[Senate Report 116-197]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 357
                                                       
                                                       
116th Congress }                                            {    Report
                                 SENATE
 2d Session    }                                            {   116-197

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



 
         ADVANCED GEOTHERMAL INNOVATION LEADERSHIP ACT OF 2019

                                _______
                                

                January 7, 2020.--Ordered to be printed

                                _______
                                

        Ms. Murkowski, from the Committee on Energy and Natural 
                   Resources, submitted the following

                              R E P O R T

                         [To accompany S. 2657]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2657) to support innovation in advanced 
geothermal research and development, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment in the nature of a substitute and recommends that the 
bill, as amended, do pass.

                               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 Innovation 
Leadership Act of 2019'' or the ``AGILE Act of 2019''.

SEC. 2. UPDATE TO GEOTHERMAL RESOURCE ASSESSMENT.

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

SEC. 3. GENERAL GEOTHERMAL RESEARCH AND DEVELOPMENT PROGRAMS.

    Section 614 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17193) is amended by adding at the end the following:
    ``(d) Oil and Gas Technology Transfer Initiative.--
          ``(1) In general.--The Secretary shall support an initiative 
        among the Office of Fossil Energy, the Office of Energy 
        Efficiency and Renewable Energy, and the private sector to 
        modify, improve, and demonstrate the use in geothermal energy 
        development of relevant advanced technologies and operation 
        techniques used in the oil and gas sector.
          ``(2) Priorities.--In carrying out paragraph (1), the 
        Secretary shall prioritize technologies with the greatest 
        potential to significantly increase the use and lower the cost 
        of geothermal energy in the United States, including the cost 
        and speed of small- and large-scale geothermal drilling.
    ``(e) Coproduction of Geothermal Energy and Minerals Production 
Prize Competition.--
          ``(1) In general.--The Secretary shall carry out a prize 
        competition under which the Secretary shall award prizes to 
        demonstrate the coproduction of critical minerals (as defined 
        by the Secretary of the Interior on the date of enactment of 
        the AGILE Act of 2019) from geothermal resources.
          ``(2) Requirements.--A demonstration awarded a prize under 
        paragraph (1) shall--
                  ``(A) improve the cost-effectiveness of removing 
                minerals from geothermal brines as part of the 
                coproduction process;
                  ``(B) increase recovery rates of the targeted mineral 
                commodity;
                  ``(C) decrease water use and other environmental 
                impacts, as determined by the Secretary; and
                  ``(D) demonstrate a path to commercial viability.
          ``(3) Maximum Prize Amount.--The maximum amount of a prize 
        awarded under paragraph (1) shall be $10,000,000.
    ``(f) Drilling Data Repository.--
          ``(1) In general.--The Secretary shall, in coordination with 
        the Secretary of the Interior, establish and operate a 
        voluntary, industry-wide repository of geothermal drilling 
        information to lower the cost of future geothermal drilling.
          ``(2) Repository.--
                  ``(A) In general.--In carrying out paragraph (1), the 
                Secretary shall collaborate with geothermally 
                significant countries, such as Iceland, Switzerland, 
                Kenya, Australia, the Philippines, and any other 
                relevant country, as determined by the Secretary.
                  ``(B) Data system.--The repository established under 
                paragraph (1) shall be integrated with the National 
                Geothermal Data System.''.

SEC. 4. ENHANCED GEOTHERMAL RESEARCH AND DEVELOPMENT.

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

SEC. 5. GEOTHERMAL HEAT PUMPS AND DIRECT USE.

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

``SEC. 616A. GEOTHERMAL HEAT PUMPS AND DIRECT USE RESEARCH AND 
                    DEVELOPMENT.

    ``(a) Purposes.--The purposes of this section are--
          ``(1) to improve the components, processes, and systems used 
        for geothermal heat pumps and the direct use of geothermal 
        energy; and
          ``(2) to increase the energy efficiency, lower the cost, 
        increase the use, and improve and demonstrate the applicability 
        of geothermal heat pumps to, and the direct use of geothermal 
        energy in, large buildings, commercial districts, residential 
        communities, and large municipal, agricultural, or industrial 
        projects.
    ``(b) Definitions.--In this section:
          ``(1) Direct use of geothermal energy.--The term `direct use 
        of geothermal energy' means systems that use water directly or 
        through a heat exchanger to provide--
                  ``(A) heating to buildings; or
                  ``(B) heat required for industrial processes, 
                agriculture, aquaculture, and other facilities.
          ``(2) Economically distressed area.--The term `economically 
        distressed area' means an area described in section 301(a) of 
        the Public Works and Economic Development Act of 1965 (42 
        U.S.C. 3161(a)).
          ``(3) Geothermal heat pump.--The term `geothermal heat pump' 
        means a system that provides heating and cooling by exchanging 
        heat from shallow ground or surface water using--
                  ``(A) a closed loop system, which transfers heat by 
                way of buried or immersed pipes that contain a mix of 
                water and working fluid; or
                  ``(B) an open loop system, which circulates ground or 
                surface water directly into the building and returns 
                the water to the same aquifer or surface water source.
    ``(c) Program.--
          ``(1) In general.--The Secretary shall support within the 
        Geothermal Technologies Office a program of research, 
        development, and demonstration for geothermal heat pumps and 
        the direct use of geothermal energy.
          ``(2) Areas.--The program under paragraph (1) may include 
        research, development, demonstration, and commercial 
        application of--
                  ``(A) geothermal ground loop efficiency improvements, 
                cost reductions, and improved installation and 
                operations methods;
                  ``(B) the use of geothermal energy for building-scale 
                energy storage;
                  ``(C) the use of geothermal energy as a grid 
                management resource or seasonal energy storage;
                  ``(D) geothermal heat pump efficiency improvements;
                  ``(E) the use of alternative fluids as a heat 
                exchange medium, such as hot water found in mines and 
                mine shafts, graywater, or other fluids that may 
                improve the economics of geothermal heat pumps;
                  ``(F) heating of districts, neighborhoods, 
                communities, large commercial or public buildings, and 
                industrial and manufacturing facilities;
                  ``(G) the use of water sources at a temperature of 
                less than 150 degrees Celsius for direct use; and
                  ``(H) system integration of direct use with 
                geothermal electricity production.
          ``(3) Environmental impacts.--In carrying out the program, 
        the Secretary shall identify and mitigate potential 
        environmental impacts in accordance with section 614(c).
    ``(d) Grants.--
          ``(1) In general.--The Secretary shall make grants available 
        to State, local, and Tribal governments, institutions of higher 
        education, nonprofit entities, National Laboratories, 
        utilities, and for-profit companies to promote the development 
        of geothermal heat pumps and the direct use of geothermal 
        energy.
          ``(2) Priority.--In making grants under this subsection, the 
        Secretary shall give priority to proposals that apply to large 
        buildings, commercial districts, and residential communities 
        that are located in economically distressed areas.''.

SEC. 6. MODIFYING THE DEFINITION OF RENEWABLE ENERGY TO INCLUDE THERMAL 
                    ENERGY.

    (a) In General.--Section 203 of the Energy Policy Act of 2005 (42 
U.S.C. 15852) is amended--
          (1) in subsection (b)(2), by striking ``generated from'' and 
        inserting ``produced from, or, in the case of thermal energy 
        resulting from a thermal energy project placed in service after 
        December 31, 2018, thermal energy generated from, or avoided 
        by,''; and
          (2) in subsection (c)--
                  (A) by redesignating paragraphs (1) through (3) as 
                subparagraphs (A) through (C), respectively, and 
                indenting appropriately;
                  (B) in the matter preceding subparagraph (A) (as so 
                redesignated), by striking ``For purposes'' and 
                inserting the following:
          ``(1) In general.--For purposes''; and
                  (C) by adding at the end the following:
          ``(2) Separate calculation.--
                  ``(A) In general.--For purposes of determining 
                compliance with the requirement of this section, any 
                energy consumption that is avoided through the use of 
                renewable energy shall be considered to be renewable 
                energy produced.
                  ``(B) Denial of double benefit.--Avoided energy 
                consumption that is considered to be renewable energy 
                produced under subparagraph (A) shall not also be 
                counted for purposes of achieving compliance with 
                another Federal energy efficiency goal.''.
    (b) Conforming Amendment.--Section 2410q(a) of title 10, United 
States Code, is amended by striking ``section 203(b)(2) of the Energy 
Policy Act of 2005 (42 U.S.C. 15852(b)(2))'' and inserting ``section 
203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))''.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    Section 623 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17202) is amended by striking ``$90,000,000'' in the first 
sentence and all that follows through the period at the end of the 
second sentence and inserting the following: ``$165,000,000 for each of 
fiscal years 2020 through 2024, of which--
          ``(1) $5,000,000 for each of fiscal years 2020 through 2023 
        shall be for the prize competition under section 614(e); and
          ``(2) $1,000,000 each fiscal year shall be for the drilling 
        data repository under section 614(f).''.

SEC. 8. REAUTHORIZATION OF HIGH COST REGION GEOTHERMAL ENERGY GRANT 
                    PROGRAM.

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

SEC. 9. NATIONAL GOALS FOR PRODUCTION ON FEDERAL LAND.

    (a) In General.--Not later than September 1, 2021, the Secretary of 
the Interior shall, in consultation with the Secretary of Energy, the 
Secretary of Agriculture, and other heads of relevant Federal agencies, 
establish national goals for geothermal energy capacity on public land.
    (b) Geothermal Energy Development.--The Director of the Bureau of 
Land Management, in consultation with other appropriate Federal 
officials, shall take any actions that the Director of the Bureau of 
Land Management determines necessary to facilitate geothermal energy 
development, consistent with applicable laws.

SEC. 10. FACILITATION OF COPRODUCTION OF GEOTHERMAL ENERGY ON OIL AND 
                    GAS LEASES.

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

SEC. 11. GEOTHERMAL RESOURCE CONFIRMATION TEST PROJECTS.

    (a) In General.--The Geothermal Steam Act of 1970 (30 U.S.C. 1001 
et seq.) is amended by adding at the end the following:

``SEC. 30. GEOTHERMAL RESOURCE CONFIRMATION TEST PROJECTS.

    ``(a) Definitions.--In this section:
          ``(1) Extraordinary circumstances.--The term `extraordinary 
        circumstances'' has the same meaning given the term in the 
        Department of the Interior Departmental Manual, 516 DM 2.3A(3) 
        and 516 DM 2, Appendix 2 (or successor provisions).
          ``(2) Geothermal resource confirmation test project.--The 
        term `geothermal resource confirmation test project' means a 
        project of drilling not more than 3 wells into a reservoir to 
        test or explore for geothermal resources--
                  ``(A) on land for which the Secretary has issued a 
                lease under this Act; and
                  ``(B) that--
                          ``(i) is carried out by the holder of the 
                        lease;
                          ``(ii) allows for well testing, such as to 
                        confirm temperature, pressure, chemistry, flow 
                        rate, and near-wellbore and overall reservoir 
                        permeability;
                          ``(iii) causes--
                                  ``(I) less than 2.5 acres of soil or 
                                vegetation disruption at the location 
                                of each geothermal exploration well; 
                                and
                                  ``(II) not more than an additional 5 
                                acres of soil or vegetation disruption 
                                during access to or egress from the 
                                test site;
                          ``(iv) is less than 9 inches in bottom-hole 
                        diameter;
                          ``(v) is developed--
                                  ``(I) in a manner that does not 
                                require off-road motorized access other 
                                than to and from the well site along an 
                                identified off-road route; and
                                  ``(II) without the use of high-
                                pressure well stimulation;
                          ``(vi) includes the removal of any surface 
                        infrastructure other than the wellhead from the 
                        site not later than 90 days after the project 
                        is completed; and
                          ``(vii) requires, not later than 42 months 
                        after the date on which the first exploration 
                        drilling began, the restoration of the project 
                        site to approximately the condition that 
                        existed at the time the project begins, unless 
                        the site is subsequently used as part of an 
                        energy development under the lease.
    ``(b) Categorical Exclusion.--Unless extraordinary circumstances 
exist, a project that the Secretary determines under subsection (c) is 
a geothermal resource confirmation test project shall be categorically 
excluded from the requirements for an environmental assessment or an 
environmental impact statement under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) or section 1508.4 of title 40, 
Code of Federal Regulations (or a successor regulation).
    ``(c) Process.--
          ``(1) Requirement to provide notice.--A leaseholder shall 
        provide notice to the Secretary of the intent of the 
        leaseholder to carry out a geothermal resource confirmation 
        test project at least 30 days before the start of drilling 
        under the project.
          ``(2) Review and determination.--Not later than 30 days after 
        receipt of a notice of intent under paragraph (1), the 
        Secretary shall, with respect to the project described in the 
        notice of intent--
                  ``(A) determine if the project is a geothermal 
                resource confirmation test project;
                  ``(B) notify the leaseholder of such determination; 
                and
                  ``(C) provide public notice of the determination.
          ``(3) Opportunity to remedy.--If the Secretary determines 
        under paragraph (2)(A) that the project is not a geothermal 
        resource confirmation test project, the Secretary shall--
                  ``(A) include in such notice clear and detailed 
                findings on any deficiencies in the project that 
                resulted in such determination; and
                  ``(B) allow the leaseholder to remedy any such 
                deficiencies and resubmit the notice of intent under 
                paragraph (1).''.
    (b) Repeal.--The Geothermal Energy Research, Development, and 
Demonstration Act of 1974 (30 U.S.C. 1101 et seq.) is repealed.

SEC. 12. PROGRAM TO IMPROVE FEDERAL GEOTHERMAL PERMIT COORDINATION.

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

                                Purpose

    The purpose of S. 2657 is to support innovation in advanced 
geothermal research and development (R&D).

                          Background and Need

    Geothermal energy is zero emission energy that can provide 
both heat and power 24 hours a day, seven days a week. It can 
take the form of deep drilling to access hot rock or 
reservoirs, or it can take the form of heat pumps that utilize 
the temperature difference between the surface and subsurface 
for heating or cooling. Despite its high availability and 
versatility, geothermal has not received the same amount of 
attention as other renewable energy sources. The Department of 
Energy (DOE) has determined that geothermal could represent a 
large part of the U.S. energy mix by 2050, rivaling the growth 
of solar, wind, and hydraulic fracturing.
    With new technology and regulatory changes, DOE estimates 
in a comprehensive 2019 report titled ``GeoVision: Harnessing 
the Heat Beneath Our Feet'' that commercial geothermal power 
could provide between 60 and 120 gigawatts (GW) of capacity by 
2050 depending on oil and gas prices, representing at least a 
26-fold increase from today. Over the same time period, DOE 
estimates the potential for up to 17,500 district-heating 
installations and more than 28 million households using 
geothermal heat pumps.
    Despite this large potential in electricity and heating, 
geothermal energy currently constitutes 0.4 percent of the U.S. 
electricity mix and growth over the last several decades has 
been slow. Policy changes at DOE and the Department of the 
Interior could make the difference in realizing this potential.

Geothermal research and development opportunities

    Miles below the Earth's surface the energy is abundant 
enough to power all energy needs several times over, but 
accessing that heat in an affordable manner is a major 
challenge. Lowering the cost of geothermal energy in more 
locations is the most effective way to increase deployment. New 
tools, technologies, and methods for discovering and accessing 
geothermal resources need to be developed.
    For example, nearly all geothermal electricity in the 
United States is currently produced from naturally occurring 
high temperature reservoirs located close to the surface (known 
as hydrothermal resources). These natural resources are 
primarily limited to the Western half of the United States, 
which has limited development. One major area of research at 
the DOE is developing techniques to create artificial methods 
to access heat where there is no reservoir present, known as 
enhanced or engineered geothermal systems (EGS).
    EGS has the potential to bring large-scale geothermal 
energy anywhere in the world depending on that location's 
temperature-at-depth by creating fractures and permeability in 
naturally hot rock. The total resource potential for EGS in the 
United States is estimated to be over 5,000 GW-electric, or 
more than five times the total installed electric capacity as 
of 2016. Lowering the cost of drilling, resource stimulation, 
and long-term reservoir management are essential to realizing 
this potential. Some new technologies, including those 
developed as part of the shale energy boom in the 2010s, have 
potential applications for low cost EGS.
    One underutilized application for geothermal energy in the 
United States is district heating and direct use. The best 
known example of large-scale geothermal district heating 
projects in the United States is the city of Boise, Idaho, 
which has been operating since the late 1800s. There are a 
total of 21 district heating systems in the United States. The 
heat from geothermal resources can also be used directly for 
agricultural or industrial applications. One example of this is 
at the Chena Hot Springs resort in Alaska, where a very low 
temperature geothermal resource is used to heat a series of 
greenhouses. Lowering the cost of geothermal drilling and EGS 
will greatly expand the potential to use low and medium 
temperature heat for direct use and district heating 
applications.
    A final critical area of R&D for geothermal energy is in 
other potential revenue streams beyond direct energy 
production. One area of growing interest is the potential to 
coproduce critical minerals, especially lithium, from the 
brines associated with geothermal energy production. The Salton 
Sea in California in particular could have enough lithium to 
produce up to 17,000 metric tons of lithium carbonate annually. 
Geothermal reservoirs and resources also have the potential to 
double as energy storage systems. Directly storing heat in 
rocks underground is one of the cheapest forms of energy 
storage. As interest grows in ``seasonal energy storage,'' or 
the ability to storage energy for days and weeks rather than 
minutes and hours, bulk energy storage systems need to become 
increasingly cheaper. Research into geothermal energy could 
unlock new mechanisms for seasonal energy storage to balance a 
potential future grid with high levels of variable renewable 
electricity generation.

Geothermal regulatory reform opportunities

    Given that 90 percent of identified geothermal resources 
are on Federal lands, the Federal permitting process for 
geothermal has a large impact on the rate and scope of 
geothermal energy development. The National Renewable Energy 
Laboratory (NREL) estimates that average permitting and 
environmental review timelines range from seven up to 10 years 
for geothermal development on Bureau of Land Management (BLM) 
land. The current permitting and associated environmental 
review process requires additional efficiencies for geothermal 
energy to be competitive on public lands.




    Geothermal projects on Federal land may be subject to 
review under the National Environmental Policy Act of 1969 
(NEPA, Public Law 91-190) up to six times during development, 
from land-use planning through final power plant construction. 
Each review is typically conducted separately, resulting in a 
prolonged development timeline. These environmental reviews are 
important to ensure environmental quality, but result in 
delays.
    Some geothermal exploration can occur under an existing 
categorical exclusion (CX) under NEPA (BLM 2016, Department of 
the Interior 516 DM 11.9(B)(6)), as long as such exploration 
does not cause additional surface disturbance or touch the 
geothermal resource. As a crucial part of resource exploration 
is testing the resource for temperature, flow-rate and 
chemistry, this existing exploration CX has limited utility. 
Actually confirming the resource's viability requires an 
additional environmental assessment under NEPA and ultimately 
elongates the exploration process to up to seven years.
    Oil and gas exploration on Federal lands, which is similar 
to geothermal exploration in many respects, does not have this 
same limitation due to CXs enacted in section 390 of the Energy 
Policy Act of 2005 (EPAct '05, Public Law 109-58; 42 U.S.C. 
15942) that did not extend to geothermal. An addition to the 
existing CX that allows access to the resource would both 
improve development timelines and reduce the total amount of 
exploration required for successful development.
    One other major issue is the lack of experienced regulatory 
personnel and interagency coordination for geothermal energy 
development. This has previously caused a backlog in the U.S. 
Forest Service's geothermal lease nominations, which could 
happen again on Federal land if geothermal development begins 
to pick up. NREL estimates that improved coordinated permitting 
between agencies and with States, combined with access to 
relevant geothermal permitting expertise, could decrease the 
average permitting time for development of Federal lands by two 
years. NREL estimates that coordinated permitting processes, 
combined with an improved environmental review process, could 
double geothermal development through 2050 compared to current 
development rates, even without any new technology improvement. 
These regulatory reforms coupled with technology improvement 
such as EGS would be sufficient to result in the 26-fold growth 
in geothermal capacity.
    S. 2657, the Advanced Geothermal Innovation Leadership 
(AGILE) Act follows many of the recommendations of the 
GeoVision report as well as industry and academic experts, that 
are expected to stimulate the geothermal industry. These 
include updated resource assessments, expanded R&D programs for 
conventional, low temperature, and enhanced geothermal, as well 
as regulatory reform and permit coordination for development on 
Federal lands to allow parity with oil and gas development.

                          Legislative History

    S. 2657 was introduced by Senators Murkowski and Manchin on 
October 22, 2019. The Subcommittee on Energy held a hearing on 
the measure on November 6, 2019.
    The Senate Committee on Energy and Natural Resources met in 
open business session on November 19, 2019, and ordered S. 2657 
favorably reported, as amended.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on November 19 2019, by a majority voice 
of a quorum present, recommends that the Senate pass S. 2657, 
if amended as described herein. Senator Lee asked to be 
recorded as voting no.

                          Committee Amendment

    During its consideration of S. 2657, the Committee adopted 
a joint staff amendment in the nature of a substitute. The 
substitute amendment modifies section 2 of the bill by amending 
section 2501 of the Energy Policy Act of 1992 (EPAct '92, 
Public Law 102-486; 30 U.S.C. 1028) to direct the Secretary of 
the Interior to coordinate with relevant State officials and 
institutions of high education in developing geothermal 
assessments in Alaska, Hawaii, and Puerto Rico.
    The substitute amendment further removes the broader 
secondary use program in section 3 except for the prize 
competition and moves the appropriations authorization for the 
prize to section 7. It also adds a new subsection (f) to 
section 614 of the Energy Independence and Security Act of 2007 
(EISA, Public Law 110-140; 42 U.S.C. 17193) to direct the 
Secretary of Energy (Secretary) to coordinate with the 
Secretary of the Interior to establish a repository of 
geothermal drilling information to lower the cost of geothermal 
drilling.
    The substitute amendment makes technical changes and 
clarifications to the Frontier Observatories for Research in 
Geothermal Energy (FORGE) provisions and to the demonstrations 
programs and moves those provisions from section 5 to section 
4. It also amends section 5 to add a new section 616A to EISA 
to authorize a geothermal heat pump and direct use R&D program 
at DOE.
    The substitute amendment amends section 6 (which was 
previously section 4) to remove the eligibility of qualified 
waste heat as a renewable resource. The substitute amendment 
also increases the appropriations authorization in section 7 
(which was previously section 6) for the Geothermal 
Technologies Office from $90 million per year to $150 million 
per year. It further clarifies that within that amount, $5 
million per year for four years is dedicated to the prize 
competition authorized in section 3 and $1 million per year is 
authorized for the data repository in section 3.
    The substitute amendment adds a new section 9 to require 
the Secretary of the Interior to establish national goals for 
geothermal energy capacity. It also directs the BLM Director to 
take any actions necessary to facilitate geothermal energy 
development.
    The substitute amendment adds a new section 10 to create a 
CX under NEPA for certain types of geothermal energy resource 
confirmation test projects and provides the process pertaining 
to such projects. The substitute amendment also renumbers 
section 8 as section 12.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 provides a short title to the bill.

Section 2. Update to geothermal resource assessment

    Section 2 amends section 2501 of EPAct '92 to direct the 
United States Geological Survey (USGS) to update an assessment 
of geothermal energy potential in the United States in 
consultation with the Secretary. Within areas previously 
identified as having significant potential for hydrothermal 
energy or EGS the resource assessment update is to focus on 
improving resource potential resolution; quantifying the total 
potential to coproduce energy and minerals; incorporating data 
on areas that could be suitable for thermal energy storage; and 
producing high resolution maps. The section also directs USGS 
to expand geothermal assessments to include Alaska, Hawaii, and 
Puerto Rico to the greatest extent practicable.

Section 3. General geothermal resource and development programs

    Section 3 amends the general geothermal R&D in Section 614 
of EISA to add new subsections (d), (e), (f).
    The new section 614(d) authorizes an oil and gas technology 
transfer initiative between DOE's Office of Fossil Energy and 
the Office of Energy Efficiency and Renewable Energy to modify, 
improve, and demonstrate oil and gas technology in geothermal 
energy. The Secretary is directed to prioritize technologies 
with the greatest potential to lower the cost of geothermal 
energy.
    The new section 614(e) creates a prize competition for 
demonstration of the coproduction of geothermal energy and 
critical minerals. Each prize is capped at $10 million.
    The new section 614(f) directs the Secretary to coordinate 
with the Secretary of the Interior to establish a repository of 
geothermal drilling information to lower the cost of geothermal 
drilling. The repository shall be coordinated with 
international partners and shall be integrated with the 
National Geothermal Data System.

Section 4. Enhanced geothermal research and development

    Section 4(a) amends the definition of ``Engineered'' in 
section 612(1) of EISA.
    Subsection (b) amends the enhanced geothermal R&D in 
section 615(b) of EISA to add several new research areas for 
enhanced geothermal. It further authorizes up to two FORGE 
sites, and provides rules for the operation and reauthorization 
of those sites, including the current FORGE site in Milford, 
Utah.
    The subsection also authorizes four enhanced geothermal 
systems demonstrations, which must be conducted using a variety 
of geologic settings, development techniques, and existing 
sites where geothermal analysis has been conducted. One 
demonstration project must be located east of the Mississippi 
River. The Secretary is also authorized to operate the 
demonstration program using an optional milestone and 
performance based structure.

Section 5. Geothermal heat pumps and direct use

    Section 5 amends EISA to add a new section 616A which 
authorizes a geothermal heat pump and direct use R&D program 
within DOE's Geothermal Technologies Office.
    The new section 616A(a) provides the program's purposes and 
the new subsection (b) defines key terms.
    The new subsection (c) directs the Secretary to establish 
the program and provides the program areas, including the use 
of geothermal energy for building-scale energy storage and 
geothermal heat pump efficiency improvements. It also directs 
the Secretary to identify and mitigate potential environmental 
impacts.
    The new subsection (d) directs the Secretary to make grants 
to support the program and to give priority to economically 
distressed areas.

Section 6. Modifying the definition of renewable energy to include 
        thermal energy

    Section 6 amends the definition of renewable energy in the 
Federal purchase requirement in section 203 of EPAct '05 to 
include thermal energy generated from or avoided by renewable 
energy, including geothermal energy. It also requires that 
avoided energy through the use of renewable sources counts as 
renewable energy that is produced, and cannot be double counted 
for the purposes of meeting a Federal energy efficiency goal.

Section 7. Authorization of appropriations

    Section 7 amends section 623 of EISA to increase the 
authorization for geothermal energy R&D to $165 million 
annually for fiscal years (FYs) 2020 through 2024. Of that 
total, $5 million for each of FYs 2020 through 2023 is 
allocated for the prize competition in section 614(e) and $1 
million is authorized annually for the repository in section 
614(f).

Section 8. Reauthorization of High Cost Region Geothermal Energy Grant 
        program

    Section 8 amends the High Cost Region Geothermal Energy 
Grant program in section 625 of EISA to include eligibility 
based on high cost heat and by reauthorizing the appropriations 
authorization at $5 million annually for FYs 2020 through 2024.

Section 9: National goals for production and priority areas for 
        development on Federal land

    Section 9(a) directs the Secretary of the Interior, in 
consultation with the Secretaries of Energy and Agriculture, to 
establish national goals for geothermal energy capacity on 
public land.
    Subsection (b) directs the BLM Director to take any action 
deemed necessary to facilitate geothermal energy development.

Section 10: Facilitation of coproduction of geothermal energy on oil 
        and gas leases

    Section 10 amends section 4(b) of the Geothermal Steam Act 
of 1970 (Public Law 91-581; 30 U.S.C. 1003(b)) to add a new 
paragraph 4 allowing noncompetitive leasing for geothermal 
energy on Federal lands to an existing oil and gas lease holder 
if that geothermal energy will be coproduced from an existing 
oil or gas well and national energy security will be improved 
by the issuance of such a lease.

Section 11: Geothermal Resource Confirmation Test Projects

    Section 11(a) amends the Geothermal Steam Act of 1970 to 
add a new section 30 titled ``Geothermal Resource Confirmation 
Test Projects.''
    The new section 30(a) defines key terms, including for 
``extraordinary circumstances'' and ``Geothermal Resource 
Confirmation Test Project'' or ``GRCTP.''
    The new subsection (b) states that a GRCTP is categorically 
excluded from NEPA unless extraordinary circumstances exist.
    The new subsection (c) sets forth the process for carrying 
out a GRCTP. The relevant leaseholder is required to provide 
notice of intent (NOI) to the Secretary of the Interior 30 days 
before the start of a proposed GRCTP. The Secretary of the 
Interior is then required to examine the NOI and notify the 
leaseholder and the public of whether the proposed activity 
qualifies as a GRCTP within 30 days of receipt of the NOI.
    Section 11(b) repeals the Geothermal Energy Research, 
Development, and Demonstration Act of 1974 (Public Law 93-410; 
30 U.S.C. 1101 et seq.).

Section 12. Program to improve Federal geothermal permit coordination

    Section 12(a) defines key terms used in the section.
    Subsection (b) directs the Secretary of the Interior to 
establish a program to improve coordination and reduce 
regulatory timelines with respect to geothermal energy projects 
on Federal land.
    Subsection (c) directs the Secretary of the Interior to 
establish one or more program offices to carry out the program.
    Subsection (d) directs the Secretary of the Interior to 
enter into a memorandum of understanding with the Secretary of 
Agriculture, the Environmental Protection Agency Administrator, 
and the Secretary of Defense.
    Subsection (e) directs each signatory agency to designate 
qualified staff to relevant program offices who have expertise 
in laws pertaining to geothermal energy development on Federal 
lands.
    Subsection (f) directs the Secretary of the Interior to 
assign additional personnel as necessary to ensure effective 
implementation.
    Subsection (g) authorizes the Secretary of the Interior to 
transfer funds to other agencies to facilitate the coordination 
and processing of geothermal permits on Federal lands.
    Subsection (h) directs the Secretary of the Interior to 
report to Congress on the program's progress within three years 
of enactment.
    Subsection (i) contains a savings clause stipulating that 
nothing in section 12 affects the operation of any State or 
Federal law or any delegation of authorities from a head of a 
Federal agency.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the Congressional Budget Office 
completes its cost estimate, it will be posted on the internet 
at www.cbo.gov.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 2657. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 2657, as ordered reported.

                   Congressionally Directed Spending

    S. 2657, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony provided by the Department of Energy at the 
November 6, 2019, hearing on S. 2657 follows:

   Testimony of Assistant Secretary Daniel Simmons, Office of Energy 
       Efficiency and Renewable Energy, U.S. Department of Energy


                              introduction


    Chairman Cassidy, Ranking Member Heinrich, and Members of 
the Energy Subcommittee of the Committee on Energy and Natural 
Resources, thank you for the opportunity to testify today on 
legislation pertinent to the Department of Energy now pending 
in the Senate. My name is Daniel Simmons, and I am the 
Assistant Secretary for the Office of Energy Efficiency and 
Renewable Energy (EERE).
    As the Assistant Secretary, I am responsible for overseeing 
a broad portfolio of energy efficiency and renewable energy 
programs. The technologies in my portfolio advance America's 
economic growth and energy security while enhancing the 
reliability and resilience of the U.S. energy system. The 
Department of Energy supports improving the energy efficiency 
and reducing energy costs, while at the same time ensuring 
important performance standards are met or exceeded. For 
instance, we want to ensure schools and other buildings are 
sufficiently bright to ensure safety, and that water flow from 
faucets is strong enough to clean dirty hands. Today, I would 
like to share what relevant work my office has done and is 
doing in the areas that these bills address.
    I have been asked to testify on eleven (11) bills today, 
addressing a range of important energy issues. The 
Administration continues to review all of these bills. I 
appreciate the ongoing bipartisan efforts to address our 
Nation's energy challenges and I look forward to working with 
the Committee.


                                 bills


S. 2657--Advanced Geothermal Innovation Leadership (AGILE) Act of 2019
    S. 2657, the AGILE Act of 2019 aims to accelerate 
geothermal energy development in the United States by 
addressing technical and non-technical barriers to geothermal 
development in both electric and direct use sectors. The bill 
achieves this through promoting research and development, 
encouraging technology transfer between the geothermal and oil 
and gas industries, and exploring ways to improve federal 
permit coordination.
    Work currently underway in the Geothermal Technologies 
Office to address challenges to geothermal deployment includes: 
collaboration with the Vehicle Technology Office and Advanced 
Manufacturing Office to evaluate ways to improve the critical 
materials supply chain; technology testing opportunities with 
Wells of Opportunity that will allow stakeholders from 
geothermal, oil and gas, mining and other relevant subsurface 
industries to more rapidly adapt technologies to the Enhanced 
Geothermal Systems and conventional geothermal environments; 
innovative portfolios focusing on drilling, machine learning, 
and zonal isolation technologies; and continued investment at 
the Utah Frontier Observatory for Research in Geothermal Energy 
site.
    In addition, the GeoVision analysis, published in May 2019, 
which found that optimizing permitting timelines could reduce 
costs and facilitate geothermal project development, 
potentially doubling installed geothermal capacity by 2050.
    EERE has provided technical comments on this bill. The 
Department will continue to review the legislation and looks 
forward to working with Congress as the legislative process 
moves forward.


                               conclusion


    Thank you again for the opportunity to testify before the 
Subcommittee today. The Department appreciates the ongoing 
bipartisan efforts to address our Nation's energy challenges, 
and looks forward to working with the Committee on the 
legislation on today's agenda and any future legislation. I 
would be happy to answer your questions.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the changes in existing law made 
by S. 2657, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                                CONTENTS

                                                                   Page
  1. Energy Policy Act of 1992, Public Law 102-486, as Amended.......17
  2. Energy Independence and Security Act of 2007, Public Law 110-140, 
     As Amended......................................................18
  3. Energy Policy Act of 2005, Public Law 109-58, as Amended........25
  4. United States Code, title 10....................................27
  5. Geothermal Steam Act of 1970, Public Law 91-581, as Amended.....27
  6. Geothermal Energy Research, Development, and Demonstration Act of 
     1974, Public Law 93-410, as Amended.............................29

                       ENERGY POLICY ACT OF 1992


Public Law 102-486, as Amended

           *       *       *       *       *       *       *



                     TITLE XXV--COAL, OIL, AND GAS

SEC. 2501. HOT DRY ROCK GEOTHERMAL ENERGY.

    (a) Definition of Enhanced Geothermal Systems.--In this 
section, the term ``enhanced geothermal systems'' has the 
meaning given the term in section 612 of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17191).
    [(a)] (b) The Secretary of the Interior, acting through the 
United States Geological Survey, and in consultation with the 
Secretary of Energy, shall establish a cooperative Government-
private sector program with respect to hot dry rock geothermal 
energy resources on public lands (as such term is defined in 
section 1702(e) of title 43) and lands managed by the 
Department of Agriculture, other than any such public or other 
lands that are withdrawn from geothermal leasing. Such program 
shall include, but shall not be limited to, activities to 
identify, select, and classify those areas throughout the 
United States that have a high potential for hot dry rock 
geothermal energy production and activities to develop and 
disseminate information regarding the utilization of such areas 
for hot dry rock energy production. Such information may 
include information regarding field test processes and 
techniques for assuring that hot dry rock geothermal energy 
development projects are developed in an economically feasible 
manner without adverse environmental consequences. Utilizing 
the information developed by the Secretary, together with 
information developed in connection with other related programs 
carried out by other Federal agencies, the Secretary, acting 
through the United States Geological Survey, may also enter 
into contracts and cooperative agreements with any public or 
private entity to provide assistance to any such entity to 
enable such entity to carry out additional projects with 
respect to the utilization of hot dry rock geothermal energy 
resources which will further the purposes of this section.
    (c) Update to Geothermal Resource Assessment.--The 
Secretary of the Interior, acting through the United States 
Geological Survey, and in consultation with the Secretary of 
Energy, shall update the United States geothermal resource 
assessment carried out by the United States Geological Survey, 
including--
          (1) with respect to areas previously identified by 
        the Department of Energy or the United States 
        Geological Survey as having significant potential for 
        hydrothermal energy or enhanced geothermal systems 
        energy, by focusing on--
                  (A) improving the resolution of resource 
                potential at systematic temperatures and 
                depths, including temperatures and depths 
                appropriate for power generation and direct use 
                applications;
                  (B) quantifying the total potential to 
                coproduce geothermal energy and minerals;
                  (C) incorporating data relevant to 
                underground thermal energy storage and 
                exchange, such as aquifer and soil properties; 
                and (D) producing high resolution maps, 
                including--
                          (i) maps that indicate key subsurface 
                        parameters for electric and direct use 
                        resources; and
                          (ii) risk maps for induced seismicity 
                        based on geologic, geographic, and 
                        operational parameters; and
          (2) to the maximum extent practicable, by 
        coordinating with relevant State officials and 
        institutions of higher education to expand geothermal 
        assessments, including enhanced geothermal systems 
        assessments, to include assessments for the 
        Commonwealth of Puerto Rico and the States of Alaska 
        and Hawaii.
    [(b)] (d) There are authorized to be appropriated such sums 
as may be [necesary] necessary to carry out this section.

           *       *       *       *       *       *       *


              ENERGY INDEPENDENCE AND SECURITY ACT OF 2007

Public Law 110-140, as Amended

           *       *       *       *       *       *       *



TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *


Subtitle B--Geothermal Energy

           *       *       *       *       *       *       *


SEC. 612. DEFINITIONS.

    For purposes of this subtitle:
          (1) Engineered.--When referring to enhanced 
        geothermal systems, the term ``engineered' means 
        [subjected to intervention, including intervention] 
        designed to access subsurface heat, including 
        nonstimulation technologies, to address one of more of 
        the following issues:

           *       *       *       *       *       *       *


SEC. 614. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT

    (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;
          (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; and
          (3) support a program of research to compare the 
        potential environmental impacts identified as part of 
        the development, production, and use of geothermal 
        energy with the potential emission reductions of 
        greenhouse gases gained by geothermal energy 
        development, production, and use.
    (d) Oil and Gas Technology Transfer Initiative.--
          (1) In general.--The Secretary shall support an 
        initiative among the Office of Fossil Energy, the 
        Office of Energy Efficiency and Renewable Energy, and 
        the private sector to modify, improve, and demonstrate 
        the use in geothermal energy development of relevant 
        advanced technologies and operation techniques used in 
        the oil and gas sector.
          (2) Priorities.--In carrying out paragraph (1), the 
        Secretary shall prioritize technologies with the 
        greatest potential to significantly increase the use 
        and lower the cost of geothermal energy in the United 
        States, including the cost and speed of small- and 
        large-scale geothermal drilling.
    (e) Coproduction of Geothermal Energy and Minerals 
Production Prize Competition.--
          (1) In general.--The Secretary shall carry out a 
        prize competition under which the Secretary shall award 
        prizes to demonstrate the coproduction of critical 
        minerals (as defined by the Secretary of the Interior 
        on the date of enactment of the AGILE Act of 2019) from 
        geothermal resources.
          (2) Requirements.--A demonstration awarded a prize 
        under paragraph (1) shall--
                  (A) improve the cost-effectiveness of 
                removing minerals from geothermal brines as 
                part of the coproduction process;
                  (B) increase recovery rates of the targeted 
                mineral commodity;
                  (C) decrease water use and other 
                environmental impacts, as determined by the 
                Secretary; and
                  (D) demonstrate a path to commercial 
                viability.
          (3) Maximum prize amount.--The maximum amount of a 
        prize awarded under paragraph (1) shall be $10,000,000.
    (f) Drilling Data Repository.--
          (1) In general.--The Secretary shall, in coordination 
        with the Secretary of the Interior, establish and 
        operate a voluntary, industry-wide repository of 
        geothermal drilling information to lower the cost of 
        future geothermal drilling.
          (2) Repository.--
                  (A) In general.--In carrying out paragraph 
                (1), the Secretary shall collaborate with 
                geothermally significant countries, such as 
                Iceland, Switzerland, Kenya, Australia, the 
                Philippines, and any other relevant country, as 
                determined by the Secretary.
                  (B) Data system.--The repository established 
                under paragraph (1) shall be integrated with 
                the National Geothermal Data System.

           *       *       *       *       *       *       *


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

SEC. 616. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS FIELDS AND 
                    RECOVERY AND PRODUCTION OF GEOPRESSURED GAS 
                    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 outlines 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. 616A. GEOTHERMAL HEAT PUMPS AND DIRECT USE RESEARCH AND 
                    DEVELOPMENT.

    (a) Purposes.--The purposes of this section are--
          (1) to improve the components, processes, and systems 
        used for geothermal heat pumps and the direct use of 
        geothermal energy; and
          (2) to increase the energy efficiency, lower the 
        cost, increase the use, and improve and demonstrate the 
        applicability of geothermal heat pumps to, and the 
        direct use of geothermal energy in, large buildings, 
        commercial districts, residential communities, and 
        large municipal, agricultural, or industrial projects.
    (b) Definitions.--In this section:
          (1) Direct use of geothermal energy.--The term 
        `direct use of geothermal energy' means systems that 
        use water directly or through a heat exchanger to 
        provide--
                  (A) heating to buildings; or
                  (B) heat required for industrial processes, 
                agriculture, aquaculture, and other facilities.
          (2) Economically distressed area.--The term 
        `economically distressed area' means an area described 
        in section 301(a) of the Public Works and Economic 
        Development Act of 1965 (42 U.S.C. 3161(a)).
          (3) Geothermal heat pump.--The term `geothermal heat 
        pump' means a system that provides heating and cooling 
        by exchanging heat from shallow ground or surface water 
        using--
                  (A) a closed loop system, which transfers 
                heat by way of buried or immersed pipes that 
                contain a mix of water and working fluid; or
                  (B) an open loop system, which circulates 
                ground or surface water directly into the 
                building and returns the water to the same 
                aquifer or surface water source.
    (c) Program.--
          (1) In general.--The Secretary shall support within 
        the Geothermal Technologies Office a program of 
        research, development, and demonstration for geothermal 
        heat pumps and the direct use of geothermal energy.
          (2) Areas.--The program under paragraph (1) may 
        include research, development, demonstration, and 
        commercial application of--
                  (A) geothermal ground loop efficiency 
                improvements, cost reductions, and improved 
                installation and operations methods;
                  (B) the use of geothermal energy for 
                building-scale energy storage;
                  (C) the use of geothermal energy as a grid 
                management resource or seasonal energy storage;
                  (D) geothermal heat pump efficiency 
                improvements;
                  (E) the use of alternative fluids as a heat 
                exchange medium, such as hot water found in 
                mines and mine shafts, graywater, or other 
                fluids that may improve the economics of 
                geothermal heat pumps;
                  (F) heating of districts, neighborhoods, 
                communities, large commercial or public 
                buildings, and industrial and manufacturing 
                facilities;
                  (G) the use of water sources at a temperature 
                of less than 150 degrees Celsius for direct 
                use; and
                  (H) system integration of direct use with 
                geothermal electricity production.
          (3) Environmental impacts.--In carrying out the 
        program, the Secretary shall identify and mitigate 
        potential environmental impacts in accordance with 
        section 614(c).
    (d) Grants.--
          (1) In general.--The Secretary shall make grants 
        available to State, local, and Tribal governments, 
        institutions of higher education, nonprofit entities, 
        National Laboratories, utilities, and for-profit 
        companies to promote the development of geothermal heat 
        pumps and the direct use of geothermal energy.
          (2) Priority.--In making grants under this 
        subsection, the Secretary shall give priority to 
        proposals that apply to large buildings, commercial 
        districts, and residential communities that are located 
        in economically distressed areas.

           *       *       *       *       *       *       *


SEC. 623. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to 
carry out this subtitle [$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 616. There are also 
authorized to be appropriated to the Secretary for the 
Intermountain West Geothermal Consortium $5,000,000 for each of 
the fiscal years 2008 through 2012.] $165,000,000 for each of 
fiscal years 2020 through 2024, of which--
          (1) $5,000,000 for each of fiscal years 2020 through 
        2023 shall be for the prize competition under section 
        614(e); and
          (2) $1,000,000 each fiscal year shall be for the 
        drilling data repository under section 614(f).

           *       *       *       *       *       *       *


SEC. 625. HIGH COST REGION GEOTHERMAL ENERGY GRANT PROGRAM.

    (a) Definitions.--In this section:
          (1) Eligible Entity.--The term ``eligible entity'' 
        means--
                  (A) a utility;
                  (B) an electric cooperative;
                  (C) a State;
                  (D) a political subdivision of a State;
                  (E) an Indian tribe; or
                  (F) a Native Corporation.
          (2) High-cost region.--The term ``high-cost region'' 
        means a region in which the average cost of electrical 
        power or heat exceeds 150 percent of the national 
        average retail cost, as determined by the Secretary.
    (b) Program.--The Secretary shall use amounts made 
available to carry out this section to make grants to eligible 
entities for activities described in subsection (c).
    (c) Eligible Activities.--An eligible entity may use grant 
funds under this section, with respect to a geothermal energy 
project in a high-cost region, only--
          (1) to conduct a feasibility study, including a study 
        of exploration, geochemical testing, geomagnetic 
        surveys, geologic information gathering, baseline 
        environmental studies, well drilling, resource 
        characterization, permitting, and economic analysis;
          (2) for design and engineering costs, relating to the 
        project; and
          (3) to demonstrate and promote commercial application 
        of technologies related to geothermal energy as part of 
        the project.
    (d) Cost Sharing.--The cost-sharing requirements of section 
16352 of this title shall apply to any project carried out 
under this section.
    (e) [Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.] Authorization of Appropriation.--There is authorized 
to be appropriated to carry out this section $5,000,000 for 
each of fiscal years 2020 through 2024.

           *       *       *       *       *       *       *


                       ENERGY POLICY ACT OF 2005

Public Law 109-58, as Amended

           *       *       *       *       *       *       *



                       TITLE II--RENEWABLE ENERGY

Subtitle A--General Provisions

           *       *       *       *       *       *       *


SEC. 203. FEDERAL PURCHASE REQUIREMENT.

    (a) Requirement.--The President, acting through the 
Secretary, shall seek to ensure that, to the extent 
economically feasible and technically practicable, of the total 
amount of electric energy the Federal Government consumes 
during any fiscal year, the following amounts shall be 
renewable energy:
          (1) Not less than 3 percent in fiscal years 2007 
        through 2009.
          (2) Not less than 5 percent in fiscal years 2010 
        through 2012.
          (3) Not less than 7.5 percent in fiscal year 2013 and 
        each fiscal year thereafter.
    (b) Definitions.--In this section:
          (1) Biomass.--The term ``biomass'' means any lignin 
        waste material that is segregated from other waste 
        materials and is determined to be nonhazardous by the 
        Administrator of the Environmental Protection Agency 
        and any solid, nonhazardous, cellulosic material that 
        is derived from--
                  (A) any of the following forest-related 
                resources: mill residues, precommercial 
                thinnings, slash, and brush, or nonmerchantable 
                material;
                  (B) solid wood waste materials, including 
                waste pallets, crates, dunnage, manufacturing 
                and construction wood wastes (other than 
                pressure-treated, chemically-treated, or 
                painted wood wastes), and landscape or right-
                of-way tree trimmings, but not including 
                municipal solid waste (garbage), gas derived 
                from the biodegradation of solid waste, or 
                paper that is commonly recycled;
                  (C) agriculture wastes, including orchard 
                tree crops, vineyard, grain, legumes, sugar, 
                and other crop by-products or residues, and 
                livestock waste nutrients; or
                  (D) a plant that is grown exclusively as a 
                fuel for the production of electricity.
          (2) Renewable energy.--The term ``renewable energy'' 
        means electric energy [generated from] produced from, 
        or, in the case of thermal energy resulting from a 
        thermal energy project placed in service after December 
        31, 2018, thermal energy generated from, or avoided by, 
        solar, wind, biomass, landfill gas, ocean (including 
        tidal, wave, current, and thermal), geothermal, 
        municipal solid waste, or new hydroelectric generation 
        capacity achieved from increased efficiency or 
        additions of new capacity at an existing hydroelectric 
        project.
    (c) Calculation.--[For purposes]
          (1) In general.--For Purposes of determining 
        compliance with the requirement of this section, the 
        amount of renewable energy shall be doubled if--
          [(1)] (A) the renewable energy is produced and used 
        on-site at a Federal facility;
          [(2)] (B) the renewable energy is produced on Federal 
        lands and used at a Federal facility; or
          [(3)] (C) the renewable energy is produced on Indian 
        land as defined in title XXVI of the Energy Policy Act 
        of 1992 (25 U.S.C. 3501 et seq.) and used at a Federal 
        facility.
          (2) Separate calculation.--
                  (A) In General.--For purposes of determining 
                compliance with the requirement of this 
                section, any energy consumption that is avoided 
                through the use of renewable energy shall be 
                considered to be renewable energy produced.
                  (B) Denial of Double Benefit.--Avoided energy 
                consumption that is considered to be renewable 
                energy produced under subparagraph (A) shall 
                not also be counted for purposes of achieving 
                compliance with another Federal energy 
                efficiency goal.
    (d) Report.--Not later than April 15, 2007, and every 2 
years thereafter, the Secretary shall provide a report to 
Congress on the progress of the Federal Government in meeting 
the goals established by this section.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

TITLE 10--ARMED FORCES

           *       *       *       *       *       *       *


CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS

           *       *       *       *       *       *       *



Sec. 2410q. Multiyear contracts: purchase of electricity from renewable 
                    energy sources

    (a) Multiyear Contract Authorized.--Subject to subsection 
(b), the Secretary of Defense may enter into a contract for a 
period not to exceed 10 years for the purchase of electricity 
from sources of renewable energy, as that term is defined in 
section [203(b)(2) of the Energy Policy Act of 2005 (42 U.S.C. 
15852(b)(2)).] section 203(b) of the Energy Policy Act of 2005 
(42 U.S.C. 15852(b)).

           *       *       *       *       *       *       *


                      GEOTHERMAL STEAM ACT OF 1970

Public Law 91-581, as Amended

           *       *       *       *       *       *       *



SEC. 4. LEASING PROCEDURES.

    (a) Nominations.--The Secretary shall accept nominations of 
land to be leased at any time from qualified companies and 
individuals under this Act.
    (b) Competitive Lease Sale Required.--
          (1) In general.--Except as otherwise specifically 
        provided by this Act, all land to be leased that is not 
        subject to leasing under subsection (c) shall be leased 
        as provided in this subsection to the highest 
        responsible qualified bidder, as determined by the 
        Secretary.
          (2) Competitive lease sales.--The Secretary shall 
        hold a competitive lease sale at least once every 2 
        years for land in a State that has nominations pending 
        under subsection (a) if the land is otherwise available 
        for leasing.
          (3) Lands subject to mining claims.--Lands that are 
        subject to a mining claim for which a plan of 
        operations has been approved by the relevant Federal 
        land management agency may be available for 
        noncompetitive leasing under this section to the mining 
        claim holder.
          (4) Land subject to oil and gas lease.--Land under an 
        oil and gas lease issued pursuant to the Mineral 
        Leasing Act (30 U.S.C. 181 et seq.) or the Mineral 
        Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.) 
        that is subject to an approved application for permit 
        to drill and from which oil and gas production is 
        occurring may be available for noncompetitive leasing 
        under this section to the holder of the oil and gas 
        lease--
                  (A) on a determination that--
                          (i) geothermal energy will be 
                        produced from a well producing or 
                        capable of producing oil and gas; and
                          (ii) national energy security will be 
                        improved by the issuance of such a 
                        lease; and
                  (B) to provide for the coproduction of 
                geothermal energy with oil and gas.

           *       *       *       *       *       *       *


SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.

    The Secretary shall not issue any lease under this Act on 
those land subject to the prohibition provided under section 43 
of the Mineral Leasing Act.

SEC. 30. GEOTHERMAL RESOURCE CONFIRMATION TEST PROJECTS.

    (a) Definitions.--In this section:
          (1) Extraordinary circumstances.--The term 
        `extraordinary circumstances' has the same meaning 
        given the term in the Department of the Interior 
        Departmental Manual, 516 DM 2.3A(3) and 516 DM 2, 
        Appendix 2 (or successor provisions).
          (2) Geothermal resource confirmation test project.--
        The term `geothermal resource confirmation test 
        project' means a project of drilling not more than 3 
        wells into a reservoir to test or explore for 
        geothermal resources--
                  (A) on land for which the Secretary has 
                issued a lease under this Act; and
                  (B) that--
                          (i) is carried out by the holder of 
                        the lease;
                          (ii) allows for well testing, such as 
                        to confirm temperature, pressure, 
                        chemistry, flow rate, and near-wellbore 
                        and overall reservoir permeability;
                          (iii) causes--
                                  (I) less than 2.5 acres of 
                                soil or vegetation disruption 
                                at the location of each 
                                geothermal exploration well; 
                                and
                                  (II) not more than an 
                                additional 5 acres of soil or 
                                vegetation disruption during 
                                access to or egress from the 
                                test site;
                          (iv) is less than 9 inches in bottom-
                        hole diameter;
                          (v) is developed--
                                  (I) in a manner that does not 
                                require off-road motorized 
                                access other than to and from 
                                the well site along an 
                                identified off-road route; and
                                  (II) without the use of high-
                                pressure well stimulation;
                          (vi) includes the removal of any 
                        surface infrastructure other than the 
                        wellhead from the site not later than 
                        90 days after the project is completed; 
                        and
                          (vii) requires, not later than 42 
                        months after the date on which the 
                        first exploration drilling began, the 
                        restoration of the project site to 
                        approximately the condition that 
                        existed at the time the project begins, 
                        unless the site is subsequently used as 
                        part of an energy development under the 
                        lease.
    (b) Categorical Exclusion.--Unless extraordinary 
circumstances exist, a project that the Secretary determines 
under subsection (c) is a geothermal resource confirmation test 
project shall be categorically excluded from the requirements 
for an environmental assessment or an environmental impact 
statement under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.) or section 1508.4 of title 40, Code of 
Federal Regulations (or a successor regulation).
    (c) Process.--
          (1) Requirement to provide notice.--A leaseholder 
        shall provide notice to the Secretary of the intent of 
        the leaseholder to carry out a geothermal resource 
        confirmation test project at least 30 days before the 
        start of drilling under the project.
          (2) Review and determination.--Not later than 30 days 
        after receipt of a notice of intent under paragraph 
        (1), the Secretary shall, with respect to the project 
        described in the notice of intent--
                  (A) determine if the project is a geothermal 
                resource confirmation test project;
                  (B) notify the leaseholder of such 
                determination; and
                  (C) provide public notice of the 
                determination.
          (3) Opportunity to remedy.--If the Secretary 
        determines under paragraph (2)(A) that the project is 
        not a geothermal resource confirmation test project, 
        the Secretary shall--
                  (A) include in such notice clear and detailed 
                findings on any deficiencies in the project 
                that resulted in such determination; and
                  (B) allow the leaseholder to remedy any such 
                deficiencies and resubmit the notice of intent 
                under paragraph (1).

           *       *       *       *       *       *       *


 GEOTHERMAL ENERGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION ACT OF 1974

Public Law 93-410, as Amended

           *       *       *       *       *       *       *



                                [AN ACT

    [To further the conduct of research, development, and 
demonstrations in geothermal energy technologies, to establish 
a Geothermal Energy Coordination and Management Project, to 
provide for the carrying out of research and development in 
geothermal energy technology, to carry out a program of 
demonstrations in technologies for the utilization of 
geothermal resources, to establish a loan guaranty program for 
the financing of geothermal energy development, and for other 
purposes.
    [Be it enacted by the Senate and House of Representatives 
of the United States of America in Congress assembled,

                              [SHORT TITLE

    [SECTION 1. This Act may be cited as the ``Geothermal 
Energy Research, Development, and Demonstration Act of 1974''.

                               [FINDINGS

    [SEC. 2. The Congress hereby finds that--
          [(1) the Nation is currently suffering a critical 
        shortage of environmentally acceptable forms of energy;
          [(2) the inadequate organizational structures and 
        levels of funding for energy research have limited the 
        Nation's current and future options for meeting energy 
        needs;
          [(3) electric energy is a clean and convenient form 
        of energy at the location of its use and is the only 
        practicable form of energy in some modern applications, 
        but the demand for electric energy in every region of 
        the United States is taxing all of the alternative 
        energy sources presently available and is projected to 
        increase; some of the sources available for electric 
        power generation are already in short supply, and the 
        development and use of other sources presently involve 
        undesirable environmental impacts;
          [(4) the Nation's critical energy problems can be 
        solved only if a national commitment is made to 
        dedicate the necessary financial resources, and enlist 
        the cooperation of the private and public sectors, in 
        developing geothermal resources and other 
        nonconventional sources of energy;
          [(5) the conventional geothermal resources which are 
        presently being used have limited total potential; but 
        geothermal resources which are different from those 
        presently being used, and which have extremely large 
        energy content, are known to exist;
          [(6) some geothermal resources contain energy in 
        forms other than heat; examples are methane and 
        extremely high pressures available upon release as 
        kinetic energy;
          [(7) some geothermal resources contain valuable 
        byproducts such as potable water and mineral compounds 
        which should be processed and recovered as national 
        resources;
          [(8) technologies are not presently available for the 
        development of most of these geothermal resources, but 
        technologies for the generation of electric energy from 
        geothermal resources are potentially economical and 
        environmentally desirable, and the development of 
        geothermal resources offers possibilities of process 
        energy and other nonelectric applications;
          [(9) much of the known geothermal resources exist on 
        the public lands;
          [(10) Federal financial assistance is necessary to 
        encourage the extensive exploration, research, and 
        development in geothermal resources which will bring 
        these technologies to the point of commercial 
        application;
          [(11) the advancement of technology with the 
        cooperation of private industry for the production of 
        useful forms of energy from geothermal resources is 
        important with respect to the Federal responsibility 
        for the general welfare, to facilitate commerce, to 
        encourage productive harmony between man and his 
        environment, and to protect the public interest; and
          [(12) the Federal Government should encourage and 
        assist private industry through Federal assistance for 
        the development and demonstration of practicable means 
        to produce useful energy from geothermal resources with 
        environmentally acceptable processes.]

                              [DEFINITIONS

    [SEC. 3. For the purposes of this Act--
          [(1) the term ``geothermal resources'' means (A) all 
        products of geothermal processes, embracing indigenous 
        steam, hot water, and brines, (B) steam and other 
        gases, hot water and hot brines, resulting from water, 
        gas, or other fluids artificially introduced into 
        geothermal formations, and (C) any byproduct derived 
        from them;
          [(2) the term ``byproduct'' means any mineral or 
        minerals which are found in solution or in association 
        with geothermal resources and which have a value of 
        less than 75 percent of the value of the geothermal 
        steam and associated geothermal resources or are not, 
        because of quantity, quality, or technical difficulties 
        in extraction and production, of sufficient value to 
        warrant extraction and production by themselves;
          [(3) ``pilot plant'' means an experimental unit of 
        small size used for early evaluation and development of 
        new or improved processes and to obtain technical, 
        engineering, and cost data;
          [(4) ``demonstration plant'' means a complete 
        facility which produces electricity, heat energy, or 
        useful byproducts for commercial disposal from 
        geothermal resources and which will make a significant 
        contribution to the knowledge of full-size technology, 
        plant operation, and process economics;
          [(5) the term ``Project'' means the Geothermal Energy 
        Coordination and Management Project established by 
        section 1121(a) of this title;
          [(6) the term ``fund'' means the Geothermal Resources 
        Development Fund established by section 1144(a) of this 
        title; and
          [(7) the term ``Chairman'' means the Chairman of the 
        Project.]

    [TITLE I--GEOTHERMAL ENERGY COORDINATION AND MANAGEMENT PROJECT

                             [ESTABLISHMENT

    [SEC. 101. (a) There is hereby established the Geothermal 
Energy Coordination and Management Project.
    [(b) (1) The Project shall be composed of six members as 
follows:
                  [(A) one appointed by the President;
                  [(B) an Assistant Director of the National 
                Science Foundation;
                  [(C) an Assistant Secretary of the Department 
                of the Interior;
                  [(D) an Associate Administrator of the 
                National Aeronautics and Space Administration;
                  [(E) the Assistant Administrator of the 
                Energy Research and Development Administration 
                for Solar, Geothermal, and Advanced Energy 
                Systems;
                  [(F) an Assistant Administrator of the 
                Federal Energy Administration;
                  [(G) an Assistant Administrator of the 
                Environmental Protection Agency;
                  [(H) an Assistant Secretary of the Treasury; 
                and
                  [(I) an Assistant Secretary of Agriculture.
    [(2) The President shall designate the Assistant 
Administrator of the Energy Research and Development 
Administration for Solar, Geothermal, and Advanced Energy 
Systems to serve as Chairman of the Project.
    [(3) If the individual appointed under paragraph (1)(A) of 
this subsection is an officer or employee of the Federal 
Government, he shall receive no additional pay on account of 
his service as a member of the Project. If such individual is 
not an officer or employee of the Federal Government, he shall 
be entitled to receive the daily equivalent of the annual rate 
of basic pay in effect for level IV of the Executive Schedule 
(5 U.S.C. 5315) for each day (including traveltime) during 
which he is engaged in the actual performance of duties vested 
in the Project.
    [(c) The Project shall have overall responsibility for the 
provision of effective management and coordination with respect 
to a national geothermal energy research, development, and 
demonstration program. Such program shall include--
          [(1) the determination and evaluation of the resource 
        base;
          [(2) research and development with respect to 
        exploration, extraction, and utilization technologies;
          [(3) the demonstration of appropriate technologies; 
        and
          [(4) the loan guaranty program under subchapter II.
    [(d)(1) The Project shall carry out its responsibilities 
under this section acting through the following Federal 
agencies:
                  [(A) the Department of the Interior, the 
                responsibilities of which shall include 
                evaluation and assessment of the resource base, 
                including development of exploration 
                technologies;
                  [(B) the National Aeronautics and Space 
                Administration, the responsibilities of which 
                shall include the provision of contract 
                management capability, evaluation and 
                assessment of the resource base, and the 
                development of technologies pursuant to section 
                1122(b) of this title;
                  [(C) the Atomic Energy Commission, the 
                responsibilities of which shall include the 
                development of technologies; and
                  [(D) the National Science Foundation, the 
                responsibilities of which shall include basic 
                and applied research.
    [(2) Upon request of the Project, the head of any such 
agency is authorized to detail or assign, on a reimbursable 
basis or otherwise, any of the personnel of such agency to the 
Project to assist it in carrying out its responsibilities under 
this chapter.
    [(e) The Project shall have exclusive authority with 
respect to the establishment or approval of programs or 
projects initiated under this chapter, except that the agency 
involved in any particular program or project shall be 
responsible for the operation and administration of such 
program or project.]

                          [PROGRAM DEFINITION

    [SEC. 102. (a)(1) The Chairman, acting through the 
Administrator of the National Aeronautics and Space 
Administration, is authorized and directed to prepare a 
comprehensive program definition of an integrated effort and 
commitment for effectively developing geothermal energy 
resources. Such Administrator, in preparing such comprehensive 
program definition, is authorized to consult with other Federal 
agencies and non-Federal entities.
    [(2) The Chairman shall transmit such comprehensive program 
definition to the President and to each House of the Congress. 
Interim reports shall be transmitted not later than November 
30, 1974, and not later than January 31, 1975. Such 
comprehensive program definition shall be transmitted as soon 
as possible thereafter, but in any case not later than August 
31, 1975.
    [(3) As part of the comprehensive program definition 
required by paragraph (1) of this subsection, the Chairman, 
acting through the United States Geological Survey, shall 
transmit to the President and to each House of the Congress a 
schedule and objectives for the inventorying of geothermal 
resources.
    [(b) The National Aeronautics and Space Administration is 
authorized to undertake and carry out those programs assigned 
to it by the Project.]

               [RESOURCE INVENTORY AND ASSESSMENT PROGRAM

    [SEC. 103. (a) The Chairman shall initiate a resource 
inventory and assessment program with the objective of making 
regional and national appraisals of all types of geothermal 
resources, including identification of promising target areas 
for industrial exploration and development. The specific goals 
shall include--
          [(1) the improvement of geophysical, geochemical, 
        geological, and hydrological techniques necessary for 
        locating and evaluating geothermal resources;
          [(2) the development of better methods for predicting 
        the power potential and longevity of geothermal 
        reservoirs;
          [(3) the determination and assessment of the nature 
        and power potential of the deeper unexplored parts of 
        high temperature geothermal convection systems; and
          [(4) the survey and assessment of regional and 
        national geothermal resources of all types.
    [(b) The Chairman, acting through the United States 
Geological Survey and other appropriate agencies, shall--
          [(1) develop and carry out a general plan for the 
        orderly inventorying of all forms of geothermal 
        resources of the Federal lands and, where consistent 
        with property rights and determined by the Chairman to 
        be in the national interest, of non-Federal lands;
          [(2) conduct regional surveys, based upon such a 
        general plan, using innovative geological, geophysical, 
        geochemical, and stratagraphic drilling techniques, 
        which will lead to a national inventory of geothermal 
        resources in the United States;
          [(3) publish and make available maps, reports, and 
        other documents developed from such surveys to 
        encourage and facilitate the commercial development of 
        geothermal resources for beneficial use and consistent 
        with the national interest;
          [(4) make such recommendations for legislation or 
        administrative regulations as may from time to time 
        appear to be necessary to make Federal leasing, 
        environmental and taxing policy for geothermal 
        resources consistent with known inventories of various 
        resource types, with the current state of technologies 
        for geothermal energy development, and with current 
        evaluations of the environmental impacts of such 
        development; and
          [(5) participate with appropriate Federal agencies 
        and non-Federal entities in research to develop, 
        improve, and test technologies for the discovery and 
        evaluation of all forms of geothermal resources, and 
        conduct research into the principles controlling the 
        location, occurrence, size, temperature, energy 
        content, producibility, and economic lifetimes of 
        geothermal reservoirs.]
    [SEC. 104. (a) The Chairman, acting through the appropriate 
Federal agencies and in cooperation with non-Federal entities, 
shall initiate a research and development program for the 
purpose of resolving all major technical problems inhibiting 
the fullest possible commercial utilization of geothermal 
resources in the United States. The specific goals of such 
programs shall include--
          [(1) the development of effective and efficient 
        drilling methods to operate at high temperatures in 
        formations of geothermal interest;
          [(2) the development of reliable predictive methods 
        and control techniques for the production of geothermal 
        resources from reservoirs;
          [(3) the exploitation of new concepts for fracturing 
        rock to permit recovery of contained heat reserves;
          [(4) the improvement of equipment and technology for 
        the extraction of geothermal resources from reservoirs;
          [(5) the development of improved methods for 
        converting geothermal resources and byproducts to 
        useful forms;
          [(6) the development of improved methods for 
        controlling emissions and wastes from geothermal 
        utilization facilities, including new monitoring 
        methods to any extent necessary;
          [(7) the development and evaluation of waste disposal 
        control technologies and the evaluation of surface and 
        subsurface environmental effects of geothermal 
        development;
          [(8) the improvement of the technical capability to 
        predict environmental impacts resulting from the 
        development of geothermal resources, the preparation of 
        environmental impact statements, and the assuring of 
        compliance with applicable standards and criteria;
          [(9) the identification of social, legal, and 
        economic problems associated with geothermal 
        development (both locally and regionally) for the 
        purpose of developing policy and providing a framework 
        of policy alternatives for the commercial utilization 
        of geothermal resources;
          [(10) the provision for an adequate supply of 
        scientists to perform required geothermal research and 
        development activities; and
          [(11) the establishment of a program to encourage 
        States to establish and maintain geothermal resources 
        clearinghouses, which shall serve to (A) provide 
        geothermal resources developers with information with 
        respect to applicable local, State, and Federal laws, 
        rules, and regulations, (B) coordinate the processing 
        of permit applications, impact statements, and other 
        information which geothermal resources developers are 
        required to provide, (C) encourage uniformity with 
        respect to local and State laws, rules, and regulations 
        with respect to geothermal resources development, and 
        (D) encourage establishment of land use plans, which 
        would include zoning for geothermal resources 
        development and which would assure that geothermal 
        resources developers will be able to carry out 
        development programs to the production stage.
    [(b) The Chairman, acting through the appropriate Federal 
agencies and in cooperation with non-Federal entities, shall 
implement a coordinated program of research and development in 
order to demonstrate the technical means for the extraction and 
utilization of the resource base, including any by-products of 
such base, and in order to accomplish the goals established by 
subsection (a). Research authorized by this chapter having 
potential applications in matters other than geothermal energy 
may be pursued to the extent that the findings of such research 
can be published in a form for utilization by others.]

                             [DEMONSTRATION

    [SEC. 105. (a) The Chairman, acting through the appropriate 
Federal agencies and in cooperation with non-Federal entities, 
shall initiate a program to design and construct geothermal 
demonstration plants. The specific goals of such program shall 
include--
          [(1) the development of economical geothermal 
        resources production systems and components which meet 
        environmental standards;
          [(2) the design of plants to produce electric power 
        and, where appropriate, the large-scale production and 
        utilization of any useful by-products;
          [(3) the involvement of engineers, analysts, 
        technicians, and managers from industry field and 
        powerplant development, which shall lead to the early 
        industrial exploitation of advanced geothermal 
        resources;
          [(4) the provision for an adequate supply of trained 
        geothermal engineers and technicians;
          [(5) the provision of experimental test beds for 
        component testing an evaluation by laboratories 
        operated by the Federal Government, industry, or 
        institutions of higher education;
          [(6) the construction and operation of pilot plants; 
        and
          [(7) the construction and operation of demonstration 
        plants.
    [ (b) In carrying out his responsibilities under this 
section, the Chairman, acting through the appropriate Federal 
agencies, and in cooperation with non-Federal entities, may 
provide for the establishment of one or more demonstration 
projects utilizing each geothermal resource base involved, 
which shall include, as appropriate, all of the exploration, 
siting, drilling, pilot plant construction and operation, 
demonstration plant construction and operation, and other 
facilities and activities which may be necessary for the 
generation of electric energy and the utilization of geothermal 
resource byproducts.
    [(c) The Chairman, acting through the appropriate Federal 
agencies, is authorized to investigate and enter into 
agreements for the cooperative development of facilities to 
demonstrate the production of energy from geothermal resources. 
The responsible Federal agency may consider--
          [(1) cooperative agreements with utilities and non-
        Federal governmental entities for construction of 
        facilities to produce energy for commercial 
        disposition; and
          [(2) cooperative agreements with other Federal 
        agencies for the construction and operation of 
        facilities to produce energy for direct Federal 
        consumption.
    [(d) The responsible Federal agency is authorized to 
investigate the feasibility of, construct, and operate, 
demonstration projects without entering into cooperative 
agreements with respect to such projects, if the Chairman finds 
that--
          [(1) the nature of the resource, the geographical 
        location, the scale and engineering design of the 
        facilities, the techniques of production, or any other 
        significant factor of the proposal offers opportunities 
        to make important contributions to the general 
        knowledge of geothermal resources, the techniques of 
        its development, or public confidence in the 
        technology; and
          [(2) there is no opportunity for cooperative 
        agreements with any utility or non-Federal governmental 
        entity willing and able to cooperate in the 
        demonstration project under subsection (c)(1), and 
        there is no opportunity for cooperative agreements with 
        other Federal agencies under subsection (c)(2).
    [(e) Before favorably considering proposals under 
subsection (c), the responsible Federal agency must find that--
          [(1) the nature of the resource, the geographical 
        location, the scale and engineering design of the 
        facilities, the techniques of production, or any other 
        significant factor of the proposal offers opportunities 
        to make important contributions to the general 
        knowledge of geothermal resources, the techniques of 
        its development, or public confidence in the 
        technology;
          [(2) the development of the practical benefits as set 
        forth in paragraph (1) of this subsection are unlikely 
        to be accomplished without such cooperative 
        development; and
          [(3) where non-Federal participants are involved, the 
        proposal is not eligible for adequate Federal 
        assistance under the loan guaranty provisions of 
        subchapter II of this chapter or such assistance would 
        not be adequate to satisfy the goals and requirements 
        of the demonstration program under this section.
    [(f) If the estimate of the Federal investment with respect 
to construction and operation costs of any demonstration 
project proposed to be established under this section exceeds 
$10,000,000, no amount may be appropriated for such project 
except as specifically authorized by legislation hereafter 
enacted by the Congress.
    [(g)(1) At the conclusion of the program under this section 
or as soon thereafter as may be practicable, the responsible 
Federal agencies shall, by sale, lease, or otherwise, dispose 
of all Federal property interests which they have acquired 
pursuant to this section (including mineral rights) in 
accordance with existing law and the terms of the cooperative 
agreements involved.
    [(2) The agency involved shall, under appropriate 
agreements or other arrangements, provide for the disposition 
of geothermal resource byproducts of the project administered 
by such agency.]

                   SCIENTIFIC AND TECHNICAL EDUCATION

    [SEC. 106. (a) It is the policy of the Congress to 
encourage the development and maintenance of programs through 
which there may be provided the necessary trained personnel to 
perform required geothermal research, development, and 
demonstration activities under sections 1123, 1124, and 1125 of 
this title.
    [(b) The National Science Foundation is authorized to 
support programs of education in the sciences and engineering 
to carry out the policy of subsection (a). Such support may 
include fellowships, traineeships, technical training programs, 
technologist training programs, and summer institute programs.
    [(c) The National Science Foundation is authorized and 
directed to coordinate its actions, to the maximum extent 
practicable, with the Project or any permanent Federal 
organization or agency having jurisdiction over the energy 
research and development functions of the United States, in 
determining the optimal selection of programs of education to 
carry out the policy of subsection (a).
    [(d) The National Science Foundation is authorized to 
encourage, to the maximum extent practicable international 
participation and cooperation in the development and 
maintenance of programs of education to carrying out the policy 
of subsection (a).]

                       [TITLE II--LOAN GUARANTIES

                [ESTABLISHMENT OF LOAN GUARANTY PROGRAM

    [SEC. 201. (a)It is the policy of the Congress to encourage 
and assist in the commercial development of practicable means 
to produce useful energy from geothermal resources with 
environmentally acceptable processes. Accordingly, it is the 
policy of the Congress to facilitate such commercial 
development by authorizing the Chairman of the Project to 
designate an appropriate Federal agency to guarantee loans for 
such purposes.
    [(b) In order to encourage the commercial production of 
energy from geothermal resources, the head of the designated 
agency is authorized to, in consultation with the Secretary of 
the Treasury, guarantee, and to enter into commitments to 
guarantee, lenders against loss of principal or interest on 
loans made by such lenders to qualified borrowers for the 
purposes of--
      [(1) the determination and evaluation of the resource 
base;
      [(2) research and development with respect to extraction 
and utilization technologies;
      [(3) acquiring rights in geothermal resources;
      [(4) development, construction, and operation of 
facilities for the demonstration or commercial production of 
energy using geothermal resources; or
      [(5) construction and operation of a new commercial, 
agricultural, or industrial structure or facility or 
modification and operation of an existing commercial, 
agricultural, or industrial structure or facility, when 
geothermal hot water or steam is to be used within or by such 
structure or facility, or modification thereto, for the 
purposes of space heating or cooling, industrial or 
agricultural processes, onsite generation of electricity for 
use other than for sale or resale in commerce, other commercial 
applications, or combinations of applications separately 
eligible under this subchapter for loan guarantee assistance.
    [(c) Any guaranty under this subchapter shall apply only to 
so much of the principal amount of any loan as does not exceed 
75 percent of the aggregate cost of the project with respect to 
which the loan is made. except that any guarantee made for a 
loan to an electric, housing, or other cooperative, or to a 
municipality (as defined in section 796(7) of title 16), may 
apply to so much of the principal amount of the loan as does 
not exceed 90 percent of the aggregate cost of the project. In 
determining the aggregate cost of a project for purposes of the 
preceding sentence, there shall be excluded the cost of 
constructing electrical transmission lines to the extent that 
the cost of constructing such lines exceeds 25 percent of the 
aggregate cost of the project (as determined without regard to 
this sentence); except that the Secretary may waive or limit 
the application of this sentence with respect to any project 
located in the State of Hawaii upon a finding that such project 
is remote from the area of primary consumption, that a 
transmission line is required before the geothermal reservoir 
can be developed, and that the particular transmission line 
involved will be used for more than the plant which is the 
subject of the loan guarantee. In the case of a guaranty for 
the purposes specified in subsection (b)(5), the aggregate cost 
of the project shall be deemed to be that portion of the total 
cost of construction and operation which is directly related to 
the utilization of geothermal energy within the structure or 
facility in question, except that the aggregate cost of the 
project with respect to which the loan is made may be the total 
cost including construction and operation in cases where the 
facility or structure has been located near a geothermal energy 
resource predominantly for the purpose of utilizing geothermal 
energy, or as determined by the Secretary of Energy the 
economic viability of the project is substantially dependent 
upon the performance of the geothermal reservoir.
    [(d)Loan guaranties under this subchapter shall be on such 
terms and conditions as the head of the designated agency 
determines, except that a guaranty shall be made under this 
subchapter only if--
      [(1) the loan bears interest at a rate not to exceed such 
annual per centum on the principal obligation outstanding as 
the head of the designated agency determines to be reasonable, 
taking into account the range of interest rates prevailing in 
the private sector for similar loans and risks by the United 
States;
      [(2) the terms of such loan require full repayment over a 
period not to exceed thirty years, or the useful life of any 
physical asset to be financed by such loan, whichever is less 
(as determined by the head of the designated agency);
      [(3) in the judgment of the head of the designated 
agency, the amount of the loan (when combined with amounts 
available to the qualified borrower from other sources) will be 
sufficient to carry out the project; and
      [(4) in the judgment of the head of the designated 
agency, there is reasonable assurance of repayment of the loan 
by the qualified borrower of the guaranteed indebtedness.
    [(e) The amount of the guaranty for any loan for a project 
shall not exceed $100,000,000: Provided, That in the case of a 
guaranty under subsection (b)(5), the amount of the guaranty 
for any loan for a project shall not exceed $50,000,000 and the 
amount of the guaranty for any combination of loans for any 
single qualified borrower shall not exceed $200,000,000, unless 
the Secretary of Energy determines in writing that a guaranty 
in excess of these amounts is in the national interest. Any 
such determination shall be submitted to the Speaker of the 
House and the Committee on Science, Space, and Technology of 
the House of Representatives, and to the President of the 
Senate and the Committee on Energy and Natural Resources of the 
Senate, accompanied by a full and complete report on the 
proposed project and guaranty. The proposed guaranty or 
commitment to guarantee shall not be finalized under authority 
granted by this chapter prior to the expiration of thirty 
calendar days (not including any date on which either House of 
Congress is not in session) from the date on which such report 
is received by the Speaker of the House and the President of 
the Senate.
    [(f) As used in this subchapter, the term ``qualified 
borrower'' means any public or private agency, institution, 
association, partnership, corporation, political subdivision, 
or other legal entity which (as determined by the head of the 
designated agency) has presented satisfactory evidence of an 
interest in geothermal resources and is capable of performing 
research or completing the development and production of energy 
in an acceptable manner.

                          [PAYMENT OF INTEREST

    [(g) With respect to any guaranty which is issued after 
February 25, 1978, by, or in behalf of, any State, political 
subdivision, or Indian tribe and which is either guaranteed 
under, or supported by taxes levied by said issuer which are 
guaranteed under this subchapter and for which the interest 
paid on such obligation and received by the purchaser thereof 
is included in gross income for the purposes of chapter 1 of 
title 26, the Secretary of Energy shall pay to such issuer out 
of the fund established by this subchapter such portion of the 
interest on such obligations, as determined by the Secretary of 
Energy, in consultation with the Secretary of the Treasury, to 
be appropriated after taking into account current market yields 
(1) on obligations of such issuer, if any, or (2) on other 
obligations with similar terms and conditions, the interest on 
which is not so included in gross income for purposes of 
chapter 1 of title 26, and in accordance with such terms and 
conditions as the Secretary of Energy shall require in 
consultation with the Secretary of the Treasury.

             [PERIOD OF GUARANTIES AND INTEREST ASSISTANCE

    [(h) The full faith and credit of the United States is 
pledged to the payment of all guaranties issued under this 
subchapter with respect to principal and interest.
    [(i) The Secretary of Energy shall charge and collect fees 
for guaranties in amounts sufficient in his judgment to cover 
applicable administrative costs and probable losses on 
guaranteed obligations, but in any event not to exceed 1 per 
centum per annum of the outstanding indebtedness covered by 
each guaranty. Fees collected under this subsection shall be 
deposited in the fund established by this subchapter.
    [(j) The Secretary of the Treasury shall insure to the 
maximum extent feasible that the timing, interest rate, and 
substantial terms and conditions of any guaranty exceeding 
$25,000,000 will have the minimum possible impact on the 
capital markets of the United States, taking into account other 
Federal direct and indirect commercial securities activities.]
    [SEC. 202. (a) If there is a default by the borrower, as 
defined in regulations promulgated by the Secretary of Energy 
and set forth in the guarantee contract, the holder of the 
obligation shall have the right to demand payment of the unpaid 
amount from the Secretary of Energy. Within such period as may 
be specified in the guarantee or related agreements, the 
Secretary of Energy shall pay to the holder of the obligation 
the unpaid interest on, and unpaid principal of the guaranteed 
obligation as to which the borrower has defaulted, unless the 
Secretary of Energy finds that there was no default by the 
borrower in the payment of interest or principal or that such 
default has been remedied. Nothing in this section shall be 
construed to preclude any forebearance by the holder of the 
obligation for the benefit of the borrower which may be agreed 
upon by the parties to the guaranteed obligation and approved 
by the Secretary of Energy.
    [(b) If the Secretary of Energy makes a payment under 
subsection (a) of this subsection,1 the Secretary of Energy 
shall be subrogated to the rights of the recipient of such 
payment as specified in the guarantee or related agreements 
including, where appropriate, the authority (notwithstanding 
any other provision of law) to complete, maintain, operate, 
lease, or otherwise dispose of any property acquired pursuant 
to such guarantee or related agreements, or to permit the 
borrower, pursuant to an agreement with the Secretary of 
Energy, to continue to pursue the purposes of the project if 
the Secretary of Energy determines this to be in the public 
interest. The rights of the Secretary of Energy with respect to 
any property acquired pursuant to such guarantee or related 
agreements, shall be superior to the rights of any other person 
with respect to such property.
    [(c) In the event of a default on any guarantee under this 
subchapter, the Secretary of Energy shall notify the Attorney 
General, who shall take such action as may be appropriate to 
recover the amounts of any payments made under subsection (a), 
including any payment of principal and interest under 
subsection (d), from such assets of the defaulting borrower as 
are associated with the project, or from any other security 
included in the terms of the guarantee.
    [(d) With respect to any obligation guaranteed under this 
subchapter, the Secretary of Energy is authorized to enter into 
a contract to pay, and to pay, holders of the obligation, for 
and on behalf of the borrower, from the Geothermal Resources 
Development Fund, the principal and interest payments which 
become due and payable on the unpaid balance of such obligation 
if the Secretary of Energy finds that--
    [(1) the borrower is unable to meet such payments and is 
not in default; it is in the public interest to permit the 
borrower to continue to pursue the purposes of such project; 
and the probable net benefit to the Federal Government in 
paying such principal and interest will be greater than that 
which would result in the event of a default;
    [(2) the amount of such payment which the Secretary of 
Energy is authorized to pay shall be no greater than the amount 
of principal and interest which the borrower is obligated to 
pay under the loan agreement; and
    [(3) the borrower agrees to reimburse the Secretary of 
Energy for such payment on terms and conditions, including 
interest, which are satisfactory to the Secretary of Energy.]

                 [GEOTHERMAL RESOURCES DEVELOPMENT FUND

    [SEC. 204. (a) There is established in the Treasury of the 
United States a Geothermal Resources Development Fund, which 
shall be available to the head of the designated agency for 
carrying out the loan guaranty and interest assistance program 
authorized by this subchapter, including the payment of 
administrative expenses incurred in connection therewith. 
Moneys in the fund not needed for current operations may, with 
the approval of the Secretary of the Treasury, be invested in 
bonds or other obligations of, or guaranteed by, the United 
States.
    [(b) There shall be paid into the fund the amounts 
appropriated pursuant to section 1164(c) of this title and such 
amounts as may be returned to the United States pursuant to 
section 1142(b) of this title, and the amounts in the fund 
shall remain available until expended, except that after the 
expiration of the ten-year period established by section 1143 
of this title, such amounts in the fund which are not required 
to secure outstanding guaranty obligations shall be paid into 
the general fund of the Treasury.
    [(c) If at any time the moneys available in the fund are 
insufficient to enable the Secretary of Energy to discharge his 
responsibilities under this subchapter, he shall issue to the 
Secretary of the Treasury notes or other obligations in such 
forms and denominations bearing such maturities, and subject to 
such terms and conditions, as may be prescribed by the 
Secretary of the Treasury. This borrowing authority shall be 
effective only to such extent or in such amounts as are 
specified in appropriation Acts. Such authorizations may be 
without fiscal year limitations. Redemption of such notes or 
obligations shall be made by the Secretary of Energy from 
appropriations or other moneys available under this section. 
Such notes or other obligations shall bear interest at a rate 
determined by the Secretary of the Treasury, which shall not be 
less than a rate determined by taking into consideration the 
average market yield on outstanding marketable obligations of 
the United States of comparable maturities during the month 
preceding the issuance of the notes or other obligations. The 
Secretary of the Treasury shall purchase any notes or other 
obligations issued hereunder and for that purpose he is 
authorized to use as a public debt transaction the proceeds 
from the sale of any securities issued under chapter 31 of 
title 31, and the purposes for which securities may be issued 
under that chapter are extended to include any purchase of such 
notes or obligations. The Secretary of the Treasury may at any 
time sell any of the notes or other obligations acquired by him 
under this subsection. All redemptions, purchases, and sales by 
the Secretary of the Treasury of such notes or other 
obligations shall be treated as public debt transactions of the 
United States.]

                      [COMMUNITY IMPACT ASSISTANCE

    [SEC. 205. (a) The Secretary of Energy, for any project 
which has a guarantee under this subchapter of not less than 
$50,000,000 and which will have an intended operating life of 
not less than five years to satisfy the purposes under this 
subchapter for which the guarantee has been made, shall 
endeavor to insure that, taking into consideration appropriate 
local community action and all reasonably available forms of 
assistance under this section and other Federal and State 
statutes, that\1\ the impacts resulting from the proposed 
project have been fully evaluated by the borrower, the 
Secretary of Energy, and the Governor of the affected State, 
and that effective steps have been taken or will be taken in a 
timely manner to finance community planning and development 
costs resulting from such project under this section, if 
applicable under other provisions of law, or by other means. 
When the project will be located on leased Federal lands, the 
Secretary of Energy shall specifically review State and local 
actions under section 9(a) of the Mineral Leasing Act 
Amendments of 1976 (Public Law 94-377) and insure that any 
funds made available to the State pursuant to such section 9(a) 
are used to finance such planning and development costs before 
any Federal assistance under subsection (c) of this section is 
considered or authorized.
    [(b) The Secretary of Energy, for projects not included 
under subsection (a), may in his discretion consider the 
community impacts which may result from such projects, and may 
take such actions, under authority directly available to him 
under other statutes or in coordination with other Federal 
agencies or the State, as he considers necessary and 
appropriate to insure timely and effective planning and 
financing for such community impacts.
    [(c)(1) In order to discharge his responsibilities under 
subsection (a), and in accordance with such rules and 
regulations as the Secretary of Energy in consultation with the 
Secretary of the Treasury shall prescribe, and subject to such 
terms and conditions as he deems appropriate, the Secretary of 
Energy is authorized, for the purposes of financing essential 
community development and planning which directly result from, 
or are necessitated by, a project under subsection (a), to--
                  [(A) guarantee and make commitments to 
                guarantee the payment of interest on, and the 
                principal balance of, obligations for such 
                financing issued by eligible States, political 
                subdivisions, or Indian tribes,
                  [(B) guarantee and make commitments to 
                guarantee the payment of taxes imposed on such 
                project by eligible non-Federal taxing 
                authorities which taxes are earmarked by such 
                authorities to support the payment of interest 
                and principal on obligations for such 
                financing, and
                  [(C) require that the qualified borrower 
                receiving assistance for a project under this 
                section advance sums to eligible States, 
                political subdivisions, and Indian tribes to 
                pay for the financing of such development and 
                planning: Provided, That the State, political 
                subdivision, or Indian tribe agrees to provide 
                tax abatement credits over the life of the 
                project for such payments by such applicant.
    [(2) No guarantee or commitment to guarantee under 
paragraph (1) of this subsection shall exceed $1,000,000.
    [(3) In the event of any default by the borrower in the 
payment of taxes guaranteed by the Secretary of Energy under 
this section, the Secretary of Energy shall pay out of the fund 
established by this subchapter such taxes at the time or times 
they may fall due, and shall have by reason of such payment a 
claim against the borrower for all sums paid plus interest.
    [(4) If after consultation with\2\ State, political 
subdivision, or Indian tribe, the Secretary of Energy finds 
that the financial assistance programs of paragraph (1) of this 
section\3\ will not result in sufficient funds to carry out the 
purposes of this subsection, then the Secretary of Energy may--
                  [(A) make direct loans to the eligible 
                States, political subdivisions, or Indian 
                tribes for such purposes: Provided, That such 
                loans shall be made on such reasonable terms 
                and conditions as the Secretary of Energy shall 
                prescribe: Provided further, That the Secretary 
                of Energy may waive repayment of all or part of 
                a loan made under this paragraph, including 
                interest, if the State or political subdivision 
                or Indian tribe involved demonstrates to the 
                satisfaction of the Secretary of Energy that 
                due to a change in circumstances there will be 
                net adverse impacts resulting from such project 
                that would probably cause such State, 
                subdivision, or tribe to default on the loan; 
                or
                  [(B) require that any community development 
                and planning costs which are associated with, 
                or result from, such project, and which are 
                determined by the Secretary of Energy to be 
                appropriate for such inclusion, shall be 
                included in the aggregate costs of the project.
    [(5) The Secretary of Energy is further authorized to make 
grants to States, political subdivisions, or Indian tribes for 
studying and planning for the potential economic, 
environmental, and social consequences of projects and for 
establishing related management expertise.
    [(6) At any time the Secretary of Energy may, in 
consultation with the Secretary of the Treasury, redeem, in 
whole or in part, out of the fund established by this section, 
the debt obligations guaranteed or the debt obligations for 
which tax payments are guaranteed under this subsection.
    [(7) When one or more States, political subdivisions, or 
Indian tribes would be eligible for assistance under this 
subsection, but for the fact that construction and operation of 
the project occurs outside its jurisdiction, the Secretary of 
Energy is authorized to provide, to the greatest extent 
possible, arrangements for equitable sharing of such 
assistance.
    [(8) Such amounts as may be necessary for direct loans and 
grants pursuant to this subsection shall be available as 
provided in annual authorization Acts.
    [(9) The Secretary of Energy, if appropriate, shall provide 
assistance in the financing of up to 100 per centum of the 
costs of the required community development and planning 
pursuant to this section.
    [(10) In carrying out the provisions of this section, the 
Secretary of Energy shall provide that title to any facility 
receiving financial assistance under this section shall vest in 
the applicable State, political subdivision, or Indian tribe, 
as appropriate, and in the case of default by the borrower on a 
loan guarantee made or committed under subsection (b) of this 
section, such facility shall not be considered a project asset 
for the purposes of section 1142 of this title.
    [(11) The Secretary of Energy shall not use his authority 
under this subsection to provide Federal assistance unless any 
Federal funds transferred pursuant to section 9(a) of the 
Mineral Leasing Act Amendments of 1976 (Public Law 94-377) to 
the State from the lease of Federal land for or associated with 
the project have been or, with assurance, will be committed, to 
the maximum extent allowable under Federal statutes, to 
financing such essential community development or planning 
directly resulting from, or necessitated by, a project on 
leased Federal lands.]

                     [TITLE III--GENERAL PROVISIONS

                       [PROTECTION OF ENVIRONMENT

    [SEC. 301. In the conduct of its activities, the Project 
and any participating public or private persons or agencies 
shall place particular emphasis upon the objective of assuring 
that the environment and the safety of persons or property are 
effectively protected; and the program under subchapter I shall 
include such special research and development as may be 
necessary for the achievement of that objective.

                        [REPORTING REQUIREMENTS

    [SEC. 302.
    [(b) No later than one year after the termination of each 
demonstration project under section 1125 of this title, the 
Chairman of the Project shall submit to the President and the 
Congress a final report on the activities of the Project 
related to each project, including his recommendations with 
respect to any further legislative, administrative, and other 
actions which should be taken in support of the objectives of 
this chapter.]

                         [TRANSFER OF FUNCTIONS

    [SEC. 303. (a) Within sixty days after the effective date 
of the law creating a permanent Federal organization or agency 
having jurisdiction over the energy research and development 
functions of the United States (or within sixty days after 
September 3, 1974, if the effective date of such law occurs 
prior to September 3, 1974), all of the research, development, 
and demonstration functions (including the loan guaranty 
program) vested in the Project under this chapter, along with 
related records, documents, personnel, obligations, and other 
items to the extent necessary or appropriate, shall, in 
accordance with regulations prescribed by the Office of 
Management and Budget, be transferred to and vested in such 
organization or agency.
    [(b) Upon the establishment of a permanent Federal 
organization or agency having jurisdiction over the energy 
research and development functions of the United States, and 
when all research and development (and other) functions of the 
Project are transferred, the members of the Project may provide 
advice and counsel to the head of such organization or agency, 
in accordance with arrangements made at that time.]

                    [AUTHORIZATION OF APPROPRIATIONS

    [SEC. 304. (a) For the fiscal years ending June 30, 1976, 
and September 30, 1977, 1978, 1979, and 1980, only such sums 
may be appropriated as the Congress may hereafter authorize by 
law.
    [(b) There are authorized to be appropriated to the 
National Aeronautics and Space Administration not to exceed 
$2,500,000 for the fiscal year ending June 30, 1975, for the 
purpose of preparing the program definition under section 
1122(a) of this title.
    [(c) In addition to sums authorized to be appropriated by 
subsection (b), there are authorized to be appropriated to the 
fund not to exceed $50,000,000 annually, such sums to carry out 
the provisions of the loan guaranty program by the Project 
under title II.]