[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1155 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 1155
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 30, 2015
Mr. Tester introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Geothermal Exploration and
Technology Act of 2015''.
SEC. 2. GEOTHERMAL EXPLORATORY DRILLING LOAN PROGRAM.
(a) Definitions.--In this section:
(1) Fund.--The term ``Fund'' means the Geothermal
Investment Fund established under subsection (h).
(2) Program.--The term ``program'' means the direct loan
program for high risk geothermal exploration wells established
under this section.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Establishment.--The Secretary shall establish a direct loan
program for high risk geothermal exploration wells.
(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.
(d) Project Criteria.--
(1) In general.--In selecting applicants for loans under
this section to carry out projects under the program, the
Secretary shall consider--
(A) the potential for unproven geothermal resources
that would be explored and developed under a project;
(B) the expertise and experience of an applicant in
developing geothermal resources; and
(C) the importance of the project in meeting the
goals of the Department of Energy.
(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.
(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--
(1) subsurface geologic data;
(2) metadata;
(3) borehole temperature data; and
(4) inclusion in the National Geothermal Data System of the
Department of Energy.
(f) Administration.--
(1) Cost share.--
(A) In general.--The Secretary shall determine the
cost share for a loan made under this section.
(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.
(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.
(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.
(g) Loan Repayment.--
(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--
(A) the date that is 4 years after the date the
loan is made; or
(B) the date on which the geothermal facility
enters into commercial production.
(2) Term.--
(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).
(B) Extension.--The Secretary may extend the term
of a loan under this section for not more than 4 years.
(3) Use of loan repayments.--Amounts repaid on loans made
under this section shall be deposited in the Fund.
(h) Geothermal Investment Fund.--
(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.
(2) Transfers to fund.--The Fund shall consist of--
(A) such amounts as are appropriated to the Fund
under subsection (j); and
(B) amounts repaid on loans under subsection
(g)(3).
(3) Prohibition.--Amounts in the Fund may not be made
available for any purpose other than a purpose described in
paragraph (1).
(4) Annual reports.--
(A) In general.--Not later than 60 days after the
end of each fiscal year beginning with fiscal year
2016, 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.
(B) Contents.--Each report shall include, for the
fiscal year covered by the report, the following:
(i) A statement of the amounts deposited
into the Fund.
(ii) A description of the expenditures made
from the Fund for the fiscal year, including
the purpose of the expenditures.
(iii) Recommendations for additional
authorities to fulfill the purpose of the Fund.
(iv) A statement of the balance remaining
in the Fund at the end of the fiscal year.
(i) Guidelines.--
(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.
(2) Administration.--The guidelines shall--
(A) specify--
(i) the terms and conditions that would
require a higher or lower level of cost sharing
under this section;
(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; and
(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; and
(B) require that--
(i) loans be provided under this section
only after the developer has committed the
share of the developer for expenditures for
drilling costs; and
(ii) loans for successful wells shall be
repaid by the developer within a 10-year
period.
(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 2016 through 2025.
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:
``SEC. 616A. LARGE-SCALE GEOTHERMAL ENERGY.
``(a) Findings.--Congress finds that--
``(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);
``(2) the Building Technologies Program of the Office of
Energy Efficiency and Renewable Energy of the Department--
``(A) is focused on the energy demand and energy
efficiency of buildings; and
``(B) includes geothermal heat pumps as a component
technology in the residential and commercial deployment
activities of the program; and
``(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.
``(b) 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.
``(c) Definitions.--In this section:
``(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--
``(A) heating to buildings; or
``(B) heat required for industrial processes,
agriculture, aquaculture, and other facilities.
``(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--
``(A) a closed loop system, which transfers heat by
way of buried or immersed pipes that contain a mix of
water and antifreeze; 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.
``(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.
``(4) Secretary.--The term `Secretary' means Secretary of
Energy, acting through the Assistant Secretary for Energy
Efficiency and Renewable Energy.
``(d) Program.--
``(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.
``(2) Areas.--The program may include research,
development, demonstration, and commercial application of--
``(A) geothermal ground loop efficiency
improvements through more efficient heat transfer
fluids;
``(B) geothermal ground loop efficiency
improvements through more efficient thermal grouts for
wells and trenches;
``(C) geothermal ground loop installation cost
reduction through--
``(i) improved drilling methods;
``(ii) improvements in drilling equipment;
``(iii) improvements in design methodology
and energy analysis procedures; and
``(iv) improved methods for determination
of ground thermal properties and ground
temperatures;
``(D) installing geothermal ground loops near the
foundation walls of new construction to take advantage
of existing structures;
``(E) using gray or black wastewater as a method of
heat exchange;
``(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;
``(G) advanced geothermal systems using variable
pumping rates to increase efficiency;
``(H) geothermal heat pump efficiency improvements;
``(I) use of hot water found in mines and mine
shafts and other surface waters as the heat exchange
medium;
``(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;
``(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;
``(L) use of hot water coproduced from oil and gas
recovery;
``(M) use of water sources at a temperature of less
than 150 degrees Celsius for direct use;
``(N) system integration of direct use with
geothermal electricity production; and
``(O) coproduction of heat and power, including on-
site use.
``(3) Environmental impacts.--In carrying out the program,
the Secretary shall identify and mitigate potential
environmental impacts in accordance with section 614(c).
``(e) Grants.--
``(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.
``(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.
``(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.
``(f) Reports.--
``(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.
``(2) Areas.--Each of the reports required under this
subsection shall include--
``(A) an analysis of progress made in each of the
areas described in subsection (d)(2); and
``(B)(i) a description of any relevant
recommendations made during a review of the program;
and
``(ii) any plans to address the recommendations
under clause (i).
``(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 2016 through 2020.''.
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:
``(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--
``(A) on a determination that--
``(i) geothermal energy will be produced
from a well producing or capable of producing
oil and gas; and
``(ii) the public interest will be served
by the issuance of such a lease; and
``(B) in order to provide for the coproduction of
geothermal energy with oil and gas.''.
<all>