125 
perform the functions and activities described in sub-
section (b)(1). 
(d) ESTABLISHMENT AND USE OF THE GEO FUND.— 
(1) GEO
FUND.—There is established in the 
Treasury a separate account to be known as the ‘‘Na-
tional Geo Fund’’. 
(2) FUNDING.—The Secretary of the Treasury 
shall deposit in the Geo Fund— 
(A) such sums as are provided by sections 
9(b)(5)(A)(iv), 9(b)(5)(B)(iv), 9(c)(4)(A)(iv), and 
9(c)(4)(B)(iv) of the Outer Continental Shelf 
Lands Act, as amended by this Act; 
(B)(i) during the period of October 1, 2006, 
through September 30, 2015, one percent of all 
sums paid into the Treasury under section 35 of 
the Mineral Leasing Act (30 U.S.C. 191), and 
(ii) beginning October 1, 2015, and there-
after, 2.5 percent of all sums paid into the 
Treasury under section 35 of the Mineral Leas-
ing Act (30 U.S.C. 191); 
(C)(i) during the period of October 1, 2006, 
through September 30, 2015, one percent of all 
sums paid into the Treasury from receipts de-
rived from bonus bids and royalties from other 
mineral leasing on public lands, and 
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(ii) beginning October 1, 2015, and there-
after, 2.5 percent of all sums paid into the 
Treasury from receipts derived from bonus bids 
and royalties from other mineral leasing on pub-
lic lands; and 
(D) $65,000,000 from outer Continental 
Shelf bonus bids, royalties, and conservation of 
resources fees received in fiscal year 2007, and 
$50,000,000 from outer Continental Shelf bonus 
bids, royalties, and conservation of resources fees 
received in each of fiscal years 2008, 2009, 2010, 
2011, 2012, and 2013, 75 percent of which shall 
be used to implement subsection (g) and all of 
which shall remain available until expended. 
(3) INVESTMENTS.—The Secretary of the Treas-
ury shall invest the amounts deposited under para-
graph (2) and all accrued interest on the amounts de-
posited under paragraph (2) only in interest bearing 
obligations of the United States or in obligations 
guaranteed as to both principal and interest by the 
United States. 
(4) AVAILABILITY TO SECRETARY OF THE INTE-
RIOR.— 
(A) IN
GENERAL.—Beginning with fiscal 
year 2007, and in each fiscal year thereafter, 
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one-third of amounts deposited into the Geo 
Fund, unless otherwise specified herein, together 
with the interest thereon, shall be available, 
without fiscal year limitations, to the Secretary 
of the Interior for use for the purposes described 
in subsection (b)(4). 
(B) WITHDRAWALS
AND
TRANSFER
OF 
FUNDS.—The Secretary of the Treasury shall 
withdraw such amounts from the Geo Fund as 
the Secretary of the Interior may request, subject 
to the limitation in subparagraph (A), and 
transfer such amounts to the Secretary of the In-
terior to be used, at the discretion of the Sec-
retary of the Interior, by the Minerals Manage-
ment Service, the Bureau of Land Management, 
and the United States Geological Survey for the 
purposes described in subsection (b)(4). No funds 
distributed from the Geo Fund may be used to 
purchase an interest in land. 
(5) PAYMENT TO STATES.— 
(A) IN
GENERAL.—Beginning with fiscal 
year 2007, and in each fiscal year thereafter, 
two-thirds of amounts deposited into the Geo 
Fund, unless otherwise specified herein, together 
with the interest thereon, shall be available, 
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128 
without fiscal year limitations, to the States for 
use for the purposes described in subsection 
(b)(4). 
(B) WITHDRAWALS
AND
TRANSFER
OF 
FUNDS.—Within the first 90 days of each fiscal 
year, the Secretary of the Treasury shall with-
draw amounts from the Geo Fund and transfer 
such amounts to the States based on a formula 
devised by the Secretary of the Interior based on 
the relative needs of the States and the needs of 
the Nation. 
(C) USE OF PAYMENTS BY STATES.—Each 
State shall use the payments made under sub-
paragraph (B) only for carrying out projects 
and programs for the purposes described in sub-
section (b)(4). No funds distributed from the Geo 
Fund may be used to purchase an interest in 
land. 
(D) ENCOURAGEMENT OF USE OF PRIVATE 
FUNDS BY STATES.—Each State shall use the 
payments made under subparagraph (B) to le-
verage private funds for carrying out projects for 
the purposes described in subsection (b)(4). 
(E) REPORT TO CONGRESS.—Beginning in 
fiscal year 2008 and continuing for each fiscal 
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year thereafter, the Secretary of the Interior and 
each State receiving funds from the Geo Fund 
shall submit a report to the Committee on En-
ergy and Natural Resources of the Senate and 
the Committee on Resources of the House of Rep-
resentatives. Reports submitted to the Congress 
by the Secretary of the Interior and the States 
shall include detailed information regarding ex-
penditures during the previous fiscal year. 
(e) STRATEGIC UNCONVENTIONAL RESOURCES.— 
(1) PROGRAM.—The Secretary of the Interior 
shall establish a program for production of fuels from 
strategic unconventional resources, and production of 
oil and gas resources using CO2 enhanced recovery. 
The program shall focus initially on activities and 
domestic resources most likely to result in significant 
production in the near future, and shall include work 
necessary to improve extraction techniques, including 
surface and in situ operations. The program shall in-
clude characterization and assessment of potential re-
sources, a sampling program, appropriate laboratory 
and other analyses and testing, and assessment of 
methods for exploration and development of these 
strategic unconventional resources. 
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130 
(2) PILOT PROJECTS.—The program created in 
paragraph (1) shall include, but not be limited to, 
pilot projects on (A) the Maverick Basin heavy oil 
and tar sands formations of Texas, including the San 
Miguel deposits, (B) the Greater Green River Basin 
heavy oil, oil shale, tar sands, and coal deposits of 
Colorado, Utah, and Wyoming, (C) the shale, tar 
sands, heavy oil, and coal deposits in the Alabama- 
Mississippi-Tennessee region, (D) the shale, tar sands, 
heavy oil, and coal deposits in the Ohio River valley, 
and (E) strategic unconventional resources in Cali-
fornia. The Secretary shall identify and report to 
Congress on feasible incentives to foster recovery of 
unconventional fuels by private industry within the 
United States. Such incentives may include, but are 
not limited to, long-term contracts for the purchase of 
unconventional fuels for defense purposes, Federal 
grants and loan guarantees for necessary capital ex-
penditures, and favorable terms for the leasing of 
Government lands containing unconventional re-
sources. 
(3) DEFINITIONS.—In this subsection: 
(A) 
STRATEGIC
UNCONVENTIONAL
RE-
SOURCES.—The term ‘‘strategic unconventional 
resources’’ means hydrocarbon resources, includ-
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131 
ing heavy oil, oil shale, tar sands, and coal de-
posits, from which liquid fuels may be produced. 
(B) IN SITU EXTRACTION METHODS.—The 
term ‘‘in situ extraction methods’’ means recov-
ery techniques that are applied to the resources 
while they are still in the ground, and are in 
commercial use or advanced stages of develop-
ment. Such techniques include, but are not lim-
ited to, steam flooding, steam-assisted gravity 
drainage (including combination with electric 
power generation where appropriate), cyclic 
steam stimulation, air injection, and chemical 
treatment. 
(4) FUNDING.—The Secretary shall carry out the 
program for the production of strategic unconven-
tional fuels with funds from the Geo Fund in each of 
fiscal years 2007 through 2011 in the amount of not 
less than $35,000,000 each year. Each pilot project 
shall be allocated not less than $4,000,000 per year in 
each of fiscal years 2007 through 2011. 
(f) SUPPORT OF GEOTHERMAL AND GEOPRESSURE 
OIL AND GAS ENERGY PRODUCTION.— 
(1) IN GENERAL.—The Secretary shall carry out 
a grant program in support of geothermal and 
geopressure oil and gas energy production. The pro-
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gram shall include grants for a total of not less than 
three assessments of the use of innovative geothermal 
techniques such as organic rankine cycle systems at 
marginal, unproductive, and productive oil and gas 
wells, and not less than one assessment of the use of 
innovative geopressure techniques. The Secretary 
shall, to the extent practicable and in the public in-
terest, make awards that— 
(A) include not less than five oil or gas well 
sites per project award; 
(B) use a range of oil or gas well hot water 
source temperatures from 150 degrees Fahrenheit 
to 300 degrees Fahrenheit; 
(C) use existing or new oil or gas wells; 
(D) cover a range of sizes from 175 kilo-
watts to one megawatt; 
(E) are located at a range of sites including 
tribal lands, Federal lease, State, or privately 
owned sites; 
(F) can be replicated at a wide range of 
sites; 
(G) facilitate identification of optimum 
techniques among competing alternatives; 
(H) include business commercialization 
plans that have the potential for production of 
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133 
equipment at high volumes and operation and 
support at a large number of sites; and 
(I) satisfy other criteria that the Secretary 
determines are necessary to carry out the pro-
gram. 
The Secretary shall give preference to assessments that 
address multiple elements contained in subparagraphs 
(A) through (I). 
(2) GRANT AWARDS.— 
(A) IN GENERAL.—Each grant award for 
assessment 
of 
innovative 
geothermal 
or 
geopressure technology such as organic rankine 
cycle systems at oil and gas wells made by the 
Secretary under this section shall include— 
(i) necessary and appropriate site en-
gineering study; 
(ii) detailed economic assessment of 
site specific conditions; 
(iii) appropriate feasibility studies to 
determine ability for replication; 
(iv) design or adaptation of existing 
technology for site specific circumstances or 
conditions; 
(v) installation of equipment, service, 
and support; and 
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134 
(vi) monitoring for a minimum of one 
year after commissioning date. 
(3) COMPETITIVE GRANT SELECTION.—Not less 
than 180 days after the date of the enactment of this 
Act, the Secretary shall conduct a national solicita-
tion for applications for grants under the program. 
Grant recipients shall be selected on a competitive 
basis based on criteria in subsection (b). 
(4) FEDERAL
SHARE.—The Federal share of 
costs of grants under this subsection shall be provided 
from funds made available to carry out this section. 
The Federal share of the cost of a project carried out 
with such a grant shall not exceed 50 percent of such 
cost. 
(5) FUNDING.—The Secretary shall carry out the 
grant program under this subsection with funds from 
the Geo Fund in each of fiscal years 2007 through 
2011 in the amount of not less than $5,000,000 each 
fiscal year. No funds authorized under this section 
may be used for the purposes of drilling new wells. 
(6) AMENDMENT.—Section 4 of the Geothermal 
Steam Act of 1970 (30 USC 1003) is amended by 
adding at the end the following: 
‘‘(h) GEOTHERMAL RESOURCES CO-PRODUCED WITH 
THE MINERALS.—Any person who holds a lease or who op-
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erates a cooperative or unit plan under the Mineral Leasing 
Act, in the absence of an existing lease for geothermal re-
sources under this Act, shall upon notice to the Secretary 
have the right to utilize any geothermal resources co-pro-
duced with the minerals for which the lease was issued dur-
ing the operation of that lease or cooperative or unit plan, 
for the generating of electricity to operate the lease. Any 
electricity that is produced in excess of that which is re-
quired to operate the lease and that is sold for purposes 
outside of the boundary of the lease shall be subject to the 
requirements of section 5.’’ 
(g) LIQUID FUELS GRANT PROGRAM.— 
(1) PROGRAM.—The Secretary of the Interior 
shall establish a grant program for facilities for coal- 
to-liquids, petroleum coke-to-liquids, oil shale, tar 
sands, heavy oil, and Alaska natural gas-to-liquids 
and to assess the production of low-rank coal water 
fuel (in this subsection referred to as ‘‘LRCWF’’). 
(2) LRCWF.—The LRCWF grant project loca-
tion shall use lignite coal from fields near the 
Tombigbee River within 60 miles of a land-grant col-
lege and shall be allocated $15,000,000 for expendi-
ture during fiscal year 2007. 
(3) DEFINITIONS.—In this subsection: 
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