[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.
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\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.
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\1\ Ibid, p. 1-17.
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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.