[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5288 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5288
To require the Secretary of Energy to establish a program to provide
grants to States to award grants for the establishment of networked
geothermal heating and cooling systems, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 25, 2024
Ms. Klobuchar (for herself and Ms. Smith) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To require the Secretary of Energy to establish a program to provide
grants to States to award grants for the establishment of networked
geothermal heating and cooling systems, 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 ``Grants Enabling Optimized Thermal
Handling from Energy Recovered from Mediums that are Aquatic or Land-
based Act of 2024'' or ``GEOTHERMAL Act of 2024''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Baseline energy usage intensity.--The term ``baseline
energy usage intensity'' means--
(A) the annual site energy usage intensity (as
measured in British thermal units per year per square
foot) for a 12-month period ending as of any date
during the 24-month period immediately preceding the
installation of a networked geothermal heating and
cooling system at the site; and
(B) in the case of new construction, the modeled
site energy usage intensity of the new construction,
subject to the condition that the project shall be
minimally code compliant.
(2) Eligible recipient.--The term ``eligible recipient''
means--
(A) a nonprofit entity that owns--
(i) a building that may be connected to a
networked geothermal heating and cooling
system; or
(ii) multiple buildings that may be
connected by and to a networked geothermal
heating and cooling system;
(B) an institution of higher education;
(C) a municipality or neighborhood association;
(D) an owner of a multifamily housing development
or mixed-use community development with at least 50-
percent low-income or moderate-income households;
(E) a wastewater treatment authority seeking to
install a networked geothermal heating and cooling
system that would utilize waste heat from greywater,
sewage, or treated sewage effluent;
(F) an electric utility (as defined in section 3 of
the Federal Power Act (16 U.S.C. 796)), an electric
cooperative (as defined in that section), or a natural
gas utility seeking to install a networked geothermal
heating and cooling system as a thermal distribution
demonstration project;
(G) a third-party developer seeking to install a
networked geothermal heating and cooling system on
behalf of any entity described in subparagraphs (A)
through (F); and
(H) a consortium of 2 or more entities described in
subparagraphs (A) through (G).
(3) Geothermal heat pump.--The term ``geothermal heat
pump'' means a heat pump that uses the thermal energy of the
ground or water to provide space heating, space cooling, water
heating, or a combination of those functions.
(4) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
(5) Networked geothermal heating and cooling system.--The
term ``networked geothermal heating and cooling system'' means
a system--
(A) that provides space heating, space cooling,
water heating, or a combination of those functions to a
set of buildings;
(B) that utilizes--
(i) heat pumps that use, as a heat source
or sink, the ground, groundwater, surface
water, industrial process or commercial
building waste heat, greywater, sewage, or
treated sewage effluent;
(ii) direct use of geothermal heat; or
(iii) a combination of the systems
described in clauses (i) and (ii);
(C) that is a stand-alone system or is coupled with
another energy system;
(D) the ground-source or waste heat component of
which is designed to provide at least 90 percent of the
combined annual heating and cooling energy (as measured
in British thermal units per year); and
(E) that may use--
(i) subsurface or surface thermal storage
in the form of borehole thermal energy storage,
aquifer thermal energy storage, reservoir
thermal energy storage, thermal storage tanks,
or other thermal storage; and
(ii) waste heat or other thermal discharge
from commercial, institutional, or public
buildings or industrial facilities as an
additional heat source.
(6) Program.--The term ``program'' means the program
established under section 3(a).
(7) Registered apprenticeship program.--The term
``registered apprenticeship program'' means an apprenticeship
program registered under the Act of August 16, 1937 (50 Stat.
664, chapter 663; 29 U.S.C. 50 et seq.) (commonly known as the
``National Apprenticeship Act''), that meets the standards of
part 29 and part 30 of title 29, Code of Federal Regulations
(or successor regulations).
(8) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(9) Site energy usage intensity.--The term ``site energy
usage intensity'' means a site energy usage intensity (as
measured in British thermal units per year per square foot)
determined for a building or set of buildings in accordance
with such regulations or other guidance as the Secretary may
provide.
(10) State.--The term ``State'' means--
(A) a State;
(B) an Indian Tribe;
(C) the District of Columbia;
(D) the Commonwealth of Puerto Rico; and
(E) any other territory or possession of the United
States.
(11) State energy program.--The term ``State Energy
Program'' means the State Energy Program established under part
D of title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.).
SEC. 3. NETWORKED GEOTHERMAL HEATING AND COOLING GRANT PROGRAM.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, under the State Energy Program, the Secretary shall
establish a program under which the Secretary shall provide grants to
States--
(1) that are eligible for funding under the State Energy
Program;
(2) in accordance with the allocation formula established
under section 420.11 of title 10, Code of Federal Regulations
(or successor regulations); and
(3) that the States shall use to provide grants to eligible
recipients in accordance with this section.
(b) Applications for Grants.--A State seeking a grant under the
program shall submit to the Secretary an application at such time, in
such manner, and containing such information as the Secretary may
require, including--
(1) a description of the expected benefits that networked
geothermal heating and cooling systems will have on communities
in the State; and
(2) a plan for the use of the grant to assist the State in
achieving those benefits.
(c) Use of State Grant.--
(1) In general.--A State that receives a grant under the
program shall award grants to eligible recipients in accordance
with paragraphs (2) and (3).
(2) Project deployment grants.--
(A) In general.--A State that receives a grant
under the program may provide a grant to an eligible
recipient to finance the deployment of a networked
geothermal heating and cooling system that meets the
requirements described in subparagraph (B), including
the installation of in-building or behind-the-meter
equipment.
(B) System requirements.--A networked geothermal
heating and cooling system deployed pursuant to
subparagraph (A) shall--
(i) use--
(I) geothermal heat pumps to
provide heating, cooling, or heating
and cooling of space, water, or space
and water from--
(aa) the ground through 1
or more closed-loop geo-
exchange boreholes in which
water pumped through pipes that
exchange heat with the
surrounding rock or soil
returns to the surface;
(bb) groundwater using 1 or
more open-loop well doublets
that pump groundwater from an
aquifer and inject the water
into a second well following
heat exchange in a heat pump or
water-to-water heat exchanger;
(cc) surface water through
heat exchange in a heat pump or
water-to-water heat exchanger,
with the water returned to the
surface water body; or
(dd) greywater, sewage, or
treated sewage effluent through
a heat exchanger installed in a
sewage pipe, treated sewage
effluent pipe, or above-ground
plant consisting of a water-to-
water heat exchanger or heat
pump;
(II) hot water obtained from
geothermal wells to produce hot water
through a water-to-water heat exchanger
for direct use in building heating;
(III) hot water produced by deep
geothermal wells in which water is
pumped through pipes containing a fluid
that exchanges heat with the
surrounding rock or soil and returns to
the surface for direct use for building
heating;
(IV) industrial process waste heat;
or
(V) a combination of the systems
described in subclauses (I) through
(IV);
(ii) reduce the greenhouse gas emissions
associated with heating and cooling the
building, set of buildings, or facility of the
eligible recipient; and
(iii)(I) reduce the site energy intensity
of the building, set of buildings, or facility
of the eligible recipient in comparison to the
baseline energy usage intensity of the
building, set of buildings, or facility, as
applicable;
(II) improve the control and management of
energy usage of the building, set of buildings,
or facility to reduce demand during peak times;
(III) substantially reduce the amount of
water used to provide heating and cooling to
the building, set of buildings, or facility; or
(IV) improve, with respect to the building,
set of buildings, or facility of the eligible
recipient--
(aa) the physical comfort of the
building, set of buildings, or facility
occupants;
(bb) the energy efficiency of the
building, set of buildings, or
facility; or
(cc) the quality of the air in the
building, set of buildings, or
facility.
(C) Priority.--Each State providing grants under
this paragraph shall give priority--
(i) to the maximum extent practicable, to
eligible recipients that do not have access to
private capital;
(ii) to larger block-scale projects
comprising at least 100,000 square feet of
building space for which the networked
geothermal heating and cooling system will be
used;
(iii) to projects that may be extended to
multiple blocks or wider scales, including
systems featuring decentralized heat pumps
interconnected by a single underground shared
loop pipe of ambient-temperature water; or
(iv) to projects located in an energy
community (as defined in section 45(b)(11)(B)
of the Internal Revenue Code of 1986), a low-
income community, or a disadvantaged community.
(D) Wage rate and apprenticeship requirements.--
(i) Davis-bacon.--All laborers and
mechanics employed by contractors or
subcontractors in the performance of
construction, alteration, or repair work on a
project assisted in whole or in part by a grant
awarded by a State under this paragraph shall
be paid wages at rates not less than those
prevailing on similar projects in the locality,
as determined by the Secretary of Labor in
accordance with subchapter IV of chapter 31 of
title 40, United States Code (commonly referred
to as the ``Davis-Bacon Act'').
(ii) Authority.--With respect to the labor
standards specified in clause (i), the
Secretary of Labor shall have the authority and
functions set forth in Reorganization Plan
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C.
App.) and section 3145 of title 40, United
States Code.
(iii) Apprenticeship.--
(I) In general.--All laborers and
mechanics employed by contractors or
subcontractors in the performance of
construction, alteration, or repair
work on a project assisted in whole or
in part by a grant awarded by a State
under this paragraph shall participate
in, and all such contractors or
subcontractors shall sponsor, a
registered apprenticeship program for
each crafts or trade employed on the
project.
(II) Annual certification.-- In
order to remain eligible for funding
under a grant awarded by a State under
this paragraph, each contractor and
subcontractor described in subclause
(I) shall annually submit to the
Secretary of Labor a certification
verifying that--
(aa) the contractor or
subcontractor sponsors a
registered apprenticeship
program for each applicable
craft or trade; and
(bb) the sponsored
registered apprenticeship
program has graduated
apprentices for at least 3 of
the preceding 5 years.
(3) Grants for studies and technical assistance.--
(A) In general.--A State that receives a grant
under the program may use not more than 50 percent of
the grant funds--
(i) to award grants or provide technical
assistance to eligible recipients to carry out
the activities described in subparagraph (B);
and
(ii) to conduct broad surveys to ascertain
the localities or projects in the State that
are best suited to receive grants under
paragraph (2).
(B) Use of grants.--Grant funds received by
eligible recipients under subparagraph (A)(i) may be
used to partially or fully fund--
(i) community thermal opportunity
assessments--
(I) to identify potential thermal
resources, including heat sources or
sinks, including the geological nature
or other characteristics of the local
ground, groundwater, surface water,
greywater, sewage or sewage effluent
thermal, waste heat from commercial or
industrial sources, or deep earth
geological heat potential; and
(II) to assess proximity of thermal
sources, sinks, or storage, as
applicable, to existing or potential
concentrations of thermal loads;
(ii) studies to demonstrate the relative
potential of different locations for deployment
of networked geothermal heating and cooling
systems;
(iii) feasibility studies and designs for
networked geothermal heating and cooling
systems;
(iv) geoscientific investigation, including
test bores, thermal response tests, and thermal
conductivity tests, to determine underground
thermal and hydraulic characteristics; and
(v) activities, studies, or research to
assess and overcome barriers to the
implementation of networked geothermal heating
and cooling systems, including financial,
contracting, siting, permitting, technical, and
technology barriers.
(4) Multiple grants.--A State may provide more than 1 grant
under this subsection to the same eligible recipient to
facilitate multiple steps in the planning and deployment of a
networked geothermal heating and cooling system.
(5) Administrative expenses.--A State that receives a grant
under the program may use not more than 5 percent of the grant
funds for administrative expenses.
(d) Coordination With Existing Programs.--A State receiving a grant
under the program is encouraged to utilize and build on existing
programs and infrastructure, including physical infrastructure such as
pipes or wells, existing rights-of-way, and land leases, within the
State that may aid the State in awarding grants under subsection (c).
(e) Outreach.--The Secretary shall engage in outreach to inform
States of the availability of grants under the program.
(f) State Energy Program Exclusions.--
(1) No matching.--A State receiving a grant under the
program shall not be subject, for that grant, to the matching
requirement under the item relating to ``energy conservation''
under the heading ``DEPARTMENT OF ENERGY'' in title II of the
Department of the Interior and Related Agencies Appropriations
Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861).
(2) Expenditure prohibitions and limitations.--Nothing in
section 420.18 of title 10, Code of Federal Regulations (or
successor regulations), shall prohibit projects carried out
using grants provided by States under this section.
(g) Report.--Each State that receives a grant under the program
shall, not later than 18 months after a grant is received, and annually
thereafter, submit to the Secretary a report that describes--
(1) for each grant awarded to an eligible recipient under
subsection (c)(2), data on the projects to be carried out using
the grant, organized in a format to be determined by the
Secretary;
(2) for each grant awarded or any technical assistance
provided under subsection (c)(3), any output in the form of
feasibility studies, geoscientific investigation, thermal
mapping of heat sources or sink or waste heat sources in an
area, or other study results; and
(3) any statutory or regulatory changes undertaken by the
State or other local regulatory body to facilitate projects
carried out using a grant awarded or technical assistance
provided by the State under subsection (c).
(h) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary to carry out this section, to remain available
until expended--
(A) $150,000,000 for fiscal year 2025; and
(B) $120,000,000 for each of fiscal years 2026
through 2029.
(2) Indian tribes.--Of the amounts made available under
paragraph (1) for a fiscal year, not less than 2 percent shall
be used to award grants under the program to Indian Tribes.
SEC. 4. REPORTS ON NETWORKED GEOTHERMAL HEATING AND COOLING SYSTEMS.
(a) Analysis and Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall--
(1) perform an analysis of air source and geothermal heat
pump system performance, including determining the full-year,
8,760-hour coefficient of performance curves or seasonal
performance factor, from a range of building types, in a
variety of representative regional climate zones, and from a
representative sample of heat pump models; and
(2) submit to Congress and make publicly available on the
website of the Department of Energy a report, to be entitled
``Real world considerations on the deployment of heat pump
technologies'', that describes--
(A) factors that the Secretary is able to analyze
that may impact the decision to pursue a networked
geothermal heating and cooling system, such as the
seasonal performance data and peak summer and winter
power draw profiles for air source and geothermal heat
pumps for each building type and climate region
analyzed under paragraph (1); and
(B) information that the Secretary is able to
ascertain regarding capital or operating cost,
regulatory hurdles, site considerations, or other
factors.
(b) Survey and Report.--Not later than 2 years after the date of
enactment of this Act, and annually thereafter, the Secretary shall
submit to Congress and make publicly available on the website of the
Department of Energy--
(1) a compendium of available heat mapping, feasibility, or
other studies undertaken by a State or the Department of Energy
that serves to support decisions relating to locations,
layouts, and designs for networked geothermal heating and
cooling systems;
(2) a repository of formatted data on the projects funded
under grants awarded by States under section 3(c); and
(3) a report summarizing the statutory or regulatory
changes undertaken by States or localities to support or
facilitate those projects.
SEC. 5. MODEL GUIDANCE FOR WASTE HEAT TO DIRECT USE SYSTEMS.
Section 40556 of the Infrastructure Investment and Jobs Act (42
U.S.C. 18842) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) Waste heat to direct use system.--The term `waste
heat to direct use system' means a system that directly heats a
building or directly utilizes heat for other commercial or
industrial applications through the recovery of waste
energy.'';
(2) in subsection (b)(1), by striking ``and waste heat to
power systems'' and inserting ``, waste heat to power systems,
and waste heat to direct use systems''; and
(3) in subsection (c)--
(A) in paragraph (2), in the matter preceding
subparagraph (A), by striking ``and waste heat to power
systems'' and inserting ``, waste heat to power
systems, and waste heat to direct use systems''; and
(B) in paragraph (3)(G), by striking ``and waste
heat to power systems'' and inserting ``, waste heat to
power systems, and waste heat to direct use systems''.
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