Geothermal Exploration and Technology Act of 2011 - (Sec. 2) Requires the Secretary of Energy (DOE) to: (1) establish a direct loan program for high risk geothermal exploration wells, and (2) give preference to applicants for loans to carry out projects that are likely to lead to successful new geothermal development leading to electricity production. Requires data from exploratory wells to be provided to the DOE Secretary (Secretary) and the Secretary of the Interior for use in mapping national geothermal resources and other uses, including subsurface geologic data, metadata, borehole temperature data, and inclusion in DOE's National Geothermal Data System. Authorizes the Secretary to: (1) base the cost share percentage for loans on a sliding scale, with higher federal shares awarded to projects with higher risks; and (2) grant further delays or dispense with the repayment obligation on a demonstration that a selected geothermal project is unproductive. Requires the Secretary to determine the number of wells for each selected geothermal project for which a loan may be made.
Requires the recipient of a loan under this Act for a geothermal facility to commence repayment of the loan beginning on the earlier of four years after the loan is made or when the geothermal facility enters into commercial production.
Establishes the Geothermal Investment Fund to carry out such program. Requires amounts repaid on loans to be deposited in such Fund. Authorizes appropriations for such Fund for FY2012-FY2021. Requires the Secretary to report annually on such Fund's operations.
Requires the Secretary to issue guidelines for the implementation of such program. Requires such guidelines to specify: (1) the terms and conditions that would require a higher or lower level of cost sharing, (2) 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 (3) the information necessary to provide a loan applicant with certainty about the administration of the program, including the level of cost and risk that the applicant and the Secretary will assume. Directs such guidelines to require that: (1) loans be provided only after the developer has committed the share of the developer for expenditures for drilling costs, and (2) loans for successful wells be repaid by the developer within a 10-year period.
(Sec. 3) Amends the Energy Independence and Security Act of 2007 to require: (1) the Assistant Secretary for Energy Efficiency and Renewable Energy to establish a program of research, development, demonstration, and commercial application for geothermal heat pumps and the direct use of geothermal energy; and (2) the Assistant Secretary to identify and mitigate potential environmental impacts.
Authorizes the program to include research, development, demonstration, and commercial application of: (1) geothermal ground loop efficiency improvements through more efficient heat transfer fluids or more efficient thermal grouts for wells and trenches; (2) geothermal ground loop installation cost reduction through improved drilling methods, improvements in drilling equipment, improvements in design methodology and energy analysis procedures, and improved methods for determination of ground thermal properties and ground temperatures; (3) installing geothermal ground loops near the foundation walls of new construction to take advantage of existing structures; (4) using gray or black wastewater as a method of heat exchange; (5) improving geothermal heat pump system economics through integration of geothermal systems with other building systems; (6) advanced geothermal systems using variable pumping rates to increase efficiency; (7) geothermal heat pump efficiency improvements; (8) use of hot water found in mines and mine shafts and other surface waters as the heat exchange medium; (9) heating of districts, neighborhoods, communities, large commercial or public buildings, and industrial and manufacturing facilities; (10) 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; (11) use of hot water coproduced from oil and gas recovery; (12) direct use of water sources at a temperature of less than 150 degrees Celsius; (13) system integration of direct use with geothermal electricity production; and (14) coproduction of heat and power, including on-site use.
Directs the Assistant Secretary to: (1) make grants to state and local governments, institutions of higher education, nonprofit entities, utilities, and for-profit companies to promote the development of geothermal heat pumps and the direct use of geothermal energy; (2) give priority to proposals that apply to large buildings, commercial districts, and residential communities; (3) conduct a national solicitation for grant applications; and (4) report on the progress made and results obtained under this Act to develop geothermal heat pumps and direct use of geothermal energy.
Authorizes appropriations for such program for FY2012-FY2016.
(Sec. 4) Amends the Geothermal Steam Act of 1970 to provide that land under an oil and gas lease issued pursuant to the Mineral Leasing Act or the Mineral Leasing Act for Acquired Lands that is subject to an approved application for a permit to drill and from which oil and gas production is occurring may be available for leasing, if the lease would serve the public interest, for geothermal drilling in order to provide for the coproduction of geothermal energy with oil and gas.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1142 Introduced in Senate (IS)]
112th CONGRESS
1st Session
S. 1142
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
May 26, 2011
Mr. Tester (for himself, Ms. Murkowski, and Mr. Reid) 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 2011''.
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 previously unexplored,
underexplored, or unproven geothermal resources in a variety of
geologic and geographic settings.
(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 such
amounts as are appropriated to the Fund under subsection (j).
(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
2012, 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.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall develop guidelines for the
implementation of the program.
(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 2012 through 2021.
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
via 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, 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; and
``(ii) improvements in drilling equipment;
``(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 2012 through 2016.''.
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>
Introduced in Senate
Read twice and referred to the Committee on Energy and Natural Resources.
Committee on Energy and Natural Resources. Hearings held. Hearings printed: S.Hrg. 112-253.
Committee on Energy and Natural Resources. Ordered to be reported with amendments favorably.
Committee on Energy and Natural Resources. Reported by Senator Bingaman with amendments. With written report No. 112-145.
Committee on Energy and Natural Resources. Reported by Senator Bingaman with amendments. With written report No. 112-145.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 314.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line