,,ii #aacth ,,congress #ast ,session ,s4 #cfb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #ad1 #bjac ,mr4 ,tester 7for himself and ,mr4 ,begich7 introduced the following bill2 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 wells1 to amend the ,energy ,independence and ,security ,act of #bjjg to improve geothermal energy technology and demonstrate the use of geothermal energy in large scale thermal applications1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,geothermal ,exploration and ,technology ,act of #bjac4 #b4 ,geothermal exploratory drilling loan program 7a7 ,definitions ,in this section3 7#a7 ,fund ,the term ,fund means the ,geothermal ,investment ,fund established under subsection 7h74 7#b7 ,program ,the term program means the direct loan program for high risk geothermal exploration wells established under this section4 7#c7 ,secretary ,the term ,secretary means the ,secretary of ,energy4 7b7 ,establishment ,the ,secretary shall establish a direct loan program for high risk geothermal exploration wells4 7c7 ,applications ,an applicant that seeks to receive a loan under the program may submit to the ,secretary an application for the loan at such time1 in such form1 and containing such information as the ,secretary may prescribe4 7d7 ,project criteria 7#a7 ,in general ,in selecting applicants for loans under this section to carry out projects under the program1 the ,secretary shall consider-- 7,a7 the potential for unproven geothermal resources that would be explored and developed under a project2 7,b7 the expertise and experience of an applicant in developing geothermal resources2 and 7,c7 the importance of the project in meeting the goals of the ,department of ,energy4 7#b7 ,preference ,in selecting applicants for loans under this section to carry out projects under the program1 the ,secretary shall provide a preference for projects likely to lead to successful new geothermal development leading to electricity production4 7e7 ,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 uses1 including-- 7#a7 subsurface geologic data2 7#b7 metadata2 7#c7 borehole temperature data2 and 7#d7 inclusion in the ,national ,geothermal ,data ,system of the ,department of ,energy4 7f7 ,administration 7#a7 ,cost share 7,a7 ,in general ,the ,secretary shall determine the cost share for a loan made under this section4 7,b7 ,higher risks ,the ,secretary may base the cost share percentage for loans made under this section on a sliding scale1 with higher ,federal shares awarded to projects with higher risks4 7#b7 ,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 section4 7#c7 ,unproductive projects ,the ,secretary may grant further delays or dispense with the repayment obligation on a demonstration that a selected geothermal project is unproductive4 7g7 ,loan repayment 7#a7 ,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-- 7,a7 the date that is #d years after the date the loan is made2 or 7,b7 the date on which the geothermal facility enters into commercial production4 7#b7 ,term 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term of a loan made under this section shall be #d years beginning on the applicable loan repayment commencement date under paragraph 7#a74 7,b7 ,extension ,the ,secretary may extend the term of a loan under this section for not more than #d years4 7#c7 ,use of loan repayments ,amounts repaid on loans made under this section shall be deposited in the ,fund4 7h7 ,geothermal ,investment ,fund 7#a7 ,establishment of ,fund ,there is established in the ,treasury of the ,united ,states a fund to be known as the ,geothermal ,investment ,fund1 to be administered by the ,secretary1 to be available without fiscal year limitation and not subject to appropriation1 to carry out this section4 7#b7 ,transfers to ,fund ,the ,fund shall consist of-- 7,a7 such amounts as are appropriated to the ,fund under subsection 7j72 and 7,b7 amounts repaid on loans under subsection 7g77#c74 7#c7 ,prohibition ,amounts in the ,fund may not be made available for any purpose other than a purpose described in paragraph 7#a74 7#d7 ,annual reports 7,a7 ,in general ,not later than #fj days after the end of each fiscal year beginning with fiscal year #bjac1 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 year4 7,b7 ,contents ,each report shall include1 for the fiscal year covered by the report1 the following3 7i7 ,a statement of the amounts deposited into the ,fund4 7ii7 ,a description of the expenditures made from the ,fund for the fiscal year1 including the purpose of the expenditures4 7iii7 ,recommendations for additional authorities to fulfill the purpose of the ,fund4 7iv7 ,a statement of the balance remaining in the ,fund at the end of the fiscal year4 7i7 ,guidelines 7#a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall issue guidelines for the implementation of the program4 7#b7 ,administration ,the guidelines shall-- 7,a7 specify-- 7i7 the terms and conditions that would require a higher or lower level of cost sharing under this section2 7ii7 the conditions under which the ,secretary will allow loan modifications or forgiveness in cases in which a well cannot be used for production or injection2 and 7iii7 the information necessary to provide a loan applicant with certainty about application of subsection 7f71 including the level of cost and risk that the applicant and the ,secretary will assume2 and 7,b7 require that-- 7i7 loans be provided under this section only after the developer has committed the share of the developer for expenditures for drilling costs2 and 7ii7 loans for successful wells shall be repaid by the developer within a #aj-year period4 7j7 ,authorization of appropriations ,there are authorized to be appropriated to carry out this section such sums as are necessary for each of fiscal years #bjac through #bjbb4 #c4 ,large-,scale ,geothermal ,energy ,title ,,vi of the ,energy ,independence and ,security ,act of #bjjg is amended by inserting after section #faf 7#db ,u4,s4,c4 #agaie7 the following3 #faf;,a4 ,large-,scale ,geothermal ,energy 7a7 ,findings ,congress finds that-- 7#a7 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 7including in the development of a research and development plan for the program72 7#b7 the ,building ,technologies ,program of the ,office of ,energy ,efficiency and ,renewable ,energy of the ,department-- 7,a7 is focused on the energy demand and energy efficiency of buildings2 and 7,b7 includes geothermal heat pumps as a component technology in the residential and commercial deployment activities of the program2 and 7#c7 geothermal heat pumps and direct use of geothermal energy1 especially in large-scale applications1 can make a significant contribution to the use of renewable energy but are underrepresented in research1 development1 demonstration1 and commercialization4 7b7 ,purposes ,the purposes of this section are-- 7#a7 to improve the components1 processes1 and systems used for geothermal heat pumps and the direct use of geothermal energy2 and 7#b7 to increase the energy efficiency1 lower the cost1 increase the use1 and improve and demonstrate the applicability of geothermal heat pumps to1 and the direct use of geothermal energy in1 large buildings1 commercial districts1 residential communities1 and large municipal1 agricultural1 or industrial projects4 7c7 ,definitions ,in this section3 7#a7 ,direct use of geothermal energy ,the term direct use of geothermal energy means systems that use water that is at a temperature between approximately #ch degrees ,celsius and #adi degrees ,celsius directly or through a heat exchanger to provide-- 7,a7 heating to buildings2 or 7,b7 heat required for industrial processes1 agriculture1 aquaculture1 and other facilities4 7#b7 ,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-- 7,a7 a closed loop system1 which transfers heat by way of buried or immersed pipes that contain a mix of water and antifreeze2 or 7,b7 an open loop system1 which circulates ground or surface water directly into the building and returns the water to the same aquifer or surface water source4 7#c7 ,large-scale application ,the term large-scale application means an application for space or process heating or cooling for large entities with a name-plate capacity1 expected resource1 or rating of #aj or more megawatts1 such as a large building1 commercial district1 residential community1 or a large municipal1 agricultural1 or industrial project4 7#d7 ,secretary ,the term ,secretary means ,secretary of ,energy1 acting through the ,assistant ,secretary for ,energy ,efficiency and ,renewable ,energy4 7d7 ,program 7#a7 ,in general ,the ,secretary shall establish a program of research1 development1 demonstration1 and commercial application for geothermal heat pumps and the direct use of geothermal energy4 7#b7 ,areas ,the program may include research1 development1 demonstration1 and commercial application of-- 7,a7 geothermal ground loop efficiency improvements through more efficient heat transfer fluids2 7,b7 geothermal ground loop efficiency improvements through more efficient thermal grouts for wells and trenches2 7,c7 geothermal ground loop installation cost reduction through-- 7i7 improved drilling methods2 7ii7 improvements in drilling equipment2 7iii7 improvements in design methodology and energy analysis procedures2 and 7iv7 improved methods for determination of ground thermal properties and ground temperatures2 7,d7 installing geothermal ground loops near the foundation walls of new construction to take advantage of existing structures2 7,e7 using gray or black wastewater as a method of heat exchange2 7,f7 improving geothermal heat pump system economics through integration of geothermal systems with other building systems1 including providing hot and cold water and rejecting or circulating industrial process heat through refrigeration heat rejection and waste heat recovery2 7,g7 advanced geothermal systems using variable pumping rates to increase efficiency2 7,h7 geothermal heat pump efficiency improvements2 7,i7 use of hot water found in mines and mine shafts and other surface waters as the heat exchange medium2 7,j7 heating of districts1 neighborhoods1 communities1 large commercial or public buildings 7including office1 retail1 educational1 government1 and institutional buildings and multifamily residential buildings and campuses71 and industrial and manufacturing facilities2 7,k7 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 energy2 7,l7 use of hot water coproduced from oil and gas recovery2 7,m7 use of water sources at a temperature of less than #aej degrees ,celsius for direct use2 7,n7 system integration of direct use with geothermal electricity production2 and 7,o7 coproduction of heat and power1 including on-site use4 7#c7 ,environmental impacts ,in carrying out the program1 the ,secretary shall identify and mitigate potential environmental impacts in accordance with section #fad7;c74 7e7 ,grants 7#a7 ,in general ,the ,secretary shall make grants available to ,state and local governments1 institutions of higher education1 nonprofit entities1 utilities1 and for-profit companies 7including manufacturers of heat-pump and direct-use components and systems7 to promote the development of geothermal heat pumps and the direct use of geothermal energy4 7#b7 ,priority ,in making grants under this subsection1 the ,secretary shall give priority to proposals that apply to large buildings 7including office1 retail1 educational1 government1 institutional1 and multifamily residential buildings and campuses and industrial and manufacturing facilities71 commercial districts1 and residential communities4 7#c7 ,national solicitation ,not later than #ahj days after the date of enactment of this section1 the ,secretary shall conduct a national solicitation for applications for grants under this section4 7f7 ,reports 7#a7 ,in general ,not later than #b years after the date of enactment of this section and annually thereafter1 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 energy4 7#b7 ,areas ,each of the reports required under this subsection shall include-- 7,a7 an analysis of progress made in each of the areas described in subsection 7d77#b72 and 7,b7 7i7 a description of any relevant recommendations made during a review of the program2 and 7ii7 any plans to address the recommendations under clause 7i74 7g7 ,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 #bjac through #bjag4 4 #d4 ,facilitation of coproduction of geothermal energy on oil and gas leases ,section #d7;b7 of the ,geothermal ,steam ,act of #aigj 7#cj ,u4,s4,c4 #ajjc7;b77 is amended by adding at the end the following3 7#d7 ,land subject to oil and gas lease ,land under an oil and gas lease issued pursuant to the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aha et seq47 or the ,mineral ,leasing ,act for ,acquired ,lands 7#cj ,u4,s4,c4 #cea et seq47 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 7c7 by the holder of the oil and gas lease-- 7,a7 on a determination that-- 7i7 geothermal energy will be produced from a well producing or capable of producing oil and gas2 and 7ii7 the public interest will be served by the issuance of such a lease2 and 7,b7 in order to provide for the coproduction of geothermal energy with oil and gas4 4