59–006 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–203 

ADVANCED GEOTHERMAL ENERGY RESEARCH AND 

DEVELOPMENT ACT OF 2007 

JUNE 21, 2007.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. GORDON of Tennessee, from the Committee on Science and 

Technology, submitted the following 

R E P O R T 

[To accompany H.R. 2304] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Science and Technology, to whom was referred the bill (H.R. 2304) to direct the Secretary of Energy to conduct a program of research, development, demonstration, and commercial application for geothermal energy, and for other purposes, 

having considered the same, report favorably thereon with an 

amendment and recommend that the bill as amended do pass. 

CONTENTS 

Page 

I. Amendment ................................................................................................. 1 

II. Purpose of the Bill ...................................................................................... 6 

III. Background and Need for the Legislation ................................................ 7 

IV. Hearing Summary ....................................................................................... 8 

V. Committee Actions ...................................................................................... 9 

VI. Summary of Major Provisions of the Bill, as Reported ............................ 10 

VII. Section-by-Section Analysis (by Title and Section), as Reported ............ 11 

VIII. Cost Estimate .............................................................................................. 15 

IX. Congressional Budget Office Cost Estimate ............................................. 16 

X. Compliance With Public Law 104–4 .......................................................... 17 

XI. Committee Oversight Findings and Recommendations ........................... 18 

XII. Statement on General Performance Goals and Objectives ...................... 18 

XIII. Constitutional Authority Statement .......................................................... 18 

XIV. Federal Advisory Committee Statement ................................................... 18 

XV. Congressional Accountability Act .............................................................. 18 

XVI. Earmark Identification ............................................................................... 18 

XVII. Statement on Preemption of State, Local, or Tribal Law ........................ 18 

XVIII. Changes in Existing Law Made by the Bill, as Reported ........................ 18 

XIX. Committee Recommendations .................................................................... 18 

XX. Proceedings of the Subcommittee Markup ................................................ 19 

XXI. Proceedings of the Full Committee Markup ............................................. 51 

I. AMENDMENT

The amendment is as follows: 


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Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Advanced Geothermal Energy Research and Development Act of 2007’’. 

SEC. 2. FINDINGS. 

The Congress finds the following: 

(1) The United States has a critical national interest in developing clean, domestic, renewable sources of energy in order to mitigate the causes of climate 

change, reduce other environmental impacts of energy production, increase national security, improve public health, and bolster economic stability. 

(2) Geothermal energy is a renewable energy resource. 

(3) Geothermal energy is unusual among renewable energy sources because 

of its ability to provide an uninterrupted supply of baseload electricity. 

(4) Recently published assessments by reputable experts, including the Massachusetts Institute of Technology, the Western Governors Association, and the 

National Renewable Energy Laboratory, indicate that the Nation’s geothermal 

resources are widely distributed, vast in size, and barely tapped. 

(5) Sustained and expanded research, development, demonstration, and commercial application programs are needed to locate and characterize geothermal 

resources, and to develop the technologies that will enable their widespread 

commercial development. 

(6) Federal support is critical to reduce the financial risk associated with developing new geothermal technologies, thereby encouraging the private sector 

investment necessary to make geothermal resources commercially viable as a 

source of electric power and for other applications. 

SEC. 3. DEFINITIONS. 

For purposes of this Act: 

(1) ENGINEERED.—When referring to enhanced geothermal systems, the term 

‘‘engineered’’ means subjected to intervention, including intervention to address 

one or more of the following issues: 

(A) Lack of effective permeability or porosity or open fracture connectivity 

within the reservoir. 

(B) Insufficient contained geofluid in the reservoir. 

(C) A low average geothermal gradient, which necessitates deeper drilling. 

(2) ENHANCED GEOTHERMAL SYSTEMS.—The term ‘‘enhanced geothermal systems’’ means geothermal reservoir systems that are engineered, as opposed to 

occurring naturally. 

(3) GEOFLUID.—The term ‘‘geofluid’’ means any fluid used to extract thermal 

energy from the Earth which is transported to the surface for direct use or electric power generation, except that such term shall not include oil or natural gas. 

(4) GEOPRESSURED RESOURCES.—The term ‘‘geopressured resources’’ mean 

geothermal deposits found in sedimentary rocks under higher than normal pressure and saturated with gas or methane. 

(5) GEOTHERMAL.—The term ‘‘geothermal’’ refers to heat energy stored in the 

Earth’s crust that can be accessed for direct use or electric power generation. 

(6) HYDROTHERMAL.—The term ‘‘hydrothermal’’ refers to naturally occurring 

subsurface reservoirs of hot water or steam. 

(7) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Energy. 

(8) SYSTEMS APPROACH.—The term ‘‘systems approach’’ means an approach to 

solving problems or designing systems that attempts to optimize the performance of the overall system, rather than a particular component of the system. 

SEC. 4. HYDROTHERMAL RESEARCH AND DEVELOPMENT. 

(a) IN GENERAL.—The Secretary shall support programs of research, development, 

demonstration, and commercial application to expand the use of geothermal energy 

production from hydrothermal systems, including the programs described in subsection (b). 

(b) PROGRAMS.—

(1) ADVANCED HYDROTHERMAL RESOURCE TOOLS.—The Secretary, in consultation with other appropriate agencies, shall support a program to develop advanced geophysical, geochemical, and geologic tools to assist in locating hidden 

hydrothermal resources, and to increase the reliability of site characterization 

before, during, and after initial drilling. The program shall develop new 

prospecting techniques to assist in prioritization of targets for characterization. 

The program shall include a field component. 


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(2) INDUSTRY COUPLED EXPLORATORY DRILLING.—The Secretary shall support 

a program of cost-shared field demonstration programs, to be pursued, simultaneously and independently, in collaboration with industry partners, for the demonstration of technologies and techniques of siting and exploratory drilling for 

undiscovered resources in a variety of geologic settings. The program shall include incentives to encourage the use of advanced technologies and techniques. 

SEC. 5. GENERAL GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT. 

(a) SUBSURFACE COMPONENTS AND SYSTEMS.—The Secretary shall support a program of research, development, demonstration, and commercial application of components and systems capable of withstanding extreme geothermal environments and 

necessary to cost-effectively develop, produce, and monitor geothermal reservoirs 

and produce geothermal energy. These components and systems shall include advanced casing systems (expandable tubular casing, low-clearance casing designs, 

and others), high-temperature cements, high-temperature submersible pumps, and 

high-temperature packers, as well as technologies for under-reaming, multilateral 

completions, high-temperature logging, and logging while drilling. 

(b) RESERVOIR PERFORMANCE MODELING.—The Secretary shall support a program 

of research, development, demonstration, and commercial application of models of 

geothermal reservoir performance, with an emphasis on accurately modeling performance over time. Models shall be developed to assist both in the development of 

geothermal reservoirs and to more accurately account for stress-related effects in 

stimulated hydrothermal and enhanced geothermal systems production environments. 

(c) ENVIRONMENTAL IMPACTS.—The Secretary shall—

(1) support a program of research, development, demonstration, and commercial application of technologies and practices designed to mitigate or preclude 

potential adverse environmental impacts of geothermal energy development, 

production or use, and seek to ensure that geothermal energy development is 

consistent with the highest practicable standards of environmental stewardship; 

and 

(2) in conjunction with the Assistant Administrator for Research and Development at the Environmental Protection Agency, support a research program to 

identify potential environmental impacts of geothermal energy development, 

production, and use, and ensure that the program described in paragraph (1) 

addresses such impacts, including effects on groundwater and local hydrology. 

Any potential environmental impacts identified as part of the development, production, and use of geothermal energy shall be measured and examined against the potential emissions offsets of greenhouses gases gained by geothermal energy development, production, and use. 

SEC. 6. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND DEVELOPMENT. 

(a) IN GENERAL.—The Secretary shall support a program of research, development, demonstration, and commercial application for enhanced geothermal systems, 

including the programs described in subsection (b). 

(b) PROGRAMS.—

(1) ENHANCED GEOTHERMAL SYSTEMS TECHNOLOGIES.—The Secretary shall 

support a program of research, development, demonstration, and commercial 

application of the technologies and knowledge necessary for enhanced geothermal systems to advance to a state of commercial readiness, including advances in—

(A) reservoir stimulation; 

(B) reservoir characterization, monitoring, and modeling; 

(C) stress mapping; 

(D) tracer development; 

(E) three-dimensional tomography; 

(F) understanding seismic effects of reservoir engineering and stimulation; and 

(G) laser-based drilling technology. 

(2) ENHANCED GEOTHERMAL SYSTEMS RESERVOIR STIMULATION.—

(A) PROGRAM.—In collaboration with industry partners, the Secretary 

shall support a program of research, development, and demonstration of enhanced geothermal systems reservoir stimulation technologies and techniques. A minimum of 5 sites shall be selected in locations that show particular promise for enhanced geothermal systems development. Each site 

shall—

(i) represent a different class of subsurface geologic environments; 

and 


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(ii) take advantage of an existing site where subsurface characterization has been conducted or existing drill holes can be utilized, if possible. 

(B) CONSIDERATION OF EXISTING SITES.—The following 2 sites, where Department of Energy and industry cooperative enhanced geothermal systems 

projects are already underway, may be considered for inclusion among the 

sites selected under subparagraph (A): 

(i) Desert Peak, Nevada. 

(ii) Coso, California. 

SEC. 7. 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 from geopressured resources. In addition, the Secretary shall conduct such 

supporting activities including research, resource characterization, and technology 

development as necessary. 

(b) GEOTHERMAL ENERGY PRODUCTION FROM OIL AND GAS FIELDS.—The Secretary 

shall implement a grant program in support of geothermal energy production from 

oil and gas fields. The program shall include grants for a total of not less than three 

demonstration projects of the use of geothermal techniques such as organic rankine 

cycle systems at marginal, unproductive, and productive oil and gas wells. The Secretary shall, to the extent practicable and in the public interest, make awards 

that—(1) include not less than five oil or gas well sites per project award; 

(2) use a range of oil or gas well hot water source temperatures from 150 degrees Fahrenheit to 300 degrees Fahrenheit; 

(3) cover a range of sizes up to one megawatt; 

(4) are located at a range of sites; 

(5) can be replicated at a wide range of sites; 

(6) facilitate identification of optimum techniques among competing alternatives; 

(7) include business commercialization plans that have the potential for production of equipment at high volumes and operation and support at a large 

number of sites; and 

(8) satisfy other criteria that the Secretary determines are necessary to carry 

out the program and collect necessary data and information. 

The Secretary shall give preference to assessments that address multiple elements 

contained in paragraphs (1) through (8). 

(c) GRANT AWARDS.—Each grant award for demonstration of geothermal technology such as organic rankine cycle systems at oil and gas wells made by the Secretary under subsection (b) shall include— (1) necessary and appropriate site engineering study; 

(2) detailed economic assessment of site specific conditions; 

(3) appropriate feasibility studies to determine whether the demonstration 

can be replicated; 

(4) design or adaptation of existing technology for site specific circumstances 

or conditions; 

(5) installation of equipment, service, and support; 

(6) operation for a minimum of one year and monitoring for the duration of 

the demonstration; and 

(7) validation of technical and economic assumptions and documentation of 

lessons learned. 

(d) GEOPRESSURED GAS RESOURCE RECOVERY AND PRODUCTION.—(1) The Secretary shall implement a program to support the research, development, demonstration, and commercial application of cost-effective techniques to produce energy from 

geopressured resources situated in and near the Gulf of Mexico. 

(2) The Secretary shall solicit preliminary engineering designs for geopressured 

resources production and recovery facilities. 

(3) Based upon a review of the preliminary designs, the Secretary shall award 

grants, which may be cost-shared, to support the detailed development and completion of engineering, architectural and technical plans needed to support construction 

of new designs. 

(4) Based upon a review of the final design plans above, the Secretary shall award 

cost-shared development and construction grants for demonstration geopressured 

production facilities that show potential for economic recovery of the heat, kinetic 

energy and gas resources from geopressured resources. 

(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 applicaVerDate Aug 31 2005 02:26 Jun 27, 2007 Jkt 059006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6621 E:\HR\OC\HR203.XXX HR203

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tions 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. 8. COST SHARING AND PROPOSAL EVALUATION. 

(a) FEDERAL SHARE.—(1) The Federal share of costs of projects funded under this 

Act shall be in accordance with section 988 of the Energy Policy Act of 2005. 

(2) The Secretary may waive the Federal cost share requirement for grants 

awarded to universities, national laboratories, or similar noncommercial entities 

awarded grants under this Act. 

(3) The Secretary shall allow for a competitive bidding process to play a role in 

determining the final cost-share ratio. 

(b) ORGANIZATION AND ADMINISTRATION OF PROGRAMS.—Programs under this Act 

shall incorporate the following organizational and administrative elements: 

(1) Non-Federal participants shall be chosen through a competitive selection 

process. 

(2) The request for proposals for each program shall stipulate, at a minimum, 

the following: 

(A) The non-Federal funding requirements for projects. 

(B) The funding mechanism to be used (i.e. grants, contracts, or cooperative agreements). 

(C) Milestones and a schedule for completion. 

(D) Criteria for evaluating proposals. 

(3) In evaluating proposals, the Secretary shall give priority to proposals that 

draw on relevant expertise from industry, academia, and the national laboratories, as appropriate. 

(4) The Secretary shall coordinate with, and where appropriate may provide 

funds in furtherance of the purposes of this Act to, other Department of Energy 

research and development programs focused on drilling, subsurface characterization, and other related technologies. 

(5) In evaluating proposals, the Secretary shall consult with relevant experts 

from industry, academia, and the national laboratories, as appropriate. 

(6) In evaluating proposals, the Secretary shall give priority to proposals that 

demonstrate clear evidence of employing a systems approach. 

(7) In evaluating proposals for projects with a field component, the Secretary 

shall, where appropriate, give priority consideration to proposals that contain 

provisions to study local environmental impacts of the technologies developed 

or the operations undertaken. 

(8) Data collected by the Secretary as a result of any project supported with 

funds provided under this Act shall be made available to the public, except to 

the extent that they contain information that is protected from disclosure under 

section 552(b) of title 5, United States Code. 

SEC. 9. CENTERS FOR GEOTHERMAL TECHNOLOGY TRANSFER. 

(a) IN GENERAL.—The Secretary shall award grants to institutions of higher education (or consortia thereof) to establish 2 Centers for Geothermal Technology 

Transfer. 

(b) CENTERS.—

(1) HYDROTHERMAL CENTER.—The purpose of one Technology Transfer Center 

shall be to serve as an information clearinghouse for the geothermal industry, 

collecting and disseminating information on best practices in all areas related 

to developing and managing hydrothermal resources, including data available 

for disclosure as provided under section 8(b)(8). This Center shall be based at 

the institution west of the Mississippi River that the Secretary considers to be 

best suited to the purpose. The Center shall collect and disseminate information 

on all subjects germane to the development and user of hydrothermal systems, 

including—

(A) resource location; 

(B) reservoir characterization, monitoring, and modeling; 

(C) drilling techniques; 

(D) reservoir management techniques; and 

(E) technologies for electric power conversion or direct use of geothermal 

energy. 

(2) ENHANCED GEOTHERMAL SYSTEMS CENTER.—The purpose of a second Technology Transfer Center shall be to serve as an information clearinghouse for the 

geothermal industry, collecting and disseminating information on best practices 

in all areas related to developing and managing enhanced geothermal systems 

resources, including data available for disclosure as provided under section 


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8(b)(8). This Center is encouraged to seek opportunities to coordinate efforts and 

share information with international partners engaged in research and development of enhanced geothermal systems or engaged in collection of data related 

to enhanced geothermal systems development. This Center shall be based at an 

academic institution east of the Rocky Mountains which, in the opinion of the 

Secretary, is best suited to provide national leadership on enhanced geothermal 

systems-related issues. The Center shall collect and disseminate information on 

all subjects germane to the development and use of enhanced geothermal systems. 

(c) AWARD DURATION.—An award made by the Secretary under this section shall 

be for an initial period of 5 years, and may be renewed for additional 5-year periods 

on the basis of—

(1) satisfactory performance in meeting the goals of the research plan proposed by the Center; and 

(2) other requirements as specified by the Secretary. 

SEC. 10. GEOPOWERING AMERICA. 

The Secretary shall expand the Department of Energy’s GeoPowering the West 

program to extend its geothermal technology transfer activities throughout the entire United States. The program shall be renamed ‘‘GeoPowering America’’. The program shall continue to be based in the Department of Energy office in Golden, Colorado. 

SEC. 11. REPORTS. 

(a) REPORTS ON ADVANCED USES OF GEOTHERMAL ENERGY.—Not later than 1 

year, 3 years, and 5 years, after the date of enactment of this Act, the Secretary 

shall report to the Committee on Science and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate on advanced concepts and technologies to maximize the geothermal resource potential of 

the United States. The reports shall include—

(1) the use of carbon dioxide as an alternative geofluid with potential carbon 

sequestration benefits; 

(2) mineral recovery from geofluids; 

(3) use of geothermal energy to produce hydrogen; 

(4) use of geothermal energy to produce biofuels; 

(5) use of geothermal heat for oil recovery from oil shales and tar sands; and 

(6) other advanced geothermal technologies, including advanced drilling technologies and advanced power conversion technologies. 

(b) PROGRESS REPORTS.—(1) Not later than 36 months after the date of enactment 

of this Act, the Secretary shall submit to the Committee on Science and Technology 

of the House of Representatives and the Committee on Energy and Natural Resources of the Senate an interim report describing the progress made under this 

Act. At the end of 60 months, the Secretary shall submit to Congress a report on 

the results of projects undertaken under this Act and other such information the 

Secretary considers appropriate. 

(2) As necessary, the Secretary shall report to the Congress on any legal, regulatory, or other barriers encountered that hinder economic development of these resources, and provide recommendations on legislative or other actions needed to address such impediments. 

SEC. 12. APPLICABILITY OF OTHER LAWS. 

Nothing in this Act shall be construed as waiving the applicability of any requirement under any environmental or other Federal or State law. 

SEC. 13. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Secretary to carry out this Act 

$90,000,000 for each of the fiscal years 2008 through 2012, of which $10,000,000 for 

each fiscal year shall be for carrying out section 7. 

II. PURPOSE

The purpose of the H.R. 2304 is to direct the Secretary of Energy 

to conduct a program of research, development, demonstration, and 

commercial application for geothermal energy, and to establish 

technology transfer centers to facilitate the collection and dissemination of technological, scientific, and best practices information 

relevant to geothermal energy development and use. 


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III. BACKGROUND AND NEED FOR THE LEGISLATION

Geothermal energy is heat from the Earth’s core that is trapped 

in the Earth’s crust. It can be tapped and used either to generate 

electricity or for direct use (e.g. heating buildings, greenhouses, or 

aquaculture operations). It is very attractive as an energy resource 

because it is not only renewable and emits no greenhouse gases, 

but can also provide continuously dispatchable, baseload power, 

day and night, 365 days a year. Geothermal energy is also a domestic resource, creating domestic jobs and increasing national security. 

In locations where high temperatures coincide with naturally-occurring, underground, fluid-filled reservoirs, the resulting hot 

water or steam can be tapped directly to run a geothermal power 

plant. Such locations are referred to as hydrothermal (hot water) 

resources, and they have been the focus of traditional geothermal 

energy development. The United States is the world’s largest producer of electric power from geothermal energy with approximately 

2,800 megawatts (MW) of geothermal electrical generating capacity 

currently connected to the grid, mostly in California and the Intermountain West, where high grade hydrothermal systems have been 

found close to the surface. However, significant hydrothermal potential remains untapped. The U.S. Geological Survey (USGS) estimates there are between 95,000 MW and 127,000 MW of hydrothermal resources sufficient for electrical power generation in the 

United States. However, many of these resources remain undiscovered and unconfirmed, as they are in locations without obvious 

surface manifestations. 

Even that large number, however, pales in comparison to the potential of Enhanced Geothermal Systems (EGS). EGS differ from 

hydrothermal systems in that they lack either a natural reservoir 

(i.e. the cracks and spaces in the rock through which fluid can circulate), the fluid to circulate through the reservoir, or both. In EGS 

development, sometimes referred to as ‘‘heat mining’’, an injection 

well is drilled to a depth where temperatures are sufficiently high; 

if necessary, a reservoir is created, or ‘‘cracked’’, in the rock using 

one of various methods to apply pressure; and a fluid is introduced 

to circulate through the reservoir and absorb the heat. The fluid is 

extracted through a production well, the heat is used to run a geothermal power plant or for some direct use application and the 

fluid is reinjected to start the loop all over again. 

Although it has been the subject of preliminary investigations in 

the United States, Europe, and Australia, the EGS concept has yet 

to be demonstrated as a commercially viable source of power production. However, experts familiar with the resource and the associated technologies believe the technical and economic hurdles are 

surmountable. In January 2007, a panel led by the Massachusetts 

Institute of Technology produced a report entitled The Future of 

Geothermal Energy, which contained an updated assessment of 

EGS potential in the United States. The authors of the report conservatively estimate that two percent of the EGS resource could be 

economically recoverable—an amount more than 2,000 times larger 

than all the primary energy consumed in the United States in 


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1The Future of Geothermal Energy; Massachusetts Institute of Technology, 2006; p. 1–17. 

2005.1 If the technological and economic hurdles to EGS development can be overcome, the potential of the resource is enormous. 

The authors of the report believe it is reasonable to develop 100 

Gigawatts of electric generating capacity from EGS resources by 

2050. 

The United States has been involved in geothermal energy R&D 

since the 1970s. The program reached a high point, in terms of 

funding, in FY 1980, when it received approximately $310 million 

(2006 dollars). Since then, funding has gradually declined to its 

present level of $5 million (2006 dollars) in FY 2007. The current 

Administration has attempted to phase out the geothermal program entirely, requesting zero dollars in FY 2007 and FY 2008. 

As justification for terminating the geothermal program, the Administration asserts that geothermal technologies are mature—a 

claim strongly disputed by researchers and the geothermal industry. Proponents point out that geothermal is not a single technology, but a complex resource, available in different grades in different places. While the technologies to tap the highest grade resources may indeed be mature (some have provided electric power 

at competitive rates for decades) these high grade locations, that 

are easily identifiable from the surface, represent a very small fraction of the total resource. To develop technologies capable of tapping lower grade resources, both hydrothermal and EGS, further 

research and development is essential. Recent indications suggest 

DOE officials may be open to reexamining investment in geothermal research and development, particularly in light of the opportunities in Enhanced Geothermal Systems that were highlighted in the recent MIT report: The Future of Geothermal Energy. 

H.R. 2304 is intended to reinvigorate geothermal energy R&D in 

the United States in order to unlock the potential of this vast resource, across the full spectrum of grades, for the benefit of the nation. 

IV. HEARING SUMMARY

The Energy and Environment Subcommittee held a hearing on 

Thursday, May 17, 2007 to hear testimony on H.R. 2304 (and also 

H.R. 2313, The Marine Renewable Energy Research and Development Act of 2007) from the following witnesses: 

• Dr. Jefferson Tester, the HP Meissner Professor of Chemical 

Engineering at the Massachusetts Institute of Technology, an 

internationally recognized expert in Enhanced Geothermal Systems 

and chair of the MIT-led panel that produced the report: The Future of Geothermal Energy, released in January 2007. 

• Mr. Paul Thomsen, Public Policy Manager for Ormat Technologies, Inc., a leading provider of geothermal exploration, development, and power conversion technologies. Mr. Thomsen testified 

on behalf of both Ormat and the Geothermal Energy Association. 

• Mr. Nathanael Greene, a Sr. Energy Policy Specialist with the 

Natural Resources Defense Council with expertise in utility regulation, renewable energy, energy taxes, energy efficiency, and the environmental impacts of energy production. 


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The following witnesses testified at the hearing, but their testimony was directed to H.R. 2313, The Marine Renewable Energy 

Research and Development Act of 2007. • Dr. Annette von Jouanne, Professor of Energy Systems and 

Power Electronics in the School of Electrical Engineering and Computer Science at Oregon State University (OSU). Dr. von Jouanne 

also leads the Wave Energy program at OSU. • Mr. Sean O’Neill, President of the Ocean Renewable Energy 

Coalition (OREC), a trade association representing the marine renewable energy industry. 

V. COMMITTEE ACTIONS

On May 14, 2007, Rep. Jerry McNerney, for himself, Science and 

Technology Committee Chairman Bart Gordon, and Energy and 

Environment Subcommittee Chairman Nick Lampson, introduced 

H.R. 2304, The Advanced Geothermal Energy Research and Development Act of 2007. The bill was referred to the House Committee 

on Science and Technology, Subcommittee on Energy and Environment. 

The Subcommittee on Energy and Environment met to consider 

H.R. 2304 on June 6, 2007 and consider the following amendment 

to the bill: 

1. On behalf of Mr. McNerney which, in addition to changes of 

a technical nature, revises instructions for establishing the Federal/ 

non-Federal cost-share ratios for projects funded under the Act to 

provide greater leeway to tailor cost-share levels to individual 

projects; allows for a competitive bidding process to play a role in 

determining the cost-share ratio for a projects; eliminates costshare requirements for research that is of a ‘‘fundamental or basic 

nature’’; establishes an R&D program to develop technologies and 

techniques to mitigate or avoid adverse environmental impacts of 

geothermal energy development, production, or use; directs the Secretary to coordinate with the Environmental Protection Agency to 

study the environmental impacts of geothermal energy development, production, and use; directs the Secretary to give priority 

consideration for funding, where appropriate, to project proposals 

that include provisions to study the project’s environmental impacts; encourages the Enhanced Geothermal Systems Technology 

Transfer Center established in the bill to seek opportunities for coordination with appropriate international partners; and expands 

the scope of an existing, domestic geothermal technology transfer 

program from the western U.S. to the entire country. The amendment was agreed to by voice vote. 

Following consideration of the amendments, the bill, as amended, 

was passed by voice vote. 

Mr. Inglis then moved that the Subcommittee favorably report 

the bill, H.R. 2304, to the full Committee on Science and Technology. The motion was agreed to by voice vote. 

The House Committee on Science and Technology met to consider 

H.R. 2304 on June 13, 2007 and considered the following amendments to the bill: 

1. On behalf of Mr. Hall, which adds a section on co-produced 

(with oil and gas operations) and geopressured resources. It also 

adds $10 million for those activities in authorized appropriations to 

the bill. It also streamlines the instructions for determining costVerDate Aug 31 2005 02:26 Jun 27, 2007 Jkt 059006 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\HR203.XXX HR203

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share ratios for projects, and calls for interim progress reports on 

projects funded under the Act. The amendment was agreed to by 

voice vote. 

The following three amendments were offered and considered en 

bloc: 

2. On behalf of Mr. Bartlett, which replaces ‘‘Study on Advanced 

Uses of Geothermal Energy’’ with ‘‘Reports on Advanced Uses of 

Geothermal Energy’’. The amendment was agreed to by voice vote. 

3. On behalf of Mr. Bartlett, which replaces ‘‘Geopower America’’ with ‘‘Geopowering America’’. The amendment was agreed to by 

voice vote. 

4. On behalf of Mr. Bartlett, which requires environmental impacts from geothermal energy production to be measured and examined against the potential for geothermal energy production to 

offset greenhouse gas emissions. The amendment was agreed to by 

voice vote. 

The following two amendments were offered and considered en 

bloc: 

5. On behalf of Mr. McCaul, which requires the Secretary of Energy to coordinate with other DOE research and development programs focused on drilling and related activities. The amendment 

was agreed to by voice vote. 

6. On behalf of Mr. McCaul, which adds ‘‘laser-based drilling 

technology’’ to the EGS research and development program. The 

amendment was agreed to by voice vote. 

7. On behalf of Ms. Biggert, which strikes the section establishing two university-based, geothermal technology transfer centers and transfers these responsibilities to the Geopowering America program. The amendment was rejected by voice vote. 

8. On behalf of Ms. Biggert, which instructs the Secretary to 

choose a location for the EGS Technology Transfer Center east of 

the ‘‘Rocky Mountains’’, rather than east of the ‘‘Mississippi River’’. The amendment was agreed to by voice vote. 

9. On behalf of Mr. Matheson, which increases the total authorization by $5,000,000 for each of the five fiscal years 2008 through 

2012, to fund the Intermountain West Geothermal Consortium. 

The amendment was offered and withdrawn. 

Following consideration of the amendments, the bill, as amended, 

was passed by voice vote. 

Mr. Hall then moved that the committee favorably report the 

bill, H.R. 2304, as amended, to the House for consideration. The 

motion was agreed to by a voice vote. 

VI. SUMMARY OF MAJOR PROVISIONS OF THE BILL, AS REPORTED

H.R. 2304 authorizes $90 million a year for each of the fiscal 

years 2008–2012 ($450 million total) for research, development, 

demonstration, and commercial application of technologies to locate, characterize, and develop geothermal resources for energy 

production. Of the $90 million annual authorization, $10 million 

per year is specifically authorized for projects to develop co-produced and geopressured resources. The bill also establishes a research program, to be coordinated with EPA, to identify potential 

environmental impacts of geothermal energy production, and a program of research, development, demonstration, and commercial application of technologies to mitigate or avoid adverse environmental 


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impacts. The bill provides guidance for the Secretary to use in evaluation of project proposals, and calls for the inclusion of a competitive bidding process in the process used for establishing Federal/ 

non-Federal cost-share ratios for projects. The bill establishes or 

expands several technology transfer programs to promote dissemination of technological and scientific information and best practices 

on geothermal energy development and use. Finally, the bill requires DOE to issue several reports: the first, to be issued 36 and 

60 months after enactment, is a report on the progress made under 

the Act; the second, to be issued 12, 36, and 60 months after enactment, is a report tracking the development of advanced concepts 

and technologies related to geothermal energy development but not 

funded under the Act; the third, to be issued when and if necessary, is a report to Congress on any barriers encountered—legal, 

regulatory, or otherwise—that hinder economic development of geothermal resources. 

VII. SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

Act may be cited as the ‘‘Advanced Geothermal Energy Research 

and Development Act of 2007’’

Section 2. Findings 

Geothermal energy is a renewable resource capable of providing 

baseload power generation (and other applications) with minimal 

environmental impact. The geothermal energy potential in the 

United States is widely distributed and vast in size, yet it remains 

barely tapped. Sustained and expanded funding for research, development, demonstration, and commercial application programs is 

needed to improve the technologies to locate, characterize, and develop geothermal resources. 

Section 3. Definitions 

Provides definitions for the following terms used in the Act: ‘Engineered’ (as it pertains to enhanced geothermal systems), ‘Enhanced Geothermal Systems’, ‘Geofluid’, ‘Geopressured Resources’, 

‘Geothermal’, ‘Hydrothermal’, ‘Secretary’, and ‘Systems Approach’

Section 4. Hydrothermal research and development 

Instructs the Secretary to support research, development, demonstration, and commercial application of technologies designed to 

assist in locating and characterizing undiscovered hydrothermal resources. 

Section 4(b)(1) instructs the Secretary to support the development of geoscientific tools and technologies that can assist in the 

process of locating hidden hydrothermal resources that do not exhibit obvious manifestations at the earth’s surface. This research 

and tool development would likely be carried out by researchers at 

universities and national labs, though qualified candidates based at 

other institutions or organizations may also apply for funding. The 

bill specifies that this program shall include a field component, to 

encourage development of these tools under real world conditions, 

but this is not intended to suggest that only field-based research 

may qualify for funding under this Section. 


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Section 4(b)(2) establishes an ‘‘industry-coupled exploratory drilling’’ program, which is a cost-shared program with industry partners to demonstrate and apply advanced exploration technologies 

in the field. This is not intended as research and development program for drilling technologies per se; rather, it is intended as a 

demonstration program to apply existing technologies—especially 

the most advanced technologies available—in a practical setting to 

discover and confirm hidden hydrothermal resources and expand 

the confirmed hydrothermal resource base. 

Section 5. General geothermal systems research and development 

The programs under Section 5 are intended to support the development of technologies applicable to the locating, developing, and 

using all geothermal systems, whether they are hydrothermal systems, Enhanced Geothermal Systems, or a hybrid of the two. Subsection (a) establishes a program of research, development, demonstration, and commercial application of system components and 

materials capable of withstanding the extreme environment (high 

temperatures and corrosiveness) in geothermal wells. The Section 

includes a list of specific types of components and systems that 

shall qualify for funding under this Section, though in practice, any 

subsurface component that is essential to drilling to extreme 

depths and temperatures shall qualify for research, development, 

demonstration, and commercial applications funding under this 

section. 

Subsection (b) establishes a program of research, development, 

demonstration, and commercial application of improved models of 

geothermal reservoir performance. The intent is to improve upon 

the accuracy of existing models. The models can be of any useful 

type, whether numerical, computer-based, or other. 

Subsection (c)(1) establishes a program of research, development, 

demonstration, and commercial application of technologies to mitigate or preclude adverse environmental impacts from geothermal 

energy development, production or use. Subsection (c)(2) directs the 

Secretary, in conjunction with the Office of Research and Development at EPA, to study what such impacts of geothermal energy development might be, and ensure that the program in (c)(1) addresses such impacts. The intent is to ensure that all reasonable efforts 

are undertaken to ensure that geothermal energy development may 

proceed with the smallest possible environmental impact. This subsection also calls for any identified potential adverse environmental 

impacts of geothermal energy development to be weighed against 

the potential benefit of providing power production without greenhouse gas emissions. 

Section 6. Enhanced geothermal systems research and development 

Subsection (a) instructs the Secretary to support a program of research, development, demonstration, and commercial application of 

technologies necessary to advance EGS to a state of commercial 

readiness. 

Subsection (b) establishes a cost-shared, field-based program of 

research, development, and demonstration of technologies to create 

and stimulate EGS reservoirs. The purpose of this subsection is to 

promote research, development, and demonstration of functional 

EGS systems capable of producing hot geofluid that could be used 


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for electric power production or direct use. (However, this section 

deliberately stops short of authorizing demonstration of the actual 

power conversion step, which is already considered commercially 

viable. The aim of this section is strictly to engineer a productive 

reservoir.) The subsection stipulates that a minimum of 5 sites be 

selected, each representing geologic conditions that are different 

from other sites and also showing potential for EGS development. 

The intent is to prove the viability of EGS technology in as many 

different geological settings as possible. The Secretary may pursue 

EGS reservoir stimulation work at more than 5 sites, and s/he is 

encouraged to do so if sufficient funds are available. 

Finally, two sites where DOE has already sponsored some EGS 

research (Coso, CA and Desert Peak, NV) are listed as candidate 

sites that may be considered for further funding under this section, 

if the Secretary deems it appropriate to invest further in those 

sites. This decision, however, is left to the Secretary’s discretion 

and should be based on the potential for these sites to yield additional useful information or developments. 

Section 7. Geothermal energy production from oil and gas fields and 

recovery and production of geopressured gas resources 

Establishes a demonstration program to prove the feasibility of 

co-producing geothermal power from hot water ‘‘co-produced’’ from 

oil and gas fields. This section also directs the Secretary of Energy 

to hold a design competition to produce preliminary designs for 

state-of-the-art approaches to recovering the energy contained in 

geopressured resources—which contain heat, pressure, and dissolved methane—in and near the Gulf of Mexico. The Secretary 

shall select the most promising preliminary designs submitted and 

award grants (which may be cost-shared) for the completion of the 

full engineering and other technical design work. Then, based upon 

an evaluation of the final designs, the Secretary is authorized to select the design that shows the greatest potential for economic recovery of the heat, kinetic energy and gas (the chosen design must 

effectively tap all three sources of energy) from geopressured resources, and award cost-shared grants for construction of a demonstration facility based on that design. The authorization for the 

overall bill includes $10 million per year specifically for this Section. None of the appropriated funds may be used to drill new 

wells. This is to encourage developers to take advantage of the 

many existing wells already drilled. 

Section 8. Cost sharing and proposal evaluation 

Instructs the Secretary to use the guidelines established in Section 988 of the Energy Policy Act of 2005 to determine the Federal/ 

non-Federal cost-share ratios for projects funded under this Act, 

but, in addition, to incorporate a competitive bidding process into 

the process of determining the cost-share ratio for each project. The 

intent of the competitive bidding process is to encourage funding 

applicants to offer to finance the greatest possible portion of a 

project’s total costs that they can afford. In addition, the cost-share 

guidelines allow the Secretary to waive cost-share requirements for 

projects awarded to non-commercial entities, such as universities or 

national laboratories. 


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Section 9. Centers for geothermal technology transfer 

Provides for the creation of two Centers of technology transfer to 

function as information clearinghouses for the benefit of geothermal researchers and the geothermal industry. These centers 

shall be dedicated to collecting and disseminating all available information relevant to locating, developing, and managing geothermal resources to produce energy. Relevant information is intended to include, but not be limited to, operational best practices 

in all stages of geothermal energy development, technological advances, and scientific data collected as a result of projects funded 

under the Act. One of the centers is to be located west of the Mississippi River, probably west of the Rocky Mountains, and shall be 

dedicated to managing information relevant to hydrothermal systems development; the other center shall be located east of the 

Rocky Mountains, and shall be dedicated to managing information 

relevant to Enhanced Geothermal Systems development. 

It was decided that two Centers should be established, rather 

than one, for two reasons. First, the regions for the two Centers 

were chosen to match each Center’s mission. The western Center 

is to be dedicated to collecting and disseminating information related to developing hydrothermal systems because the West is the 

geologically suited to be the center of hydrothermal development. 

The eastern Center is to be dedicated to Enhanced Geothermal 

Systems to emphasize the applicability of this enormous resource 

to the entire nation, including in the East—a region not commonly 

associated with geothermal energy development. 

The second reason for establishing two Centers is that there are 

different engineering and scientific issues associated with developing the different types of resources. To the extent that those 

areas of expertise overlap, it may be appropriate and useful for the 

two Centers to handle duplicate information, and such appropriate 

duplication is not discouraged. Both centers are intended to serve 

the entire nation in their respective areas of expertise, not just 

their respective region. The eastern Center is specifically encouraged to seek opportunities for international cooperation because 

there is significant EGS research happening in other countries. 

The rationale for locating the Centers at universities is two-fold: 

first, the close proximity of the Centers to university faculty and 

students is intended to create a valuable asset to the university research community and encourage the development of a new generation of geothermal scientists and engineers; second, there are numerous universities with strong programs in the geosciences that 

would make very attractive candidates for hosting these facilities. 

It should be noted that these Centers are not intended as research Centers per se. Rather, they are intended as information 

clearinghouses or repositories—sort of specialized libraries that will 

actively seek to collect and disseminate relevant data. It is hoped 

that they will be of significant value to researchers, as well as the 

geothermal development industry, but their mandate does not include conducting original research themselves. 

Section 10. Geopowering America 

Expands the scope of an existing, domestic geothermal technology transfer program from the western U.S. to the entire country, so as to encourage the transfer and adoption of appropriate 


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geothermal energy technologies throughout the entire United 

States. 

Section 11. Reports 

Subsection 11(a) requires the Secretary to track technological advances impacting geothermal energy development and advanced 

uses of geothermal energy and fluids, and report back to the Committee every other year for the next five years (a total of three 

times). This report is intended to focus on areas of potential future 

interest for the geothermal program, but these areas are not considered appropriate candidates for Federal research, development, 

demonstration, and commercial application support at the current 

time, owing to their early stages of development and speculative 

nature. The report is not intended to be limited to the topics listed 

here. The bi-annual tracking effort is intended to highlight when 

these technologies become less speculative and more appropriate 

for Federal support. 

Subsection 11(b)(1) requires the Secretary to report back to the 

Committee after 3 years describing the progress made under this 

Act up to that point. At the end of 5 years, the Secretary shall report on the results of projects undertaken under this Act. 

Subsection 11(b)(2) requires the Secretary to report back to Congress, as necessary, on any legal, regulatory, or other barriers encountered that hinder economic development of geothermal resources and provide recommendations on legislative or other actions needed to address such impediments. 

Section 12. Applicability of other laws 

Affirms the applicability of all requirements under Federal and 

State laws, including environmental laws, to projects undertaken 

under this Act. 

Section 13. Authorization of appropriations 

Authorizes appropriations of $90,000,000 for each of the fiscal 

years 2008 through 2012, of which $10,000,000 for each fiscal year 

shall be for carrying out section 7. 

VIII. COST ESTIMATE

A cost estimate and comparison prepared by the Director of the 

Congressional Budget Office under section 402 of the Congressional 

Budget Act of 1974 has been timely submitted to the Committee on 

Science and Technology prior to the filing of this report and is included in Section X of this report pursuant to House Rule XIII, 

clause 3(c)(3). 

H.R. 2304 does not contain new budget authority, credit authority, or changes in revenues or tax expenditures. Assuming that the 

sums authorized under the bill are appropriated, H.R. 2304 does 

authorize additional discretionary spending, as described in the 

Congressional Budget Office report on the bill, which is contained 

in Section X of this report. 


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IX. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 2304—Advanced Geothermal Energy Research and Development Act of 2007 

Summary: H.R. 2304 would authorize the appropriation of $450 

million over the 2008–2012 period for the Department of Energy 

(DOE) to support research and development activities related to 

the production and use of geothermal energy (heat energy stored 

in the Earth’s surface). Funds authorized by the bill would also be 

used to establish two Centers for Geothermal Technology Transfer 

within institutions of higher education to act as information clearinghouses for industry on geothermal energy development and 

management. CBO estimates that implementing H.R. 2304 would 

cost $396 million over the 2008–2012 period, assuming the appropriation of the specified funds. Enacting H.R. 2304 would have no 

effect on direct spending or revenues. 

H.R. 2304 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would benefit public institutions of higher education. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 2304 is shown in the following table. The costs 

of this legislation fall within budget function 250 (general science, 

space, and technology). 

By fiscal year, in millions of dollars— 

2008 2009 2010 2011 2012 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Geothermal Energy Research and Development Programs: 

Authorization Level ......................................................................................... 80 80 80 80 80 

Estimated Outlays .......................................................................................... 44 68 80 80 80 

Other Geothermal Energy Programs: 

Authorization Level ......................................................................................... 10 10 10 10 10 

Estimated Outlays .......................................................................................... 6 8 10 10 10 

Total Changes: 

Authorization Level ................................................................................ 90 90 90 90 90 

Estimated Outlays ................................................................................. 50 76 90 90 90 

Basis of estimate: For this estimate, CBO assumes that the bill 

will be enacted in fiscal year 2007 and that the amounts specified 

by the bill will be appropriated for each fiscal year. 

GEOTHERMAL ENERGY RESEARCH AND DEVELOPMENT PROGRAMS

H.R. 2304 would authorize the appropriation of $80 million for 

each of fiscal years 2008 through 2012 for DOE to support research 

and development programs that expand the production of geothermal energy. Funds authorized by this legislation would be used 

to: 

• Develop tools to locate hydrothermal resources (naturally occurring bodies of hot water or steam located below the earth’s surface) and improve site characterization; • Establish field demonstration programs, in cooperation with industry partners, to demonstrate techniques and technologies used 

in exploratory drilling; • Develop components and systems capable of sustaining the extreme geological environments necessary to produce geothermal energy; 


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• Model geothermal resource performance; 

• Examine the environmental impacts of geothermal energy development, production and use, as well as technologies and practices to mitigate such impacts; 

• Develop technologies to advance enhanced geothermal systems 

(sources of geothermal energy which require human invention to 

facilitate production) to the stage of commercial readiness; 

• Establish at least five demonstration programs to develop geothermal energy stimulation techniques and technologies; 

• Award five-year renewable grants to institutions of higher education to establish two Centers for Geothermal Technology Transfer to act as an information clearinghouse for industry on best 

practices to develop and manage hydrothermal resources and enhanced geothermal systems resources; and 

• Expand the GeoPowering the West program to address the private market and institutional barriers of bringing geothermal energy to all areas of the United States. 

Under the legislation, the federal share of such projects would be 

limited to 80 percent. Based on information from DOE, CBO expects that funds authorized to be appropriated by the bill would be 

used to establish new programs within DOE, as well as fund research projects already in existence. Assuming the appropriation of 

the specified funds, and based on the historical spending of DOE 

research and development programs, CBO estimates that implementing these provisions would cost $44 million in 2008 and $352 

million over the 2008–2012 period. 

OTHER GEOTHERMAL ENERGY PROGRAMS

H.R. 2304 would authorize the appropriation of $10 million for 

each of fiscal years 2008 through 2012 for DOE to make grants to 

establish three demonstration projects that use geothermal techniques at oil and gas wells. Funds authorized by this legislation 

would also be used to support the research and development of 

techniques to produce energy from geopressured sources (rock deposits under high pressure and saturated with gas or methane) in 

and near the Gulf of Mexico. Based on information from DOE, CBO 

estimates that implementing these programs would cost $6 million 

in 2008 and $44 million over the 2008–2012 period. 

Intergovernmental and private-sector impact: H.R. 2304 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would benefit participating public institutions of higher 

education. The bill would authorize several grant programs for geothermal energy research, development, and demonstration. It 

would also authorize funding for information clearinghouses at institutions of higher education. Any costs incurred by public institutions applying to host the centers would be incurred voluntarily. 

Estimate prepared by: Federal Costs: Daniel Hoople; Impact on 

State, Local, and Tribal Governments: Neil Hood; Impact on the 

Private Sector: Amy Petz. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

X. COMPLIANCE WITH PUBLIC LAW 104–4

H.R. 2304 contains no unfunded mandates. 


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XI. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

The oversight findings and recommendations of the Committee 

on Science and Technology are reflected in the body of this report. 

XII. STATEMENT ON GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause (3)(c) of House Rule XIII, the goal of H.R. 

2304 is to advance geothermal research and development through 

programs of hydrothermal research and development, general geothermal systems research and development, enhanced geothermal 

systems research and development; the establishment of centers for 

geothermal technology transfer; and a report on advanced uses of 

geothermal energy. 

XIII. CONSTITUTIONAL AUTHORITY STATEMENT

Article I, section 8 of the Constitution of the United States 

grants Congress the authority to enact H.R. 2304. 

XIV. FEDERAL ADVISORY COMMITTEE STATEMENT

H.R. 2304 does not establish nor authorize the establishment of 

any advisory committee. 

XV. CONGRESSIONAL ACCOUNTABILITY ACT

The Committee finds that H.R. 2304 does not relate to the terms 

and conditions of employment or access to public services or accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act (Public Law 104–1). 

XVI. EARMARK IDENTIFICATION

H.R. 2304 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), 

or 9(f) of rule XXI. 

XVII. STATEMENT ON PREEMPTION OF STATE, LOCAL, OR TRIBAL LAW

This bill is not intended to preempt any state, local, or tribal law. 

XVIII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

The bill does not change existing law. 

XIX. COMMITTEE RECOMMENDATIONS

On June 13, 2007, the Committee on Science and Technology favorably reported H.R. 2304, as amended, by a voice vote and recommended its enactment. 


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XX. PROCEEDINGS OF THE MARKUP BY THE 

SUBCOMMITTEE ON ENERGY AND ENVIRONMENT ON H.R. 2304, THE ADVANCED GEOTHERMAL ENERGY RESEARCH AND DEVELOPMENT ACT OF 2007 

WEDNESDAY, JUNE 6, 2007 

HOUSE OF REPRESENTATIVES, 

SUBCOMMITTEE ON ENERGY AND ENVIRONMENT, 

COMMITTEE ON SCIENCE AND TECHNOLOGY, 

Washington, DC. 

The Subcommittee met, pursuant to call, at 9:44 a.m., in Room 

2318 of the Rayburn House Office Building, Hon. Nick Lampson 

[Chairman of the Subcommittee] presiding. 

Chairman LAMPSON. Good morning. The Subcommittee on Energy and Environment will come to order. Pursuant to notice, the 

Subcommittee on Energy and Environment meets to consider the 

following measures: H.R. 906, the Global Change Research and 

Data Management Act of 2007; H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 2007; and H.R. 

2313, the Marine Renewable Energy Research and Development Act 

of 2007. 

We will now proceed with the markup beginning with opening 

statements, and I will begin. 

Today the Subcommittee will consider three bills: H.R. 906, the 

Global Change Research and Data Management Act; H.R. 2304, the 

Advanced Geothermal Energy Research and Development Act; and 

H.R. 2313, the Marine Renewable Energy Research and Development Act of 2007. 

First, we will take up H.R. 906, the Global Change Research and 

Data Management Act of 2007, which will re-orient the current 

interagency climate research program to produce information that 

supports efforts of resource managers, businesses and individuals 

to understand and reduce our vulnerability to extreme weather 

events and climate change. 

The U.S. Global Change Research Program has been in existence 

in some form since the late 1970s. This important program has 

vastly expanded our knowledge of Earth’s land, water and atmospheric systems. However, fires, droughts, hurricanes and other natural events have highlighted our increasing vulnerability to extreme weather and climate changes. With better planning and implementation adaptation strategies, these costs can be reduced. 


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Next, we will consider two pieces of legislation to expand our 

country’s renewable energy portfolio in the areas of geothermal and 

ocean power. These resources are both potentially vast in size and 

have potential to provide clean power at competitive rates but they 

require support to advance to the stage of commercial viability. 

H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 2007, would reinvigorate geothermal research and 

development in this country. It would provide support and guidance for researchers to develop technologies capable of tapping into 

the vast quantities of thermal energy that is stored in the Earth’s 

crust. 

H.R. 2313, the Marine Renewable Energy Research and Development Act of 2007, would support renewable energy development by 

exploiting the energy of ocean tides and currents. Today this promising industry is at roughly the same development stage that wind 

was back 20 years ago. With the support provided by this bill, this 

industry is posed to grow into a significant contributor of clean 

electricity to our nation’s power grid. 

In short, these bills are about addressing overlooked opportunities in our collective efforts to create good American jobs, diversify 

our energy supply, increase our security and reduce the environmental impact of energy production. All three pieces of legislation 

are important to our environment and our economy. Therefore, I 

urge their passage and I look forward to getting them to the House 

Floor. 

[The prepared statement of Chairman Lampson follows:] 

PREPARED STATEMENT OF CHAIRMAN NICK LAMPSON

Today, the Subcommittee we will consider three bills, H.R. 906, the Global 

Change Research and Data Management Act; H.R. 2304, the Advanced Geothermal 

Energy Research and Development Act; and H.R. 2313, the Marine Renewable Energy Research and Development Act. 

First, we will take up H.R. 906, the Global Change Research and Data Management Act of 2007, which will re-orient the current interagency climate research program to produce information that supports efforts of resource managers, businesses, 

and individuals to understand and reduce our vulnerability to extreme weather 

events and to climate change. 

The U.S. Global Change Research Program has been in existence in some form 

since the late 1970s. This important program has vastly expanded our knowledge 

of Earth’s land, water, and atmospheric systems. 

However, fires, droughts, hurricanes, and other natural events have highlighted 

our increasing vulnerability to extreme weather and climate changes. With better 

planning and implementation of adaptation strategies these costs can be reduced. 

Next, we will consider two pieces of legislation to expand our country’s renewable 

energy portfolio in the areas of geothermal and ocean power. These resources are 

both potentially vast in size and have potential to provide clean power at competitive rates, but they require support to advance to the stage of commercial viability. 

H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 

2007, would reinvigorate geothermal research and development in this country. It 

would provide support and guidance for researchers to develop technologies capable 

of tapping into the vast quantities of thermal energy that is stored in the Earth’s 

crust. 

H.R. 2313, the Marine Renewable Energy Research and Development Act of 2007, 

would support renewable energy development by exploiting the energy of ocean tides 

and currents. 

Today, this promising industry is at roughly the same developmental stage that 

wind was at 20 years ago. With the support provided by this bill, this industry is 

poised to grow into a significant contributor of clean electricity to our nation’s power 

grid. 


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In short, these bills are about addressing overlooked opportunities in our collective efforts to create good American jobs, diversify our energy supply, increase our 

security, and reduce the environmental impact of energy production. 

All three pieces of legislation are important to our environment and our economy. 

Therefore, I urge their passage, and look forward to getting them to the House 

Floor. 

Chairman LAMPSON. At this time I will recognize Mr. Inglis to 

present his opening remarks. 

Mr. INGLIS. Thank you, Mr. Chairman, and thank you for holding 

this markup. 

I am happy to be a co-sponsor of Mr. Udall’s bill, the Global 

Change Research and Data Management Act. For a number of 

years, the U.S. Global Research Program has coordinated a successful interagency research program on global environmental 

change and implications of a changing climate for society. H.R. 906 

continues support for this research and makes that research userfriendly for federal, State and local decision-makers who are tasked 

with the job of creating policies that address the challenges associated with climate change. 

We also have an opportunity to address the development of 

clean, renewable energy sources in today’s markup of H.R. 2304, 

the Advanced Geothermal Energy Research and Development Act, 

and H.R. 2313, the Marine Renewable Energy Research and Development Act. Geothermal and marine-related energy should be 

sources of energy for us and I am looking forward to promoting research that will make these alternatives commercially feasible. I 

hope we can build on what we have already learned and that experience scientists in that program have already achieved and move 

forward to even greater use of these sources of energy. 

And Mr. Chairman, I hope that by the time that we have concluded opening statements, that more Members will appear from 

the Republican conference that is still underway, and when they 

do, I suppose we will have a quorum for votes on these bills. 

[The prepared statement of Mr. Inglis follows:] 

PREPARED STATEMENT OF REPRESENTATIVE BOB INGLIS

Thank you for holding this markup, Mr. Chairman. 

I’m happy to be a co-sponsor of Mr. Udall’s bill, the Global Change Research and 

Data Management Act. For many years, the United States Global Research Program 

has coordinated a successful interagency research program on global environment 

change and implications of a changing climate for society. H.R. 906 continues support for this research, and makes that research ‘‘user-friendly’’ for federal, State, 

and local decision-makers who are tasked with the job of creating policies that address the challenges associated with climate change. 

We also have an opportunity to address the development of clean, renewable energy sources in today’s markup of H.R. 2304, the Advanced Geothermal Energy Research and Development Act, and H.R. 2313, the Marine Renewable Energy Research 

and Development Act. Geothermal and marine-related energy should be sources of 

energy for us, and I’m looking forward to promoting research that will make these 

alternatives commercially affordable. I hope that we can build on what we’ve already learned and that experienced scientists and other professionals are included 

so that duplication. 

Thank you again, Mr. Chairman, and I look forward to working with you to advance this legislation. 

Chairman LAMPSON. We will be ready for the votes when they 

come in. We may get a little ahead of them. 

Without objection, Members may place statements in the record 

at this point. 


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We will now consider H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 2007. I yield Mr. McNerney 

five minutes to describe his bill. 

Mr. MCNERNEY. Thank you, Mr. Chairman, for your support of 

my bill, H.R. 2304, the Advanced Geothermal Energy Research and 

Development Act of 2007, and for holding this markup today. 

Geothermal energy derived from the Earth’s heat is an under-utilized renewable energy resource. Studies show that new geothermal sources known as enhanced geothermal energy systems, or 

EGS, offer the potential to generate as much as 100 gigawatts of 

power in the next 50 years. Utilizing EGS involves creating underground reservoirs that do not occur naturally but rather are mechanically or chemically engineered out of hot rock. Fluid is introduced to circulate and absorb the heat and then pumped out to 

extra energy. EGS is in the early stages of its maturation and federal support is necessary to ensure that full potential of this resource is utilized. 

My bill authorizes further research, development, demonstration 

and commercial application of advanced technologies to develop 

more traditional geothermal sources and EGS. H.R. 2304 specifically authorizes the research and development of both the technologies and techniques necessary to fully utilize EGS. Geothermal 

energy should be an important component of our country’s efforts 

to combat climate change and achieve energy independence. As a 

domestically produced energy source, expanding geothermal will 

also create high-paying jobs here at home. I hope that my colleagues here today will join me in supporting H.R. 2304 and I 

thank Mr. Lampson for holding this markup. 

I yield back the balance of my time. 

[The prepared statement of Mr. McNerney follows:] 

PREPARED STATEMENT OF REPRESENTATIVE JERRY MCNERNEY

Thank you, Chairman Lampson, for your support for my bill, H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 2007, and for holding 

this markup today. 

Geothermal energy derived from the Earth’s heat is an under-utilized renewable 

energy source. Studies show that new geothermal resources, known as Enhanced 

Geothermal Systems, or EGS, offer the potential to generate as much as 100 

Gigawatts of power in the next 50 years. Utilizing EGS involves creating underground reservoirs that do not occur naturally, but rather are mechanically or chemically engineered out of hot rock. Fluid is introduced to circulate and absorb the heat, 

and is then pumped out to extract the energy. EGS is in early stages of its maturation, and federal support is necessary to ensure that the full potential of this resource is realized. 

My bill authorizes further research, development, demonstration, and commercial 

application of advanced technologies to develop both traditional geothermal sources 

and EGS. H.R. 2304 specifically authorizes the research and development of both 

the technologies and techniques necessary to fully utilize EGS. 

Geothermal energy should be an important component of our country’s efforts to 

combat climate change and achieve energy independence. As a domestically-produced energy source, expanding geothermal will also create high paying jobs at 

home. I hope that my colleagues here today will join me in supporting H.R. 2304, 

and I thank Chairman Lampson again for holding this markup. I yield back the balance of my time. 

Chairman LAMPSON. Thank you, Mr. McNerney. 

I now recognize Mr. Inglis to present any remarks on the bill. 


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Mr. INGLIS. As I said in my opening statement, Mr. Chairman, 

this too is a good bill and I am happy to be supporting it, and look 

forward to development of this resource. 

Chairman LAMPSON. Thank you very much. 

Does anyone else wish to be recognized? 

I ask unanimous consent that the bill is considered as read and 

open to amendment at any point, and that the Members proceed 

with amendments in the order of the roster. Without objection, so 

ordered. 

The first amendment on the roster is an amendment offered by 

the gentleman from California, Mr. McNerney. Are you ready to 

proceed with your amendment? 

Mr. MCNERNEY. Yes, I am, Mr. Chairman. 

Chairman LAMPSON. The Clerk will report the amendment. 

The CLERK. Amendment to H.R. 2304 offered by Mr. McNerney 

of California. 

Chairman LAMPSON. I ask unanimous consent to dispense with 

the reading. Without objection, so ordered. 

I recognize Mr. McNerney for five minutes to explain the amendment. 

Mr. MCNERNEY. Thank you, Mr. Chairman. 

This amendment, like the prior one, takes into account suggestions made by our witnesses at legislative hearings held on May 17 

as well as numerous comments from outside experts in geothermal 

energy, industry, researchers and the environmental community. 

Most of the changes are simple housekeeping measures intended to 

refine or clarify language but there are some substantive changes 

as well. 

First among these is a revision to the instructions for establishing federal/non-federal cost-sharing ratios for the projects. Revision instructions are intended to make the process more flexible 

both for the administrators and the participants. The revised instructions provide greater leeway for program administrators to 

tailor cost-sharing levels to individual projects depending on the 

project’s risk profile and the opportunities for commercial benefits. 

It allows for a competitive bidding process to play a role in determining the cost-sharing ratio for a project so as to encourage participating entities to invest as much of their own capital as they 

can. 

The amendment also strengths the environmental provisions of 

the bill considerably. It directs the Secretary to support an R&D 

program to develop technologies and techniques to mitigate or 

avoid adverse environmental impacts of geothermal energy production or use. It also directs the Secretary to coordinate with the Environmental Protection Agency to study the environmental impacts 

of geothermal energy development, production and use. In addition, 

the amendment directs the Secretary to give priority consideration 

for funding where appropriate to project proposals that include provisions to study the project’s environmental impacts. 

Finally, the amendment strengthens some geothermal technology 

transfer programs. It encourages the Enhanced Geothermal Systems Technology Transfer Center established in the bill to seek opportunities for coordination with appropriate international partners 

so we can benefit from lessons learned by other countries as they 


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are advancing the frontier of EGS technology. The amendment also 

expands the scope of an existing domestic geothermal technology 

transfer program from the Western United States to the entire 

country so as to encourage the transfer and adoption of appropriate 

geothermal energy technologies throughout the United States. As 

indicated before, this amendment is a product of close collaboration 

with witnesses and other experts and it makes some solid improvements in the original bill. 

I strongly encourage my colleagues to vote for its passage, and 

I yield the balance of my time. 

[The prepared statement of Mr. McNerney follows:] 

PREPARED STATEMENT OF REPRESENTATIVE JERRY MCNERNEY

Thank you, Mr. Chairman. This amendment takes into account suggestions made 

by our witnesses at the legislative hearing held on May 17, as well as numerous 

comments from outside experts in the geothermal industry, researchers, and the environmental community. Most of the changes are simple ‘‘housekeeping’’ measures 

intended to refine or clarify language, but there are a few substantive changes as 

well: 

First among these is a revision to the instructions for establishing the federal/nonfederal cost-sharing ratios for projects. The revised instructions are intended to 

make the process more flexible, both for administrators and participants. The revised instructions provide greater leeway for program administrators to tailor costsharing levels to individual projects, depending on the project’s risk profile and the 

opportunities for commercial benefits. It also allows for a competitive bidding process to play a role in determining the cost-share ratio for a project, so as to encourage 

participating entities to invest as much of their own capital as they can. 

This amendment also strengthens the environmental provisions of the bill considerably. It directs the Secretary to support an R&D program to develop technologies 

and techniques to mitigate or avoid adverse environmental impacts of geothermal 

energy development, production, or use. It also directs the Secretary to coordinate 

with the Environmental Protection Agency to study the environmental impacts of 

geothermal energy development, production, and use. In addition, the amendment 

directs the Secretary to give priority consideration for funding—where appropriate—

to project proposals that include provisions to study the project’s environmental impacts. 

Finally, the amendment strengthens some geothermal technology transfer programs. It encourages the Enhanced Geothermal Systems Technology Transfer Center established in the bill to seek opportunities for coordination with appropriate 

international partners, so we can benefit from lessons learned by other countries 

that are advancing the frontier of EGS knowledge. The amendment also expands 

the scope of an existing, domestic geothermal technology transfer program from the 

western U.S. to the entire country, so as to encourage the transfer and adoption of 

appropriate geothermal energy technologies throughout the entire United States. 

As indicated before, this amendment is the product of close collaboration with witnesses and other experts, and it makes some solid improvements to the original bill. 

I strongly encourage my colleagues to vote for its passage. I yield the balance of my 

time. 

Chairman LAMPSON. Thank you. Is there further discussion on 

the amendment? Further discussion on the amendment? If not, the 

vote occurs on the amendment. All in favor say aye. Those opposed 

say no. The ayes have it and the amendment is agreed to. 

Are there other amendments? Hearing none, the vote is on the 

bill, H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 2007, as amended. All those in favor—yes, ma’am, 

Ms. Biggert? 

Ms. BIGGERT. If I could ask a question on the bill. In section 8, 

the Centers for geothermal technology transfers, my concern with 

the two Centers is that it splits the Midwest into two by dividing 

it at the Mississippi River. Was there any reason for that designaVerDate Aug 31 2005 02:26 Jun 27, 2007 Jkt 059006 PO 00000 Frm 00024 Fmt 6604 Sfmt 6601 E:\HR\OC\HR203.XXX HR203

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tion? One is to be in the western and the other Center in the Eastern United States, and the poor Midwest gets split in two. 

Mr. MCNERNEY. Thank you for the question. What this bill does 

is, it gives the Secretary quite a bit of flexibility in where these two 

Centers will go. We wanted to make sure that the western half of 

the country had a Center because of the geothermal properties in 

the West are significantly different than the East, so we didn’t intend to split it exactly on the line but I think the Secretary will 

have a lot of flexibility in where those two Centers go. 

Ms. BIGGERT. It won’t necessarily be just where it leaves the Mississippi, they can’t use that Center if you are on one side of the 

Mississippi? 

Mr. MCNERNEY. No, it doesn’t have that intent, and that wasn’t 

the intent at all. 

Ms. BIGGERT. Okay. Is there any difference in the geology in the 

Midwest versus the West or the East? 

Mr. MCNERNEY. Well, in the western part of the country we have 

the most accessible geothermal energy. In the eastern, it is going 

to require more of the EGS technology so it is important that we 

develop that technology so that we can use this sort of energy 

source throughout the country because there is significant resource 

throughout the United States but the part in the western is more 

accessible with this existing technology, which is again why it is so 

important for us to develop the EGS within the bill, that is identified within the bill. 

Ms. BIGGERT. Having been up in Iceland and seeing what they 

do up there, it is amazing, the geology up there, that this can then 

be created by—— Mr. MCNERNEY. That is right. In Iceland they have the resources 

really near the surface of the Earth. The rock formations are particularly well suited for geothermal. What is missing in most of our 

resources that the rock formations are not appropriate. They are 

little deeper so we have to develop technology to crack the rocks 

or to open up the reservoirs deep underground. 

Ms. BIGGERT. Thank you. I yield back. 

Chairman LAMPSON. Are there any other questions? 

The vote then will be on the bill. All those in favor, say aye. 

Those opposed, no. In the opinion of the Chair, the ayes have it. 

I recognize Mr. Inglis to offer a motion. 

Mr. INGLIS. Mr. Chairman, I move that the Subcommittee favorably report H.R. 2304 as amended to the Full Committee. Furthermore, I move that the staff be instructed to prepare the Subcommittee legislative report and make necessary technical and conforming changes to the bill as amended in accordance with the recommendations of the Subcommittee. 

Chairman LAMPSON. The question is on the motion to report the 

bill favorably. Those in favor of the motion will signify by saying 

aye. Opposed, no. The ayes have it, and the bill is favorably reported. 

Without objection the motion to reconsider is laid upon the table. 

Subcommittee Members may submit additional or minority views 

on the measure. 

I want to thank the Members for their attendance, and this concludes our Subcommittee markup. We are adjourned. 


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[Whereupon, at 10:25 a.m., the Subcommittee was adjourned.] 


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Appendix: 

H.R. 2304, SECTION-BY-SECTION ANALYSIS, AMENDMENT ROSTER


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SECTION-BY-SECTION ANALYSIS OF H.R. 2304, 

ADVANCED GEOTHERMAL ENERGY RESEARCH AND

DEVELOPMENT ACT OF 2007 

Summary 

H.R. 2304 directs the Secretary of Energy to support programs of research, development, demonstration, and commercial application in advanced geothermal energy 

technologies. It also establishes or expands several programs for technology transfer 

and information sharing on geothermal energy. 

Section-by-Section 

Section 1. Short Title 

Act may be cited as the ‘‘Advanced Geothermal Energy Research and Development Act of 2007.’’

Section 2. Findings 

Geothermal energy is a renewable resource capable of providing baseload power 

generation (and other applications) with minimal environmental impact. The geothermal energy potential in the United States is widely distributed and vast in size, 

yet it remains barely tapped. Sustained and expanded funding for research, development, demonstration, and commercial application programs is needed to improve the 

technologies to locate, characterize, and develop geothermal resources. 

Section 3. Definitions 

Provides definitions for the following terms used in the Act: ‘Enhanced Geothermal Systems,’ ‘Geofluid,’ ‘Geothermal,’ ‘Hydrothermal,’ ‘Secretary,’ and ‘Systems 

Approach.’

Section 4. Hydrothermal Research and Development 

Instructs the Secretary to support research, development, demonstration, and 

commercial application of technologies designed to assist in locating and characterizing undiscovered hydrothermal resources. Establishes an ‘‘industry-coupled exploratory drilling’’ program, which is a cost-shared program with industry partners to 

demonstrate and apply advanced exploration technologies. 

Section 5. General Geothermal Systems Research and Development 

Establishes a program of research, development, demonstration, and commercial 

application of system components and materials capable of withstanding the extreme environment (high temperatures and corrosiveness) in geothermal wells. Also 

establishes a program of RDD&CA of improved models of geothermal reservoir performance. 

Section 6. Enhanced Geothermal Systems (EGS) Research and Development 

Instructs the Secretary to support a program of RDD&CA of technologies necessary to advance EGS to a state of commercial readiness. Also establishes a costshared, field based program of research, development, and demonstration of technologies to create and stimulate EGS reservoirs. 

Section 7. Cost Sharing 

Establishes guidelines for the ratio of federal/non-federal contributions to costshared programs established under this Act. Also describes certain organizational 

and administrative elements to be integrated into the structure of cost-shared programs. 

Section 8. Centers for Geothermal Technology Transfer 

Provides for the creation of two Centers of technology transfer to function as information clearinghouses for the geothermal industry, dedicated to collecting and sharing industry-relevant information. One Center, to be located in the western U.S., 

shall be dedicated to hydrothermal-specific development information; the other Center, located in the eastern U.S., shall be dedicated to EGS-specific development information. 

Section 9. Study on Advanced Uses of Geothermal Energy 

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back to the Committee every other year for the next five years (a total of three 

times). 

Section 10. Authorization of Appropriations 

Authorizes appropriations of $80,000,000 for each of the fiscal years 2008 through 

2012. 


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XXI. PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 2304, THE ADVANCED GEOTHERMAL ENERGY RESEARCH 

AND DEVELOPMENT ACT OF 2007 

WEDNESDAY, JUNE 13, 2007 

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON SCIENCE AND TECHNOLOGY, 

Washington, DC. 

The Committee met, pursuant to call, at 10:12 a.m., in Room 

2318 of the Rayburn House Office Building, Hon. Bart Gordon 

[Chairman of the Committee] presiding. 

Chairman GORDON. Pursuant to notice, the Committee meets to 

consider the following measures: H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 2007, and H.R. 

2313, the Marine Renewable Energy Research and Development Act 

of 2007. 

We will now proceed with the markup. I begin with a brief statement. 

Today the Committee will consider two bills, H.R. 2304, the Advanced Geothermal Energy Research and Development Act, introduced by Mr. McNerney, and H.R. 2313, the Marine Renewable Energy Research and Development Act, introduced by Ms. Hooley and 

co-sponsored by Mr. Rohrabacher who has had a great deal of input 

into this bill. Each of these two bills is designed to expand our 

country’s renewable energy production portfolio. Both geothermal 

energy and marine energy are enormous resources that have great 

potential to make significant contributions to meeting our nation’s 

energy needs at a competitive cost. But they require more support 

for research and development in order to advance to a state of commercial readiness. 

Geothermal energy is the energy stored as heat in the Earth’s 

crust. It is a resource of truly vast potential. Yet most of this potential goes untapped due to a lack of resources to develop the technologies that would make geothermal energy widely accessible. 

H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 2007, will build on and expand the existing geothermal energy programs and provide support to develop a wide 

range of hydrothermal and enhanced geothermal systems. In the 

process, the bill would reinvigorate geothermal research and development in the United States and elevate geothermal energy to a 

position as a major contributor to our nation’s power production 

portfolio. 


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Marine renewable energy technologies today are at a stage of development similar to where wind power was about 20 years ago. 

The prototype technologies show great promise, and the resource is 

huge, potentially able to provide as much as 10 percent of our nation’s energy needs. But here again, researchers and industry require more support if they are going to move these technologies 

from the experimental stage to commercial viability. H.R. 2313, the 

Marine Renewable Energy Research and Development Act, is designed to do just that. 

Both of these bills are designed to address overlooked opportunities in our efforts to create a 21st century energy policy that emphasizes good American jobs, diversity of supply, increased national 

security, and reduced environmental impact. 

I want to thank my colleagues, Mr. McNerney and Mrs. Hooley 

for introducing them. I urge their passage and look forward to getting them to the House Floor. 

I would also like to make one final comment, and before we get 

down to business I want to offer my sincere thanks and appreciation to my friend and colleague and our Ranking Member, Mr. 

Hall, and his colleagues on the Minority side for proposing some 

very thoughtful, meaningful amendments to today’s bills for our 

consideration. 

I cannot guarantee that we will be supporting all of them, but 

we will definitely be supporting many of them; and the Committee 

staff informs me that the amendments have contributed significantly to the quality of this legislation. 

I think this is another very good example of the bipartisan spirit 

with which we will strive to conduct the business of the Science 

and Technology Committee. 

[The prepared statement of Chairman Gordon follows:] 

PREPARED STATEMENT OF CHAIRMAN BART GORDON

Today, the Committee will consider two bills, H.R. 2304, the Advanced Geothermal Energy Research and Development Act, introduced by Mr. McNerney, and 

H.R. 2313, the Marine Renewable Energy Research and Development Act, introduced 

by Ms. Hooley and Mr. Rohrabacher. 

Each of these two bills is designed to expand our country’s renewable energy production portfolio. Both geothermal energy and marine energy are enormous resources that have great potential to make significant contributions to meeting our 

nation’s energy needs at a competitive cost. But they require support for research 

and development in order to advance to a state of commercial readiness. 

Geothermal energy is the energy stored as heat in the Earth’s crust, and it is a 

resource of truly vast potential. Yet most of this potential goes untapped due to lack 

of resources to develop the technologies and techniques that would make geothermal 

energy widely accessible. 

H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 

2007, will build on and expand the existing DOE geothermal energy program and 

provide the support to develop a wide range of Hydrothermal and Enhanced Geothermal Systems. In the process, the bill would reinvigorate geothermal research 

and development in the United States, and elevate geothermal energy to a position 

as major contributor to our nation’s power production portfolio. 

Marine renewable energy technologies today are at a stage of development similar 

to where wind power was about 20 years ago. The prototype technologies show great 

promise, and the resource is huge, potentially able to provide as much as 10 percent 

of our nation’s electricity needs. But here again, researchers and industry require 

more support if they are going to move these technologies from the experimental 

stage to commercial viability. H.R. 2313, the Marine Renewable Energy Research 

and Development Act of 2007, is designed to do just that. 


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Both of these bills are designed to address overlooked opportunities in our efforts 

to create a 21st century energy policy that emphasizes good American jobs, diversity 

of supply, increased national security, and reduced environmental impact. 

I want to thank my colleagues, Mr. McNerney and Ms. Hooley and Mr. Rohrabacher, for introducing them. I urge their passage, and look forward to getting 

them to the House Floor. 

I would like to make one final comment before we get down to business. I want 

to offer my sincere thanks and appreciation to my friend and colleague, the Ranking 

Member Mr. Hall, and his colleagues on the Minority side for proposing some very 

thoughtful amendments to these bills for our consideration today. 

I can’t guarantee that we’ll be supporting all of them, but we will definitely be 

supporting some of them, and the Committee staff informs me that the amendments 

have contributed significantly to the quality of this legislation. 

I think this is another fine example of the bipartisan spirit with which we strive 

to conduct the business of the Science and Technology Committee. 

Thank you to everyone for your thorough consideration of these important bills, 

and for your substantive contributions to make them even better. 

Chairman GORDON. Now, I recognize Mr. Hall to present his 

opening statement. 

Mr. HALL. Thank you, Mr. Chairman. The two renewable energy 

research and development bills before us today are two more ways 

that the Science Committee is going to help to further our country’s 

effort to become energy independent. It is no secret, I am an oil 

and gas guy. I am from an oil and gas state, fossil fuel state; and 

for those that think we can do away with fossil fuels are just 

dreaming. These lights would go out, the stations would stop, roads 

would not be built. We cannot do without fossil fuels, and there is 

an attack on energy today in general; and certainly there is an attack on fossil fuels, there is an attack on nuclear, even on wind. 

I think I would like to see our country do this in conjunction with 

our renewable and alternative thrust. We still need affordable, reliable energy that comes from fossil fuels while we do research, such 

as that in the bills we are marking up today in order for our country to continue to be a leader in all the areas in the global community. Both bills are going to spur the use of domestic, renewable resources available to us within our borders and in our waters for the 

production of energy. While I support the thrust of these bills, I do 

have some concern with them that will be addressed through 

amendments. 

I have one to the geothermal bill that will address the production 

of geothermal energy from oil and gas wells and production of 

geopressured gas resources. It is my understanding that the Chairman is prepared to accept this amendment. He spoke kindly about 

it, and whether the kind words are going to come into reality remains to be seen. To be continued, I guess. And I thank him for 

it. In addition, I will be offering an amendment to the ocean energy 

bill that will expand the areas of the country, parts of the country, 

that participate in research and development activities on marine 

renewable energy. I will go into these amendments in further detail 

as they are brought up for consideration. As always, I look forward 

to the ensuing debate, and I yield back the balance of my time. 

[The prepared statement of Mr. Hall follows:] 

PREPARED STATEMENT OF REPRESENTATIVE RALPH M. HALL

Thank you, Mr. Chairman. The two renewable energy research and development 

bills before us today are two more ways the Science Committee is helping to further 

our country’s efforts to become energy independent. It’s no secret that I’m an oil and 

gas guy, and that I fully support increasing our domestic supply of oil and gas. I 


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would like to see our country do this in conjunction with our renewable and alternatives thrust. We still need affordable, reliable energy that comes from fossil fuels, 

while we do research such as that in the bills we are marking up today, in order 

for our county to continue to be a leader in all areas in the global community. Both 

bills will spur the use of domestic, renewable resources available to us within our 

borders and in our waters for the production of energy. While I support the thrust 

of the bills, I do have some concerns with them that will be addressed through 

amendments. 

I have one to the geothermal bill that will address the production of geothermal 

energy from oil and gas wells and production of geopressured gas resources. It is 

my understanding that the Chairman is prepared to accept this amendment and I 

thank him. In addition, I will be offering an amendment to the ocean energy bill 

that will expand the areas of the country eligible to participate in research and development activities on marine renewable energy. I will go into these amendments 

in further detail as they are brought up for consideration. 

As always, I look forward to the ensuing debate, and I yield back the balance of 

my time. 

Chairman GORDON. Thank you, Mr. Hall. I want to confirm two 

things. One is I am kind, and two, you are from fossil fuel country 

but you are not a fossil. 

Without objection, Members may place statements in the record 

at this point. 

We will now consider H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 2007. 

I yield to the gentleman from California, Mr. McNerney five minutes to describe his bill. 

Mr. MCNERNEY. Thank you, Mr. Chairman. I want to express my 

appreciation to both you and to Ranking Member Hall for supporting my bill, H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 2007, and for holding a markup this 

morning. 

Mr. Chairman, as you know, one of our highest priorities in Congress should be to encourage the development of clean domestic 

and renewable sources of energy. 

Geothermal energy should be an important part of the equation, 

and unlike other renewable sources, geothermal provides uninterrupted base load power 365 days and nights a year. While it is one 

of the only renewable sources that can produce constantly available 

base-load power, geothermal relies on less accessible fuel than naturally occurring sunlight and wind. Current technology requires 

that in order to generate geothermal energy, we have to tap into 

visible sources of features and hope that we drill in the right place. 

However, recent study shows that potential for geothermal is 

vaster than we previously imagined. Now, geothermal sources, 

known as enhanced geothermal systems, or EGS, offer the potential to generate as much as 100 gigawatts of power over the next 

50 years which can provide power to 75 million homes. Utilizing 

EGS involves creating manmade underground reservoirs that are 

engineered out of hot rock deep under the surface. Once the rock 

formations are engineered, fluid is injected to absorb heat which is 

then pumped out to extract energy. 

EGS is in the very early stages of maturation, and federal support is needed to ensure that the full potential of this resource is 

realized. H.R. 2304 authorizes further research development, demonstration, and commercial application of advanced technologies in 

both traditional geothermal sources and EGS. This type of approach is exactly how we can and should be developing and exVerDate Aug 31 2005 02:26 Jun 27, 2007 Jkt 059006 PO 00000 Frm 00054 Fmt 6604 Sfmt 6601 E:\HR\OC\HR203.XXX HR203

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panding R&D of the technologies necessary to utilize EGS. Geothermal energy should be an important component of our country’s 

efforts to combat climate change and achieve energy independence. 

As a domestically produced energy source, expanding geothermal 

will create high-paying jobs at home. 

I hope that my colleagues here today will join me in supporting 

H.R. 2304. I look forward to discussing the amendments, and again 

I thank the Chairman and the Ranking Member for holding this 

markup. I yield back the balance of my time. 

[The prepared statement of Mr. McNerney follows:] 

PREPARED STATEMENT OF REPRESENTATIVE JERRY MCNERNEY

Thank you Mr. Chairman. I want to express my appreciation to both you, and 

Ranking Member Hall, for your support of my bill, H.R. 2304, the Advanced Geothermal Energy Research and Development Act of 2007, and for holding today’s 

markup. 

Mr. Chairman, as you know, one of our foremost priorities in Congress should be 

to encourage the development of clean, domestic, and renewable sources of energy. 

Geothermal should be an important part of the equation, and unlike other renewable resources, geothermal provides uninterrupted base-load power, day and night, 

365 days a year. 

While it is one of the only sources that produces constantly available power, geothermal relies on a less-accessible fuel than naturally occurring sunlight or wind. 

Current technology requires that in order to generate geothermal energy, we have 

to tap into visible surface features and hope that we drill in the right place. 

However, recent studies show that the potential for geothermal is more vast than 

we’ve previously imagined. New geothermal resources, known as Enhanced Geothermal Systems, or EGS, offer the potential to generate as much as 100 Gigawatts 

of power in the next 50 years, which can power 75 million homes. 

Utilizing EGS involves creating man made underground reservoirs that are engineered out of hot rock. Fluid is injected to absorb the heat, which is then pumped 

out to extract energy. 

EGS is in the very early stages of maturation, and federal support is needed to 

ensure that the full potential of this resource is realized. 

H.R. 2304 authorizes further research, development, demonstration, and commercial application of advanced technologies to develop both traditional geothermal 

sources and EGS. This type of approach is exactly how we can, and should, be working to expand R&D of the technologies necessary to fully utilize EGS. 

Geothermal energy should be an important component of our country’s efforts to 

combat climate change and achieve energy independence. As a domestically-produced energy source, expanding geothermal will also create high paying jobs at 

home. I hope that my colleagues here today will join me in supporting H.R. 2304, 

and I again thank the Chairman for holding this markup. I yield back the balance 

of my time. 

Chairman GORDON. Thank you, Mr. McNerney. Mr. Hall is recognized. 

Mr. HALL. Mr. Chairman, this amendment——

Chairman GORDON. Mr. Hall tells me——

Mr. HALL. The bill is great. 

Chairman GORDON. Are there similar remarks that anyone 

would like to make? 

We need to move on today, but let me just quickly say that I 

have seen firsthand the benefit of geothermal. In Sumner County, 

a place called Portland started using geothermal and now it is over 

a lot of the areas in my district where the schools are using geothermal. What they are finding is within about three years, 

through lower rates of energy, they are paying for putting these 

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The other thing, just for your information, if I were you, I would 

be an advocate of this at home; but for your information, I have 

got a bill that is going through Resources Committee that will help 

really inventory our geophysical nature of our United States to better determine where are those areas where geothermal could be 

used, where could sequestration be used, all these sorts of things. 

So geothermal is something that I think we can all talk about at 

home. It is real and it is good. 

Is there anyone else that would like to speak? Ms. Woolsey is 

recognized. 

Ms. WOOLSEY. Thank you, Mr. Chairman, and thank you and 

Mr. McNerney for this great H.R. 2304 legislation. 

Geothermal energy, as we all know, has huge potential to supply 

us with a clean, reliable, and renewable source of energy. And already in some parts of the country, geothermal energy is making 

a big contribution to meeting our energy needs. 

Just outside of my district, north of Santa Rosa, are some of the 

largest and most readily available reserves in geothermal energy in 

the country. The geysers, as they are called, comprise 30 square 

miles along the Sonoma and Lake County border and provide 

enough electricity to meet the energy needs of one million homes. 

Imagine, one million households running on electricity produced by 

steam that naturally occurs in the ground. 

What is even better for Northern California and for my district 

is that in order to produce more steam, the City of Santa Rosa, 

which is the largest city in my district, pumps treated wastewater 

out to the geysers to help create more steam, which then produces 

more electricity. It is a tremendous use of resources, and we are 

really proud of it in our district. It actually prevents Santa Rosa 

from having to put more wastewater in the Russian River which 

is the drinking water source for my entire district. And I mention 

this because in creating clean and renewable energy, we also can 

point out the possible geothermal connection, and I am 100 percent 

for this legislation and I really commend Mr. McNerney for introducing this bill. Aren’t we glad he is on this committee? 

[The prepared statement of Ms. Woolsey follows:] 

PREPARED STATEMENT OF REPRESENTATIVE LYNN WOOLSEY

Mr. Chairman, thank you for bringing H.R. 2304, the Advanced Geothermal Energy Research and Development Act, before the Committee to be marked up. 

Geothermal energy has huge potential to supply us with a clean, reliable, and renewable source of energy. Already in some parts of the country, geothermal energy 

is making a big contribution to meeting our energy needs. 

Just outside of my district in northern California, are some of the largest and 

most readily available reserves of geothermal energy in the country. The geysers, 

as they are called, comprise 30 square miles along the Sonoma and Lake County 

border and provide enough electricity to meet the energy needs of one million 

homes. Imagine that . . . one million households running on electricity produced by 

steam that naturally occurs in the ground. 

What’s even better is that in order to produce more steam, the city of SANTA 

ROSA, which is the largest city in my district, pumps treated wastewater out to the 

geysers to help create more steam, which then produces more electricity. It’s a tremendous use of resources that I’m really proud of. 

I mention these things because I’m proud of what is being done to create clean 

and renewable energy in my own district, but also to point out what is possible with 

geothermal energy. For too long, geothermal energy has taken a back seat in the 

public’s mind and in Congressional policy as an alternative source of energy. 


ccoleman on PRODPC75 with HEARING
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Mr. Chairman, I commend Rep. McNerney for introducing this bill and I am 

proud to support it here today. The time has come to research and invest in geothermal energy and H.R. 2304 is a good start to get us on the right path. 

Thank you and I yield back the balance of my time. 

Chairman GORDON. Thank you, Ms. Woolsey. I want you to know 

that Mr. Hall thought you said geezer, but I told him that wasn’t 

the case and so we can move along with a cordial markup here. 

So I ask unanimous consent that the bill is considered as read 

and open to amendment at any point and that the Members proceed with amendments in the order of the roster. Without objection, so ordered. 

The first amendment on the roster is an amendment offered by 

the distinguished Ranking Member, Mr. Hall. Are you ready to proceed with your amendment? 

Mr. HALL. No, after I take my medicine I will. I am going to 

watch Ben Matlock. 

Mr. Chairman, I have an amendment at the desk, I think. 

The CLERK. Amendment to H.R. 2304 offered by Mr. Hall of 

Texas. 

Chairman GORDON. The gentleman is recognized to explain the 

amendment. 

Mr. HALL. Mr. Chairman, this amendment will fill a major gap 

in the pending legislation. In May of 2006, the National Renewable 

Energy Laboratory, I’ll refer to it as NREL for brevity, held a workshop of national experts on geothermal energy. The workshop produced a report that estimates the potential of the full range of geothermal resources. Included in that estimate were two important 

resource categories that the pending legislation, H.R. 2304, would 

leave for future studies. That’s oil field, co-production, and 

geopressured resources. The NREL workshop estimated that in the 

next 20 years, these two resources, co-production and geopressured, 

could provide as much as 70,000 megawatts of new power which 

would approach 10 percent of our total national electric power 

needs. In addition, substantial supplies of gas could be recovered 

from geopressured resources. This amendment proposes to establish a demonstration program to prove the feasibility of co-producing geothermal power from oil and gas fields. Based upon the 

work of scientists at Southern Methodist University and other research institutions, this has become an exciting, new area of research into new energy production. SMU researchers have documented that large numbers of hot water and great amounts of hot 

water are produced by existing oil and gas wells. In 2002, Texas 

produced over 12 billion barrels of wastewater, often hot, as a byproduct of oil and gas extraction and re-injected the water into the 

ground at a cost to the producer. In West Texas, for example, for 

every barrel of oil produced, nearly 100 barrels of hot water are coproduced. To the oil industry, producing hot water is at best a nuisance. It is difficult to handle, costs money to pump, and has to be 

re-injected at an additional cost. Considering the hot water estimates of oil and gas wells throughout the country, Texas alone 

could produce between 400 and 2,200 megawatts of geothermal 

power assuming the average temperature produced is between 200 

and 300 degrees Fahrenheit. 


ccoleman on PRODPC75 with HEARING
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While the extent of oil field co-production is still being assessed, 

research to date has identified numerous other states where significant hot water is produced from oil and gas wells including California, Florida, West Virginia, Colorado, Wyoming, Montana, North 

Dakota, New Mexico, Oklahoma; and Utah and for the Chairman’s 

benefit, I am sure it is also in Tennessee. I just didn’t look there. 

Geopressured resources, a combination of hot brine and trapped 

gas under high pressure, are present in several areas of the country ranging from California and the Dakotas to Texas, Louisiana, 

and Alabama. The prime resource is considered to be in the area 

around the Gulf of Mexico both onshore and offshore. From 1975 

to 1990, the U.S. Department of Energy invested over $200 million 

in geothermal research. In Texas and Louisiana, they built a power 

plant using a converted gas well in Brazoria County during 1989 

and 1990. The project was successful, but after six months of operation, the power plant was dismantled because of the low price of 

oil and gas at that time made geothermal energy uncompetitive. 

Today, gas prices are much higher than in 1990, and we are now 

increasingly importing gas from overseas. The high cost is a burden 

on the economy, and the prospect of becoming dependent upon 

OPEC for major parts of our natural gas supplies has obvious national security implications. Yet, in the geopressured resources of 

the Gulf and elsewhere, we have enormous untapped energy potential. Estimates of recoverable gas from these resources range from 

150 TCF to 5,000. That is 5,000 trillion cubic feet. The U.S. consumed 22.4 TCF of gas in 2002. The geopressured resources hold 

between seven and 225 years’ supply of gas for the entire U.S. at 

2002 levels of demand. To put the geopressured resource potential 

into another perspective, when DOE was actively examining the 

geopressured geothermal resource in the 1980s, a leading researcher estimated that for the northern Gulf of Mexico, recoverable resource could exceed 1,000 TCF of gas. 

According to the latest United States Geological Survey estimate 

from 1995, the total technically recoverable volume of conventional 

and unconventional gas in the U.S. excluding geopressured brines 

and gas hydrates is at 1,073 TCF. If the effort envisioned by this 

amendment to bring new technology to bear on producing 

geopressured resources is successful, it could double the total recoverable natural gas in the United States. 

This amendment, Mr. Chairman, directs the Secretary of Energy 

to hold a design competition to produce state-of-the-art approaches 

to recovering the energy in the geopressured resources. In addition 

to gas, these resources hold tens of thousands of megawatts of potential energy and hot geothermal fluids and hydraulic pressures. 

From the designs submitted, DOE will support completion of the 

full engineering and other technical design work. Then, based upon 

the evaluation of the final designs, the Secretary will be authorized 

to move forward to build a cost-shared demonstration plan using 

the best technology and design. 

I urge my colleagues to support this amendment that helps to 

further not only our renewable energy portfolio but also our domestic supply of natural gas. And I yield back my time. 

Chairman GORDON. Thank you, Mr. Hall. Is there further discussion on the amendment? Mr. McNerney is recognized. 


ccoleman on PRODPC75 with HEARING
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Mr. MCNERNEY. I thank the Ranking Member for this amendment. Using oil field co-production, geopressured methods does 

seem to be a good addition to the intent of the bill, and I think it 

will increase the output and energy content, energy development, 

energy sources for the country, so I fully support the bill and thank 

the Ranking Member for this addition. 

Chairman GORDON. Thank you, Mr. McNerney. Let me just 

quickly conclude by saying this started off as a good bill. It has 

been well-vetted, and it is a better bill because it took an oil-andgas man to—— Mr. HALL. Fossil. Fossil. 

Chairman GORDON. A fossil fuel man to show us a new way to 

look at this. And again, this a better bill for vetting this, and we 

thank you for it. 

And if there are no other——

Mr. HALL. Would you like another reading of my opening statement? 

Chairman GORDON. I will take it to bed with me, thank you. 

Mr. GINGREY. Mr. Chairman, it is your yield. Did you refer to 

him as a fossil man? Is that what I thought? 

Chairman GORDON. We were trying to determine that earlier 

today, but we decided it was fossil fuel, not fossil man. 

If there is no further discussion, the vote occurs on the amendment. All in favor say aye, opposed no. The ayes have it. The 

amendment is agreed to. 

The next three amendments on the roster are offered by the gentleman from Maryland, Mr. Bartlett. 

The Chair supports all these amendments, and in the interest of 

time, I ask unanimous consent to consider these amendments en 

bloc. Without objection, so ordered. 

The gentleman is recognized for five minutes to explain his 

amendment. 

Mr. BARTLETT. Thank you, Mr. Chairman. I want to thank the 

Members and staff on both sides of the aisle for helping to work 

through these three, simple common-sense amendments. The first 

one, amendment 2, simply replaces study with reports to make 

sure that the information is disseminated. The second one is a 

clarifying amendment which changes geopower to geopowering 

America. The third amendment, amendment 4, is a very commonsense amendment. Obviously we will not be able to access geothermal energy without some insult to the environment. This 

amendment simply says that you must weigh that minimal—hopefully minimal impact on the environment with the enormous positive environmental effects of producing energy that provides—that 

produces no greenhouse gases. These are three very simple, common-sense amendments; and I want to thank the Majority very 

much for working with us. 

Chairman GORDON. Is there further discussion on these three 

amendments? If no, we say thank you to Mr. Bartlett for the additions, and the vote occurs on the amendments. All in favor say aye, 

those opposed say no. The ayes have it. The amendment is agreed 

to. 

The fifth amendment on the roster and I guess it is really the 

fifth and sixth is from the gentleman from Texas, Mr. McCaul. And 


ccoleman on PRODPC75 with HEARING
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I will also ask unanimous consent if it is to his satisfaction that 

these two amendments be taken en bloc and he will be allowed to 

describe them. 

Mr. MCCAUL. Thank you, Mr. Chairman, and I will be very brief 

given the late night we had last night and time constraints. I appreciate the opportunity to offer these two amendments. The first 

really requires amending Section 7 to require the Secretary to coordinate with the other DOE R&D programs that focus on drilling 

and related activities. It is good government and cost efficient, and 

then of course the second, amendment 6, amends Section 6 by adding laser-based drilling technology to the EGS program. 

And with that, Mr. Chairman, I will yield back my time. 

Chairman GORDON. Thank you. And the Clerk will please report 

this amendment and the prior amendment. 

The CLERK. Amendments to H.R. 2304 offered by Mr. McCaul. 

Chairman GORDON. I ask unanimous consent that we dispense 

with the reading. Without objection, so ordered. 

The gentleman has explained his amendments. Is there any comment on the amendments? If not, all those in favor of the amendments say aye, those opposed no. The ayes have it. The amendment 

is agreed to. 

All right. The seventh amendment on the roster is offered by the 

gentlelady from Illinois, Ms. Biggert. Are you ready to proceed with 

your amendment? 

Ms. BIGGERT. I have an amendment at the desk. 

Chairman GORDON. The Clerk will report the amendment. 

The CLERK. Amendment to H.R. 2304 offered by Mrs. Biggert. 

Chairman GORDON. I ask unanimous consent to dispense with 

the reading. Without objection, so ordered. 

The gentlelady is recognized for five minutes to explain her 

amendment. 

Ms. BIGGERT. Thank you, Mr. Chairman. In 2000, the distinguished Senate Majority Leader, Harry Reid, joined the Department of Energy in launching a new technology transfer outreach 

initiative called Geopowering the West or GPW. The purpose of the 

GPW program is to use public/private partnerships to bring geothermal heat and power to millions of homes and businesses 

through technology transfer and technical assistance. In partnership with states and local agencies, utilities, universities, geothermal developers, consumer and environmental groups said GPW 

complements the Department of Energy’s Research and Development programs by helping to get geothermal energy technologies 

out of the lab and into the marketplace. And by all accounts, this 

program has been successful which is why the bill before us today 

would expand the program to encompass not just the western 

states but the entire United States and rename the program 

Geopowering America, or GPA. And there was a change at the Subcommittee to add Section 9. But this bill also duplicates much of 

the good this proven program is doing with the creation of two Geothermal Tech Transfer Centers, one east and one west of the Mississippi River. And that is why my amendment would strike the 

section of the bill, creating these two Centers and make the 

Geopowering America program explicitly responsible for performing 


ccoleman on PRODPC75 with HEARING
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these exactly the same tech transfer and technical assistance functions were supposed to do. 

Existing for seven years now, the GPW program already serves 

as a link between DOE’s geothermal research programs and industry as well as others interested in geothermal energy. Using the information that GPW program managers have collected and disseminated over the course of the last seven years, the DOE can 

quickly and effectively transform the Geopowering America program into a true information clearing house for the geothermal energy industry. Therefore, the Department won’t waste a lot of time, 

energy, or money bringing two new Centers on line. 

And finally, by using the existing GPW structure, DOE will be 

able to engage more than just two universities and tech transfer 

activities relating to the geothermal energy. In addition to engaging numerous universities all over the country, the GPA program 

could partner with states, cities, utilities, developers, entrepreneurs, and businesses large and small to facilitate the development and use of geothermal energy. So rather than create a new, 

let us expand and build on a tried and trusted program that works. 

I hope my colleagues see the value of this approach and will support my amendment. 

I yield back the balance of my time. 

[The prepared statement of Ms. Biggert follows:] 

PREPARED STATEMENT OF REPRESENTATIVE JUDY BIGGERT

Thank you, Mr. Chairman. 

In the year 2000, the distinguished Senate Majority Leader, Harry Reid, joined 

the Department of Energy in launching a new technology transfer and outreach initiative, called GeoPowering the West, or GPW. 

The purpose of the GPW program is to use public-private partnerships to bring 

geothermal heat and power to millions of homes and businesses through technology 

transfer and technical assistance. 

In partnership with states and local agencies, utilities, universities, geothermal 

developers, consumer and environmental groups, the GPW complements the Department of Energy’s (DOE) research and development programs by helping get geothermal energy technologies out of the lab and into the marketplace. 

By all accounts, this program has been successful, which is why the bill before 

us today would expand the program to encompass not just the western states, but 

the entire United States, and rename the program GeoPowering America, or GPA. 

But this bill also duplicates much of the good this proven program is doing with 

the creation of two geothermal tech transfer centers—one east and one west of the 

Mississippi River. 

That’s why my amendment would strike the section of the bill creating these two 

centers, and make the GeoPowering America program explicitly responsible for performing exactly the same tech transfer and technical assistance functions the centers were supposed to. 

Existing for seven years now, the GPW program already serves as a link between 

the DOE’s geothermal research programs and industry, as well as others interested 

in geothermal energy. 

Using the information that GPW program managers have collected and disseminated over the course of the last seven years, the DOE can quickly and effectively 

transform the GeoPowering America program into a true information clearinghouse 

for the geothermal energy industry. Therefore, the Department won’t waste a lot of 

time, energy, or money bringing two new Centers online. 

Finally, by using the existing GPW structure, DOE will be able to engage more 

than just two universities in tech transfer activities related to geothermal energy. 

In addition to engaging numerous universities all over the country, the GPA program could partner with states, cities, utilities, developers, entrepreneurs and businesses large and small to facilitate the development and use of geothermal energy. 


ccoleman on PRODPC75 with HEARING
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Rather than create anew, let’s expand and build on a tried and tested program 

that works. I hope my colleagues see the value in this approach, and will support 

my amendment. I yield back the balance of my time. 

Chairman GORDON. Thank you, Ms. Biggert. I understand the 

gentlelady’s concerns, but her amendment, at least in my opinion, 

is not a good substitute for the university-centered program in this 

bill. First, the existing Geopowering the West Program, which the 

gentlelady proposes to task with the scientific data collection, 

among the other activities, has a different and more narrow mission than the intended Centers. We don’t want to try to fit a square 

peg into a round hole. 

In addition, during the hearings we heard on H.R. 2304 there 

was discussion about developing the next generation of scientists, 

engineers, and technicians specializing in geothermal technologies. 

Dr. Jeff Tester, the lead author of the MIT report, The Future of 

Geothermal Energy, stated in his testimony that the prospects for 

geothermal development would be enhanced by connecting the National Research and Development and Demonstration Program to 

education in science and engineering at the college and university 

level as well as professional levels. Making universities a key component of the geothermal helps fulfill this goal. It helps to ensure 

that we have an educated workforce to understand and deploy geothermal technologies. 

Finally, rather than tasking the Federal Government with reinventing the wheel, as the gentlelady suggests in her amendment, 

the bill seeks to capitalize on longstanding geothermal research, 

data collection, and tech transfer expertise at universities around 

the country. For example, Southern Methodist University in Texas, 

the University of Utah, Boise State University, MIT, the Oregon 

Institute for Technology, the University of Oklahoma, and several 

universities in the University of California system. For these reasons, I do not support the gentlelady’s amendment. However, if the 

gentlelady would like to withdraw her amendment, I would be willing to continue to work to address her concerns. 

Are there any additional comments on the gentlelady’s amendments? Mr. McNerney. 

Mr. MCNERNEY. Mr. Chairman, I would like to strike the last 

word. I, like the Chairman, I do understand the gentlelady’s concerns, but my intent was to create two Centers, one in each of the 

very different geophysical characters of the country. On the east 

side of the country, the geothermal sources are much different than 

on the western side. I think it is important to establish a separate 

entity east of the Mississippi or east of the Rockies anyway that 

will look at developing that particular source, that particular kind 

of geothermal energy; and I also like the idea of having competitive 

bidding or within the Department of Energy to decide what is the 

best location. So I oppose the amendment and——

Ms. BIGGERT. Will the gentleman yield? 

Mr. MCNERNEY. Yes. 

Ms. BIGGERT. I do think that, you know, education is very important and I think that the GPW, that it is engaged in the tech transfer activities but it also is very much a part of it is the education 

facility. And I think it is important to remind my colleagues that 

this committee already passed the H.R. 85, the Energy Technology 


ccoleman on PRODPC75 with HEARING
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Transfer Bill, which was sponsored by Mr. Miller of North Carolina 

and me and was then approved by the House. And I think that 

rather than creating the transfer Centers to serve the country for 

each specific energy technology, that this directed to consider all of 

these. I just think more Centers just to focus on one is not what 

we need, but we already have the means to do that and that if 

President Bush, in the Energy Policy Act of 2005, created a consortium which utilizes comprehensive multi-disciplinary approach to 

geothermal research and education, focusing on exploration, fullscale utilization, and transfer training of the next generation of 

geothermal professionals, and that was in the Energy Policy Act of 

2005. 

Mr. HALL. Will the gentlelady yield? 

Ms. BIGGERT. It is not——

Chairman GORDON. The gentleman from California has the time, 

but certainly Mr. Hall is recognized for five minutes. 

Mr. HALL. I just want to say I totally agree with the author of 

this, and we support it on this side. And if she decides not to proceed with it or to withdraw it, we certainly want to be a part of 

working toward something that is favorable and acceptable to the 

author. But we on this side of the docket urge passage of this 

amendment. 

Chairman GORDON. Is there further discussion on the amendment? If no, the vote occurs on the amendment. All in favor say 

aye, opposed no. The no’s appear to have it. The amendment is not 

agreed to. 

Ms. BIGGERT. Mr. Chairman, I have an amendment at the desk. 

Chairman GORDON. All right. The Clerk will report the amendment. 

The CLERK. Amendment to H.R. 2304 offered by Mrs. Biggert of 

Illinois. 

Chairman GORDON. I ask unanimous consent to dispense with 

the reading. Without objection, so ordered. 

The gentlelady is recognized for five minutes to describe her 

amendment. 

Ms. BIGGERT. Thank you, Mr. Chairman. This amendment addresses an issue that I raised during the Subcommittee markup 

about Section 8 of the bill which creates two new Geothermal Tech 

Transfer Centers, one east and one west of the Mississippi River. 

I am concerned that by using the Mississippi River as the dividing 

line this section of the bill splits the Midwest in an awkward way. 

According to the Illinois State Geological Survey, the geology of the 

Great Plains between the Mississippi River and the Rocky Mountains is more like the geology of the Midwest than the geology of 

the Rocky Mountains. And while there are few if any hydrothermal 

resources in the Great Plains or the Midwest, this region is home 

to unconventional geothermal energy resources that could be 

tapped using enhanced geothermal systems. That is why I believe 

that any university east of the Rocky Mountains rather than east 

of the Mississippi should be eligible to compete to host the enhanced geothermal system center that this bill would establish. 

And that is what my amendment would do. Schools in North and 

South Dakota, Minnesota, Nebraska, Iowa, Kansas, Missouri, Oklahoma, Arkansas, and Texas that would otherwise have no chance 


ccoleman on PRODPC75 with HEARING
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of I think landing the hydrothermal tech transfer center but would 

have a real chance to host the Enhanced Geothermal System Tech 

Transfer Center if my amendment passes. I wish I could say that 

this amendment was my idea but it is actually based on a recommendation by the Director of the Geothermal Laboratory at 

Southern Methodist University. 

So I would urge my colleagues to support this amendment. I 

yield back the balance of my time. 

[The prepared statement of Ms. Biggert follows:] 

PREPARED STATEMENT OF REPRESENTATIVE JUDY BIGGERT

This amendment addresses an issue I raised during the Subcommittee markup 

about Section 8 of this bill, which creates two new geothermal tech transfer centers—one east and one west of the Mississippi River. 

I am concerned that by using the Mississippi River as the dividing line, this section of the bill splits the Midwest in an awkward way. 

According to the Illinois State Geological Survey, the geology of the Great Plains 

of the Mississippi River and the Rocky Mountains is more like the geology of the 

Midwest than the geology of the Rocky Mountains. 

And while there are few, if any hydrothermal resources in the Great Plains or the 

Midwest, this region is home to unconventional geothermal energy resources that 

could be tapped using enhanced geothermal systems. 

That’s why I believe any university east of the Rocky Mountains—rather than 

east of the Mississippi River—should be eligible to compete to host the Enhanced 

Geothermal Systems Center that this bill would establish. 

That’s what my amendment would do. Schools in North and South Dakota, Minnesota, Nebraska, Iowa, Kansas, Missouri, Oklahoma, Arkansas and Texas that 

would otherwise have no chance of landing the hydrothermal tech transfer center 

would have a real chance to host the enhanced geothermal system tech transfer center if my amendment passes. 

I wish I could say this amendment was my idea, but it is actually based on a recommendation by the Director of the Geothermal Laboratory at Southern Methodist 

University. 

I urge my colleagues to support this amendment, and I yield back the balance of 

my time. 


ccoleman on PRODPC75 with HEARING
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Chairman GORDON. I thank the gentlelady. You know, we traditionally think of east of the Mississippi, west of the Mississippi. It 

took a Midwesterner to break us out of this mindset. You have a 

good amendment, and we thank you for it. And I would recommend 

its passage. 

Is there further discussion on the amendment? If no, the vote occurs on the amendment. All in favor say aye, opposed no. The aye’s 

have it. The amendment is agreed to. 

Are there other amendments? 

Mr. MATHESON. Mr. Chairman, I have an amendment at the 

desk. 

Chairman GORDON. Mr. Matheson is recognized. 

Mr. MATHESON. Are we going to dispense with the reading of the 

amendment or——

Chairman GORDON. The Minority has not had adequate time to 

see the amendment——

Mr. MATHESON. I understand. 

Chairman GORDON [continuing]. So it will not be read. 


ccoleman on PRODPC75 with HEARINGhr2304o.eps
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Mr. MATHESON. Let me just give about 30 seconds, and I will 

yield back to the Chairman. This is an amendment that has to do 

with recognizing the importance of the Intermountain West Geothermal Consortium. It was initially authorized in the Energy Policy Act of 2005. It is focused on providing science and technology 

to discover and develop new geothermal resources in the Intermountain West. 

My amendment would simply authorize $5 million annually 

through 2012 for this consortium. And I yield to the Chairman. 

Chairman GORDON. Thank you, Mr. Matheson. Let me just put 

things in context here. Mr. Matheson and his staff have put together what appears to be a good amendment and a good-faith 

amendment, but like all of us, it sometimes takes things to get 

them together. We did not receive this until just really a few moments ago. The Minority has not had the time to fully vet it, and 

I think to a good process that has made a good bill today and I appreciate you getting it on the table. We are going to now vet it and 

I hope that this will be a part of the manager’s amendment when 

it comes to the Floor at a later date. 

Mr. MATHESON. I appreciate that, and Mr. Chairman, with that, 

I understand and I am happy to withdraw the amendment. 

Chairman GORDON. I thank you, Mr. Matheson. Are there other 

amendments? If not, the vote is on the bill, H.R. 2304 as amended. 

Mr. DIAZ-BALART. Mr. Chairman? 

Chairman GORDON. All those——

Mr. DIAZ-BALART. Mr. Chairman, I believe I have an amendment. 

Chairman GORDON. Who seeks recognition? Oh, excuse me. 

Mr. DIAZ-BALART. I believe I have an amendment on the desk, 

Mr. Chairman. 

Chairman GORDON. I think it’s on the next bill. 

Mr. DIAZ-BALART. I stand corrected, Mr. Chairman. My apologies. 

Chairman GORDON. Okay. That’s all right. I’ll try again. If there 

are no further amendments, all those in favor of H.R. 2304 say aye. 

All those opposed say no. In the opinion of the Chair, the ayes have 

it. 

I recognize Mr. Hall to offer a motion. 

Mr. HALL. Mr. Chairman, I move that the Committee favorably 

report H.R. 2304 as amended to the House with a recommendation 

that the bill as amended do pass. Furthermore, I move that the 

staff be instructed to prepare the legislative report, make necessary 

technical and conforming changes, and that the Chairman take all 

necessary steps to bring the bill before the House for consideration. 

I yield back. 

Chairman GORDON. The question is on the motion to report the 

bill favorably. Those in favor of the motion will signify by saying 

aye, opposed no. The ayes have it. The bill is favorably reported. 

Without objection, the motion to reconsider is laid upon the table. 

The Members will have two subsequent calendar days in which to 

submit supplemental Minority or additional views on the measure, 

ending Monday, June 18, at 9:00 a.m. I move pursuant to clause 

1 of Rule 22 of the Rules of the House of Representatives that the 

Committee authorize the Chairman to offer such motions as may 

be necessary in the House to adopt and pass H.R. 2304, the AdVerDate Aug 31 2005 02:26 Jun 27, 2007 Jkt 059006 PO 00000 Frm 00066 Fmt 6604 Sfmt 6601 E:\HR\OC\HR203.XXX HR203

ccoleman on PRODPC75 with HEARING
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vanced Geothermal Energy Research and Development Act of 2007, 

as amended. Without objection, so ordered. 

That’s a good bill. Everybody should go home and take credit for 

it. 

I want to thank the Members for their attendance, and this concludes our markup. 

[Whereupon, at 11:25 a.m., the Committee was adjourned.] 


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Appendix: 

SUBCOMMITTEE ON ENERGY AND ENVIRONMENT MARKUP REPORT; 

H.R. 2304, AS AMENDED BY THE SUBCOMMITTEE ON ENERGY AND

ENVIRONMENT; AMENDMENT ROSTER


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1 Ibid, p. 1–17. 

COMMITTEE ON SCIENCE AND TECHNOLOGY 

SUBCOMMITTEE ON ENERGY AND ENVIRONMENT 

REPORT FROM SUBCOMMITTEE MARKUP 

JUNE 6, 2007 

H.R. 2304, THE ADVANCED GEOTHERMAL ENERGY

RESEARCH AND DEVELOPMENT ACT OF 2007 

I. Purpose 

The purpose of the H.R. 2304 is to direct the Secretary of Energy to conduct a 

program of research, development, demonstration, and commercial application for 

geothermal energy, and establish technology transfer centers to disseminate related 

knowledge. 

II. Background and Need for Legislation 

Geothermal energy is heat from the Earth’s core that is trapped in the earth’s crust. It can be tapped and used either to generate electricity or for direct use (e.g., 

heating buildings, greenhouses, or aquaculture operations). It is very attractive as 

an energy resource because it is not only clean and renewable, but it can also provide continuously dispatchable, base load power, day and night, 365 days a year. 

Geothermal is also a domestic resource, creating domestic jobs and increasing national security. 

In locations where high temperatures coincide with naturally-occurring, underground, fluid-filled reservoirs, the resulting hot water or steam can be tapped directly to run a geothermal power plant. Such locations are referred to as hydrothermal (hot water) resources, and they have been the focus of traditional geothermal energy development. The United States is the world’s largest producer of 

electric power from geothermal energy with about 2,800 megawatts (MW) of geothermal electrical generating capacity is connected to the grid, mostly in California 

and the Intermountain West, where high grade hydrothermal systems have been 

found close to the surface. However, significant hydrothermal potential remains untapped. The U.S. Geological Survey (USGS) estimates there is between 95,000 MW 

and 127,000 MW of hydrothermal resources sufficient for electrical power generation 

in the United States. However, many of these resources remain undiscovered and 

unconfirmed. 

Even that large number, however, pales in comparison to the potential of Enhanced Geothermal Systems (EGS). EGS differ from hydrothermal systems in that 

they lack either a natural reservoir (i.e., the cracks and spaces in the rock through 

which fluid can circulate), the fluid to circulate through the reservoir, or both. In 

EGS development, sometimes referred to as ‘‘heat mining,’’ an injection well is 

drilled to a depth where temperatures are sufficiently high; if necessary, a reservoir 

is created, or ‘‘cracked,’’ in the rock by using one of various methods of applying 

pressure; and a fluid is introduced to circulate through the reservoir and absorb the 

heat. The fluid is extracted through a production well, the heat is used to run a 

geothermal power plant or for some direct use application, and the fluid is reinjected 

to start the loop all over again. 

Although it has been the subject of preliminary investigations in the United 

States, Europe, and Australia, the EGS concept has yet to be demonstrated as commercially viable. However, experts familiar with the resource and the associated 

technologies believe the technical and economic hurdles are surmountable. In January, 2007, a panel led by the Massachusetts Institute of Technology produced a report entitled The Future of Geothermal Energy, which contained an updated assessment of EGS potential in the United States. The authors of the report conservatively estimate that two percent of the EGS resource could be economically recoverable—an amount more than 2,000 times larger than all the primary energy consumed in the United States in 2005.1 If the technological and economic hurdles to 

EGS development can be overcome, the potential of the resource is enormous. 

The United States has been involved in geothermal energy R&D since the 1970s. 

The program reached a high point in FY 1980 with funding of approximately $310 

million (2006 dollars). Since then, funding has gradually declined to its present level 

of $5 million (2006 dollars) in FY 2007. The Administration has attempted to phase 

out the geothermal program entirely, requesting zero dollars in FY 2007 and FY 

2008. 


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As justification for terminating the geothermal program, the Administration has 

claimed that geothermal technologies are mature—a claim strongly disputed by researchers and the geothermal industry. Proponents point out that geothermal is not 

a single technology, but a complex resource, available in different grades in different 

places. While the technologies to tap the highest grade resources may indeed be mature (some have provided electric power at competitive rates for decades) these high 

grade locations represent a very small fraction of the total resource. To develop technologies capable of tapping lower grade resources, further R&D is essential. Recent 

indications suggest DOE officials may be open to re-examining investment in geothermal R&D, particularly in light of the opportunities in Enhanced Geothermal 

Systems that were highlighted in the recent MIT report: The Future of Geothermal 

Energy. 

H.R. 2304 is intended to reinvigorate geothermal energy R&D in the United 

States and unlock the potential of this vast resource, across the full spectrum of 

grades, for the benefit of the Nation. 

III. Subcommittee Actions 

On May 14, 2007, Rep. Jerry McNerney, for himself and Science and Technology 

Committee Chairman Bart Gordon, and Energy and Environment Subcommittee 

Chairman Nick Lampson, introduced H.R. 2304, the Advanced Geothermal Energy 

Research and Development Act of 2007. 

The Energy and Environment Subcommittee held a hearing on Thursday, May 17, 

2007 to hear testimony on H.R. 2304 (and also H.R. 2313, the Marine Renewable 

Energy Research and Development Act of 2007) from the following witnesses: 

• Dr. Jefferson Tester, the HP Meissner Professor of Chemical Engineering 

at the Massachusetts Institute of Technology, an internationally recognized 

expert in Enhanced Geothermal Systems and Chair of the MIT-led panel that 

produced the report: The Future of Geothermal Energy, released in January, 

2007. 

• Mr. Paul Thomsen, Public Policy Manager for Ormat Technologies, Inc., a 

leading provider of geothermal exploration, development, and power conversion technologies. Mr. Thomsen testified on behalf of both Ormat and the 

Geothermal Energy Association. 

• Mr. Nathanael Greene, a Sr. Energy Policy Specialist with the Natural Resources Defense Council with expertise in utility regulation, renewable energy, energy taxes, energy efficiency, and the environmental impacts of energy production. 

• Dr. Annette von Jouanne, Professor of Energy Systems and Power Electronics in the School of Electrical Engineering and Computer Science at Oregon State University (OSU). Dr. von Jouanne also leads the Wave Energy 

program at OSU. 

• Mr. Sean O’Neill, President of the Ocean Renewable Energy Coalition 

(OREC), a trade association representing the marine renewable energy industry. 

The Subcommittee on Energy and Environment met to consider H.R. 2304 on 

June 6, 2007 and consider the following amendment to the bill: 

1. On behalf of Mr. McNerney which, in addition to changes of a technical nature, revises instructions for establishing the federal/non-federal cost-sharing 

ratios for projects funded under the Act to provide greater leeway to tailor 

cost-sharing levels to individual projects; allows for a competitive bidding 

process to play a role in determining the cost-share ratio for a projects; eliminates cost-sharing requirements for research that is of a ‘‘fundamental or 

basic nature’’; establishes an R&D program to develop technologies and techniques to mitigate or avoid adverse environmental impacts of geothermal energy development, production, or use; directs the Secretary to coordinate 

with the Environmental Protection Agency to study the environmental impacts of geothermal energy development, production, and use. directs the 

Secretary to give priority consideration for funding, where appropriate, to 

project proposals that include provisions to study the project’s environmental 

impacts; encourages the Enhanced Geothermal Systems Technology Transfer 

Center established in the bill to seek opportunities for coordination with appropriate international partners; and expands the scope of an existing, domestic geothermal technology transfer program from the western U.S. to the 

entire country. The amendment was agreed to by voice vote. 


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Mr. Inglis moved that the Subcommittee favorably report the bill, H.R. 2304, to 

the Full Committee on Science and Technology. The motion was agreed to by a voice 

vote. 

IV. Summary of Major Provisions of the Bill 

H.R. 2304 authorizes $80 million a year for each of the fiscal years 2008–2012 

($400 million total) for research, development, demonstration, and commercial application of technologies to locate, characterize, and develop geothermal resources, both 

hydrothermal systems and enhanced geothermal systems. The bill also establishes 

a research program, to be coordinated with EPA, to identify potential environmental 

impacts of geothermal energy production, and a program of RDD&CA of technologies to mitigate or avoid adverse environmental impacts. The bill provides guidance for the Secretary to use in evaluation of project proposals and for the establishment of federal/non-federal cost-sharing ratios for said projects. The bill establishes 

or expands several technology transfer programs to promote dissemination of information and best practices on geothermal energy development, both within the geothermal industry and to appropriate State agencies. Finally, the bill requires that 

DOE follow the development of more advanced concepts and technologies related to 

geothermal energy development and report back to the Congress every other year 

on the current state of such advanced technologies. 

V. Section by Section Analysis of the Bill, as reported by the Subcommittee 

Section 1. Short Title 

Act may be cited as the ‘‘Advanced Geothermal Energy Research and Development Act of 2007.’’

Section 2. Findings 

Geothermal energy is a renewable resource capable of providing base-load power 

generation (and other applications) with minimal environmental impact. The geothermal energy potential in the United States is widely distributed and vast in size, 

yet it remains barely tapped. Sustained and expanded funding for research, development, demonstration, and commercial application programs is needed to improve the 

technologies to locate, characterize, and develop geothermal resources. 

Section 3. Definitions 

Provides definitions for the following terms used in the Act: ‘Engineered’ (as it 

pertains to enhanced geothermal systems), ‘Enhanced Geothermal Systems,’

‘Geofluid,’ ‘Geothermal,’ ‘Hydrothermal,’ ‘Secretary,’ and ‘Systems Approach.’

Section 4. Hydrothermal Research and Development 

Instructs the Secretary to support research, development, demonstration, and 

commercial application of technologies designed to assist in locating and characterizing undiscovered hydrothermal resources. 

The specification of programs in subsection (b) should not be construed as constraining the prerogative of the Secretary to use authority granted under this section to support other types of hydrothermal RDD&CA. For example, it would be 

within the purview of this section to support projects designed to demonstrate the 

geothermal potential of co-produced water (water that is produced as a byproduct 

of oil & gas production), of abandoned oil & gas wells no longer in production, or 

of geopressured resources. 

This section also establishes an ‘‘industry-coupled exploratory drilling’’ program, 

which is a cost-shared program with industry partners to demonstrate and apply 

advanced exploration technologies in the field. This is not intended as a program 

of research and development of drilling technologies; rather, it is intended as a demonstration program to apply existing technologies—especially the most advanced 

technologies available—in a practical setting. 

Section 5. General Geothermal Systems Research and Development 

The programs under Section 5 are intended to support the development of technologies applicable to the development of all geothermal systems, whether they be 

considered hydrothermal systems, enhanced geothermal systems, or some hybrid. 

Subsection (a) establishes a program of research, development, demonstration, and 

commercial application of system components and materials capable of withstanding 

the extreme environment (high temperatures and corrosiveness) in geothermal 

wells. Such components for RDD&CA shall include, but not be limited to those listed 

in the subsection. In practice, any subsurface component that is essential to drilling 

to extreme depths and temperatures shall qualify for RDD&CA under this section. 


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Subsection (b) establishes a program of RDD&CA of improved models of geothermal reservoir performance. The models can be of any useful type, whether numerical, computer-based, or other. 

Subsection (c) establishes a program of RDD&CA of technologies to mitigate or 

preclude adverse environmental impacts from geothermal energy development, production or use. It also directs the Secretary, in conjunction with the Office of Research and Development at EPA, to study what such impacts of geothermal energy 

development might be, and ensure that the program in (c)(1) addresses such impacts. 

Section 6. Enhanced Geothermal Systems Research and Development 

Subsection (a) instructs the Secretary to support a program of RDD&CA of technologies necessary to advance EGS to a state of commercial readiness. 

Subsection (b) establishes a cost-shared, field-based program of research, development, and demonstration of technologies to create and stimulate EGS reservoirs. 

The purpose of this subsection is to promote RD&D of functional EGS systems capable of producing hot geofluid that could be used for electric power production or direct use. (However, this section deliberately stops short of authorizing demonstration of the actual power conversion step. The aim is strictly to create a producing 

reservoir.) The subsection stipulates that a minimum of five sites, representing different geologic conditions, be selected to ensure that demonstration is conducted 

under different conditions. More than five sites can be selected as long as funds are 

available. 

Section 7. Guidelines for Cost Sharing and Proposal Evaluation 

Establishes certain guidelines for the Secretary to use in evaluating proposals and 

for determining the federal/non-federal cost-share ratios of projects funded under 

this Act. The intent of this section is that the Secretary establish, in writing, the 

criteria that are used for determining project selections, and the cost-share ratios. 

Section 8. Centers for Geothermal Technology Transfer 

Provides for the creation of two Centers of technology transfer to function as information clearinghouses for the geothermal industry, dedicated to collecting and sharing industry-relevant information. One Center, to be located in the western U.S., 

shall be dedicated to hydrothermal-specific development information; the other Center, located in the eastern U.S., shall be dedicated to EGS-specific development information. Although the section specifies a western Center and an eastern Center, 

both centers are intended to serve the entire Nation with regard to their respective 

areas of expertise. To the extent that those areas of expertise overlap, it is okay, 

and useful, for the two Centers to concern themselves with duplicate information. 

The eastern Center, dedicated to Enhanced Geothermal Systems, is specifically encouraged to seek opportunities for international cooperation since there is significant 

research happening in this area in Europe, Asia, and Australia, and other countries 

may establish programs in the future. 

Section 9. GeoPower America 

Expands the scope of an existing, domestic geothermal technology transfer program from the western U.S. to the entire country, so as to encourage the transfer 

and adoption of appropriate geothermal energy technologies throughout the entire 

United States. 

Section 10. Study on Advanced Uses of Geothermal Energy 

Requires the Secretary to track technological advances impacting geothermal energy development and advanced uses of geothermal energy and fluids, and report 

back to the Committee every other year for the next five years (a total of three 

times). The report is not intended to be limited to the topics listed here. This report 

is intended to focus on areas of potential future interest for the geothermal program, 

but these areas are not considered appropriate candidates for federal RDD&CA support at the current time, owing to their early stages of development and speculative 

nature. The bi-annual tracking study is intended to highlight when these technologies become less speculative and therefore more appropriate candidates for federal support. 

Section 11. Applicability of Other Laws 

Affirms the applicability of all requirements under federal and State laws, including environmental laws, to projects undertaken under this Act. 

Section 12. Authorization of Appropriations 

Authorizes appropriations of $80,000,000 for each of the fiscal years 2008 through 

2012. 


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