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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5288 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5288

 To require the Secretary of Energy to establish a program to provide 
  grants to States to award grants for the establishment of networked 
    geothermal heating and cooling systems, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2024

  Ms. Klobuchar (for herself and Ms. Smith) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL

 
 To require the Secretary of Energy to establish a program to provide 
  grants to States to award grants for the establishment of networked 
    geothermal heating and cooling systems, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Grants Enabling Optimized Thermal 
Handling from Energy Recovered from Mediums that are Aquatic or Land-
based Act of 2024'' or ``GEOTHERMAL Act of 2024''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Baseline energy usage intensity.--The term ``baseline 
        energy usage intensity'' means--
                    (A) the annual site energy usage intensity (as 
                measured in British thermal units per year per square 
                foot) for a 12-month period ending as of any date 
                during the 24-month period immediately preceding the 
                installation of a networked geothermal heating and 
                cooling system at the site; and
                    (B) in the case of new construction, the modeled 
                site energy usage intensity of the new construction, 
                subject to the condition that the project shall be 
                minimally code compliant.
            (2) Eligible recipient.--The term ``eligible recipient'' 
        means--
                    (A) a nonprofit entity that owns--
                            (i) a building that may be connected to a 
                        networked geothermal heating and cooling 
                        system; or
                            (ii) multiple buildings that may be 
                        connected by and to a networked geothermal 
                        heating and cooling system;
                    (B) an institution of higher education;
                    (C) a municipality or neighborhood association;
                    (D) an owner of a multifamily housing development 
                or mixed-use community development with at least 50-
                percent low-income or moderate-income households;
                    (E) a wastewater treatment authority seeking to 
                install a networked geothermal heating and cooling 
                system that would utilize waste heat from greywater, 
                sewage, or treated sewage effluent;
                    (F) an electric utility (as defined in section 3 of 
                the Federal Power Act (16 U.S.C. 796)), an electric 
                cooperative (as defined in that section), or a natural 
                gas utility seeking to install a networked geothermal 
                heating and cooling system as a thermal distribution 
                demonstration project;
                    (G) a third-party developer seeking to install a 
                networked geothermal heating and cooling system on 
                behalf of any entity described in subparagraphs (A) 
                through (F); and
                    (H) a consortium of 2 or more entities described in 
                subparagraphs (A) through (G).
            (3) Geothermal heat pump.--The term ``geothermal heat 
        pump'' means a heat pump that uses the thermal energy of the 
        ground or water to provide space heating, space cooling, water 
        heating, or a combination of those functions.
            (4) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
            (5) Networked geothermal heating and cooling system.--The 
        term ``networked geothermal heating and cooling system'' means 
        a system--
                    (A) that provides space heating, space cooling, 
                water heating, or a combination of those functions to a 
                set of buildings;
                    (B) that utilizes--
                            (i) heat pumps that use, as a heat source 
                        or sink, the ground, groundwater, surface 
                        water, industrial process or commercial 
                        building waste heat, greywater, sewage, or 
                        treated sewage effluent;
                            (ii) direct use of geothermal heat; or
                            (iii) a combination of the systems 
                        described in clauses (i) and (ii);
                    (C) that is a stand-alone system or is coupled with 
                another energy system;
                    (D) the ground-source or waste heat component of 
                which is designed to provide at least 90 percent of the 
                combined annual heating and cooling energy (as measured 
                in British thermal units per year); and
                    (E) that may use--
                            (i) subsurface or surface thermal storage 
                        in the form of borehole thermal energy storage, 
                        aquifer thermal energy storage, reservoir 
                        thermal energy storage, thermal storage tanks, 
                        or other thermal storage; and
                            (ii) waste heat or other thermal discharge 
                        from commercial, institutional, or public 
                        buildings or industrial facilities as an 
                        additional heat source.
            (6) Program.--The term ``program'' means the program 
        established under section 3(a).
            (7) Registered apprenticeship program.--The term 
        ``registered apprenticeship program'' means an apprenticeship 
        program registered under the Act of August 16, 1937 (50 Stat. 
        664, chapter 663; 29 U.S.C. 50 et seq.) (commonly known as the 
        ``National Apprenticeship Act''), that meets the standards of 
        part 29 and part 30 of title 29, Code of Federal Regulations 
        (or successor regulations).
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (9) Site energy usage intensity.--The term ``site energy 
        usage intensity'' means a site energy usage intensity (as 
        measured in British thermal units per year per square foot) 
        determined for a building or set of buildings in accordance 
        with such regulations or other guidance as the Secretary may 
        provide.
            (10) State.--The term ``State'' means--
                    (A) a State;
                    (B) an Indian Tribe;
                    (C) the District of Columbia;
                    (D) the Commonwealth of Puerto Rico; and
                    (E) any other territory or possession of the United 
                States.
            (11) State energy program.--The term ``State Energy 
        Program'' means the State Energy Program established under part 
        D of title III of the Energy Policy and Conservation Act (42 
        U.S.C. 6321 et seq.).

SEC. 3. NETWORKED GEOTHERMAL HEATING AND COOLING GRANT PROGRAM.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, under the State Energy Program, the Secretary shall 
establish a program under which the Secretary shall provide grants to 
States--
            (1) that are eligible for funding under the State Energy 
        Program;
            (2) in accordance with the allocation formula established 
        under section 420.11 of title 10, Code of Federal Regulations 
        (or successor regulations); and
            (3) that the States shall use to provide grants to eligible 
        recipients in accordance with this section.
    (b) Applications for Grants.--A State seeking a grant under the 
program shall submit to the Secretary an application at such time, in 
such manner, and containing such information as the Secretary may 
require, including--
            (1) a description of the expected benefits that networked 
        geothermal heating and cooling systems will have on communities 
        in the State; and
            (2) a plan for the use of the grant to assist the State in 
        achieving those benefits.
    (c) Use of State Grant.--
            (1) In general.--A State that receives a grant under the 
        program shall award grants to eligible recipients in accordance 
        with paragraphs (2) and (3).
            (2) Project deployment grants.--
                    (A) In general.--A State that receives a grant 
                under the program may provide a grant to an eligible 
                recipient to finance the deployment of a networked 
                geothermal heating and cooling system that meets the 
                requirements described in subparagraph (B), including 
                the installation of in-building or behind-the-meter 
                equipment.
                    (B) System requirements.--A networked geothermal 
                heating and cooling system deployed pursuant to 
                subparagraph (A) shall--
                            (i) use--
                                    (I) geothermal heat pumps to 
                                provide heating, cooling, or heating 
                                and cooling of space, water, or space 
                                and water from--
                                            (aa) the ground through 1 
                                        or more closed-loop geo-
                                        exchange boreholes in which 
                                        water pumped through pipes that 
                                        exchange heat with the 
                                        surrounding rock or soil 
                                        returns to the surface;
                                            (bb) groundwater using 1 or 
                                        more open-loop well doublets 
                                        that pump groundwater from an 
                                        aquifer and inject the water 
                                        into a second well following 
                                        heat exchange in a heat pump or 
                                        water-to-water heat exchanger;
                                            (cc) surface water through 
                                        heat exchange in a heat pump or 
                                        water-to-water heat exchanger, 
                                        with the water returned to the 
                                        surface water body; or
                                            (dd) greywater, sewage, or 
                                        treated sewage effluent through 
                                        a heat exchanger installed in a 
                                        sewage pipe, treated sewage 
                                        effluent pipe, or above-ground 
                                        plant consisting of a water-to-
                                        water heat exchanger or heat 
                                        pump;
                                    (II) hot water obtained from 
                                geothermal wells to produce hot water 
                                through a water-to-water heat exchanger 
                                for direct use in building heating;
                                    (III) hot water produced by deep 
                                geothermal wells in which water is 
                                pumped through pipes containing a fluid 
                                that exchanges heat with the 
                                surrounding rock or soil and returns to 
                                the surface for direct use for building 
                                heating;
                                    (IV) industrial process waste heat; 
                                or
                                    (V) a combination of the systems 
                                described in subclauses (I) through 
                                (IV);
                            (ii) reduce the greenhouse gas emissions 
                        associated with heating and cooling the 
                        building, set of buildings, or facility of the 
                        eligible recipient; and
                            (iii)(I) reduce the site energy intensity 
                        of the building, set of buildings, or facility 
                        of the eligible recipient in comparison to the 
                        baseline energy usage intensity of the 
                        building, set of buildings, or facility, as 
                        applicable;
                            (II) improve the control and management of 
                        energy usage of the building, set of buildings, 
                        or facility to reduce demand during peak times;
                            (III) substantially reduce the amount of 
                        water used to provide heating and cooling to 
                        the building, set of buildings, or facility; or
                            (IV) improve, with respect to the building, 
                        set of buildings, or facility of the eligible 
                        recipient--
                                    (aa) the physical comfort of the 
                                building, set of buildings, or facility 
                                occupants;
                                    (bb) the energy efficiency of the 
                                building, set of buildings, or 
                                facility; or
                                    (cc) the quality of the air in the 
                                building, set of buildings, or 
                                facility.
                    (C) Priority.--Each State providing grants under 
                this paragraph shall give priority--
                            (i) to the maximum extent practicable, to 
                        eligible recipients that do not have access to 
                        private capital;
                            (ii) to larger block-scale projects 
                        comprising at least 100,000 square feet of 
                        building space for which the networked 
                        geothermal heating and cooling system will be 
                        used;
                            (iii) to projects that may be extended to 
                        multiple blocks or wider scales, including 
                        systems featuring decentralized heat pumps 
                        interconnected by a single underground shared 
                        loop pipe of ambient-temperature water; or
                            (iv) to projects located in an energy 
                        community (as defined in section 45(b)(11)(B) 
                        of the Internal Revenue Code of 1986), a low-
                        income community, or a disadvantaged community.
                    (D) Wage rate and apprenticeship requirements.--
                            (i) Davis-bacon.--All laborers and 
                        mechanics employed by contractors or 
                        subcontractors in the performance of 
                        construction, alteration, or repair work on a 
                        project assisted in whole or in part by a grant 
                        awarded by a State under this paragraph shall 
                        be paid wages at rates not less than those 
                        prevailing on similar projects in the locality, 
                        as determined by the Secretary of Labor in 
                        accordance with subchapter IV of chapter 31 of 
                        title 40, United States Code (commonly referred 
                        to as the ``Davis-Bacon Act'').
                            (ii) Authority.--With respect to the labor 
                        standards specified in clause (i), the 
                        Secretary of Labor shall have the authority and 
                        functions set forth in Reorganization Plan 
                        Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 
                        App.) and section 3145 of title 40, United 
                        States Code.
                            (iii) Apprenticeship.--
                                    (I) In general.--All laborers and 
                                mechanics employed by contractors or 
                                subcontractors in the performance of 
                                construction, alteration, or repair 
                                work on a project assisted in whole or 
                                in part by a grant awarded by a State 
                                under this paragraph shall participate 
                                in, and all such contractors or 
                                subcontractors shall sponsor, a 
                                registered apprenticeship program for 
                                each crafts or trade employed on the 
                                project.
                                    (II) Annual certification.-- In 
                                order to remain eligible for funding 
                                under a grant awarded by a State under 
                                this paragraph, each contractor and 
                                subcontractor described in subclause 
                                (I) shall annually submit to the 
                                Secretary of Labor a certification 
                                verifying that--
                                            (aa) the contractor or 
                                        subcontractor sponsors a 
                                        registered apprenticeship 
                                        program for each applicable 
                                        craft or trade; and
                                            (bb) the sponsored 
                                        registered apprenticeship 
                                        program has graduated 
                                        apprentices for at least 3 of 
                                        the preceding 5 years.
            (3) Grants for studies and technical assistance.--
                    (A) In general.--A State that receives a grant 
                under the program may use not more than 50 percent of 
                the grant funds--
                            (i) to award grants or provide technical 
                        assistance to eligible recipients to carry out 
                        the activities described in subparagraph (B); 
                        and
                            (ii) to conduct broad surveys to ascertain 
                        the localities or projects in the State that 
                        are best suited to receive grants under 
                        paragraph (2).
                    (B) Use of grants.--Grant funds received by 
                eligible recipients under subparagraph (A)(i) may be 
                used to partially or fully fund--
                            (i) community thermal opportunity 
                        assessments--
                                    (I) to identify potential thermal 
                                resources, including heat sources or 
                                sinks, including the geological nature 
                                or other characteristics of the local 
                                ground, groundwater, surface water, 
                                greywater, sewage or sewage effluent 
                                thermal, waste heat from commercial or 
                                industrial sources, or deep earth 
                                geological heat potential; and
                                    (II) to assess proximity of thermal 
                                sources, sinks, or storage, as 
                                applicable, to existing or potential 
                                concentrations of thermal loads;
                            (ii) studies to demonstrate the relative 
                        potential of different locations for deployment 
                        of networked geothermal heating and cooling 
                        systems;
                            (iii) feasibility studies and designs for 
                        networked geothermal heating and cooling 
                        systems;
                            (iv) geoscientific investigation, including 
                        test bores, thermal response tests, and thermal 
                        conductivity tests, to determine underground 
                        thermal and hydraulic characteristics; and
                            (v) activities, studies, or research to 
                        assess and overcome barriers to the 
                        implementation of networked geothermal heating 
                        and cooling systems, including financial, 
                        contracting, siting, permitting, technical, and 
                        technology barriers.
            (4) Multiple grants.--A State may provide more than 1 grant 
        under this subsection to the same eligible recipient to 
        facilitate multiple steps in the planning and deployment of a 
        networked geothermal heating and cooling system.
            (5) Administrative expenses.--A State that receives a grant 
        under the program may use not more than 5 percent of the grant 
        funds for administrative expenses.
    (d) Coordination With Existing Programs.--A State receiving a grant 
under the program is encouraged to utilize and build on existing 
programs and infrastructure, including physical infrastructure such as 
pipes or wells, existing rights-of-way, and land leases, within the 
State that may aid the State in awarding grants under subsection (c).
    (e) Outreach.--The Secretary shall engage in outreach to inform 
States of the availability of grants under the program.
    (f) State Energy Program Exclusions.--
            (1) No matching.--A State receiving a grant under the 
        program shall not be subject, for that grant, to the matching 
        requirement under the item relating to ``energy conservation'' 
        under the heading ``DEPARTMENT OF ENERGY'' in title II of the 
        Department of the Interior and Related Agencies Appropriations 
        Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861).
            (2) Expenditure prohibitions and limitations.--Nothing in 
        section 420.18 of title 10, Code of Federal Regulations (or 
        successor regulations), shall prohibit projects carried out 
        using grants provided by States under this section.
    (g) Report.--Each State that receives a grant under the program 
shall, not later than 18 months after a grant is received, and annually 
thereafter, submit to the Secretary a report that describes--
            (1) for each grant awarded to an eligible recipient under 
        subsection (c)(2), data on the projects to be carried out using 
        the grant, organized in a format to be determined by the 
        Secretary;
            (2) for each grant awarded or any technical assistance 
        provided under subsection (c)(3), any output in the form of 
        feasibility studies, geoscientific investigation, thermal 
        mapping of heat sources or sink or waste heat sources in an 
        area, or other study results; and
            (3) any statutory or regulatory changes undertaken by the 
        State or other local regulatory body to facilitate projects 
        carried out using a grant awarded or technical assistance 
        provided by the State under subsection (c).
    (h) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Secretary to carry out this section, to remain available 
        until expended--
                    (A) $150,000,000 for fiscal year 2025; and
                    (B) $120,000,000 for each of fiscal years 2026 
                through 2029.
            (2) Indian tribes.--Of the amounts made available under 
        paragraph (1) for a fiscal year, not less than 2 percent shall 
        be used to award grants under the program to Indian Tribes.

SEC. 4. REPORTS ON NETWORKED GEOTHERMAL HEATING AND COOLING SYSTEMS.

    (a) Analysis and Report.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall--
            (1) perform an analysis of air source and geothermal heat 
        pump system performance, including determining the full-year, 
        8,760-hour coefficient of performance curves or seasonal 
        performance factor, from a range of building types, in a 
        variety of representative regional climate zones, and from a 
        representative sample of heat pump models; and
            (2) submit to Congress and make publicly available on the 
        website of the Department of Energy a report, to be entitled 
        ``Real world considerations on the deployment of heat pump 
        technologies'', that describes--
                    (A) factors that the Secretary is able to analyze 
                that may impact the decision to pursue a networked 
                geothermal heating and cooling system, such as the 
                seasonal performance data and peak summer and winter 
                power draw profiles for air source and geothermal heat 
                pumps for each building type and climate region 
                analyzed under paragraph (1); and
                    (B) information that the Secretary is able to 
                ascertain regarding capital or operating cost, 
                regulatory hurdles, site considerations, or other 
                factors.
    (b) Survey and Report.--Not later than 2 years after the date of 
enactment of this Act, and annually thereafter, the Secretary shall 
submit to Congress and make publicly available on the website of the 
Department of Energy--
            (1) a compendium of available heat mapping, feasibility, or 
        other studies undertaken by a State or the Department of Energy 
        that serves to support decisions relating to locations, 
        layouts, and designs for networked geothermal heating and 
        cooling systems;
            (2) a repository of formatted data on the projects funded 
        under grants awarded by States under section 3(c); and
            (3) a report summarizing the statutory or regulatory 
        changes undertaken by States or localities to support or 
        facilitate those projects.

SEC. 5. MODEL GUIDANCE FOR WASTE HEAT TO DIRECT USE SYSTEMS.

    Section 40556 of the Infrastructure Investment and Jobs Act (42 
U.S.C. 18842) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                    (B) by inserting after paragraph (1) the following:
            ``(2) Waste heat to direct use system.--The term `waste 
        heat to direct use system' means a system that directly heats a 
        building or directly utilizes heat for other commercial or 
        industrial applications through the recovery of waste 
        energy.'';
            (2) in subsection (b)(1), by striking ``and waste heat to 
        power systems'' and inserting ``, waste heat to power systems, 
        and waste heat to direct use systems''; and
            (3) in subsection (c)--
                    (A) in paragraph (2), in the matter preceding 
                subparagraph (A), by striking ``and waste heat to power 
                systems'' and inserting ``, waste heat to power 
                systems, and waste heat to direct use systems''; and
                    (B) in paragraph (3)(G), by striking ``and waste 
                heat to power systems'' and inserting ``, waste heat to 
                power systems, and waste heat to direct use systems''.
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