Subcommittee on Energy and Environment Markup Report; H.R. 2304, as
    Amended by the Subcommittee on Energy and Environment; Amendment Roster

                      COMMITTEE ON SCIENCE AND TECHNOLOGY

                     SUBCOMMITTEE ON ENERGY AND ENVIRONMENT

                        REPORT FROM SUBCOMMITTEE MARKUP

                                  JUNE 6, 2007

                   H.R. 2304, the Advanced Geothermal Energy
                      Research and Development Act of 2007

    I. Purpose

        The purpose of the H.R. 2304 is to direct the Secretary of Energy
    to conduct a program of research, development, demonstration, and
    commercial application for geothermal energy, and establish technology
    transfer centers to disseminate related knowledge.

    II. Background and Need for Legislation

        Geothermal energy is heat from the Earth's core that is trapped in
    the earth's crust. It can be tapped and used either to generate
    electricity or for direct use (e.g., heating buildings, greenhouses, or
    aquaculture operations). It is very attractive as an energy resource
    because it is not only clean and renewable, but it can also provide
    continuously dispatchable, base load power, day and night, 365 days a
    year. Geothermal is also a domestic resource, creating domestic jobs
    and increasing national security.
        In locations where high temperatures coincide with naturally-
    occurring, underground, fluid-filled reservoirs, the resulting hot
    water or steam can be tapped directly to run a geothermal power plant.
    Such locations are referred to as hydrothermal (hot water) resources,
    and they have been the focus of traditional geothermal energy
    development. The United States is the world's largest producer of
    electric power from geothermal energy with about 2,800 megawatts (MW)
    of geothermal electrical generating capacity is connected to the grid,
    mostly in California and the Intermountain West, where high grade
    hydrothermal systems have been found close to the surface. However,
    significant hydrothermal potential remains untapped. The U.S.
    Geological Survey (USGS) estimates there is between 95,000 MW and
    127,000 MW of hydrothermal resources sufficient for electrical power
    generation in the United States. However, many of these resources
    remain undiscovered and unconfirmed.
        Even that large number, however, pales in comparison to the
    potential of Enhanced Geothermal Systems (EGS). EGS differ from
    hydrothermal systems in that they lack either a natural reservoir
    (i.e., the cracks and spaces in the rock through which fluid can
    circulate), the fluid to circulate through the reservoir, or both. In
    EGS development, sometimes referred to as ``heat mining,'' an injection
    well is drilled to a depth where temperatures are sufficiently high; if
    necessary, a reservoir is created, or ``cracked,'' in the rock by using
    one of various methods of applying pressure; and a fluid is introduced
    to circulate through the reservoir and absorb the heat. The fluid is
    extracted through a production well, the heat is used to run a
    geothermal power plant or for some direct use application, and the
    fluid is reinjected to start the loop all over again.
        Although it has been the subject of preliminary investigations in
    the United States, Europe, and Australia, the EGS concept has yet to be
    demonstrated as commercially viable. However, experts familiar with the
    resource and the associated technologies believe the technical and
    economic hurdles are surmountable. In January, 2007, a panel led by the
    Massachusetts Institute of Technology produced a report entitled The
    Future of Geothermal Energy, which contained an updated assessment of
    EGS potential in the United States. The authors of the report
    conservatively estimate that two percent of the EGS resource could be
    economically recoverable--an amount more than 2,000 times larger than
    all the primary energy consumed in the United States in 2005.\1\ If the
    technological and economic hurdles to EGS development can be overcome,
    the potential of the resource is enormous.
    ---------------------------------------------------------------------------
        \1\ Ibid, p. 1-17.
    ---------------------------------------------------------------------------
        The United States has been involved in geothermal energy R&D since
    the 1970s. The program reached a high point in FY 1980 with funding of
    approximately $310 million (2006 dollars). Since then, funding has
    gradually declined to its present level of $5 million (2006 dollars) in
    FY 2007. The Administration has attempted to phase out the geothermal
    program entirely, requesting zero dollars in FY 2007 and FY 2008.
        As justification for terminating the geothermal program, the
    Administration has claimed that geothermal technologies are mature--a
    claim strongly disputed by researchers and the geothermal industry.
    Proponents point out that geothermal is not a single technology, but a
    complex resource, available in different grades in different places.
    While the technologies to tap the highest grade resources may indeed be
    mature (some have provided electric power at competitive rates for
    decades) these high grade locations represent a very small fraction of
    the total resource. To develop technologies capable of tapping lower
    grade resources, further R&D is essential. Recent indications suggest
    DOE officials may be open to re-examining investment in geothermal R&D,
    particularly in light of the opportunities in Enhanced Geothermal
    Systems that were highlighted in the recent MIT report: The Future of
    Geothermal Energy.
        H.R. 2304 is intended to reinvigorate geothermal energy R&D in the
    United States and unlock the potential of this vast resource, across
    the full spectrum of grades, for the benefit of the Nation.

    III. Subcommittee Actions

        On May 14, 2007, Rep. Jerry McNerney, for himself and Science and
    Technology Committee Chairman Bart Gordon, and Energy and Environment
    Subcommittee Chairman Nick Lampson, introduced H.R. 2304, the Advanced
    Geothermal Energy Research and Development Act of 2007.
        The Energy and Environment Subcommittee held a hearing on Thursday,
    May 17, 2007 to hear testimony on H.R. 2304 (and also H.R. 2313, the
    Marine Renewable Energy Research and Development Act of 2007) from the
    following witnesses:

              Dr. Jefferson Tester, the HP Meissner Professor of
            Chemical Engineering at the Massachusetts Institute of
            Technology, an internationally recognized expert in Enhanced
            Geothermal Systems and Chair of the MIT-led panel that produced
            the report: The Future of Geothermal Energy, released in
            January, 2007.

              Mr. Paul Thomsen, Public Policy Manager for Ormat
            Technologies, Inc., a leading provider of geothermal
            exploration, development, and power conversion technologies.
            Mr. Thomsen testified on behalf of both Ormat and the
            Geothermal Energy Association.

              Mr. Nathanael Greene, a Sr. Energy Policy Specialist
            with the Natural Resources Defense Council with expertise in
            utility regulation, renewable energy, energy taxes, energy
            efficiency, and the environmental impacts of energy production.

              Dr. Annette von Jouanne, Professor of Energy Systems
            and Power Electronics in the School of Electrical Engineering
            and Computer Science at Oregon State University (OSU). Dr. von
            Jouanne also leads the Wave Energy program at OSU.

              Mr. Sean O'Neill, President of the Ocean Renewable
            Energy Coalition (OREC), a trade association representing the
            marine renewable energy industry.

        The Subcommittee on Energy and Environment met to consider H.R.
    2304 on June 6, 2007 and consider the following amendment to the bill:

            1.  On behalf of Mr. McNerney which, in addition to changes of
            a technical nature, revises instructions for establishing the
            federal/non-federal cost-sharing ratios for projects funded
            under the Act to provide greater leeway to tailor cost-sharing
            levels to individual projects; allows for a competitive bidding
            process to play a role in determining the cost-share ratio for
            a projects; eliminates cost-sharing requirements for research
            that is of a ``fundamental or basic nature''; establishes an
            R&D program to develop technologies and techniques to mitigate
            or avoid adverse environmental impacts of geothermal energy
            development, production, or use; directs the Secretary to
            coordinate with the Environmental Protection Agency to study
            the environmental impacts of geothermal energy development,
            production, and use. directs the Secretary to give priority
            consideration for funding, where appropriate, to project
            proposals that include provisions to study the project's
            environmental impacts; encourages the Enhanced Geothermal
            Systems Technology Transfer Center established in the bill to
            seek opportunities for coordination with appropriate
            international partners; and expands the scope of an existing,
            domestic geothermal technology transfer program from the
            western U.S. to the entire country. The amendment was agreed to
            by voice vote.

        Mr. Inglis moved that the Subcommittee favorably report the bill,
    H.R. 2304, to the Full Committee on Science and Technology. The motion
    was agreed to by a voice vote.

    IV. Summary of Major Provisions of the Bill

        H.R. 2304 authorizes $80 million a year for each of the fiscal
    years 2008-2012 ($400 million total) for research, development,
    demonstration, and commercial application of technologies to locate,
    characterize, and develop geothermal resources, both hydrothermal
    systems and enhanced geothermal systems. The bill also establishes a
    research program, to be coordinated with EPA, to identify potential
    environmental impacts of geothermal energy production, and a program of
    RDD&CA of technologies to mitigate or avoid adverse environmental
    impacts. The bill provides guidance for the Secretary to use in
    evaluation of project proposals and for the establishment of federal/
    non-federal cost-sharing ratios for said projects. The bill establishes
    or expands several technology transfer programs to promote
    dissemination of information and best practices on geothermal energy
    development, both within the geothermal industry and to appropriate
    State agencies. Finally, the bill requires that DOE follow the
    development of more advanced concepts and technologies related to
    geothermal energy development and report back to the Congress every
    other year on the current state of such advanced technologies.

    V. Section by Section Analysis of the Bill, as reported by the
                        Subcommittee

    Section 1. Short Title

        Act may be cited as the ``Advanced Geothermal Energy Research and
    Development Act of 2007.''

    Section 2. Findings

        Geothermal energy is a renewable resource capable of providing
    base-load power generation (and other applications) with minimal
    environmental impact. The geothermal energy potential in the United
    States is widely distributed and vast in size, yet it remains barely
    tapped. Sustained and expanded funding for research, development,
    demonstration, and commercial application programs is needed to improve
    the technologies to locate, characterize, and develop geothermal
    resources.

    Section 3. Definitions

        Provides definitions for the following terms used in the Act:
    `Engineered' (as it pertains to enhanced geothermal systems), `Enhanced
    Geothermal Systems,' `Geofluid,' `Geothermal,' `Hydrothermal,'
    `Secretary,' and `Systems Approach.'

    Section 4. Hydrothermal Research and Development

        Instructs the Secretary to support research, development,
    demonstration, and commercial application of technologies designed to
    assist in locating and characterizing undiscovered hydrothermal
    resources.
        The specification of programs in subsection (b) should not be
    construed as constraining the prerogative of the Secretary to use
    authority granted under this section to support other types of
    hydrothermal RDD&CA. For example, it would be within the purview of
    this section to support projects designed to demonstrate the geothermal
    potential of co-produced water (water that is produced as a byproduct
    of oil & gas production), of abandoned oil & gas wells no longer in
    production, or of geopressured resources.
        This section also establishes an ``industry-coupled exploratory
    drilling'' program, which is a cost-shared program with industry
    partners to demonstrate and apply advanced exploration technologies in
    the field. This is not intended as a program of research and
    development of drilling technologies; rather, it is intended as a
    demonstration program to apply existing technologies--especially the
    most advanced technologies available--in a practical setting.

    Section 5. General Geothermal Systems Research and Development

        The programs under Section 5 are intended to support the
    development of technologies applicable to the development of all
    geothermal systems, whether they be considered hydrothermal systems,
    enhanced geothermal systems, or some hybrid. Subsection (a) establishes
    a program of research, development, demonstration, and commercial
    application of system components and materials capable of withstanding
    the extreme environment (high temperatures and corrosiveness) in
    geothermal wells. Such components for RDD&CA shall include, but not be
    limited to those listed in the subsection. In practice, any subsurface
    component that is essential to drilling to extreme depths and
    temperatures shall qualify for RDD&CA under this section.
        Subsection (b) establishes a program of RDD&CA of improved models
    of geothermal reservoir performance. The models can be of any useful
    type, whether numerical, computer-based, or other.
        Subsection (c) establishes a program of RDD&CA of technologies to
    mitigate or preclude adverse environmental impacts from geothermal
    energy development, production or use. It also directs the Secretary,
    in conjunction with the Office of Research and Development at EPA, to
    study what such impacts of geothermal energy development might be, and
    ensure that the program in (c)(1) addresses such impacts.

    Section 6. Enhanced Geothermal Systems Research and Development

        Subsection (a) instructs the Secretary to support a program of
    RDD&CA of technologies necessary to advance EGS to a state of
    commercial readiness.
        Subsection (b) establishes a cost-shared, field-based program of
    research, development, and demonstration of technologies to create and
    stimulate EGS reservoirs. The purpose of this subsection is to promote
    RD&D of functional EGS systems capable of producing hot geofluid that
    could be used for electric power production or direct use. (However,
    this section deliberately stops short of authorizing demonstration of
    the actual power conversion step. The aim is strictly to create a
    producing reservoir.) The subsection stipulates that a minimum of five
    sites, representing different geologic conditions, be selected to
    ensure that demonstration is conducted under different conditions. More
    than five sites can be selected as long as funds are available.

    Section 7. Guidelines for Cost Sharing and Proposal Evaluation

        Establishes certain guidelines for the Secretary to use in
    evaluating proposals and for determining the federal/non-federal cost-
    share ratios of projects funded under this Act. The intent of this
    section is that the Secretary establish, in writing, the criteria that
    are used for determining project selections, and the cost-share ratios.

    Section 8. Centers for Geothermal Technology Transfer

        Provides for the creation of two Centers of technology transfer to
    function as information clearinghouses for the geothermal industry,
    dedicated to collecting and sharing industry-relevant information. One
    Center, to be located in the western U.S., shall be dedicated to
    hydrothermal-specific development information; the other Center,
    located in the eastern U.S., shall be dedicated to EGS-specific
    development information. Although the section specifies a western
    Center and an eastern Center, both centers are intended to serve the
    entire Nation with regard to their respective areas of expertise. To
    the extent that those areas of expertise overlap, it is okay, and
    useful, for the two Centers to concern themselves with duplicate
    information. The eastern Center, dedicated to Enhanced Geothermal
    Systems, is specifically encouraged to seek opportunities for
    international cooperation since there is significant research happening
    in this area in Europe, Asia, and Australia, and other countries may
    establish programs in the future.

    Section 9. GeoPower America

        Expands the scope of an existing, domestic geothermal technology
    transfer program from the western U.S. to the entire country, so as to
    encourage the transfer and adoption of appropriate geothermal energy
    technologies throughout the entire United States.

    Section 10. Study on Advanced Uses of Geothermal Energy

        Requires the Secretary to track technological advances impacting
    geothermal energy development and advanced uses of geothermal energy
    and fluids, and report back to the Committee every other year for the
    next five years (a total of three times). The report is not intended to
    be limited to the topics listed here. This report is intended to focus
    on areas of potential future interest for the geothermal program, but
    these areas are not considered appropriate candidates for federal
    RDD&CA support at the current time, owing to their early stages of
    development and speculative nature. The bi-annual tracking study is
    intended to highlight when these technologies become less speculative
    and therefore more appropriate candidates for federal support.

    Section 11. Applicability of Other Laws

        Affirms the applicability of all requirements under federal and
    State laws, including environmental laws, to projects undertaken under
    this Act.

    Section 12. Authorization of Appropriations

        Authorizes appropriations of $80,000,000 for each of the fiscal
    years 2008 through 2012.