II 118th CONGRESS 2d Session S. 3954 IN THE SENATE OF THE UNITED STATES March 14, 2024 Mr. Heinrich (for himself, Mr. Risch , Mr. Lee , and Ms. Cortez Masto ) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To amend the Geothermal Steam Act of 1970 to promote timely exploration for geothermal resources under geothermal leases, and for other purposes.

1. Short title This Act may be cited as the Geothermal Energy Optimization Act . 2. Geothermal production on Federal land The Geothermal Steam Act of 1970 ( 30 U.S.C. 1001 et seq. ) is amended by adding at the end the following: 30. Geothermal observation test projects (a) Definitions In this section: (1) Categorical exclusion The term categorical exclusion has the meaning given the term in section 111 of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4336e ). (2) Downhole The term downhole means a well or borehole dug or drilled into the subsurface of the earth for the purposes of resource confirmation or potential use. (3) Geothermal observation test project The term geothermal observation test project means using geothermal technologies to drill a test, monitor, calibration, or other similar type of exploratory drilling process well for geothermal resources on land for which the Secretary concerned has issued a lease under this Act, that— (A) is carried out by the leaseholder; (B) causes an allowable amount of total disturbance; (C) does not include any permanent roads; (D) is developed— (i) with the deepest cemented casing string less than 12 inches of downhole size in diameter; (ii) in a manner that does not require off-road motorized access other than to and from the well site along an identified off-road route; (iii) with temporary road access, if needed to enable access to the geothermal observation test project location, subject to the requirement that— (I) construction of the temporary road access is remediated as close as reasonably practicable to original condition following completion of the geothermal observation test project work; or (II) the temporary road access, with any additional permanent improvements, is included as part of the full review required under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) if the leaseholder intends to proceed with geothermal energy use for— (aa) the production of electricity; (bb) industrial processes; (cc) agricultural processes; (dd) brine mineral extraction; (ee) direct heating and cooling uses; or (ff) any combination of items (aa) through (ee); and (iv) with the use of rubber-tired digging or drilling equipment vehicles; (E) is completed in less than 120 days— (i) including the removal of any surface infrastructure from the site, unless— (I) the leaseholder conducting the geothermal observation test project submits to the Secretary concerned by not later than 60 days after the date of first exploration drilling an extension request for additional time to complete the observation project, in which the request provides justification indicating why granting an extension is necessary; and (II) the Secretary concerned grants an extension under subclause (I), if requested; or (ii) not including removal of any surface infrastructure from the site so long as the geothermal developer intends to proceed with resource development directly following the test phase of the project and into processes required under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ); and (F) requires the restoration of the project site as part of any new review required under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) within 3 years of the date of first exploration drilling to approximately the condition that existed at the time the project began, unless the site is subsequently used as part of energy development under the lease. (4) Geothermal technology The term geothermal technology means technology designed to extract heat from the subsurface of the earth and that is used to drill— (A) hydrothermal project test wells; (B) enhanced geothermal system monitoring wells; (C) closed loop geothermal system calibration wells; and (D) similar types of subsurface disturbances through non-production wells to assess the viability of the heat resources of the earth. (5) Secretary concerned The term Secretary concerned means— (A) the Secretary of Agriculture, with respect to National Forest System land; and (B) the Secretary, with respect to public lands. (6) Surface infrastructure The term surface infrastructure means all equipment, materials, facilities, and other items used in the drilling of a geothermal observation test project. (7) Total disturbance (A) In general The term total disturbance means a geothermal observation test project that causes not more than 10 acres of disturbance from— (i) soil or vegetation disruption at the location of each geothermal observation test project; and (ii) soil or vegetation disruption during access or egress to the geothermal observation test project site. (B) Allowance (i) Multiple projects For instances of multiple geothermal observation test projects, the acres of total disturbance allowed shall— (I) be equal to the total number of geothermal observation test projects multiplied by 10 acres; and (II) not exceed 100 total acres. (ii) Access or egress For soil or vegetation disruption during access or egress to a geothermal observation test project site, the acres of total soil or vegetation disruption allowed shall be equal to the acres of total disturbance allowed minus the acres of soil or vegetation disruption caused by the geothermal observation test project. (b) Categorical exclusion (1) In general Not later than 1 year after the date of enactment of this section, the Secretary concerned shall develop a categorical exclusion for geothermal observation test projects. (2) Administration In developing and administering the categorical exclusion under paragraph (1), the Secretary concerned shall— (A) comply with the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ); and (B) apply any applicable extraordinary circumstance under section 46.215 of title 43, Code of Federal Regulations (or successor regulations), in determining whether to use the categorical exclusion. (c) Process (1) Requirement to provide notice A leaseholder shall provide notice to the Secretary concerned of the intent of the leaseholder to carry out a geothermal observation test project at least 60 days before the start of drilling under the project. (2) Review and determination Not later than 30 days after receipt of a notice of intent under paragraph (1) that contains sufficient information to evaluate the qualifications of the project for an applicable categorical exclusion, the Secretary concerned shall, with respect to the project described in the notice of intent— (A) determine if the project qualifies for a categorical exclusion under subsection (b); (B) notify the leaseholder of such determination; and (C) administer the categorical exclusion for a geothermal observation test project, subject to the condition that— (i) the project meets the specified criteria for the categorical exclusion; and (ii) the Secretary determines that no extraordinary circumstance exists under which a normally excluded action or project may have a significant effect. (3) Opportunity to remedy If the Secretary concerned determines under paragraph (2)(A) that the project does not qualify for a categorical exclusion under subsection (b), the Secretary concerned shall— (A) include in such notice clear and detailed findings on any deficiencies in the project that resulted in such determination; and (B) allow the leaseholder not less than 60 days after receiving notice under subparagraph (A) to remedy any deficiencies and resubmit the notice of intent under paragraph (1). . 3. Review of geothermal exploration or development activities Section 390 of the Energy Policy Act of 2005 ( 42 U.S.C. 15942 ) is amended— (1) in subsection (a)— (A) by inserting ( 30 U.S.C. 181 et seq. ) or the Geothermal Steam Act of 1970 ( 30 U.S.C. 1001 et seq. ) after Mineral Leasing Act ; and (B) by striking oil or gas and inserting oil, gas, or geothermal energy resource well ; (2) in subsection (b)— (A) in paragraph (1), by inserting , and less than 10 acres for the purposes of geothermal, after less than 5 acres ; (B) in paragraph (2), by striking oil or gas well and inserting oil, gas, or geothermal resource well ; (C) in paragraph (3), by striking oil or gas well within a developed field and inserting oil, gas, or geothermal energy resource well within a developed field or area ; (D) by redesignating paragraph (5) as paragraph (6); and (E) by inserting after paragraph (4) the following: (5) For the purposes of geothermal, placement of an electrical transmission line or a distribution line of not more than 20 miles in length in an approved right-of-way corridor, so long as the corridor was approved within 5 years prior to the date of placement of the transmission or distribution line. . 4. Leasing procedures under the Geothermal Steam Act Section 4 of the Geothermal Steam Act of 1970 ( 30 U.S.C. 1003 ) is amended— (1) in subsection (b)— (A) in paragraph (2), by striking every 2 years and inserting every year ; and (B) by adding at the end the following: (5) Replacement sales If a lease sale under this section for a year is cancelled or delayed, the Secretary shall conduct a replacement sale during the same year. ; and (2) in subsection (d), by adding at the end the following: (3) Deadline The Secretary, and the Secretary of Agriculture with respect to National Forest System land, shall issue a decision for a submitted application described in paragraph (1) not later than 60 days after the application is submitted. . 5. Geothermal Ombudsman and Strike Team (a) Definitions In this section: (1) Director The term Director means the Director of the Bureau of Land Management. (2) Geothermal Ombudsman The term Geothermal Ombudsman means the Geothermal Ombudsman appointed under subsection (b). (3) Geothermal Strike Team The term Geothermal Strike Team means the Geothermal Strike Team established under subsection (c). (4) Secretary The term Secretary means the Secretary of the Interior. (b) Geothermal ombudsman (1) Appointment Not later than 60 days after the date of enactment of this Act, the Secretary shall appoint within the Bureau of Land Management a Geothermal Ombudsman to report directly to the Director. (2) Duties The Geothermal Ombudsman shall— (A) act as a liaison between the individual field offices of the Bureau of Land Management and the Director; (B) improve— (i) the performance of the permitting process for geothermal energy resource wells; and (ii) regional coordination of the field offices of the Bureau of Land Management; (C) provide dispute resolution services between the individual field offices of the Bureau of Land Management and applicants for drilling geothermal energy resource wells; (D) help Federal, State, and Tribal departments and agencies make the permitting and leasing process for geothermal energy resource wells efficient, orderly, and responsive; (E) develop best practices and templates for the permitting and leasing process for geothermal energy resource wells; (F) coordinate with the Federal Permitting Improvement Steering Council established by section 41002 of the FAST Act ( 42 U.S.C. 4370m–1 ) and other task forces, as needed, on overlapping duties and responsibilities; and (G) identify potential statutory and regulatory changes based on input from the individual field offices of the Bureau of Land Management, the Geothermal Strike Team, and other stakeholders, as determined by the Secretary. (3) Limitation (A) Support In carrying out the duties of the Geothermal Ombudsman under paragraph (2), the Geothermal Ombudsman shall use personnel, funding, logistics, and other resources of the Bureau of Land Management, to the extent determined by the Director. (B) Effect Nothing in this subsection replaces, alters, or diminishes the activities of any ombudsman or similar office of any other agency. (c) Geothermal Strike Team (1) Establishment Not later than 60 days after the date of enactment of this Act, the Secretary shall establish within the Bureau of Land Management a task force, to be known as the Geothermal Strike Team , which shall report directly to the Director. (2) Duties The Geothermal Strike Team shall support the Geothermal Ombudsman— (A) with implementation and continuous improvement of best practices relating to permitting for and leasing of geothermal energy resource wells; (B) with providing direct technical assistance to applicants in field offices of the Bureau of Land Management, as requested; and (C) with coordinating with Federal, State, Tribal, and local governments, and among State agencies, on project review, permitting, and approvals for geothermal energy resource wells. (3) Members The Geothermal Strike Team shall be composed of members of the Bureau of Land Management selected by the Director, in consultation with the Secretary, who may consult with— (A) institutions of higher education (as defined in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) )); (B) members from the National Laboratories (as defined in section 2 of the Energy Policy Act of 2005 ( 42 U.S.C. 15801 )); (C) private entities, as determined by the Director, with expertise in data modeling and analysis; and (D) other experts, as determined by the Director. (4) Limitation (A) Support In carrying out the duties of the Geothermal Strike Team under paragraph (2), the Geothermal Strike Team may use personnel, funding, logistics, and other resources of the Bureau of Land Management, to the extent determined by the Director. (B) Effect Nothing in this subsection replaces, alters, or diminishes the activities of any similar office of any Federal agency. (d) Reports (1) Annual report The Geothermal Ombudsman and the Geothermal Strike Team shall jointly submit to the Committee on Energy and Natural Resources of the Senate, the Committee on Energy and Commerce of the House of Representatives, and the Director an annual report that describes the activities and evaluates the effectiveness of the Geothermal Ombudsman and Geothermal Strike Team during the preceding 1-year period. (2) Additional reports In addition to the annual report required under paragraph (1), the Geothermal Ombudsman and Geothermal Strike Team shall submit to the Director any additional reports, as determined by the Director. (3) Request The Geothermal Ombudsman and the Geothermal Strike Team shall, on request, submit the reports described in paragraphs (1) and (2) to any Member of Congress.