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HR 2304 IHRHCommentsClose CommentsPermalink

110th CONGRESS 1st Session H. R. 2304

To direct the Secretary of Energy to conduct a program of research, development, demonstration, and commercial application for geothermal energy, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVES

May 14, 2007

Mr. MCNERNEY (for himself, Mr. GORDON of Tennessee, and Mr. LAMPSON) introduced the following bill; which was referred to the Committee on Science and TechnologyCommentsClose CommentsPermalink

A BILL

To direct the Secretary of Energy to conduct a program of research, development, demonstration, and commercial application for geothermal energy, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

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

SEC. 2. FINDINGS.

The Congress finds the following: CommentsClose CommentsPermalink





(1) The United States has a critical national interest in developing clean, domestic, renewable sources of energy in order to mitigate the causes of climate change, reduce other environmental impacts of energy production, increase national security, improve public health, and bolster economic stability. CommentsClose CommentsPermalink





(2) Geothermal energy is a renewable energy resource. CommentsClose CommentsPermalink





(3) Geothermal energy is unusual among renewable energy sources because of its ability to provide an uninterrupted supply of baseload electricity. CommentsClose CommentsPermalink





(4) Recently published assessments by reputable experts, including the Massachusetts Institute of Technology, the Western Governors Association, and the National Renewable Energy Laboratory, indicate that the Nation's geothermal resources are widely distributed, vast in size, and barely tapped. CommentsClose CommentsPermalink





(5) Sustained and expanded research, development, demonstration, and commercial application programs are needed to locate and characterize geothermal resources, and to develop the technologies that will enable their widespread commercial development. CommentsClose CommentsPermalink





(6) Federal support is critical to reduce the financial risk associated with developing new geothermal technologies, thereby encouraging the private sector investment necessary to make geothermal resources commercially viable as a source of electric power and for other applications. CommentsClose CommentsPermalink

SEC. 3. DEFINITIONS.

For purposes of this Act: CommentsClose CommentsPermalink





(1) ENGINEERED- When referring to enhanced geothermal systems, the term `engineered' means subjected to intervention, including intervention to address one or more of the following issues: CommentsClose CommentsPermalink





(A) Lack of effective permeability or porosity or open fracture connectivity within the reservoir. CommentsClose CommentsPermalink





(B) Insufficient contained geofluid in the reservoir. CommentsClose CommentsPermalink





(C) A low average geothermal gradient, which necessitates deeper drilling. CommentsClose CommentsPermalink





(2) ENHANCED GEOTHERMAL SYSTEMS- The term `enhanced geothermal systems' means geothermal reservoir systems that are engineered, as opposed to occurring naturally. CommentsClose CommentsPermalink





(23) GEOFLUID- The term `geofluid' means any fluid used to extract thermal energy from the Earth which is transported to the surface for direct use or electric power generation, except that such term shall not include oil or natural gas. CommentsClose CommentsPermalink





(34) GEOPRESSURED RESOURCES- The term `geopressured resources' mean geothermal deposits found in sedimentary rocks under higher than normal pressure and saturated with gas or methane. CommentsClose CommentsPermalink





(5) GEOTHERMAL- The term `geothermal' refers to heat energy stored in the Earth's crust that can be accessed for direct use or electric power generation. CommentsClose CommentsPermalink





(46) HYDROTHERMAL- The term `hydrothermal' refers to naturally occurring subsurface reservoirs of hot water or steam. CommentsClose CommentsPermalink





(57) SECRETARY- The term `Secretary' means the Secretary of Energy. CommentsClose CommentsPermalink





(6) 8) SYSTEMS APPROACH- The term `systems approach' means an approach to solving problems or designing systems that considers the entireattempts to optimize the performance of the overall system, rather than a particular component of the system. CommentsClose CommentsPermalink

SEC. 4. HYDROTHERMAL RESEARCH AND DEVELOPMENT.

(a) In General- The Secretary shall support programs of research, development, demonstration, and commercial application to expand the use of geothermal energy production from hydrothermal systems, including the programs described in subsection (b). CommentsClose CommentsPermalink





(b) Programs- CommentsClose CommentsPermalink





(1) ADVANCED HYDROTHERMAL RESOURCE TOOLS- The Secretary, in consultation with other appropriate agencies, shall support a program to develop advanced geophysical, geochemical, and geologic tools to assist in locating hidden hydrothermal resources, and to increase the reliability of site characterization before, during, and after initial drilling. The program shall develop new prospecting techniques to assist in prioritization of targets for characterization. The program shall include a field component. CommentsClose CommentsPermalink





(2) INDUSTRY COUPLED EXPLORATORY DRILLING- The Secretary shall support a program of cost-shared field demonstration programs, to be pursued, simultaneously and independently, in collaboration with industry partners, for the demonstration of technologies and techniques of siting and exploratory drilling for undiscovered resources in a variety of geologic settings. The program shall include incentives to encourage the use of advanced technologies and techniques. CommentsClose CommentsPermalink

SEC. 5. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

(a) Subsurface Components and Systems- The Secretary shall support a program of research, development, demonstration, and commercial application of components and systems capable of withstanding extreme geothermal environments and necessary to cost-effectively develop, produce, and monitor geothermal reservoirs and produce geothermal energy. These components and systems shall include advanced casing systems (expandable tubular casing, low-clearance casing designs, and others), high-temperature cements, high-temperature submersible pumps, and high-temperature packers, as well as technologies for under-reaming, multilateral completions, high-temperature logging, and logging while drilling. CommentsClose CommentsPermalink





(b) Reservoir Performance Modeling- The Secretary shall support a program of research, development, demonstration, and commercial application of models of geothermal reservoir performance, with an emphasis on accurately modeling performance over time. Models shall be developed to assist both in the development of geothermal reservoirs and to more accurately account for stress-related effects in stimulated hydrothermal and enhanced geothermal systems production environments. CommentsClose CommentsPermalink





(c) Environmental Impacts- The Secretary shall-- CommentsClose CommentsPermalink





(1) support a program of research, development, demonstration, and commercial application of technologies and practices designed to mitigate or preclude potential adverse environmental impacts of geothermal energy development, production or use, and seek to ensure that geothermal energy development is consistent with the highest practicable standards of environmental stewardship; and CommentsClose CommentsPermalink





(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. CommentsClose CommentsPermalink





Any potential environmental impacts identified as part of the development, production, and use of geothermal energy shall be measured and examined against the potential emissions offsets of greenhouses gases gained by geothermal energy development, production, and use. CommentsClose CommentsPermalink

SEC. 6. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT.

(a) In General- The Secretary shall support a program of research, development, demonstration, and commercial application for enhanced geothermal systems, including the programs described in subsection (b). CommentsClose CommentsPermalink





(b) Programs- CommentsClose CommentsPermalink





(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-- CommentsClose CommentsPermalink





(A) reservoir stimulation; CommentsClose CommentsPermalink





(B) reservoir characterization, monitoring, and modeling; CommentsClose CommentsPermalink





(C) stress mapping; CommentsClose CommentsPermalink





(D) tracer development; CommentsClose CommentsPermalink





(E) three-dimensional tomography; CommentsClose CommentsPermalink





and(F) understanding seismic effects of deep drilling and reservoir engineering and stimulation; and CommentsClose CommentsPermalink





(G) laser-based drilling technology. CommentsClose CommentsPermalink





(2) ENHANCED GEOTHERMAL SYSTEMS RESERVOIR STIMULATION- CommentsClose CommentsPermalink





(A) PROGRAM- In collaboration with industry partners, the Secretary shall support a program of research, development, and demonstration of enhanced geothermal systems reservoir stimulation technologies and techniques. A minimum of 5 sites shall be selected in locations that show particular promise for enhanced geothermal systems development. Each site shall-- CommentsClose CommentsPermalink





(i) represent a different class of subsurface geological condition environments; and CommentsClose CommentsPermalink





(ii) take advantage of an existing site where subsurface characterization has been conducted or existing drill holes can be utilized, if possible. CommentsClose CommentsPermalink





(B) CONSIDERATION OF EXISTING SITES- The following 2 sites, where Department of Energy and industry cooperative enhanced geothermal systems projects are already underway, may be considered for inclusion among the sites selected under subparagraph (A): CommentsClose CommentsPermalink





(i) Desert Peak, Nevada. CommentsClose CommentsPermalink





(ii) Coso, California. CommentsClose CommentsPermalink

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

(a) Applicability- In carrying out the research, development, demonstration, and commercial application programs under this Act, the Secretary shall require cost-sharing as follows:(1) IN GENERAL- For the programs described in sections 4(b)(1), 5(a), 5(b), and 6(b)(1), except as provided in paragraph (2) of this subsection, the Secretary shall require thatGeneral- The Secretary shall establish a program of research, development, demonstration, and commercial application to support development of geothermal energy production from oil and gas fields and production and recovery of energy from geopressured resources. In addition, the Secretary shall conduct such supporting activities including research, resource characterization, and technology development as necessary. CommentsClose CommentsPermalink





(b) Geothermal Energy Production From Oil and Gas Fields- The Secretary shall implement a grant program in support of geothermal energy production from oil and gas fields. The program shall include grants for a total of not less than 20 percent of the cost of an activity be provided by non-Federal sources. For the programs described in sections 4(b)(2) and 6(b)(2), except as provided in paragraph (2) of this subsection, the Secretary shall require thatthree demonstration projects of the use of geothermal techniques such as organic rankine cycle systems at marginal, unproductive, and productive oil and gas wells. The Secretary shall, to the extent practicable and in the public interest, make awards that-- CommentsClose CommentsPermalink





(1) include not less than 50 percent of the cost of an activity be provided by non-Federal sources.(2) REDUCTION OF NON-FEDERAL SHARE- The Secretary may reduce or eliminate the requirement of paragraph (1) for an activity if the Secretary determines that the reduction is necessary and appropriate.(b) Non-Federal Contributions- Non-Federal contributions required under subsection (a)--(1) mayfive oil or gas well sites per project award; CommentsClose CommentsPermalink





(2) use a range of oil or gas well hot water source temperatures from 150 degrees Fahrenheit to 300 degrees Fahrenheit; CommentsClose CommentsPermalink





(3) cover a range of sizes up to one megawatt; CommentsClose CommentsPermalink





(4) are located at a range of sites; CommentsClose CommentsPermalink





(5) can be replicated at a wide range of sites; CommentsClose CommentsPermalink





(6) facilitate identification of optimum techniques among competing alternatives; CommentsClose CommentsPermalink





(7) include --(A) personnel costs;(B) the value of a service, other resource, or third party in-kind contribution; and(C) indirect costs or facilities and administrative costs; and(2) shall notbusiness commercialization plans that have the potential for production of equipment at high volumes and operation and support at a large number of sites; and CommentsClose CommentsPermalink





(8) satisfy other criteria that the Secretary determines are necessary to carry out the program and collect necessary data and information. CommentsClose CommentsPermalink





The Secretary shall give preference to assessments that address multiple elements contained in paragraphs (1) through (8). CommentsClose CommentsPermalink





(c) Grant Awards- Each grant award for demonstration of geothermal technology such as organic rankine cycle systems at oil and gas wells made by the Secretary under subsection (b) shall include-- CommentsClose CommentsPermalink





(A) revenues or royalties from the prospective operation of an activity beyond1) necessary and appropriate site engineering study; CommentsClose CommentsPermalink





(2) detailed economic assessment of site specific conditions; CommentsClose CommentsPermalink





(3) appropriate feasibility studies to determine whether the demonstration can be replicated; CommentsClose CommentsPermalink





(4) design or adaptation of existing technology for site specific circumstances or conditions; CommentsClose CommentsPermalink





(5) installation of equipment, service, and support; CommentsClose CommentsPermalink





(6) operation for a minimum of one year and monitoring for the duration of the award; or(B) proceeds from the prospective sale of an asset of an activity.(c) Repayment ofdemonstration; and CommentsClose CommentsPermalink





(7) validation of technical and economic assumptions and documentation of lessons learned. CommentsClose CommentsPermalink





(d) Geopressured Gas Resource Recovery and Production- (1) The Secretary shall implement a program to support the research, development, demonstration, and commercial application of cost-effective techniques to produce energy from geopressured resources situated in and near the Gulf of Mexico. CommentsClose CommentsPermalink





(2) The Secretary shall solicit preliminary engineering designs for geopressured resources production and recovery facilities. CommentsClose CommentsPermalink





(3) Based upon a review of the preliminary designs, the Secretary shall award grants, which may be cost-shared, to support the detailed development and completion of engineering, architectural and technical plans needed to support construction of new designs. CommentsClose CommentsPermalink





(4) Based upon a review of the final design plans above, the Secretary shall award cost-shared development and construction grants for demonstration geopressured production facilities that show potential for economic recovery of the heat, kinetic energy and gas resources from geopressured resources. CommentsClose CommentsPermalink





(e) Competitive Grant Selection- Not less than 90 days after the date of the enactment of this Act, the Secretary shall conduct a national solicitation for applications for grants under the programs outlined in subsections (b) and (d). Grant recipients shall be selected on a competitive basis based on criteria in the respective subsection. CommentsClose CommentsPermalink





(f) Well Drilling- No funds may be used under this section for the purpose of drilling new wells. CommentsClose CommentsPermalink

(a) Federal Share- The Secretary shall not require repayment of t(1) The Federal share of acosts of projects funded under this Act shall be in accordance with section 988 of the Energy Policy Act of 2005. CommentsClose CommentsPermalink





(2) The Secretary may waive the Federal cost share requirement for grants awarded to universities, national laboratories, or similar noncommercial entities awarded grants under this Act. CommentsClose CommentsPermalink





(3) The Secretary shall allow for a competitive bidding process to play a role in determining the final cost-shared activity under this section as a condition of making an award.(d ratio. CommentsClose CommentsPermalink





(b) Organization and Administration of Programs- Programs under this Act shall incorporate the following organizational and administrative elements: CommentsClose CommentsPermalink





(1) Non-Federal participants shall be chosen through a competitive selection process. CommentsClose CommentsPermalink





(2) The request for proposals for each program shall stipulate, at a minimum, the following: CommentsClose CommentsPermalink





(A) The non-Federal funding requirements for projects. CommentsClose CommentsPermalink





(B) The funding mechanism to be used (i.e. grants, contracts, or cooperative agreements). CommentsClose CommentsPermalink





(C) Milestones and a schedule for completion. CommentsClose CommentsPermalink





(D) Criteria for evaluating proposals. CommentsClose CommentsPermalink





(3) In evaluating proposals, the Secretary shall give priority to proposals that draw on relevant expertise from industry, academia, and the national laboratories, as appropriate. CommentsClose CommentsPermalink





(4) The Secretary shall coordinate with, and where appropriate may provide funds in furtherance of the purposes of this Act to, other Department of Energy research and development programs focused on drilling, subsurface characterization, and other related technologies. CommentsClose CommentsPermalink





(5) In evaluating proposals, the Secretary shall consult with relevant experts from industry, academia, and the national laboratories, as appropriate. CommentsClose CommentsPermalink





(56) In evaluating proposals, the Secretary shall give priority to proposals that demonstrate clear evidence of employing a systems approach. CommentsClose CommentsPermalink





(67) In evaluating proposals for projects with a field component, the Secretary shall, where appropriate, give priority consideration to proposals that contain provisions to study local environmental impacts of the technologies developed or the operations undertaken. CommentsClose CommentsPermalink





(8) Data collected by the Secretary as a result of any project supported with funds provided under this Act shall be made available to the public, except to the extent that they contain information that is protected from disclosure undersection 552(b) of title 5, United States Code. CommentsClose CommentsPermalink

SEC. 89. CENTERS FOR GEOTHERMAL TECHNOLOGY TRANSFER.

(a) In General- The Secretary shall award grants to institutions of higher education (or consortia thereof) to establish 2 Centers for Geothermal Technology Transfer. CommentsClose CommentsPermalink





(b) Centers- CommentsClose CommentsPermalink





(1) HYDROTHERMAL CENTER- The purpose of one Technology Transfer Center shall be to serve as an information clearinghouse for the geothermal industry, collecting and disseminating information on best practices in all areas related to developing and managing hydrothermal resources, including data available for disclosure as provided under section 7(d)(68(b)(8). This Center shall be based at the institution west of the Mississippi River that the Secretary considers to be best suited to the purpose. The Center shall collect and disseminate information on all subjects germane to the development and user of hydrothermal systems, including-- CommentsClose CommentsPermalink





(A) resource location; CommentsClose CommentsPermalink





(B) reservoir characterization, monitoring, and modeling; CommentsClose CommentsPermalink





(C) drilling techniques; CommentsClose CommentsPermalink





and(D) reservoir management techniques; and CommentsClose CommentsPermalink





(E) technologies for electric power conversion or direct use of geothermal energy. CommentsClose CommentsPermalink





(2) ENHANCED GEOTHERMAL SYSTEMS CENTER- The purpose of a second Technology Transfer Center shall be to serve as an information clearinghouse for the geothermal industry, collecting and disseminating information on best practices in all areas related to developing and managing enhanced geothermal systems resources, including data available for disclosure as provided under section 7(d)(6)8(b)(8). This Center is encouraged to seek opportunities to coordinate efforts and share information with international partners engaged in research and development of enhanced geothermal systems or engaged in collection of data related to enhanced geothermal systems development. This Center shall be based at an academic institution east of the Mississippi RiverRocky Mountains which, in the opinion of the Secretary, is best suited to provide national leadership on enhanced geothermal systems-related issues. The Center shall collect and disseminate information on all subjects germane to the development and use of enhanced geothermal systems. CommentsClose CommentsPermalink





(c) Award Duration- An award made by the Secretary under this section shall be for an initial period of 5 years, and may be renewed for additional 5-year periods on the basis of-- CommentsClose CommentsPermalink





(1) satisfactory performance in meeting the goals of the research plan proposed by the Center; and CommentsClose CommentsPermalink





(2) other requirements as specified by the Secretary. CommentsClose CommentsPermalink

SEC. 9. STUDY ON ADVANCED USES OF GEOTHERMAL ENERGY.10. GEOPOWERING AMERICA.

(a) Reports on Advanced Uses of Geothermal Energy- Not later than 1 year, 3 years, and 5 years, after the date of enactment of this Act, the Secretary shall report to the Committee on Science and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate on advanced concepts and technologies to maximize the geothermal resource potential of the United States. The reports shall include-- CommentsClose CommentsPermalink





(1) the use of carbon dioxide as an alternative geofluid with potential carbon sequestration benefits; CommentsClose CommentsPermalink





(2) mineral recovery from geofluids; CommentsClose CommentsPermalink





(3) use of geothermal energy to produce hydrogen; CommentsClose CommentsPermalink





(4) use of geothermal energy to produce biofuels; CommentsClose CommentsPermalink





(5) use of geothermal heat for oil recovery from oil shales and tar sands;(6) coproduction of geofluids for direct use or electric power generation in conjunction with existing oil and gas extraction operations; and(7 and CommentsClose CommentsPermalink





(6) other advanced geothermal technologies, including advanced drilling technologies and advanced power conversion technologies. CommentsClose CommentsPermalink





(b) Progress Reports- (1) Not later than 36 months after the date of enactment of this Act, the Secretary shall submit to the Committee on Science and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate an interim report describing the progress made under this Act. At the end of 60 months, the Secretary shall submit to Congress a report on the results of projects undertaken under this Act and other such information the Secretary considers appropriate. CommentsClose CommentsPermalink





(2) As necessary, the Secretary shall report to the Congress on any legal, regulatory, or other barriers encountered that hinder economic development of these resources, and provide recommendations on legislative or other actions needed to address such impediments. CommentsClose CommentsPermalink

SEC. 102. APPLICABILITY OF OTHER LAWS.

SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary to carry out this Act $890,000,000 for each of the fiscal years 2008 through 2012., of which $10,000,000 for each fiscal year shall be for carrying out section 7. CommentsClose CommentsPermalink