S 362 ISCommentsClose CommentsPermalink

113th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 362CommentsClose CommentsPermalink

To promote the mapping and development of United States geothermal resources by establishing a direct loan program for high risk geothermal exploration wells, to amend the Energy Independence and Security Act of 2007 to improve geothermal energy technology and demonstrate the use of geothermal energy in large scale thermal applications, and for other purposes.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

February 14, 2013CommentsClose CommentsPermalink

Mr. TESTER (for himself and Mr. BEGICH) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural ResourcesCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To promote the mapping and development of United States geothermal resources by establishing a direct loan program for high risk geothermal exploration wells, to amend the Energy Independence and Security Act of 2007 to improve geothermal energy technology and demonstrate the use of geothermal energy in large scale thermal applications, 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 ‘Geothermal Exploration and Technology Act of 2013’.CommentsClose CommentsPermalink

SEC. 2. GEOTHERMAL EXPLORATORY DRILLING LOAN PROGRAM.

(a) Definitions- In this section:CommentsClose CommentsPermalink





(1) FUND- The term ‘Fund’ means the Geothermal Investment Fund established under subsection (h).CommentsClose CommentsPermalink





(2) PROGRAM- The term ‘program’ means the direct loan program for high risk geothermal exploration wells established under this section.CommentsClose CommentsPermalink





(3) SECRETARY- The term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink





(b) Establishment- The Secretary shall establish a direct loan program for high risk geothermal exploration wells.CommentsClose CommentsPermalink





(c) Applications- An applicant that seeks to receive a loan under the program may submit to the Secretary an application for the loan at such time, in such form, and containing such information as the Secretary may prescribe.CommentsClose CommentsPermalink





(d) Project Criteria-CommentsClose CommentsPermalink





(1) IN GENERAL- In selecting applicants for loans under this section to carry out projects under the program, the Secretary shall consider--CommentsClose CommentsPermalink





(A) the potential for unproven geothermal resources that would be explored and developed under a project;CommentsClose CommentsPermalink





(B) the expertise and experience of an applicant in developing geothermal resources; andCommentsClose CommentsPermalink





(C) the importance of the project in meeting the goals of the Department of Energy.CommentsClose CommentsPermalink





(2) PREFERENCE- In selecting applicants for loans under this section to carry out projects under the program, the Secretary shall provide a preference for projects likely to lead to successful new geothermal development leading to electricity production.CommentsClose CommentsPermalink





(e) Data Sharing- Data from all exploratory wells that are carried out under the program shall be provided to the Secretary and the Secretary of the Interior for use in mapping national geothermal resources and other uses, including--CommentsClose CommentsPermalink





(1) subsurface geologic data;CommentsClose CommentsPermalink





(2) metadata;CommentsClose CommentsPermalink





(3) borehole temperature data; andCommentsClose CommentsPermalink





(4) inclusion in the National Geothermal Data System of the Department of Energy.CommentsClose CommentsPermalink





(f) Administration-CommentsClose CommentsPermalink





(1) COST SHARE-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary shall determine the cost share for a loan made under this section.CommentsClose CommentsPermalink





(B) HIGHER RISKS- The Secretary may base the cost share percentage for loans made under this section on a sliding scale, with higher Federal shares awarded to projects with higher risks.CommentsClose CommentsPermalink





(2) NUMBER OF WELLS- The Secretary shall determine the number of wells for each selected geothermal project for which a loan may be made under this section.CommentsClose CommentsPermalink





(3) UNPRODUCTIVE PROJECTS- The Secretary may grant further delays or dispense with the repayment obligation on a demonstration that a selected geothermal project is unproductive.CommentsClose CommentsPermalink





(g) Loan Repayment-CommentsClose CommentsPermalink





(1) COMMENCEMENT- The recipient of a loan made under this section for a geothermal facility shall commence repayment of the loan beginning on the earlier of--CommentsClose CommentsPermalink





(A) the date that is 4 years after the date the loan is made; orCommentsClose CommentsPermalink





(B) the date on which the geothermal facility enters into commercial production.CommentsClose CommentsPermalink





(2) TERM-CommentsClose CommentsPermalink





(A) IN GENERAL- Except as provided in subparagraph (B), the term of a loan made under this section shall be 4 years beginning on the applicable loan repayment commencement date under paragraph (1).CommentsClose CommentsPermalink





(B) EXTENSION- The Secretary may extend the term of a loan under this section for not more than 4 years.CommentsClose CommentsPermalink





(3) USE OF LOAN REPAYMENTS- Amounts repaid on loans made under this section shall be deposited in the Fund.CommentsClose CommentsPermalink





(h) Geothermal Investment Fund-CommentsClose CommentsPermalink





(1) ESTABLISHMENT OF FUND- There is established in the Treasury of the United States a fund to be known as the ‘Geothermal Investment Fund’, to be administered by the Secretary, to be available without fiscal year limitation and not subject to appropriation, to carry out this section.CommentsClose CommentsPermalink





(2) TRANSFERS TO FUND- The Fund shall consist of--CommentsClose CommentsPermalink





(A) such amounts as are appropriated to the Fund under subsection (j); andCommentsClose CommentsPermalink





(B) amounts repaid on loans under subsection (g)(3).CommentsClose CommentsPermalink





(3) PROHIBITION- Amounts in the Fund may not be made available for any purpose other than a purpose described in paragraph (1).CommentsClose CommentsPermalink





(4) ANNUAL REPORTS-CommentsClose CommentsPermalink





(A) IN GENERAL- Not later than 60 days after the end of each fiscal year beginning with fiscal year 2013, the Secretary of Energy shall submit to the the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the operation of the Fund during the fiscal year.CommentsClose CommentsPermalink





(B) CONTENTS- Each report shall include, for the fiscal year covered by the report, the following:CommentsClose CommentsPermalink





(i) A statement of the amounts deposited into the Fund.CommentsClose CommentsPermalink





(ii) A description of the expenditures made from the Fund for the fiscal year, including the purpose of the expenditures.CommentsClose CommentsPermalink





(iii) Recommendations for additional authorities to fulfill the purpose of the Fund.CommentsClose CommentsPermalink





(iv) A statement of the balance remaining in the Fund at the end of the fiscal year.CommentsClose CommentsPermalink





(i) Guidelines-CommentsClose CommentsPermalink





(1) IN GENERAL- Not later than 180 days after the date of enactment of this Act, the Secretary shall issue guidelines for the implementation of the program.CommentsClose CommentsPermalink





(2) ADMINISTRATION- The guidelines shall--CommentsClose CommentsPermalink





(A) specify--CommentsClose CommentsPermalink





(i) the terms and conditions that would require a higher or lower level of cost sharing under this section;CommentsClose CommentsPermalink





(ii) the conditions under which the Secretary will allow loan modifications or forgiveness in cases in which a well cannot be used for production or injection; andCommentsClose CommentsPermalink





(iii) the information necessary to provide a loan applicant with certainty about application of subsection (f), including the level of cost and risk that the applicant and the Secretary will assume; andCommentsClose CommentsPermalink





(B) require that--CommentsClose CommentsPermalink





(i) loans be provided under this section only after the developer has committed the share of the developer for expenditures for drilling costs; andCommentsClose CommentsPermalink





(ii) loans for successful wells shall be repaid by the developer within a 10-year period.CommentsClose CommentsPermalink





(j) Authorization of Appropriations- There are authorized to be appropriated to carry out this section such sums as are necessary for each of fiscal years 2013 through 2022.CommentsClose CommentsPermalink

SEC. 3. LARGE-SCALE GEOTHERMAL ENERGY.

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:CommentsClose CommentsPermalink

‘SEC. 616A. LARGE-SCALE GEOTHERMAL ENERGY.

‘(a) Findings- Congress finds that--CommentsClose CommentsPermalink





‘(1) the Geothermal Technologies Program of the Office of Energy Efficiency and Renewable Energy of the Department has included a focus on direct use of geothermal energy in the low-temperature geothermal energy subprogram (including in the development of a research and development plan for the program);CommentsClose CommentsPermalink





‘(2) the Building Technologies Program of the Office of Energy Efficiency and Renewable Energy of the Department--CommentsClose CommentsPermalink





‘(A) is focused on the energy demand and energy efficiency of buildings; andCommentsClose CommentsPermalink





‘(B) includes geothermal heat pumps as a component technology in the residential and commercial deployment activities of the program; andCommentsClose CommentsPermalink





‘(3) geothermal heat pumps and direct use of geothermal energy, especially in large-scale applications, can make a significant contribution to the use of renewable energy but are underrepresented in research, development, demonstration, and commercialization.CommentsClose CommentsPermalink





‘(b) Purposes- The purposes of this section are--CommentsClose CommentsPermalink





‘(1) to improve the components, processes, and systems used for geothermal heat pumps and the direct use of geothermal energy; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(c) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) DIRECT USE OF GEOTHERMAL ENERGY- The term ‘direct use of geothermal energy’ means systems that use water that is at a temperature between approximately 38 degrees Celsius and 149 degrees Celsius directly or through a heat exchanger to provide--CommentsClose CommentsPermalink





‘(A) heating to buildings; orCommentsClose CommentsPermalink





‘(B) heat required for industrial processes, agriculture, aquaculture, and other facilities.CommentsClose CommentsPermalink





‘(2) 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--CommentsClose CommentsPermalink





‘(A) a closed loop system, which transfers heat by way of buried or immersed pipes that contain a mix of water and antifreeze; orCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(3) LARGE-SCALE APPLICATION- The term ‘large-scale application’ means an application for space or process heating or cooling for large entities with a name-plate capacity, expected resource, or rating of 10 or more megawatts, such as a large building, commercial district, residential community, or a large municipal, agricultural, or industrial project.CommentsClose CommentsPermalink





‘(4) SECRETARY- The term ‘Secretary’ means Secretary of Energy, acting through the Assistant Secretary for Energy Efficiency and Renewable Energy.CommentsClose CommentsPermalink





‘(d) Program-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Secretary shall establish a program of research, development, demonstration, and commercial application for geothermal heat pumps and the direct use of geothermal energy.CommentsClose CommentsPermalink





‘(2) AREAS- The program may include research, development, demonstration, and commercial application of--CommentsClose CommentsPermalink





‘(A) geothermal ground loop efficiency improvements through more efficient heat transfer fluids;CommentsClose CommentsPermalink





‘(B) geothermal ground loop efficiency improvements through more efficient thermal grouts for wells and trenches;CommentsClose CommentsPermalink





‘(C) geothermal ground loop installation cost reduction through--CommentsClose CommentsPermalink





‘(i) improved drilling methods;CommentsClose CommentsPermalink





‘(ii) improvements in drilling equipment;CommentsClose CommentsPermalink





‘(iii) improvements in design methodology and energy analysis procedures; andCommentsClose CommentsPermalink





‘(iv) improved methods for determination of ground thermal properties and ground temperatures;CommentsClose CommentsPermalink





‘(D) installing geothermal ground loops near the foundation walls of new construction to take advantage of existing structures;CommentsClose CommentsPermalink





‘(E) using gray or black wastewater as a method of heat exchange;CommentsClose CommentsPermalink





‘(F) improving geothermal heat pump system economics through integration of geothermal systems with other building systems, including providing hot and cold water and rejecting or circulating industrial process heat through refrigeration heat rejection and waste heat recovery;CommentsClose CommentsPermalink





‘(G) advanced geothermal systems using variable pumping rates to increase efficiency;CommentsClose CommentsPermalink





‘(H) geothermal heat pump efficiency improvements;CommentsClose CommentsPermalink





‘(I) use of hot water found in mines and mine shafts and other surface waters as the heat exchange medium;CommentsClose CommentsPermalink





‘(J) heating of districts, neighborhoods, communities, large commercial or public buildings (including office, retail, educational, government, and institutional buildings and multifamily residential buildings and campuses), and industrial and manufacturing facilities;CommentsClose CommentsPermalink





‘(K) geothermal system integration with solar thermal water heating or cool roofs and solar-regenerated desiccants to balance loads and use building hot water to store geothermal energy;CommentsClose CommentsPermalink





‘(L) use of hot water coproduced from oil and gas recovery;CommentsClose CommentsPermalink





‘(M) use of water sources at a temperature of less than 150 degrees Celsius for direct use;CommentsClose CommentsPermalink





‘(N) system integration of direct use with geothermal electricity production; andCommentsClose CommentsPermalink





‘(O) coproduction of heat and power, including on-site use.CommentsClose CommentsPermalink





‘(3) ENVIRONMENTAL IMPACTS- In carrying out the program, the Secretary shall identify and mitigate potential environmental impacts in accordance with section 614(c).CommentsClose CommentsPermalink





‘(e) Grants-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Secretary shall make grants available to State and local governments, institutions of higher education, nonprofit entities, utilities, and for-profit companies (including manufacturers of heat-pump and direct-use components and systems) to promote the development of geothermal heat pumps and the direct use of geothermal energy.CommentsClose CommentsPermalink





‘(2) PRIORITY- In making grants under this subsection, the Secretary shall give priority to proposals that apply to large buildings (including office, retail, educational, government, institutional, and multifamily residential buildings and campuses and industrial and manufacturing facilities), commercial districts, and residential communities.CommentsClose CommentsPermalink





‘(3) NATIONAL SOLICITATION- Not later than 180 days after the date of enactment of this section, the Secretary shall conduct a national solicitation for applications for grants under this section.CommentsClose CommentsPermalink





‘(f) Reports-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Not later than 2 years after the date of enactment of this section and annually thereafter, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Science and Technology of the House of Representatives a report on progress made and results obtained under this section to develop geothermal heat pumps and direct use of geothermal energy.CommentsClose CommentsPermalink





‘(2) AREAS- Each of the reports required under this subsection shall include--CommentsClose CommentsPermalink





‘(A) an analysis of progress made in each of the areas described in subsection (d)(2); andCommentsClose CommentsPermalink





‘(B)(i) a description of any relevant recommendations made during a review of the program; andCommentsClose CommentsPermalink





‘(ii) any plans to address the recommendations under clause (i).CommentsClose CommentsPermalink





‘(g) Authorization of Appropriations- There are authorized to be appropriated to the Secretary to carry out this section such sums as are necessary for each of fiscal years 2013 through 2017.’.CommentsClose CommentsPermalink

SEC. 4. 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:CommentsClose CommentsPermalink





‘(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 leasing under subsection (c) by the holder of the oil and gas lease--CommentsClose CommentsPermalink





‘(A) on a determination that--CommentsClose CommentsPermalink





‘(i) geothermal energy will be produced from a well producing or capable of producing oil and gas; andCommentsClose CommentsPermalink





‘(ii) the public interest will be served by the issuance of such a lease; andCommentsClose CommentsPermalink





‘(B) in order to provide for the coproduction of geothermal energy with oil and gas.’.CommentsClose CommentsPermalink