[Senate Report 112-145]
[From the U.S. Government Publishing Office]
Calendar No. 314
112th Congress Report
SENATE
2d Session 112-145
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GEOTHERMAL EXPLORATION AND TECHNOLOGY ACT
_______
February 7, 2012.--Ordered to be printed
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1142]
The Committee on Energy and Natural Resources, to which was
referred the bill (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 sclae
thermal applications, and for other purposes, having considered
the same, reports favorably thereon with amendments and
recommends that the bill, as amended, do pass.
The amendment are as follows:
On page 3, lines 11 through 13, strike ``previously
unexplored, underexplored, or unproven geothermal resources in
a variety of geologic and geographic settings'' and insert
``projects likely to lead to successful new geothermal
development leading to electricity production''.
On page 5, strike lines 20 through 22 and insert the
following:
(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).
On page 7, line 1, strike ``Not later'' and insert the
following:
(1) In general.--Not later
On page 7, line 2, strike ``develop'' and insert ``issue''.
On page 7, between lines 3 and 4, insert the following:
(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
to be repaid by the developer within a
10-year period.
On page 9, line 12, strike ``via'' and insert ``by way
of''.
On page 9, line 20, insert ``with a name-plate capacity,
expected resource, or rating of 10 or more megawatts'' after
``large entities''.
On page 10, line 19, strike ``and''.
On page 10, between lines 21 and 22, insert the following:
``(iii) improvements in design
methodology and energy analysis
procedures; and
``(iv) improved methods for
determination of ground thermal
properties and ground temperatures;''.
Purpose
The purpose of S. 1142 is 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 to amend the Geothermal Steam Act of
1970 to facilitate coproduction of geothermal energy on
existing oil and gas leases.
Background and Need
Geothermal energy is an enormous source of clean, reliable,
and domestic energy, which can be used to drive turbines to
generate electricity or as a direct source of heat in both
industrial and residential applications. Despite its
advantages, geothermal energy's potential is just beginning to
be tapped. It currently produces only 0.4 percent of the
nation's electricity, and its growth lags behind solar and wind
energy.
Congress first statutorily recognized geothermal energy's
potential with the enactment of the Geothermal Steam Act of
1970, which authorized the Secretary of the Interior to issue
leases for the development of geothermal resources on public
lands. The Geothermal Energy Research, Development, and
Demonstration Act of 1974 and the Geothermal Energy Act of 1980
sought to encourage development of geothermal energy through
research and demonstration projects, loan guarantees, and
loans, though the Secretary's authority to provide loan
guarantees and loans under these laws has long since expired.
In addition, the Advanced Geothermal Energy Research and
Development Act of 2007 authorized the Department of Energy to
undertake further research and development to expand the use of
geothermal energy, and the American Recovery and Reinvestment
Act of 2009 enabled the Department to fund additional
geothermal projects.
Despite these authorities, significant barriers to
geothermal energy production remain. The Department of Energy
has testified that most of the identified hydrothermal
resources have already been developed and the high cost and
risk of exploring for new resources pose significant hurdles,
and that ``removing these obstacles to exploratory drilling is
vitally important to increasing our geothermal power generation
capacity.'' In addition, the Department has testified that
geothermal heat pumps for building applications face barriers
in the form of high initial costs associated with installation,
lack of consumer knowledge, and limitations in design and
infrastructure. It has also identified delays in the siting and
permitting process, which increase overall project costs, as
significant obstacles to geothermal energy.
Additional legislation is needed to address these
obstacles. S. 1142 supplements the Department's existing
authorities by authorizing the Secretary of Energy to make
loans for high risk geothermal exploration wells, establishing
a new, focused program of research, development, demonstration,
and commercial application for geothermal heat pumps and direct
use of geothermal energy, and by amending the Geothermal Steam
Act of 1970 to facilitate coproduction of geothermal energy on
existing oil and gas leases.
Legislative History
S. 1142 was introduced by Senator Tester on May 26, 2011.
Senators Begich, Murkowski, and Reid are cosponsors. The
Committee on Energy and Natural Resources held a hearing on the
bill on July 12, 2011. The Committee on Energy and Natural
Resources considered the bill ordered it favorably reported
without amendment on December 15, 2011.
Committee Recommendation and Tabulation of Votes
The Committee on Energy and Natural Resources, in an open
business session on December 15, 2011, by a roll call vote of a
quorum present, recommends that the Senate pass S. 1142, if
amended as described herein.
The rollcall vote on reporting the measure was 13 yeas, 8
nays, as follows:
YEAS NAYS
Mr. Bingaman Mr. Barrasso*
Mr. Wyden* Mr. Risch*
Mr. Johnson Mr. Lee*
Ms. Landrieu* Mr. Paul*
Ms. Cantwell Mr. Coats
Mr. Sanders Mr. Portman*
Ms. Stabenow Mr. Hoeven*
Mr. Udall Mr. Corker*
Mrs. Shaheen
Mr. Frankin
Mr. Manchin
Mr. Coons
Ms. Murkowski
*Indicates vote by proxy.
Committee Amendments
During its consideration of S. 1142, the Committee adopted
nine amendments. The first amendment directs the Secretary of
Energy, in selecting applicants for loans under section 2, to
provide a preference for projects likely to lead to successful
new geothermal development leading to electricity production.
The second amendment provides that the Geothermal Investment
Fund established under section 2(h) shall consist of amounts
repaid on loans under section 2(g)(3), as well as amounts
appropriated to the Fund under section 2(j). The third
amendment redesignates section 2(i) as paragraph (1) under
section 2(i) and provides a heading for the paragraph. The
fourth amendment makes it clear that the Secretary must not
only develop, but also issue, guidelines for implementation of
the program within 180 days after the date of enactment. The
fifth amendment adds a new paragraph (2) under section 2(i)
specifying the contents of the guidelines. The sixth amendment
clarifies the definition of a closed loop geothermal heat pump.
The seventh amendment clarifies the definition of the term
``large-scale application.'' The eighth amendment is technical.
The ninth amendment adds two additional means of reducing costs
for geothermal ground loop installations.
Section-by-Section Analysis
Section 1 designates the short title.
Section 2 establishes a direct loan program for high risk
geothermal exploration wells. Subsection (a) defines key terms
used in the section. Subsection (b) establishes the program.
Subsection (c) authorizes the Secretary to prescribe the form
and content of loan applications. Subsection (d)(1) establishes
project criteria. Subsection (d)(2) establishes a preference
for projects likely to lead to successful new geothermal
development leading to electricity production. Subsection (e)
requires data from all exploratory wells drilled under the
program to be provided to both the Secretary of Energy and the
Secretary of the Interior for use in mapping national
geothermal resources and other uses, including the National
Geothermal Data System. Subsection (f)(1)(A) authorizes the
Secretary of Energy to determine the cost share for loans made
under section 2. Subsection (f)(1)(B) allows the Secretary to
base the cost share on risk, with higher risk receiving more
financial support. Subsection (f)(2) allows the Secretary to
determine the number of wells for each project for which a loan
may be made. Subsection (f)(3) allows the Secretary to delay or
dispense with the repayment obligation for unproductive
projects. Subsection (g)(1) provides that the repayment process
will commence 4 years after the loan is provided or when the
project is put into service, whichever is sooner. Subsection
(g)(2) permits the Secretary to extend the payback date for an
additional 4 years. Subsection (g)(3) provides that amounts
repaid on loans shall be deposited in the Geothermal Investment
Fund. Subsection (h)(1) establishes the Geothermal Investment
Fund. Subsection (h)(2) provides that the Fund shall consist of
amounts appropriated to the Fund and amounts repaid on loans.
Subsection (h)(3) prohibits use of the Fund for any other
purpose. Subsection (h)(4) calls for annual reports on the
financial status of the Fund. Subsection (i) requires the
Secretary to issue project qualification guidelines within 180
days after the date of enactment. Subsection (j) authorizes
appropriations for the program through fiscal year 2021.
Section 3 amends title VI of the Energy Independence and
Security Act of 2007 to add a new section 616A establishing a
Large-Scale Geothermal Energy program to spur investment in
enhanced geothermal systems. Subsections (a), (b), and (c) of
the new section 616A makes findings, states the purposes of the
section, and defines key terms used in the new section,
respectively. Section 616A(d) directs the Secretary to
establish a program to improve geothermal heat pump
technologies and increase the direct usage of geothermal energy
technologies, specifically in large scale applications. Section
616A(d)(2) lists 15 potential areas of focus, spanning from
research through commercialization. Section 616A(e)(1) directs
the Secretary to 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. Section 616A(e)(2) directs the Secretary to give
priority to proposals that apply to large buildings, commercial
districts, and residential communities. Section 616A(e)(3)
directs the Secretary to issue a solicitation for grants within
180 days after the date of enactment. Section 616A(f) calls for
progress reports on implementation of the program. Subsection
616A(g) authorizes appropriation of such sums as may be
necessary to carry out the program for each of fiscal years
2012 through 2016.
Section 4 amends section 4 of the Geothermal Steam Act of
1970 by adding a new paragraph (4) to allow for co-leasing of
geothermal production with an approved application for a permit
to drill (APD) for an oil and gas well, as long as it is in the
public interest.
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office:
S. 1142--Geothermal Exploration and Technology Act of 2011
Summary: S. 1142 would authorize the Secretary of Energy to
provide loans and grants to support certain activities related
to the production and consumption of geothermal energy.
Assuming appropriation of the necessary amounts, CBO estimates
that implementing S. 1142 would cost $67 million over the 2012-
2017 period. Pay-as-you-go procedures do not apply to this
legislation because it would not affect direct spending or
revenues.
S. 1142 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the federal government: The estimated
budgetary impact of S. 1142 is shown in the following table.
The costs of this legislation fall within budget function 270
(energy).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------
2012 2013 2014 2015 2016 2017 2012-2017
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level.................. 15 15 15 15 15 15 90
Estimated Outlays.............................. 4 8 11 14 15 15 67
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Basis of estimate: S. 1142 would authorize the
appropriation of amounts necessary--for fiscal years 2012
through 2021--for the Department of Energy (DOE) to provide
direct loans and grants to promote the development and use of
technologies that generate energy from geothermal resources.
The bill would authorize the Secretary of Energy to make direct
loans to defray the costs of high-risk geothermal exploration
wells. In contrast to the budgetary treatment for federal
credit programs required under the Federal Credit Reform Act,
S. 1142 would credit repayments of such loans to a separate
fund that would be available, without further Congressional
action, to support new loans under the bill--thereby increasing
the estimated subsidy cost of loans to 100 percent of their
aggregate face value. S. 1142 also would authorize DOE to make
grants to state and local governments, institutions of higher
education, and certain other entities to promote the
development of geothermal heat pumps and direct use of
geothermal energy, particularly on a large scale.
Based on information from DOE and industry sources, CBO
estimates that making appreciable progress toward objectives
set forth in S. 1142 would require appropriations totaling $15
million annually. (By comparison, CBO estimates that federal
funding for geothermal technologies and related activities in
2012 totals about $50 million.) That estimate is based in part
on the cost of geothermal programs carried out under the
American Recovery and Reinvestment Act, which provided funds
for DOE to undertake activities similar to those authorized by
S. 1142. Under S. 1142, CB0 anticipates that DOE would provide
a small number of new loans for exploration wells each year and
increase the number of projects to demonstrate large-scale use
of geothermal technology. Assuming appropriation of the
necessary amounts, CB0 estimates that implementing the bill
would cost $67 million over the 2012-2017 period, with
additional spending occurring in later years.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: S. 1142
contains no intergovernmental or private-sector mandates as
defined in UMRA. The bill would authorize grants to state and
local governments, institutions of higher education, and other
entities to promote the development of geothermal technologies.
Any costs to those entities would be incurred voluntarily as
conditions of federal assistance.
Estimate prepared by: Federal costs: Megan Carroll; Impact
on state, local, and tribal governments: Ryan Miller; Impact on
the private sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact that would be incurred in
carrying out S. 1142.
The bill is not a regulatory measure in the sense of
imposing Government-established standards or significant
economic responsibilities on private individuals and
businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 1142, as ordered reported.
Congressionally Directed Spending
S. 1142, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
Executive Communications
The testimony provided by the Department of Energy at the
July 12, 2011 Full Committee hearing on S. 1142 follows:
Statement of Steven G. Chalk, Deputy Assistant Secretary for Renewable
Energy, Office of Energy Efficiency and Renewable Energy, Department of
Energy
Chairman Bingaman, Ranking Member Murkowski and Members of
the Committee, thank you for the opportunity to discuss the
Department of Energy's (DOE's) solar and geothermal energy
programs. Today, I am pleased to discuss the Department's
perspective and answer questions related to the Department of
Energy Administrative Improvement Act (S. 1160), the 10 Million
Solar Roofs Act of 2011 (S. 1108) and the Geothermal
Exploration and Technology Act of 2011 (S. 1142). However, the
Administration is still reviewing these bills and we do not
have a position on any of them at this time.
solar technology
We thank the committee and the sponsors of this legislation
for your strong leadership on solar technologies over the
years. The Department has set an ambitious goal for solar
energy with the SunShot Initiative (SunShot)--to reduce the
total costs of solar energy systems by about 75 percent so that
they are cost competitive with other forms of energy without
subsidies before the end of the decade. In 2012, under SunShot,
the Department will support solar research across the
development pipeline, from basic photovoltaic (PV) cell
technologies to manufacturing scale-up to total system
development.
Reducing the total installed cost for utility-scale solar
electricity to roughly 6 cents per kilowatt hour without
subsidies will result in rapid, large-scale adoption of solar
electricity across the United States. Reaching this goal will
help re-establish American technological leadership, improve
the nation's energy security, and strengthen U.S. economic
competitiveness in the global clean energy race.
SunShot takes a unique approach to developing solar energy.
Historically, solar investments focused on achieving
incremental efficiency improvements to solar cells and arrays.
SunShot focuses on reducing the installed cost of the system as
a whole, including non-technical barriers. In addition to
investing in improvements in cell technologies and
manufacturing, the SunShot Initiative also focuses on steps to
reduce installation and permitting costs, which account for 40
percent of the total installed system price of solar
electricity.\1\ This includes efforts to streamline and
digitize local permitting processes and to develop codes and
standards that ensure high performance over the approximately
20-year lifetime of residential solar products. Decreasing the
installed cost of solar is one of the key goals of SunShot.
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\1\http://www.eere.energy.gov/solar/sunshot/pdfs/
dpw_white_paper.pdf.
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As the United States is the world's largest consumer of
electricity and, at the same time, has the largest solar
resource of any industrialized country, SunShot is well-
positioned to help the Nation realize the significant benefits
from the wide-scale use of solar energy. Sunshot underscores
solar energy's benefits to the United States and will have
multiple positive impacts for the country, including:
Achieving solar energy cost parity with baseload
energy rates. Attaining a total installed system cost of
utility solar equivalent to the wholesale cost of electricity
from fossil fuels ($0.06 per kWh) would likely result in rapid
and large-scale adoption of solar electricity across the United
States.
Increasing solar photovoltaic market share. As
recently as 1995, the United States manufactured 43 percent of
the world's PV materials, whereas today our manufacturers are
only responsible for 6 percent.\2\ Expanding the use of solar
will help boost the U.S. solar manufacturing industry while
driving innovation and providing long lasting, domestic jobs to
support global PV demand that will represent a multibillion
dollar industry.
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\2\PV News (2/1993, 3/2001, 3/2006) and Navigant Consulting (2/
2011).
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Reducing greenhouse gas emissions--Solar
technologies have the potential to significantly reduce the
amount of conventional fossil-based electricity generation
necessary, which in turn would reduce the amount of greenhouse
gases emitted into the atmosphere.
Recently, as part of ongoing Market Transformation
activities, DOE announced a Funding Opportunity Announcement
(FDA) which we are calling the ``Race to the Rooftop'' to help
standardize, streamline and digitize the permitting process,
while improving interconnection and net metering standards,
increasing access to financing, and updating planning and
zoning codes. This national competition engaging teams of local
and state governments along with utilities, installers, and
nongovernment organizations, will help standardize processes,
cut upfront fees and paperwork, and reduce the overall costs
associated with permitting and installation, making it easier
and cheaper for homeowners, businesses, and their local
communities to deploy solar energy. The standardization and
uniformity of local permitting efforts under the ``Race to the
Rooftop'' are similar to the challenge grant provision in the
10 Million Solar Roofs Act, which calls for applicants to
develop best practices for solar permitting.
The proposed legislation, S. 1108, employs a bottom-up
approach so that local teams can identify approaches best-
suited for them. A bottom-up approach, coupled with a
preference for applicants that have partnered with states,
public utility commissions, or other stakeholders, could allow
for local and regional variability while still increasing the
speed and scale of installation across large geographic areas.
This approach could also allow states to expand existing state
programs that have been effective in promoting rooftop solar
installations.
geothermal technology
The Department is committed to developing and deploying a
portfolio of innovative technologies for clean, domestic
geothermal power generation. Geothermal energy is a baseload
energy resource with a small environmental footprint and emits
little to no greenhouse gases.
Despite geothermal's enormous potential, in 2010, only 15
MW of new geothermal power generation was added to the grid in
the United States. There are two principal barriers facing the
geothermal industry: the high cost and risk of exploration and
most of the identified hydrothermal resources have already been
developed.
Drilling costs represent approximately 42 percent of
geothermal project development costs, and financing costs are
significantly higher for exploratory drilling than for plant
construction.\3\ Removing the obstacles to exploratory drilling
is vitally important to increasing our geothermal power
generation capacity. In many cases, geothermal resources have
no surface expression, leaving our nation's hydrothermal
potential--estimated at 30 GWe by the U.S. Geological Survey--
untapped and inaccessible. Exploratory drilling could also
identify resources for enhanced geothermal systems (EGS), which
have the potential to produce 16,000 GWe of power in a wide
range of geographic areas throughout the U.S.\4\
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\3\http://www.nrel.gov/applying_technologies/pdfs/46022.pdf.
\4\Augustine, Young, and Anderson, Updated US. Geothermal Supply
Curve, National Renewable Energy Laboratory and US Department of
Energy, February, 2010, http://www.nrel.gov/docs/fy10osti/47458.pdf.
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Under the American Recovery and Reinvestment Act of 2009
(Recovery Act), DOE invested $97.3 million in 24 hydrothermal
exploration projects, at which 34 exploration wells are
planned. It is expected that from these wells, 400 MW of new
resources will be confirmed by 2014.
DOE is also funding seven EGS demonstrations. At Desert
Peak, Nevada, the initial stages of reservoir stimulation were
successfully completed--a critical milestone in creating an
enhanced geothermal reservoir.
DOE supports projects in low temperature geothermal
resources as well. For example, DOE is working with industry to
develop and field test a variable phase turbine which has the
potential to generate 30 percent more power from low
temperature geothermal resources than current power conversion
technologies, at a lower cost.
DOE's National Geothermal Data System (NGDS) effort is a
distributed information system for data sharing in its second
year of development, which will enable the availability of
comprehensive and accurate data to facilitate geothermal
development. The NGDS is scheduled to be fully operational in
August 2014, at which time it will make geothermal data from
major geothermal centers, DOE-funded geothermal projects and
state geological surveys or universities publicly available.\5\
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\5\NGDS data sources include: DOE Geothermal Data Repository (Boise
State University); Energy & Geoscience Institute (University of Utah);
Geo-Heat Center (Oregon Institute of Technology); Stanford Geothermal
Program (Stanford University); Great Basin Science Sample and Records
Library y (University of Nevada, Reno); SMU Geothermal Laboratory
(Southern Methodist University); and state geological surveys
represented by Arizona Geological Survey and the American Association
of State Geologists (AASG).
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Geothermal heat pumps (GHPs) for building applications also
face barriers impeding greater marketplace adoption: high
initial cost associated with the installation of the ground
loop heat-exchanger, lack of consumer knowledge in GHP
benefits, and limitations in GHP design and business planning
infrastructure. DOE is developing a roadmap that will serve to
strategically direct activities in geothermal heat pumps.
Through the Recovery Act, DOE currently funds 26 projects
deploying geothermal heat pumps. $24M of the $58M Recovery Act
funds allocated to GHPs have been spent in 15 states in both
new and retrofit applications. Two projects are completed and
several more are already providing data for performance
analysis. The Recovery Act projects incorporate innovative
business and financial strategies and/or GHP technologies and
applications designed to overcome the initial cost premium that
has prevented GHPs from being directly cost-competitive with
other HVAC technologies, and from gaining wider marketplace
acceptance.
DOE currently has projects in many of the areas identified
for further RD&D and commercial application in S. 1142,
including district heating and cooling at large institutions,
use of hot water in shaft mines, combined GHP-solar PV and
desiccant projects, and use of carbon dioxide as a refrigerant
fluid for heat exchange.
The Department is also addressing other obstacles to
geothermal development such as delays in the siting and
permitting process which increase overall project costs and
could further strain economics. Currently, it takes
approximately seven years for a new geothermal project to move
from exploration to power generation.
While the Administration is still reviewing the bill, there
are serious technical concerns that would need to be addressed.
Any new program should be consistent with applicable laws, and
structured to mitigate risks and costs to the taxpayer.
s. 1160--department of energy administrative improvement act
S. 1160 proposes a variety of changes intended to improve
the administration of the Department of Energy. The Department
is still reviewing this bill and does not have a position on it
at this time. However, I will address Sections 4, 6, and 7 as
they relate to the Department's current authority.
Section 4
Section 4 of S. 1160 concerns the administration of the
Department's ``Other Transactions'' (OT) Authority. Section 4
is similar in many respects to DOE's current OT Authority,
which is codified at Section 646(g) of the DOE Organization Act
(42 U.S.C. 7256(g)). However, there are some important
differences.
Currently, the Department has two kinds of OT Authority:
Research OT Authority and Prototype OT Authority. Research OT
Authority is used to carry out a public purpose of support or
stimulation (e.g., RD&D projects). By contrast, Prototype OT
Authority is used for the pre-acquisition development of
technology prototypes. Such prototypes are used to evaluate the
technical or manufacturing feasibility or utility to DOE's
mission of a particular technology, process, concept, end item,
or system.
Section 4 provides DOE with permanent and independent OT
Authority similar to the authority Congress provided the
Defense Department in 1991. However, the precise scope of DOE's
OT Authority is left undefined in S. 1160.
Additionally, Section 4 of S. 1160 requires the Secretary
to determine that ``the use of a standard contract, grant, or
cooperative agreement for the project is not feasible or
appropriate'' before the Department's OT Authority can be used.
Section 4 restricts the delegation of this authority to
officials ``appointed by the President and confirmed by the
Senate.''
Section 6 and 7
Section 6 of S. 1160 provides the Secretary with direct
hire authority for ``highly qualified scientists, engineers, or
critical technical personnel'' for two years following the
enactment of the Act. Similarly, Section 7 provides the
Secretary with special hiring and pay authority for persons
with ``expertise in an extremely high level in a scientific or
technical field.'' The Secretary's authority under Section 7 is
permanent, but not more than 40 persons may be hired under this
authority at any time.
Sections 6 and 7 are analogous to Sections 621(b) and (d)
of the DOE Organization Act (42 U.S.C. Sec. 7231(b)-(d)).
Section 621(b), which expired after four years, allowed the
Secretary to appoint 311 scientific, engineering, and
administrative personnel without regard to civil service laws
and to fix their compensation at ``super grades'' (formerly GS-
18, now Executive Level IV). Section 621(d), which is still in
effect, authorizes the Secretary to appoint 200 scientific,
engineering, professional, and administrative staff without
regard to civil service laws, but subject to a GS-18 pay cap
(now Executive Level IV).
Additionally, Congress granted the Department's ARPA-E
program special hiring authority. The Director of ARPA-E has
the authority to make appointments of scientific, engineering,
and professional personnel ``without regard to the civil
service laws,'' ``fix the basic pay of such personnel'' up to
Level II of the Executive Schedule, and provide ``additional
payments'' up to a certain cap.
conclusion
In conclusion, I would like to again thank this Committee
for its leadership in supporting both solar and geothermal
energy technologies.
It is important to tap valuable assets like solar and
geothermal energy to continue growing our economy to expand the
Nation's clean energy portfolio and energy security.
I would be pleased to address any questions the Committee
might have.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill S. 1142, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
(Public Law 110-140, as amended)
AN ACT To move the United States toward greater energy independence and
security, to increase the production of clean renewable fuels, to
protect consumers, to increase the efficiency of products, buildings,
and vehicles, to promote research on and deploy greenhouse gas capture
and storage options, and to improve the energy performance of the
Federal Government, and for other purposes.
* * * * * * *
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT
* * * * * * *
Subtitle B--Geothermal Energy
* * * * * * *
SEC. 616. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS FIELDS AND
RECOVERY AND PRODUCTION OF GEOPRESSURED GAS
RESOURCES.
(a) In General.--The Secretary shall establish a program of
research, development, demonstration, and commercial
application to support development of geothermal energy
production from oil and gas fields and production and recovery
of energy, including electricity, from geopressured resources.
In addition, the Secretary shall conduct such supporting
activities including research, resource characterization, and
technology development as necessary.
* * * * * * *
(e) Competitive Grant Selection.--Not less than 90 days
after the date of the enactment of this Act, the Secretary
shall conduct a national solicitation for applications for
grants under the programs outlined in subsections (b) and (d).
Grant recipients shall be selected on a competitive basis based
on criteria in the respective subsection.
(f) Well Drilling.--No funds may be used under this section
for the purpose of drilling new wells.
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.
* * * * * * *
GEOTHERMAL STEAM ACT OF 1970
AN ACT To authorize the Secretary of the Interior to make disposition
of geothermal steam and associated geothermal resources, and for other
purposes.
[As Amended Through P.L. 109-58, Enacted August 8, 2005]
* * * * * * *
SEC. 4. LEASING PROCEDURES.
(a) Nominations.--The Secretary shall accept nominations of
land to be leased at any time from qualified companies and
individuals under this Act.
(b) Competitive Lease Sale Required.--
(1) In general.--Except as otherwise specifically
provided by this Act, all land to be leased that is not
subject to leasing under subsection (c) shall be leased
as provided in this subsection to the highest
responsible qualified bidder, as determined by the
Secretary.
(2) Competitive lease sales.--The Secretary shall
hold a competitive lease sale at least once every 2
years for land in a State that has nominations pending
under subsection (a) if the land is otherwise available
for leasing.
(3) Lands subject to mining claims.--Lands that are
subject to a mining claim for which a plan of
operations has been approved by the relevant Federal
land management agency may be available for
noncompetitive leasing under this section to the mining
claim holder.
(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.
* * * * * * *