[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3954 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 3954
To amend the Geothermal Steam Act of 1970 to promote timely exploration
for geothermal resources under geothermal leases, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 14, 2024
Mr. Heinrich (for himself, Mr. Risch, Mr. Lee, and Ms. Cortez Masto)
introduced the following bill; which was read twice and referred to the
Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To amend the Geothermal Steam Act of 1970 to promote timely exploration
for geothermal resources under geothermal leases, 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 Energy Optimization
Act''.
SEC. 2. GEOTHERMAL PRODUCTION ON FEDERAL LAND.
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 OBSERVATION TEST PROJECTS.
``(a) Definitions.--In this section:
``(1) Categorical exclusion.--The term `categorical
exclusion' has the meaning given the term in section 111 of the
National Environmental Policy Act of 1969 (42 U.S.C. 4336e).
``(2) Downhole.--The term `downhole' means a well or
borehole dug or drilled into the subsurface of the earth for
the purposes of resource confirmation or potential use.
``(3) Geothermal observation test project.--The term
`geothermal observation test project' means using geothermal
technologies to drill a test, monitor, calibration, or other
similar type of exploratory drilling process well for
geothermal resources on land for which the Secretary concerned
has issued a lease under this Act, that--
``(A) is carried out by the leaseholder;
``(B) causes an allowable amount of total
disturbance;
``(C) does not include any permanent roads;
``(D) is developed--
``(i) with the deepest cemented casing
string less than 12 inches of downhole size in
diameter;
``(ii) 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;
``(iii) with temporary road access, if
needed to enable access to the geothermal
observation test project location, subject to
the requirement that--
``(I) construction of the temporary
road access is remediated as close as
reasonably practicable to original
condition following completion of the
geothermal observation test project
work; or
``(II) the temporary road access,
with any additional permanent
improvements, is included as part of
the full review required under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) if the
leaseholder intends to proceed with
geothermal energy use for--
``(aa) the production of
electricity;
``(bb) industrial
processes;
``(cc) agricultural
processes;
``(dd) brine mineral
extraction;
``(ee) direct heating and
cooling uses; or
``(ff) any combination of
items (aa) through (ee); and
``(iv) with the use of rubber-tired digging
or drilling equipment vehicles;
``(E) is completed in less than 120 days--
``(i) including the removal of any surface
infrastructure from the site, unless--
``(I) the leaseholder conducting
the geothermal observation test project
submits to the Secretary concerned by
not later than 60 days after the date
of first exploration drilling an
extension request for additional time
to complete the observation project, in
which the request provides
justification indicating why granting
an extension is necessary; and
``(II) the Secretary concerned
grants an extension under subclause
(I), if requested; or
``(ii) not including removal of any surface
infrastructure from the site so long as the
geothermal developer intends to proceed with
resource development directly following the
test phase of the project and into processes
required under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.);
and
``(F) requires the restoration of the project site
as part of any new review required under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) within 3 years of the date of first exploration
drilling to approximately the condition that existed at
the time the project began, unless the site is
subsequently used as part of energy development under
the lease.
``(4) Geothermal technology.--The term `geothermal
technology' means technology designed to extract heat from the
subsurface of the earth and that is used to drill--
``(A) hydrothermal project test wells;
``(B) enhanced geothermal system monitoring wells;
``(C) closed loop geothermal system calibration
wells; and
``(D) similar types of subsurface disturbances
through non-production wells to assess the viability of
the heat resources of the earth.
``(5) Secretary concerned.--The term `Secretary concerned'
means--
``(A) the Secretary of Agriculture, with respect to
National Forest System land; and
``(B) the Secretary, with respect to public lands.
``(6) Surface infrastructure.--The term `surface
infrastructure' means all equipment, materials, facilities, and
other items used in the drilling of a geothermal observation
test project.
``(7) Total disturbance.--
``(A) In general.--The term `total disturbance'
means a geothermal observation test project that causes
not more than 10 acres of disturbance from--
``(i) soil or vegetation disruption at the
location of each geothermal observation test
project; and
``(ii) soil or vegetation disruption during
access or egress to the geothermal observation
test project site.
``(B) Allowance.--
``(i) Multiple projects.--For instances of
multiple geothermal observation test projects,
the acres of total disturbance allowed shall--
``(I) be equal to the total number
of geothermal observation test projects
multiplied by 10 acres; and
``(II) not exceed 100 total acres.
``(ii) Access or egress.--For soil or
vegetation disruption during access or egress
to a geothermal observation test project site,
the acres of total soil or vegetation
disruption allowed shall be equal to the acres
of total disturbance allowed minus the acres of
soil or vegetation disruption caused by the
geothermal observation test project.
``(b) Categorical Exclusion.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Secretary concerned shall
develop a categorical exclusion for geothermal observation test
projects.
``(2) Administration.--In developing and administering the
categorical exclusion under paragraph (1), the Secretary
concerned shall--
``(A) comply with the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.); and
``(B) apply any applicable extraordinary
circumstance under section 46.215 of title 43, Code of
Federal Regulations (or successor regulations), in
determining whether to use the categorical exclusion.
``(c) Process.--
``(1) Requirement to provide notice.--A leaseholder shall
provide notice to the Secretary concerned of the intent of the
leaseholder to carry out a geothermal observation test project
at least 60 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) that
contains sufficient information to evaluate the qualifications
of the project for an applicable categorical exclusion, the
Secretary concerned shall, with respect to the project
described in the notice of intent--
``(A) determine if the project qualifies for a
categorical exclusion under subsection (b);
``(B) notify the leaseholder of such determination;
and
``(C) administer the categorical exclusion for a
geothermal observation test project, subject to the
condition that--
``(i) the project meets the specified
criteria for the categorical exclusion; and
``(ii) the Secretary determines that no
extraordinary circumstance exists under which a
normally excluded action or project may have a
significant effect.
``(3) Opportunity to remedy.--If the Secretary concerned
determines under paragraph (2)(A) that the project does not
qualify for a categorical exclusion under subsection (b), the
Secretary concerned 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 not less than 60 days
after receiving notice under subparagraph (A) to remedy
any deficiencies and resubmit the notice of intent
under paragraph (1).''.
SEC. 3. REVIEW OF GEOTHERMAL EXPLORATION OR DEVELOPMENT ACTIVITIES.
Section 390 of the Energy Policy Act of 2005 (42 U.S.C. 15942) is
amended--
(1) in subsection (a)--
(A) by inserting ``(30 U.S.C. 181 et seq.) or the
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)''
after ``Mineral Leasing Act''; and
(B) by striking ``oil or gas'' and inserting ``oil,
gas, or geothermal energy resource well'';
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``, and less
than 10 acres for the purposes of geothermal,'' after
``less than 5 acres'';
(B) in paragraph (2), by striking ``oil or gas
well'' and inserting ``oil, gas, or geothermal resource
well'';
(C) in paragraph (3), by striking ``oil or gas well
within a developed field'' and inserting ``oil, gas, or
geothermal energy resource well within a developed
field or area'';
(D) by redesignating paragraph (5) as paragraph
(6); and
(E) by inserting after paragraph (4) the following:
``(5) For the purposes of geothermal, placement of an
electrical transmission line or a distribution line of not more
than 20 miles in length in an approved right-of-way corridor,
so long as the corridor was approved within 5 years prior to
the date of placement of the transmission or distribution
line.''.
SEC. 4. LEASING PROCEDURES UNDER THE GEOTHERMAL STEAM ACT.
Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C. 1003) is
amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``every 2 years''
and inserting ``every year''; and
(B) by adding at the end the following:
``(5) Replacement sales.--If a lease sale under this
section for a year is cancelled or delayed, the Secretary shall
conduct a replacement sale during the same year.''; and
(2) in subsection (d), by adding at the end the following:
``(3) Deadline.--The Secretary, and the Secretary of
Agriculture with respect to National Forest System land, shall
issue a decision for a submitted application described in
paragraph (1) not later than 60 days after the application is
submitted.''.
SEC. 5. GEOTHERMAL OMBUDSMAN AND STRIKE TEAM.
(a) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
the Bureau of Land Management.
(2) Geothermal ombudsman.--The term ``Geothermal
Ombudsman'' means the Geothermal Ombudsman appointed under
subsection (b).
(3) Geothermal strike team.--The term ``Geothermal Strike
Team'' means the Geothermal Strike Team established under
subsection (c).
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Geothermal Ombudsman.--
(1) Appointment.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall appoint within the
Bureau of Land Management a Geothermal Ombudsman to report
directly to the Director.
(2) Duties.--The Geothermal Ombudsman shall--
(A) act as a liaison between the individual field
offices of the Bureau of Land Management and the
Director;
(B) improve--
(i) the performance of the permitting
process for geothermal energy resource wells;
and
(ii) regional coordination of the field
offices of the Bureau of Land Management;
(C) provide dispute resolution services between the
individual field offices of the Bureau of Land
Management and applicants for drilling geothermal
energy resource wells;
(D) help Federal, State, and Tribal departments and
agencies make the permitting and leasing process for
geothermal energy resource wells efficient, orderly,
and responsive;
(E) develop best practices and templates for the
permitting and leasing process for geothermal energy
resource wells;
(F) coordinate with the Federal Permitting
Improvement Steering Council established by section
41002 of the FAST Act (42 U.S.C. 4370m-1) and other
task forces, as needed, on overlapping duties and
responsibilities; and
(G) identify potential statutory and regulatory
changes based on input from the individual field
offices of the Bureau of Land Management, the
Geothermal Strike Team, and other stakeholders, as
determined by the Secretary.
(3) Limitation.--
(A) Support.--In carrying out the duties of the
Geothermal Ombudsman under paragraph (2), the
Geothermal Ombudsman shall use personnel, funding,
logistics, and other resources of the Bureau of Land
Management, to the extent determined by the Director.
(B) Effect.--Nothing in this subsection replaces,
alters, or diminishes the activities of any ombudsman
or similar office of any other agency.
(c) Geothermal Strike Team.--
(1) Establishment.--Not later than 60 days after the date
of enactment of this Act, the Secretary shall establish within
the Bureau of Land Management a task force, to be known as the
``Geothermal Strike Team'', which shall report directly to the
Director.
(2) Duties.--The Geothermal Strike Team shall support the
Geothermal Ombudsman--
(A) with implementation and continuous improvement
of best practices relating to permitting for and
leasing of geothermal energy resource wells;
(B) with providing direct technical assistance to
applicants in field offices of the Bureau of Land
Management, as requested; and
(C) with coordinating with Federal, State, Tribal,
and local governments, and among State agencies, on
project review, permitting, and approvals for
geothermal energy resource wells.
(3) Members.--The Geothermal Strike Team shall be composed
of members of the Bureau of Land Management selected by the
Director, in consultation with the Secretary, who may consult
with--
(A) institutions of higher education (as defined in
section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)));
(B) members from the National Laboratories (as
defined in section 2 of the Energy Policy Act of 2005
(42 U.S.C. 15801));
(C) private entities, as determined by the
Director, with expertise in data modeling and analysis;
and
(D) other experts, as determined by the Director.
(4) Limitation.--
(A) Support.--In carrying out the duties of the
Geothermal Strike Team under paragraph (2), the
Geothermal Strike Team may use personnel, funding,
logistics, and other resources of the Bureau of Land
Management, to the extent determined by the Director.
(B) Effect.--Nothing in this subsection replaces,
alters, or diminishes the activities of any similar
office of any Federal agency.
(d) Reports.--
(1) Annual report.--The Geothermal Ombudsman and the
Geothermal Strike Team shall jointly submit to the Committee on
Energy and Natural Resources of the Senate, the Committee on
Energy and Commerce of the House of Representatives, and the
Director an annual report that describes the activities and
evaluates the effectiveness of the Geothermal Ombudsman and
Geothermal Strike Team during the preceding 1-year period.
(2) Additional reports.--In addition to the annual report
required under paragraph (1), the Geothermal Ombudsman and
Geothermal Strike Team shall submit to the Director any
additional reports, as determined by the Director.
(3) Request.--The Geothermal Ombudsman and the Geothermal
Strike Team shall, on request, submit the reports described in
paragraphs (1) and (2) to any Member of Congress.
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