Enhancing Geothermal Production on Federal Lands Act
This bill amends the Geothermal Steam Act of 1970 to allow the Department of the Interior to award noncompetitive leases on up to 640 acres of certain federal land for geothermal development.
Interior must lease the land at fair market value, publish a notice of any lease requests, and provide review of the final determination of fair market value.
Lessees must make annual rental payments equal to those required for lands that are leased competitively.
The bill exempts geothermal exploration test projects from complying with environmental review requirements under the National Environmental Policy Act of 1969 (NEPA).
Interior must designate portions of certain federal land as geothermal leasing priority areas. The bill sets forth requirements for environmental review under NEPA with respect to the priority areas.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4568 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 4568
To amend the Geothermal Steam Act of 1970 to promote timely exploration
for geothermal resources under geothermal leases, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 6, 2017
Mr. Labrador (for himself and Mr. Gosar) introduced the following bill;
which was referred to the Committee on 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 ``Enhancing Geothermal Production on
Federal Lands Act''.
SEC. 2. GEOTHERMAL PRODUCTION ON FEDERAL LANDS.
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 EXPLORATION TEST PROJECTS.
``(a) Definition of Geothermal Exploration Test Project.--In this
section, the term `geothermal exploration test project' means the
drilling of a well to test or explore for geothermal resources on lands
for which the Secretary has issued a lease under this Act, that--
``(1) is carried out by the holder of the lease;
``(2) causes--
``(A) less than 5 acres of soil or vegetation
disruption at the location of each geothermal
exploration well; and
``(B) not more than an additional 5 acres of soil
or vegetation disruption during access or egress to the
test site;
``(3) is developed--
``(A) 8 inches or less in diameter;
``(B) 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;
``(C) without construction of new roads other than
upgrading of existing drainage crossings for safety
purposes; and
``(D) with the use of rubber-tired digging or
drilling equipment vehicles;
``(4) is completed in less than 90 days, including the
removal of any surface infrastructure from the site; and
``(5) requires the restoration of the project site 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.
``(b) Categorical Exclusion.--
``(1) In general.--Unless extraordinary circumstances
exist, a project that the Secretary determines under subsection
(c) is a geothermal exploration test project shall be
categorically excluded from the requirements for an
environmental assessment or an environmental impact statement
under the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) or section 1508.4 of title 40, Code of Federal
Regulations (or a successor regulation).
``(2) Extraordinary circumstances definition.--In this
subsection, the term `extraordinary circumstances' has the same
meaning given such term in the Department of the Interior
Departmental Manual, 516 DM 2.3A(3) and 516 DM 2, Appendix 2
(or successor provisions).
``(c) Process.--
``(1) Requirement to provide notice.--A leaseholder shall
provide notice to the Secretary of the leaseholder's intent to
carry out a geothermal exploration test project at least 30
days before the start of drilling under the project.
``(2) Review and determination.--Not later than 10 days
after receipt of a notice of intent under paragraph (1), the
Secretary 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); and
``(B) notify the leaseholder of such determination.
``(3) Opportunity to remedy.--
``(A) In general.--If the Secretary determines
under paragraph (2)(A) that the project does not
qualify for a categorical exclusion under subsection
(b), the Secretary shall--
``(i) include in such notice clear and
detailed findings on any deficiencies in the
project that resulted in such determination;
and
``(ii) allow the leaseholder to remedy any
such deficiencies and resubmit the notice of
intent under paragraph (1).''.
SEC. 3. GEOTHERMAL LEASING PRIORITY AREAS.
The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) is
further amended by adding at the end the following:
``SEC. 31. GEOTHERMAL LEASING PRIORITY AREAS.
``(a) Definition of Covered Land.--In this section, the term
`covered land' means land that is--
``(1) Federal land; and
``(2) not excluded from the development of geothermal
energy under--
``(A) a land use plan established under the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1701
et seq.); or
``(B) any other Federal law.
``(b) Designation of Geothermal Leasing Priority Areas.--The
Secretary, in consultation with the Secretary of Energy, shall
designate portions of covered land as geothermal leasing priority areas
as soon as practicable, but not later than 5 years, after the date of
the enactment of this section.
``(c) Criteria for Selection.--In determining which covered lands
to designate as geothermal leasing priority areas under subsection (b),
the Secretary, in consultation with the Secretary of Energy, shall
consider if--
``(1) the covered land is preferable for geothermal
leasing;
``(2) production of geothermal energy on such land is
economically viable, including if such land has access to
methods of energy transmission; and
``(3) the designation would be in compliance with section
202 of the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1712), including subsection (c)(9) of that section.
``(d) Review and Modification.--Not less frequently than once every
10 years, the Secretary shall--
``(1) review covered land and, if appropriate, make
additional designations of geothermal leasing priority areas;
and
``(2) review each area designated as a geothermal leasing
priority area under this section, and, if appropriate, remove
such designation.
``(e) Programmatic Environmental Impact Statement.--
``(1) Initial designations.--Not later than 5 years after
the date of the enactment of this section, the Secretary shall
prepare a supplement to any final programmatic environmental
impact statement for geothermal leasing that is the most
recently finalized such statement with respect to covered land
designated as a geothermal leasing priority area under
subsection (b).
``(2) Subsequent designations.--Each designation of a
geothermal leasing priority area under subsection (d) shall be
included in a programmatic environmental impact statement for
geothermal leasing or in a supplement to such a statement.
``(3) Consultations.--In developing any programmatic
environmental impact statement for geothermal leasing or
supplement to such a statement under this section, the
Secretary shall consult, on an ongoing basis, with appropriate
State, Tribal, and local governments, transmission
infrastructure owners and operators, developers, and other
appropriate entities.
``(4) Procedure.--The Secretary may not delay issuing a
permit or holding a lease sale under this Act because the
supplement required under paragraph (1) has not been finalized
by the Secretary.
``(f) Compliance With NEPA.--If the Secretary determines that the
designation of a geothermal leasing priority area has been sufficiently
analyzed by a programmatic environmental impact statement, the
Secretary shall not prepare any additional analysis under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect
to geothermal lease sales for such geothermal leasing priority area.''.
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 noncompetitive
leasing under subsection (c) by the holder of the oil and gas
lease--
``(A) on a determination that geothermal energy
will be produced from a well producing or capable of
producing oil and gas; and
``(B) in order to provide for the coproduction of
geothermal energy with oil and gas.''.
SEC. 5. NONCOMPETITIVE LEASING OF ADJOINING AREAS FOR DEVELOPMENT OF
GEOTHERMAL RESOURCES.
Section 4(b) of the Geothermal Steam Act of 1970 (30 U.S.C.
1003(b)) is further amended by adding at the end the following:
``(5) Adjoining land.--
``(A) Definitions.--In this paragraph:
``(i) Fair market value per acre.--The term
`fair market value per acre' means a dollar
amount per acre that--
``(I) except as provided in this
clause, shall be equal to the market
value per acre (taking into account the
determination under subparagraph
(B)(iii) regarding a valid discovery on
the adjoining land) as determined by
the Secretary under regulations issued
under this paragraph;
``(II) shall be determined by the
Secretary with respect to a lease under
this paragraph, by not later than the
end of the 180-day period beginning on
the date the Secretary receives an
application for the lease; and
``(III) shall be not less than the
greater of--
``(aa) 4 times the median
amount paid per acre for all
land leased under this Act
during the preceding year; or
``(bb) $50.
``(ii) Industry standards.--The term
`industry standards' means the standards by
which a qualified geothermal professional
assesses whether downhole or flowing
temperature measurements with indications of
permeability are sufficient to produce energy
from geothermal resources, as determined
through flow or injection testing or
measurement of lost circulation while drilling.
``(iii) Qualified federal land.--The term
`qualified Federal land' means land that is
otherwise available for leasing under this Act.
``(iv) Qualified geothermal professional.--
The term `qualified geothermal professional'
means an individual who is an engineer or
geoscientist in good professional standing with
at least 5 years of experience in geothermal
exploration, development, or project
assessment.
``(v) Qualified lessee.--The term
`qualified lessee' means a person who may hold
a geothermal lease under this Act (including
applicable regulations).
``(vi) Valid discovery.--The term `valid
discovery' means a discovery of a geothermal
resource by a new or existing slim hole or
production well, that exhibits downhole or
flowing temperature measurements with
indications of permeability that are sufficient
to meet industry standards.
``(B) Authority.--An area of qualified Federal land
that adjoins other land for which a qualified lessee
holds a legal right to develop geothermal resources may
be available for a noncompetitive lease under this
section to the qualified lessee at the fair market
value per acre, if--
``(i) the area of qualified Federal land--
``(I) consists of not less than 1
acre and not more than 640 acres; and
``(II) is not already leased under
this Act or nominated to be leased
under subsection (a);
``(ii) the qualified lessee has not
previously received a noncompetitive lease
under this paragraph in connection with the
valid discovery for which data has been
submitted under clause (iii)(I); and
``(iii) sufficient geological and other
technical data prepared by a qualified
geothermal professional has been submitted by
the qualified lessee to the applicable Federal
land management agency that would lead
individuals who are experienced in the subject
matter to believe that--
``(I) there is a valid discovery of
geothermal resources on the land for
which the qualified lessee holds the
legal right to develop geothermal
resources; and
``(II) that geothermal feature
extends into the adjoining areas.
``(C) Determination of fair market value.--
``(i) In general.--The Secretary shall--
``(I) publish a notice of any
request to lease land under this
paragraph;
``(II) determine fair market value
for purposes of this paragraph in
accordance with procedures for making
those determinations that are
established by regulations issued by
the Secretary;
``(III) provide to a qualified
lessee and publish, with an opportunity
for public comment for a period of 30
days, any proposed determination under
this subparagraph of the fair market
value of an area that the qualified
lessee seeks to lease under this
paragraph; and
``(IV) provide to the qualified
lessee and any adversely affected party
the opportunity to appeal the final
determination of fair market value in
an administrative proceeding before the
applicable Federal land management
agency, in accordance with applicable
law (including regulations).
``(ii) Limitation on nomination.--After
publication of a notice of request to lease
land under this paragraph, the Secretary may
not accept under subsection (a) any nomination
of the land for leasing unless the request has
been denied or withdrawn.
``(iii) Annual rental.--For purposes of
section 5(a)(3), a lease awarded under this
paragraph shall be considered a lease awarded
in a competitive lease sale.
``(D) Regulations.--Not later than 270 days after
the date of enactment of this paragraph, the Secretary
shall issue regulations to carry out this paragraph.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Natural Resources.
Committee Consideration and Mark-up Session Held.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported by Unanimous Consent.
Reported (Amended) by the Committee on Natural Resources. H. Rept. 115-502.
Reported (Amended) by the Committee on Natural Resources. H. Rept. 115-502.
Placed on the Union Calendar, Calendar No. 375.
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