IB 
Union Calendar No. 122 
110TH CONGRESS 
1ST SESSION H. R. 2304 
[Report No. 110–203] 
To direct the Secretary of Energy to conduct a program of research, develop-
ment, demonstration, and commercial application for geothermal energy, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 14, 2007 
Mr. MCNERNEY (for himself, Mr. GORDON of Tennessee, and Mr. LAMPSON) 
introduced the following bill; which was referred to the Committee on 
Science and Technology 
JUNE 21, 2007 
Additional sponsors: Mr. HONDA, Mr. INSLEE, Mr. HALL of New York, Ms. 
MATSUI, Ms. WOOLSEY, Mr. MATHESON, Mr. MILLER of North Carolina, 
Ms. JACKSON-LEE of Texas, Ms. BERKLEY, Mr. MARSHALL, Mr. SCHIFF, 
and Mr. WALDEN of Oregon 
JUNE 21, 2007 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on May 14, 2007] 
A BILL 
To direct the Secretary of Energy to conduct a program 
of research, development, demonstration, and commercial 
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application for geothermal energy, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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 in-
terest 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 re-
source. 
(3) Geothermal energy is unusual among renew-
able 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 Tech-
nology, the Western Governors Association, and the 
National Renewable Energy Laboratory, indicate that 
the Nation’s geothermal resources are widely distrib-
uted, vast in size, and barely tapped. 
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(5) Sustained and expanded research, develop-
ment, demonstration, and commercial application 
programs are needed to locate and characterize geo-
thermal resources, and to develop the technologies that 
will enable their widespread commercial development. 
(6) Federal support is critical to reduce the fi-
nancial risk associated with developing new geo-
thermal technologies, thereby encouraging the private 
sector investment necessary to make geothermal re-
sources 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 sub-
jected to intervention, including intervention to ad-
dress one or more of the following issues: 
(A) Lack of effective permeability or poros-
ity or open fracture connectivity within the res-
ervoir. 
(B) Insufficient contained geofluid in the 
reservoir. 
(C) A low average geothermal gradient, 
which necessitates deeper drilling. 
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(2) ENHANCED
GEOTHERMAL
SYSTEMS.—The 
term ‘‘enhanced geothermal systems’’ means geo-
thermal reservoir systems that are engineered, as op-
posed 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’’ re-
fers to heat energy stored in the Earth’s crust that 
can be accessed for direct use or electric power genera-
tion. 
(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 per-
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formance of the overall system, rather than a par-
ticular component of the system. 
SEC. 4. HYDROTHERMAL RESEARCH AND DEVELOPMENT. 
(a) IN GENERAL.—The Secretary shall support pro-
grams of research, development, demonstration, and com-
mercial application to expand the use of geothermal energy 
production from hydrothermal systems, including the pro-
grams described in subsection (b). 
(b) PROGRAMS.— 
(1) 
ADVANCED
HYDROTHERMAL
RESOURCE 
TOOLS.—The Secretary, in consultation with other 
appropriate agencies, shall support a program to de-
velop advanced geophysical, geochemical, and geologic 
tools to assist in locating hidden hydrothermal re-
sources, and to increase the reliability of site charac-
terization before, during, and after initial drilling. 
The program shall develop new prospecting techniques 
to assist in prioritization of targets for characteriza-
tion. The program shall include a field component. 
(2) INDUSTRY
COUPLED
EXPLORATORY
DRILL-
ING.—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 tech-
nologies and techniques of siting and exploratory 
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drilling for undiscovered resources in a variety of geo-
logic settings. The program shall include incentives to 
encourage the use of advanced technologies and tech-
niques. 
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 in-
clude 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-ream-
ing, multilateral completions, high-temperature logging, 
and logging while drilling. 
(b) RESERVOIR PERFORMANCE MODELING.—The Sec-
retary shall support a program of research, development, 
demonstration, and commercial application of models of 
geothermal reservoir performance, with an emphasis on ac-
curately modeling performance over time. Models shall be 
developed to assist both in the development of geothermal 
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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 tech-
nologies and practices designed to mitigate or pre-
clude potential adverse environmental impacts of geo-
thermal 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 Adminis-
trator for Research and Development at the Environ-
mental Protection Agency, support a research pro-
gram 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 emis-
sions offsets of greenhouses gases gained by geothermal en-
ergy development, production, and use. 
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SEC. 6. ENHANCED GEOTHERMAL SYSTEMS RESEARCH AND 
DEVELOPMENT. 
(a) IN GENERAL.—The Secretary shall support a pro-
gram of research, development, demonstration, and commer-
cial application for enhanced geothermal systems, including 
the programs described in subsection (b). 
(b) PROGRAMS.— 
(1) ENHANCED
GEOTHERMAL
SYSTEMS
TECH-
NOLOGIES.—The Secretary shall support a program 
of research, development, demonstration, and commer-
cial 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 res-
ervoir engineering and stimulation; and 
(G) laser-based drilling technology. 
(2) ENHANCED
GEOTHERMAL
SYSTEMS
RES-
ERVOIR STIMULATION.— 
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(A) PROGRAM.—In collaboration with in-
dustry partners, the Secretary shall support a 
program of research, development, and dem-
onstration of enhanced geothermal systems res-
ervoir stimulation technologies and techniques. A 
minimum of 5 sites shall be selected in locations 
that show particular promise for enhanced geo-
thermal systems development. Each site shall— 
(i) represent a different class of sub-
surface geologic environments; and 
(ii) take advantage of an existing site 
where subsurface characterization has been 
conducted or existing drill holes can be uti-
lized, if possible. 
(B) CONSIDERATION OF EXISTING SITES.— 
The following 2 sites, where Department of En-
ergy and industry cooperative enhanced geo-
thermal systems projects are already underway, 
may be considered for inclusion among the sites 
selected under subparagraph (A): 
(i) Desert Peak, Nevada. 
(ii) Coso, California. 
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SEC. 7. GEOTHERMAL ENERGY PRODUCTION FROM OIL AND 
GAS FIELDS AND RECOVERY AND PRODUC-
TION OF GEOPRESSURED GAS RESOURCES. 
(a) IN GENERAL.—The Secretary shall establish a pro-
gram of research, development, demonstration, and commer-
cial application to support development of geothermal en-
ergy production from oil and gas fields and production and 
recovery of energy from geopressured resources. In addition, 
the Secretary shall conduct such supporting activities in-
cluding 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; 
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(4) are located at a range of sites; 
(5) can be replicated at a wide range of sites; 
(6) facilitate identification of optimum tech-
niques 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 deter-
mines are necessary to carry out the program and 
collect necessary data and information. 
The Secretary shall give preference to assessments that ad-
dress multiple elements contained in paragraphs (1) 
through (8). 
(c) GRANT AWARDS.—Each grant award for dem-
onstration 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; 
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(4) design or adaptation of existing technology 
for site specific circumstances or conditions; 
(5) installation of equipment, service, and sup-
port; 
(6) operation for a minimum of one year and 
monitoring for the duration of the demonstration; and 
(7) validation of technical and economic assump-
tions and documentation of lessons learned. 
(d) GEOPRESSURED GAS RESOURCE RECOVERY AND 
PRODUCTION.—(1) The Secretary shall implement a pro-
gram 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 engi-
neering, 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 
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production facilities that show potential for economic recov-
ery 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 Sec-
retary shall conduct a national solicitation for applications 
for grants under the programs outlined in subsections (b) 
and (d). Grant recipients shall be selected on a competitive 
basis based on criteria in the respective subsection. 
(f) WELL DRILLING.—No funds may be used under 
this section for the purpose of drilling new wells. 
SEC. 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 PRO-
GRAMS.—Programs under this Act shall incorporate the fol-
lowing organizational and administrative elements: 
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(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 comple-
tion. 
(D) Criteria for evaluating proposals. 
(3) In evaluating proposals, the Secretary shall 
give priority to proposals that draw on relevant ex-
pertise 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 re-
lated technologies. 
(5) In evaluating proposals, the Secretary shall 
consult with relevant experts from industry, aca-
demia, and the national laboratories, as appropriate. 
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(6) In evaluating proposals, the Secretary shall 
give priority to proposals that demonstrate clear evi-
dence of employing a systems approach. 
(7) In evaluating proposals for projects with a 
field component, the Secretary shall, where appro-
priate, give priority consideration to proposals that 
contain provisions to study local environmental im-
pacts 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 TRANS-
FER. 
(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 indus-
try, collecting and disseminating information on best 
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practices in all areas related to developing and man-
aging hydrothermal resources, including data avail-
able 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 conver-
sion or direct use of geothermal energy. 
(2) ENHANCED
GEOTHERMAL
SYSTEMS
CEN-
TER.—The purpose of a second Technology Transfer 
Center shall be to serve as an information clearing-
house for the geothermal industry, collecting and dis-
seminating information on best practices in all areas 
related to developing and managing enhanced geo-
thermal systems resources, including data available 
for disclosure as provided under section 8(b)(8). This 
Center is encouraged to seek opportunities to coordi-
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nate efforts and share information with international 
partners engaged in research and development of en-
hanced geothermal systems or engaged in collection of 
data related to enhanced geothermal systems develop-
ment. This Center shall be based at an academic in-
stitution east of the Rocky Mountains which, in the 
opinion of the Secretary, is best suited to provide na-
tional leadership on enhanced geothermal systems-re-
lated issues. The Center shall collect and disseminate 
information on all subjects germane to the develop-
ment and use of enhanced geothermal systems. 
(c) AWARD DURATION.—An award made by the Sec-
retary 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 Sec-
retary. 
SEC. 10. GEOPOWERING AMERICA. 
The Secretary shall expand the Department of Ener-
gy’s GeoPowering the West program to extend its geo-
thermal technology transfer activities throughout the entire 
United 
States. 
The 
program 
shall 
be 
renamed 
‘‘GeoPowering America’’. The program shall continue to be 
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based in the Department of Energy office in Golden, Colo-
rado. 
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 Nat-
ural Resources of the Senate on advanced concepts and tech-
nologies 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 hydro-
gen; 
(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, in-
cluding 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 
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of the House of Representatives and the Committee on En-
ergy 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 Con-
gress 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 Sec-
retary to carry out this Act $90,000,000 for each of the fis-
cal years 2008 through 2012, of which $10,000,000 for each 
fiscal year shall be for carrying out section 7. 
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Union Calendar No. 122 
110TH CONGRESS 
1ST SESSION 
H. R. 2304 
[Report No. 110–203] 
A BILL 
To direct the Secretary of Energy to conduct a pro-
gram of research, development, demonstration, 
and commercial application for geothermal en-
ergy, and for other purposes. 
JUNE 21, 2007 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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