II 

111TH CONGRESS 

2D SESSION S. 3586 

To promote the mapping and development of United States geothermal resources by establishing a direct loan program for high risk geothermal 

exploration wells. 

IN THE SENATE OF THE UNITED STATES 

JULY 14, 2010 

Mr. REID (for himself, Mr. TESTER, Mr. MERKLEY, Mr. UDALL of Colorado, 

and Mr. BEGICH) introduced the following bill; which was read twice and 

referred to the Committee on Energy and Natural Resources 

A BILL 

To promote the mapping and development of United States 

geothermal resources by establishing a direct loan program for high risk geothermal exploration wells. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Geothermal Explo5 ration Act of 2010’’. 

6 SEC. 2. GEOTHERMAL EXPLORATORY DRILLING LOAN PRO7 GRAM. 

8 (a) DEFINITIONS.—In this section: 


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1 (1) FUND.—The term ‘‘Fund’’ means the Geo2 thermal Investment Fund established under sub3 section (h). 

4 (2) PROGRAM.—The term ‘‘program’’ means 

5 the direct loan program for high risk geothermal ex6 ploration wells established under this section. 

7 (3) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of Energy. 

9 (b) ESTABLISHMENT.—The Secretary shall establish 

10 a direct loan program for high risk geothermal exploration 

11 wells. 

12 (c) APPLICATIONS.—An applicant that seeks to re13 ceive a loan under the program may submit to the Sec14 retary an application for the loan at such time, in such 

15 form, and containing such information as the Secretary 

16 may prescribe. 

17 (d) PROJECT CRITERIA.— 

18 (1) IN GENERAL.—In selecting applicants for 

19 loans under this section to carry out projects under 

20 the program, the Secretary shall consider— 

21 (A) the potential for unproven geothermal 

22 resources that would be explored and developed 

23 under a project; 

24 (B) the expertise and experience of an ap25 plicant in developing geothermal resources; and 


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1 (C) the importance of the project in meet2 ing the goals of the Department of Energy. 

3 (2) PREFERENCE.—In selecting applicants for 

4 loans under this section to carry out projects under 

5 the program, the Secretary shall provide a pref6 erence for previously unexplored, underexplored, or 

7 unproven geothermal resources in a variety of geo8 logic and geographic settings. 

9 (e) DATA SHARING.—Data from all exploratory wells 

10 that are carried out under the program shall be provided 

11 to the Secretary and the Secretary of the Interior for use 

12 in mapping national geothermal resources and other uses, 

13 including— 

14 (1) subsurface geologic data; 

15 (2) metadata; 

16 (3) borehole temperature data; and 

17 (4) inclusion in the National Geothermal Data 

18 System of the Department of Energy. 

19 (f) ADMINISTRATION.— 

20 (1) COST SHARE.— 

21 (A) IN GENERAL.—The Secretary shall de22 termine the cost share for a loan made under 

23 this section. 

24 (B) HIGHER RISKS.—The Secretary may 

25 base the cost share percentage for loans made 


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1 under this section on a sliding scale, with high2 er Federal shares awarded to projects with 

3 higher risks. 

4 (2) NUMBER OF WELLS.—The Secretary shall 

5 determine the number of wells for each selected geo6 thermal project for which a loan may be made under 

7 this section. 

8 (3) UNPRODUCTIVE PROJECTS.—The Secretary 

9 may grant further delays or dispense with the repay10 ment obligation on a demonstration that a selected 

11 geothermal project is unproductive. 

12 (g) LOAN REPAYMENT.— 

13 (1) COMMENCEMENT.—The recipient of a loan 

14 made under this section for a geothermal facility 

15 shall commence repayment of the loan beginning on 

16 the earlier of— 

17 (A) the date that is 4 years after the date 

18 the loan is made; or 

19 (B) the date on which the geothermal facil20 ity enters into commercial production. 

21 (2) TERM.— 

22 (A) IN GENERAL.—Except as provided in 

23 subparagraph (B), the term of a loan made 

24 under this section shall be 4 years beginning on 


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1 the applicable loan repayment commencement 

2 date under paragraph (1). 

3 (B) EXTENSION.—The Secretary may ex4 tend the term of a loan under this section for 

5 not more than 4 years. 

6 (3) USE OF LOAN REPAYMENTS.—Amounts re7 paid on loans made under this section shall be de8 posited in the Fund. 

9 (h) GEOTHERMAL INVESTMENT FUND.— 

10 (1) ESTABLISHMENT OF FUND.—There is es11 tablished in the Treasury of the United States a 

12 fund to be known as the ‘‘Geothermal Investment 

13 Fund’’, to be administered by the Secretary, to be 

14 available without fiscal year limitation and not sub15 ject to appropriation, to carry out this section. 

16 (2) TRANSFERS TO FUND.—The Fund shall 

17 consist of such amounts as are appropriated to the 

18 Fund under subsection (j). 

19 (3) PROHIBITION.—Amounts in the Fund may 

20 not be made available for any purpose other than a 

21 purpose described in paragraph (1). 

22 (4) ANNUAL REPORTS.— 

23 (A) IN GENERAL.—Not later than 60 days 

24 after the end of each fiscal year beginning with 

25 fiscal year 2011, the Secretary of Energy shall 


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1 submit to the the Committee on Energy and 

2 Natural Resources of the Senate and the Com3 mittee on Energy and Commerce of the House 

4 of Representatives a report on the operation of 

5 the Fund during the fiscal year. 

6 (B) CONTENTS.—Each report shall in7 clude, for the fiscal year covered by the report, 

8 the following: 

9 (i) A statement of the amounts depos10 ited into the Fund. 

11 (ii) A description of the expenditures 

12 made from the Fund for the fiscal year, in13 cluding the purpose of the expenditures. 

14 (iii) Recommendations for additional 

15 authorities to fulfill the purpose of the 

16 Fund. 

17 (iv) A statement of the balance re18 maining in the Fund at the end of the fis19 cal year. 

20 (i) GUIDELINES.—Not later than 180 days after the 

21 date of enactment of this Act, the Secretary shall develop 

22 guidelines for the implementation of the program. 

23 (j) AUTHORIZATION OF APPROPRIATIONS.—There 

24 are authorized to be appropriated to carry out this section 


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1 such sums as are necessary for each of fiscal years 2011 

2 through 2020. 

Æ 


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