[House Report 118-831]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-831
======================================================================
ENHANCING GEOTHERMAL PRODUCTION ON FEDERAL
LANDS ACT
_______
December 10, 2024.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Westerman, from the Committee on Natural Resources,
submitted the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 6482]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 6482) to amend the Geothermal Steam Act of 1970
to promote timely exploration for geothermal resources under
geothermal leases, and for other purposes, having considered
the same, reports favorably thereon with an amendment and
recommends that the bill as amended do pass.
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 ``Enhancing Geothermal Production on
Federal Lands Act''.
SEC. 2. GEOTHERMAL PRODUCTION ON FEDERAL LANDS.
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 EXPLORATION PROJECTS.
``(a) Definitions.--In this section:
``(1) Geothermal exploration project.--The term `geothermal
exploration project' means the drilling of a temperature
gradient well, monitoring well, calibration well, or another
geothermal exploratory well, including construction or making
improvements for such activities, on lands for which the
Secretary has issued a geothermal lease--
``(A) that is carried out by the holder of the lease;
``(B) for which--
``(i) the last cemented casing string has an
outer diameter of less than 13 inches; and
``(ii) the total unreclaimed surface
disturbance at any one time within the project
area is less than 5 acres, not including the
area of a permanent or temporary access road;
``(C) that is completed in less than 120 days,
including the removal of any surface infrastructure
from the project area; and
``(D) that requires the restoration of the project
area within 3 years of the date of first exploration
drilling to approximately the condition that existed at
the time the project began, unless the project area is
subsequently used as part of energy development under
the lease.
``(2) Covered activity.--The term `covered activity'
includes, with respect to exploration, development, or
production (including direct use) of geothermal resources--
``(A) a geotechnical investigation;
``(B) off-road travel in a right-of-way established
by Congress, granted by a Federal agency, or included
in a land use plan; and
``(C) construction, maintenance, realignment, and
repair of an existing permanent or temporary access
road within a right-of-way established by Congress,
granted by a Federal agency, or included in a land use
plan.
``(b) Non-Major Federal Action.--Geothermal exploration projects and
covered activities shall not be considered major Federal actions under
section 102(2)(C) of the National Environmental Policy Act of 1969 (42
U.S.C. 4332(2)(C)).
``(c) Requirement To Provide Notice.--The holder of a geothermal
lease shall provide to the Secretary notice of their intent to carry
out a geothermal exploration project at least 30 days before the start
of drilling under the project.''.
SEC. 3. GEOTHERMAL LEASING PRIORITY AREAS.
The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) is further
amended by adding at the end the following:
``SEC. 31. GEOTHERMAL LEASING PRIORITY AREAS.
``(a) Definition of Covered Land.--In this section, the term `covered
land' means land that is--
``(1) Federal land; and
``(2) not excluded from the development of geothermal energy
under--
``(A) a land use plan established under the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1701
et seq.); or
``(B) any other Federal law.
``(b) Designation of Geothermal Leasing Priority Areas.--The
Secretary, in consultation with the Secretary of Energy, shall
designate portions of covered land as geothermal leasing priority areas
as soon as practicable, but not later than 5 years, after the date of
enactment of this section.
``(c) Criteria for Selection.--In determining which covered lands to
designate as geothermal leasing priority areas under subsection (b),
the Secretary, in consultation with the Secretary of Energy, shall
consider if--
``(1) the covered land is preferable for geothermal leasing;
``(2) production of geothermal energy on such land is
economically viable, including if such land has access to
methods of energy transmission; and
``(3) the designation would be in compliance with section 202
of the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1712), including subsection (c)(9) of such section.
``(d) Review and Modification.--Not less frequently than once every 5
years, the Secretary shall--
``(1) review covered land and, if appropriate, make
additional designations of geothermal leasing priority areas;
and
``(2) review each area designated as a geothermal leasing
priority area under this section, and, if appropriate, remove
such designation.
``(e) Programmatic Environmental Impact Statement.--
``(1) Initial designations.--Not later than one year after
the initial designation of a geothermal leasing priority area,
the Secretary shall prepare a supplement to any final
programmatic environmental impact statement for geothermal
leasing that is the most recently finalized such statement with
respect to covered land designated as a geothermal leasing
priority area under subsection (b).
``(2) Subsequent designations.--Each designation of a
geothermal leasing priority area under subsection (b) shall be
included in a programmatic environmental impact statement for
geothermal leasing or in a supplement to such a statement.
``(3) Consultations.--In developing any programmatic
environmental impact statement for geothermal leasing or
supplement to such a statement under this section, the
Secretary shall consult, on an ongoing basis, with appropriate
State, Tribal, and local governments, transmission
infrastructure owners and operators, developers, and other
appropriate entities.
``(4) Procedure.--The Secretary may not delay issuing a
permit or holding a lease sale under this Act because the
supplement required under paragraph (1) has not been finalized
by the Secretary.
``(f) Compliance With NEPA.--If the Secretary determines that the
designation of a geothermal leasing priority area has been sufficiently
analyzed by a programmatic environmental impact statement, the
Secretary shall not prepare any additional analysis under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect
to geothermal lease sales for such geothermal leasing priority area.''.
SEC. 4. FINDINGS.
Congress finds that--
(1) pursuant to section 109 of the National Environmental
Policy Act of 1969 (42 U.S.C. 4336c), as amended by section
321(b) of the Fiscal Responsibility Act of 2023 (Public Law
118-5), the Bureau of Land Management announced on April 15,
2024, it had adopted categorical exclusions from the Department
of the Navy and the United States Forest Service for geothermal
exploration; and
(2) if appropriately used, these categorical exclusions are
expected to expedite the review and approval of geothermal
exploration proposals on Bureau of Land Management lands.
Purpose of the Legislation
The purpose of H.R. 6482 is to amend the Geothermal Steam
Act of 1970 to promote timely exploration for geothermal
resources under geothermal leases, and for other purposes.
Background and Need for Legislation
Geothermal power is considered a renewable energy resource
and is derived by capturing heat from an underground water
reservoir or naturally generated steam under high pressure.\1\
The Department of Energy (DOE) projects that enhanced
geothermal systems could provide 60 gigawatts (GW) of
electricity by 2050 (8.5% of U.S. generation capacity).\2\
However, the multiple environmental reviews and associated time
and costs result in longer development timelines than those of
many other power production projects.\3\
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\1\Congressional Research Service, Enhanced Geothermal Systems:
Introduction and Issues for Congress, Sept. 29, 2022, https://
crsreports.congress.gov/product/pdf/R/R47256.
\2\U.S. Department of Energy, Geothermal Technologies Office,
GeoVision: Harnessing the Heat Beneath Our Feet, May 2019, https://
www.energy.gov/sites/default/files/2019/06/f63/GeoVision-full-report-
opt.pdf.
\3\Congressional Research Service, Enhanced Geothermal Systems:
Introduction and Issues for Congress, Sept. 29, 2022, https://
crsreports.congress.gov/product/pdf/R/R47256.
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H.R. 6482 aims to streamline the permitting process for
geothermal energy by exempting geothermal exploration wells
(temperature gradient wells, monitoring wells, and calibration
wells) from review under the National Environmental Policy Act
(NEPA).\4\ To be eligible for the streamlining provisions, the
exploration well itself must be under 13 inches in diameter,
the surface disturbance must be less than 5 acres, activities
must be completed in 120 days, and the site must be reclaimed
within three years. The bill would also clarify that
geotechnical investigations and road construction and
maintenance (within existing rights-of-way) do not require
additional NEPA reviews. Additionally, the bill would direct
the Department of the Interior (DOI) to designate geothermal
leasing priority areas on federal lands that are economically
viable for geothermal energy production and are not excluded
from geothermal energy production under a land use plan. DOI
would be required to reevaluate the covered lands every five
years.
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\4\42 U.S.C. Sec. 4321.
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Committee Action
H.R. 6482 was introduced on November 28, 2023, by Rep. Russ
Fulcher (R-ID). The bill was referred to the Committee on
Natural Resources, and within the Committee to the Subcommittee
on Energy and Mineral Resources. On March 6, 2024, the
Subcommittee on Energy and Mineral Resources held a hearing on
the bill. On April 16, 2024, the Committee on Natural Resources
met to consider the bill. The Subcommittee on Energy and
Mineral Resources was discharged from further consideration of
H.R. 6482 by unanimous consent. Representative Jared Huffman
(D-CA) offered an amendment designated Huffman #1. The
amendment offered by Rep. Huffman was not agreed to by a roll
call vote of 17 yeas to 21 nays, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Rep. Garret Graves (R-LA) offered an amendment designated
Graves #1. The amendment offered by Rep. Graves was agreed to
by voice vote. The bill, as amended, was ordered favorably
reported to the House of Representatives by voice vote.
Hearings
For the purposes of clause 3(c)(6) of House rule XIII, the
following hearing was used to develop or consider this measure:
hearing by the Subcommittee on Energy and Mineral Resources
held on March 6, 2024.
Section-by-Section Analysis
Section 1. Short title
Designates the bill as the ``Enhancing Geothermal
Production on Federal Lands Act''.
Section 2. Geothermal production on Federal lands
Section 2 would exempt certain geothermal exploration
projects, geotechnical investigations, and road construction in
existing rights-of-way from review under NEPA. Eligible
geothermal exploration projects include the drilling of
temperature gradient wells, monitoring wells, calibration
wells, or another geothermal exploratory wells so long as they
are under 5 acres, less than 13 inches in diameter, completed
in 120 days and reclaimed within 3 years. Operators would have
to provide notice to the DOI Secretary 30 days before the
activity begins.
Section 3. Geothermal leasing priority areas
Section 3 would require the Secretary of DOI to designate
federal land that is open to geothermal leasing as geothermal
leasing priority areas within 5 years of enactment. The
Secretary would have to review these areas every 5 years.
Additionally, the Secretary would be required to develop and
maintain a programmatic environmental impacts statement for
these areas which could be used in order to satisfy NEPA for a
subsequent geothermal project.
Section 4. Findings
Section 4 sets forth Congressional findings.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
Compliance With House Rule XIII and Congressional
Budget Act
1. Cost of Legislation and the Congressional Budget Act.
Pursuant to clause 3(c)(2) of House rule XIII and section
308(a) of the Congressional Budget Act of 1974, and pursuant to
clause 3(c)(3) of House rule XIII and section 402 of the
Congressional Budget Act of 1974, the Committee has requested
but not received from the Director of the Congressional Budget
Office a budgetary analysis and a cost estimate of this bill.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to amend the Geothermal Steam Act of
1970 to promote timely exploration for geothermal resources
under geothermal leases, and for other purposes.
Earmark Statement
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
Unfunded Mandates Reform Act Statement
An estimate of federal mandates prepared by the Director of
the Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act was not made available to the
Committee in time for the filing of this report. The Chair of
the Committee shall cause such estimate to be printed in the
Congressional Record upon its receipt by the Committee, if such
estimate is not publicly available on the Congressional Budget
Office website.
Existing Programs
Directed Rule Making. This bill does not contain any
directed rule makings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Preemption of State, Local or Tribal Law
Any preemptive effect of this bill over state, local, or
tribal law is intended to be consistent with the bill's
purposes and text and the Supremacy Clause of Article VI of the
U.S. Constitution.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
GEOTHERMAL STEAM ACT OF 1970
* * * * * * *
SEC. 30. GEOTHERMAL EXPLORATION PROJECTS.
(a) Definitions.--In this section:
(1) Geothermal exploration project.--The term
``geothermal exploration project'' means the drilling
of a temperature gradient well, monitoring well,
calibration well, or another geothermal exploratory
well, including construction or making improvements for
such activities, on lands for which the Secretary has
issued a geothermal lease--
(A) that is carried out by the holder of the
lease;
(B) for which--
(i) the last cemented casing string
has an outer diameter of less than 13
inches; and
(ii) the total unreclaimed surface
disturbance at any one time within the
project area is less than 5 acres, not
including the area of a permanent or
temporary access road;
(C) that is completed in less than 120 days,
including the removal of any surface
infrastructure from the project area; and
(D) that requires the restoration of the
project area within 3 years of the date of
first exploration drilling to approximately the
condition that existed at the time the project
began, unless the project area is subsequently
used as part of energy development under the
lease.
(2) Covered activity.--The term ``covered activity''
includes, with respect to exploration, development, or
production (including direct use) of geothermal
resources--
(A) a geotechnical investigation;
(B) off-road travel in a right-of-way
established by Congress, granted by a Federal
agency, or included in a land use plan; and
(C) construction, maintenance, realignment,
and repair of an existing permanent or
temporary access road within a right-of-way
established by Congress, granted by a Federal
agency, or included in a land use plan.
(b) Non-major Federal Action.--Geothermal exploration
projects and covered activities shall not be considered major
Federal actions under section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
(c) Requirement to Provide Notice.--The holder of a
geothermal lease shall provide to the Secretary notice of their
intent to carry out a geothermal exploration project at least
30 days before the start of drilling under the project.
SEC. 31. GEOTHERMAL LEASING PRIORITY AREAS.
(a) Definition of Covered Land.--In this section, the term
``covered land'' means land that is--
(1) Federal land; and
(2) not excluded from the development of geothermal
energy under--
(A) a land use plan established under the
Federal Land Policy and Management Act of 1976
(43 U.S.C. 1701 et seq.); or
(B) any other Federal law.
(b) Designation of Geothermal Leasing Priority Areas.--The
Secretary, in consultation with the Secretary of Energy, shall
designate portions of covered land as geothermal leasing
priority areas as soon as practicable, but not later than 5
years, after the date of enactment of this section.
(c) Criteria for Selection.--In determining which covered
lands to designate as geothermal leasing priority areas under
subsection (b), the Secretary, in consultation with the
Secretary of Energy, shall consider if--
(1) the covered land is preferable for geothermal
leasing;
(2) production of geothermal energy on such land is
economically viable, including if such land has access
to methods of energy transmission; and
(3) the designation would be in compliance with
section 202 of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1712), including subsection
(c)(9) of such section.
(d) Review and Modification.--Not less frequently than once
every 5 years, the Secretary shall--
(1) review covered land and, if appropriate, make
additional designations of geothermal leasing priority
areas; and
(2) review each area designated as a geothermal
leasing priority area under this section, and, if
appropriate, remove such designation.
(e) Programmatic Environmental Impact Statement.--
(1) Initial designations.--Not later than one year
after the initial designation of a geothermal leasing
priority area, the Secretary shall prepare a supplement
to any final programmatic environmental impact
statement for geothermal leasing that is the most
recently finalized such statement with respect to
covered land designated as a geothermal leasing
priority area under subsection (b).
(2) Subsequent designations.--Each designation of a
geothermal leasing priority area under subsection (b)
shall be included in a programmatic environmental
impact statement for geothermal leasing or in a
supplement to such a statement.
(3) Consultations.--In developing any programmatic
environmental impact statement for geothermal leasing
or supplement to such a statement under this section,
the Secretary shall consult, on an ongoing basis, with
appropriate State, Tribal, and local governments,
transmission infrastructure owners and operators,
developers, and other appropriate entities.
(4) Procedure.--The Secretary may not delay issuing a
permit or holding a lease sale under this Act because
the supplement required under paragraph (1) has not
been finalized by the Secretary.
(f) Compliance With NEPA.--If the Secretary determines that
the designation of a geothermal leasing priority area has been
sufficiently analyzed by a programmatic environmental impact
statement, the Secretary shall not prepare any additional
analysis under the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.) with respect to geothermal lease sales
for such geothermal leasing priority area.
DISSENTING VIEWS
H.R. 6482 would amend the Geothermal Steam Act of 1970 by
creating a new categorical exclusion (CE) for geothermal test
projects. It would also direct the Secretary to designate
geothermal leasing priority areas and to prepare a programmatic
environmental impact statement for those priority areas.
Replenished by natural heat sources deep in the Earth,
geothermal energy is a renewable resource that generates 24/7
electricity with minimal carbon emissions. The United States
leads the world in utility-scale geothermal electricity
generation.\1\ Today, there are 51 operating power plants
producing geothermal energy from public lands, with a combined
total of more than 2.6 gigawatts (GW) of installed capacity.
Six additional projects are in various stages of the National
Environmental Policy Act (NEPA) review.\2\ Nearly 70 percent of
installed utility-scale geothermal capacity in the U.S. is on
Bureau of Land Management lands.
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\1\U.S. EIA, Geothermal Explained, https://www.eia.gov/
energyexplained/geothermal/use-of-
geothermal-energy.php.
\2\U.S. Bureau of Land Management, Active Renewables Projects
https://www.blm.gov/
programs/energy-and-minerals/renewable-energy/active-renewable-
projects.
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Recent advances in technology present exciting
opportunities for the U.S. to increase its geothermal energy
production. Enhanced geothermal systems (EGS) increase access
to heat sources that may be deeper or less conventional than
those accessed by conventional geothermal systems in a much
broader range of places. EGS has significant ``potential to
contribute to U.S. energy needs--both in terms of total energy
resources and their widespread availability.''\3\
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\3\Congressional Research Service, Enhanced Geothermal Systems:
Introduction and Issues for Congress, September 29, 2022, https://
sgp.fas.org/crs/misc/R47256.pdf.
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Committee Democrats support efforts to develop priority
areas for geothermal leasing and conduct thorough programmatic
environmental reviews. Committee Democrats have also engaged in
bipartisan efforts throughout this Congress to increase
geothermal energy production, including by supporting the House
passage of H.R. 7422 by Representative Ocasio-Cortez, H.R. 7370
by Representative Curtis, and H.R. 6474 by Representative
Steel. These bills support the efficient approval of geothermal
permit applications without sacrificing environmental and
community review. Democrats have proven we are willing to work
across the aisle to advance responsible and well-balanced
geothermal and other renewable energy development on federal
lands.
Although I support certain aspects of this bill, I am not
supportive of the categorical exclusion introduced in this
legislation. The CE created by this legislation is broader than
previous versions of the bill. It waives NEPA requirements for
drilling geothermal test wells under a specific size, the
construction of roads, and other activities. H.R. 6482 does not
contain any exceptions to this waiver for extraordinary
circumstances, an exception that previously existed in H.R.
5350 from the 117th Congress and exists in administratively
adopted CEs.
Geothermal energy, like all large-scale energy projects,
has the potential for significant environmental impacts. In the
case of geothermal, there should be thorough consideration of
potential emissions, waste, water impacts, and seismic activity
before moving forward.\4\ For all infrastructure projects, it
is imperative to consult tribal communities and protect sacred
sites as well as access to hunting, fishing, and gathering
rights. Local communities must also be consulted to ensure
their concerns are taken into account for such projects. By
waiving NEPA under certain circumstances, H.R. 6482 would
remove these important opportunities for consultation, which
could lead to unintended negative impacts on ecosystems and
communities in the long run.
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\4\Congressional Research Service, Oil and Gas Technology and
Geothermal Energy Development, January 31, 2023, https://
crsreports.congress.gov/product/pdf/R/R47405.
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The Bureau of Land Management has testified that while they
support enhancing and expediting permitting for geothermal
energy, including developing new CEs when appropriate, they
believe these CEs are better developed through agency processes
rather than legislatively. BLM also testified that they are in
the process of developing administrative CEs for geothermal,
which Committee Democrats believe is the proper procedure for
developing CEs.
While Republicans argue that geothermal energy development
on BLM lands needs categorical exclusions to speed up the
permitting process, they are overlooking these facts.
Furthermore, several CEs exist for geothermal exploration at
other federal agencies, including the Department of the Navy
and the Department of Agriculture. Section 109 of the Fiscal
Responsibility Act of 2023 allows federal agencies to adopt CEs
from other federal agencies, meaning BLM could adopt these
categorical exclusions in their practice if the agency
determines it is appropriate.
To establish efficient permitting for geothermal energy and
other energy development, Committee Democrats support fully
funding agencies to ensure they have adequate staffing for
efficient permitting. This is especially an issue with
geothermal permitting. In federal agencies, there is a need for
more knowledge and experience with geothermal development,
alongside staffing issues that cause delays. As the potential
for geothermal development expands with EGS technology, we must
address these issues as well to ensure responsible development
on federal lands, not legislate categorical exclusions as H.R.
6482 does.
Raul M. Grijalva,
Ranking Member.
[all]