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try 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 expenditures, and favorable terms 
for the leasing of Government lands containing un-
conventional resources. 
(3) DEFINITIONS.—In this subsection: 
(A) STRATEGIC
UNCONVENTIONAL
RE-
SOURCES.—The term ‘‘strategic unconventional 
resources’’ means hydrocarbon resources, in-
cluding heavy oil, oil shale, tar sands, and coal 
deposits, from which liquid fuels may be pro-
duced. 
(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. 
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HR 4761 PCS 
(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection for each of fiscal years 2007 through 
2011 not less than $35,000,000. Each pilot project 
shall be allocated not less than $4,000,000 per year 
in each of fiscal years 2007 through 2011. 
(e) 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-
gram shall include grants for a total of not less than 
three assessments of the use of innovative geo-
thermal 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 interest, 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 Fahr-
enheit to 300 degrees Fahrenheit; 
(C) use existing or new oil or gas wells; 
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HR 4761 PCS 
(D) cover a range of sizes from 175 kilo-
watts to one megawatt; 
(E) are located at a range of sites includ-
ing tribal lands, Federal lease, State, or pri-
vately 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 
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 subpara-
graphs (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— 
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HR 4761 PCS 
(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 
(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 solic-
itation for applications for grants under the pro-
gram. Grant recipients shall be selected on a com-
petitive basis based on criteria in subsection (b). 
(4) FEDERAL SHARE.—The Federal share of 
costs of grants under this subsection shall be pro-
vided 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. 
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HR 4761 PCS 
(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection for each of fiscal years 2007 through 
2011 not less than $5,000,000. 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 operates a cooperative or unit plan under the Mineral 
Leasing Act, in the absence of an existing lease for geo-
thermal resources under this Act, shall upon notice to the 
Secretary have the right to utilize any geothermal re-
sources co-produced with the minerals for which the lease 
was issued during the operation of that lease or coopera-
tive or unit plan, for the generating of electricity to oper-
ate the lease. Any electricity that is produced in excess 
of that which is required 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.’’. 
(f) LIQUID FUELS GRANT PROGRAM.— 
(1) PROGRAM.—The Secretary of the Interior 
shall establish a grant program for facilities for coal- 
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