A bill to expand geothermal production, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Geothermal Production Expansion Act 
of 2010''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) it is in the best interest of the United States to 
        develop clean renewable geothermal energy;
            (2) development of that energy should be promoted on 
        appropriate Federal land;
            (3) under the Energy Policy Act of 2005 (42 U.S.C. 15801 et 
        seq.), the Bureau of Land Management is authorized to issue 3 
        different types of noncompetitive leases for production of 
        geothermal energy on Federal land, including--
                    (A) noncompetitive geothermal leases to mining 
                claim holders that have a valid operating plan;
                    (B) direct use leases; and
                    (C) leases on parcels that do not sell at a 
                competitive auction;
            (4) Federal geothermal energy leasing activity should be 
        directed toward persons seeking to develop the land as opposed 
        to persons seeking to speculate on geothermal resources and 
        artificially raising the cost of legitimate geothermal energy 
        development;
            (5) developers of geothermal energy on Federal land that 
        have invested substantial capital and made high risk 
        investments should be allowed to secure a discovery of 
        geothermal energy resources; and
            (6) successful geothermal development on Federal land will 
        provide increased revenue to the Federal Government, with the 
        payment of production royalties over decades.

SEC. 3. NONCOMPETITIVE LEASING OF ADJOINING AREAS FOR DEVELOPMENT OF 
              GEOTHERMAL RESOURCES.

    Section 4(b) of the Geothermal Steam Act of 1970 (30 U.S.C. 
1003(b)) is amended by adding at the end the following:
            ``(4) Adjoining land.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Fair market value per acre.--The term 
                        `fair market value per acre' means a dollar 
                        amount per acre that--
                                    ``(I) except as provided in this 
                                clause, shall be equal to the market 
                                value per acre as determined by the 
                                Secretary under regulations issued 
                                under this paragraph;
                                    ``(II) shall be determined by the 
                                Secretary with respect to a lease under 
                                this paragraph, by not later than the 
                                end of the 90-day period beginning on 
                                the date the Secretary receives an 
                                application for the lease; and
                                    ``(III) shall be not less than the 
                                greater of--
                                            ``(aa) 4 times the median 
                                        amount paid per acre for all 
                                        land leased under this Act 
                                        during the preceding year; or
                                            ``(bb) $50.
                            ``(ii) Industry standards.--The term 
                        `industry standards' means the standards by 
                        which a qualified geothermal professional 
                        assesses whether downhole or flowing 
                        temperature measurements with indications of 
                        permeability are sufficient to produce energy 
                        from geothermal resources, as determined 
                        through flow or injection testing or 
                        measurement of lost circulation while drilling.
                            ``(iii) Qualified federal land.--The term 
                        `qualified Federal land' means land that is 
                        otherwise available for leasing under this Act.
                            ``(iv) Qualified geothermal professional.--
                        The term `qualified geothermal professional' 
                        means an individual who is an engineer or 
                        geoscientist in good professional standing with 
                        at least 5 years of experience in geothermal 
                        exploration, development, or project 
                        assessment.
                            ``(v) Qualified lessee.--The term 
                        `qualified lessee' means a person that may hold 
                        a geothermal lease under part 3202.10 of title 
                        43, Code of Federal Regulations, as in effect 
                        on the date of enactment of the Geothermal 
                        Production Expansion Act of 2010.
                            ``(vi) Valid discovery.--The term `valid 
                        discovery' means a discovery of a geothermal 
                        resource by a new or existing slim hole or 
                        production well, that exhibits downhole or 
                        flowing temperature measurements with 
                        indications of permeability that are sufficient 
                        to meet industry standards.
                    ``(B) Authority.--An area of qualified Federal land 
                that adjoins other land for which a qualified lessee 
                holds a legal right to develop geothermal resources may 
                be available for a noncompetitive lease under this 
                section to the qualified lessee at the fair market 
                value per acre, if--
                            ``(i) the area of qualified Federal land--
                                    ``(I) consists of not less than 1 
                                acre and not more than 640 acres; and
                                    ``(II) is not already leased under 
                                this Act or nominated to be leased 
                                under subsection (a);
                            ``(ii) the qualified lessee has not 
                        previously received a noncompetitive lease 
                        under this paragraph in connection with the 
                        valid discovery for which data has been 
                        submitted under clause (iii)(I); and
                            ``(iii) sufficient geological and other 
                        technical data prepared by a qualified 
                        geothermal professional has been submitted by 
                        the qualified lessee to the applicable Federal 
                        land management agency that would lead 
                        individuals who are experienced in the subject 
                        matter to believe that--
                                    ``(I) there is a valid discovery of 
                                geothermal resources on the land for 
                                which the qualified lessee holds the 
                                legal right to develop geothermal 
                                resources; and
                                    ``(II) that thermal feature extends 
                                into the adjoining areas.
                    ``(C) Determination of fair market value.--
                            ``(i) In general.--The Secretary shall--
                                    ``(I) publish a notice of any 
                                request to lease land under this 
                                paragraph;
                                    ``(II) determine fair market value 
                                for purposes of this paragraph in 
                                accordance with procedures for making 
                                those determinations that are 
                                established by regulations issued by 
                                the Secretary;
                                    ``(III) provide to a qualified 
                                lessee and publish any proposed 
                                determination under this subparagraph 
                                of the fair market value of an area 
                                that the qualified lessee seeks to 
                                lease under this paragraph;
                                    ``(IV) provide to the qualified 
                                lessee the opportunity to appeal the 
                                proposed determination during the 30-
                                day period beginning on the date that 
                                the proposed determination is provided 
                                to the qualified lessee; and
                                    ``(V) provide to any interested 
                                member of the public the opportunity to 
                                appeal the proposed determination in 
                                accordance with the process established 
                                under parts 4 and 1840, and section 
                                3200.5, of title 43, Code of Federal 
                                Regulations (as in effect on the date 
                                of enactment of the Geothermal 
                                Production Expansion Act of 2010) 
                                during the 30-day period beginning on 
                                the date that the proposed 
                                determination is published.
                            ``(ii) Limitation on nomination.--After 
                        publication of a notice of request to lease 
                        land under this paragraph, the Secretary may 
                        not accept under subsection (a) any nomination 
                        of the land for leasing unless the request has 
                        been denied or withdrawn.
                    ``(D) Regulations.--Not later than 180 days after 
                the date of enactment of the Geothermal Production 
                Expansion Act of 2010, the Secretary shall issue 
                regulations to carry out this paragraph.''.

Summary: Geothermal Production Expansion Act of 2010 - Amends competitive lease provisions of the Geothermal Steam Act of 1970 to allow an area of qualified federal land (land that is otherwise available for leasing under that Act) that adjoins other land for which a qualified lessee holds a legal right to develop geothermal resources to be available for a noncompetitive lease to such lessee at fair market value per acre if: (1) the area of qualified federal land consists of not less than one acre and not more than 640 acres and is not already leased or nominated to be leased; (2) the qualified lessee has not previously received a noncompetitive lease in connection with the valid discovery for which data has been submitted; and (3) sufficient technical data prepared by a qualified geothermal professional has been submitted by the qualified lessee to the applicable federal land management agency that would lead individuals who are experienced in the subject matter to believe that there is a valid discovery of geothermal resources on the land and that such thermal feature extends into the adjoining areas.

Defines "fair market value per acre" as a dollar amount per acre that shall be: (1) equal to the market value per acre as determined by the Secretary of the Interior within 90 days after the Secretary receives an application for a lease, and (2) not less than the greater of 4 times the median amount paid per acre for all land leased under such Act during the preceding year or $50.

Directs the Secretary to: (1) publish a notice of any request for such a lease; (2) determine fair market value in accordance with procedures established by the Secretary; (3) provide to a qualified lessee and publish any proposed determination of the fair market value of the area the qualified lessee seeks to lease; and (4) provide the lessee and the public an opportunity to appeal a proposed determination during the 30-day period after the determination is provided or published, respectively. Prohibits the Secretary from accepting any nomination of land for leasing after publication of a notice of request to lease such land unless the request has been denied or withdrawn.