137 
(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 gen-
eration. 
(6) 
HYDROTHERMAL.—The 
term 
‘‘hydro-
thermal’’ 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. 4204. HYDROTHERMAL RESEARCH AND DEVELOP-
MENT. 
(a) IN GENERAL.—The Secretary shall support pro-
grams of research, development, demonstration, and com-
mercial application to expand the use of geothermal en-
ergy 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 de-
138 
velop advanced geophysical, geochemical, and geo-
logic tools to assist in locating hidden hydrothermal 
resources, and to increase the reliability of site char-
acterization before, during, and after initial drilling. 
The program shall develop new prospecting tech-
niques to assist in prioritization of targets for char-
acterization. The program shall include a field com-
ponent. 
(2) INDUSTRY COUPLED EXPLORATORY DRILL-
ING.—The Secretary shall support a program of 
cost-shared field demonstration programs, to be pur-
sued, simultaneously and independently, in collabo-
ration with industry partners, for the demonstration 
of technologies and techniques of siting and explor-
atory drilling for undiscovered resources in a variety 
of geologic settings. The program shall include in-
centives to encourage the use of advanced tech-
nologies and techniques. 
SEC. 4205. GENERAL GEOTHERMAL SYSTEMS RESEARCH 
AND DEVELOPMENT. 
(a) SUBSURFACE COMPONENTS AND SYSTEMS.—The 
Secretary shall support a program of research, develop-
ment, demonstration, and commercial application of com-
ponents and systems capable of withstanding extreme geo-
thermal environments and necessary to cost-effectively de-
139 
velop, produce, and monitor geothermal reservoirs and 
produce geothermal energy. These components and sys-
tems 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 tech-
nologies for under-reaming, multilateral completions, 
high-temperature logging, and logging while drilling. 
(b) RESERVOIR
PERFORMANCE
MODELING.—The 
Secretary shall support a program of research, develop-
ment, demonstration, and commercial application of mod-
els of geothermal reservoir performance, with an emphasis 
on accurately modeling performance over time. Models 
shall be developed to assist both in the development of geo-
thermal reservoirs and to more accurately account for 
stress-related effects in stimulated hydrothermal and en-
hanced geothermal systems production environments. 
(c) 
ENVIRONMENTAL
IMPACTS.—The 
Secretary 
shall— 
(1) support a program of research, develop-
ment, 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 develop-
140 
ment 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 Envi-
ronmental 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 para-
graph (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 en-
ergy shall be measured and examined against the potential 
emissions offsets of greenhouses gases gained by geo-
thermal energy development, production, and use. 
SEC. 4206. 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 TECH-
NOLOGIES.—The Secretary shall support a program 
of research, development, demonstration, and com-
141 
mercial application of the technologies and knowl-
edge necessary for enhanced geothermal systems to 
advance to a state of commercial readiness, includ-
ing 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.— 
(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 loca-
tions that show particular promise for enhanced 
geothermal systems development. Each site 
shall—
142 
(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 Depart-
ment of Energy and industry cooperative en-
hanced 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. 4207. GEOTHERMAL ENERGY PRODUCTION FROM OIL 
AND GAS FIELDS AND RECOVERY AND PRO-
DUCTION 
OF 
GEOPRESSURED 
GAS 
RE-
SOURCES. 
(a) IN GENERAL.—The Secretary shall establish a 
program of research, development, demonstration, and 
commercial application to support development of geo-
thermal energy production from oil and gas fields and pro-
duction and recovery of energy from geopressured re-
sources. In addition, the Secretary shall conduct such sup-
143 
porting activities including research, resource character-
ization, 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 pro-
ductive 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 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
144 
(8) satisfy other criteria that the Secretary de-
termines 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 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; 
(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 as-
sumptions and documentation of lessons learned.
145 
(d) GEOPRESSURED GAS RESOURCE RECOVERY AND 
PRODUCTION.—(1) The Secretary shall implement a pro-
gram to support the research, development, demonstra-
tion, and commercial application of cost-effective tech-
niques to produce energy from geopressured resources sit-
uated in and near the Gulf of Mexico. 
(2) The Secretary shall solicit preliminary engineer-
ing designs for geopressured resources production and re-
covery 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 comple-
tion of engineering, architectural and technical plans need-
ed 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 re-
covery 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 applica-
tions for grants under the programs outlined in sub-
sections (b) and (d). Grant recipients shall be selected on
146 
a competitive basis based on criteria in the respective sub-
section. 
(f) WELL DRILLING.—No funds may be used under 
this section for the purpose of drilling new wells. 
SEC. 4208. COST SHARING AND PROPOSAL EVALUATION. 
(a) FEDERAL SHARE.—(1) The Federal share of 
costs of projects funded under this subtitle shall be in ac-
cordance 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 subtitle. 
(3) The Secretary shall allow for a competitive bid-
ding process to play a role in determining the final cost- 
share ratio. 
(b) ORGANIZATION AND ADMINISTRATION OF PRO-
GRAMS.—Programs under this subtitle 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.
147 
(B) The funding mechanism to be used 
(i.e. grants, contracts, or cooperative agree-
ments). 
(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 subtitle to, other Department 
of Energy research and development programs fo-
cused on drilling, subsurface characterization, and 
other related technologies. 
(5) In evaluating proposals, the Secretary shall 
consult with relevant experts from industry, aca-
demia, and the national laboratories, as appropriate. 
(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
148 
contain provisions to study local environmental im-
pacts of the technologies developed or the operations 
undertaken. 
(8) In evaluating proposals, the Secretary, in 
coordination with other appropriate agencies, shall 
seek to ensure that no funding authorized under this 
subtitle is awarded to any project that would result 
in adverse impacts to land, water, or other resources 
within the National Wilderness Preservation System, 
the National Park System, the National Wildlife 
Refuge System, the National Landscape Conserva-
tion System, the National Wild and Scenic Rivers 
System, the National Trails System, any National 
Monument, any Wilderness Study Area, any Re-
search Natural Area, any National Marine Sanc-
tuary, any Inventoried Roadless Area, or any Area 
of Critical Environmental Concern. 
(9) Scientific data collected as a result of any 
project supported with funds provided under this 
subtitle shall be made available to the public. 
SEC. 4209. CENTERS FOR GEOTHERMAL TECHNOLOGY 
TRANSFER. 
(a) IN GENERAL.—The Secretary shall award grants 
to institutions of higher education (or consortia thereof)
149 
to establish 2 Centers for Geothermal Technology Trans-
fer. 
(b) CENTERS.— 
(1) HYDROTHERMAL CENTER.—The purpose of 
one Technology Transfer Center shall be to serve as 
an information clearinghouse for the geothermal in-
dustry, 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 
4208(b)(9). This Center shall be based at the insti-
tution west of the Rocky Mountains that the Sec-
retary 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
150 
Center shall be to serve as an information clearing-
house 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 avail-
able for disclosure as provided under section 
4208(b)(9). This Center is encouraged to seek op-
portunities to coordinate efforts and share informa-
tion 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 Sec-
retary, 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 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—