SECTION 1. LARGE-SCALE GEOTHERMAL ENERGY.

    Title VI of the Energy Independence and Security Act of 2007 is 
amended by inserting after section 616 (42 U.S.C. 17195) the following:

``SEC. 616A. LARGE-SCALE GEOTHERMAL ENERGY.

    ``(a) Findings.--Congress finds that--
            ``(1) the Geothermal Technologies Program of the Office of 
        Energy Efficiency and Renewable Energy of the Department has 
        included a focus on direct use of geothermal energy in the low-
        temperature geothermal energy subprogram (including in the 
        development of a research and development plan for the 
        program);
            ``(2) the Building Technologies Program of the Office of 
        Energy Efficiency and Renewable Energy of the Department--
                    ``(A) is focused on the energy demand and energy 
                efficiency of buildings; and
                    ``(B) includes geothermal heat pumps as a component 
                technology in the residential and commercial deployment 
                activities of the program; and
            ``(3) geothermal heat pumps and direct use of geothermal 
        energy, especially in large-scale applications, can make a 
        significant contribution to the use of renewable energy but are 
        underrepresented in research, development, demonstration, and 
        commercialization.
    ``(b) Purposes.--The purposes of this section are--
            ``(1) to improve the components, processes, and systems 
        used for geothermal heat pumps and the direct use of geothermal 
        energy; and
            ``(2) to increase the energy efficiency, lower the cost, 
        increase the use, and improve and demonstrate the applicability 
        of geothermal heat pumps to, and the direct use of geothermal 
        energy in, large buildings, commercial districts, residential 
        communities, and large municipal, agricultural, or industrial 
        projects.
    ``(c) Definitions.--In this section:
            ``(1) Direct use of geothermal energy.--The term `direct 
        use of geothermal energy' means systems that use water that is 
        at a temperature between approximately 38 degrees Celsius and 
        149 degrees Celsius directly or through a heat exchanger to 
        provide--
                    ``(A) heating to buildings; or
                    ``(B) heat required for industrial processes, 
                agriculture, aquaculture, and other facilities.
            ``(2) Geothermal heat pump.--The term `geothermal heat 
        pump' means a system that provides heating and cooling by 
        exchanging heat from shallow ground or surface water using--
                    ``(A) a closed loop system, which transfers heat 
                via buried or immersed pipes that contain a mix of 
                water and antifreeze; or
                    ``(B) an open loop system, which circulates ground 
                or surface water directly into the building and returns 
                the water to the same aquifer or surface water source.
            ``(3) Large-scale application.--The term `large-scale 
        application' means an application for space or process heating 
        or cooling for large entities, such as a large building, 
        commercial district, residential community, or a large 
        municipal, agricultural, or industrial project.
            ``(4) Secretary.--The term `Secretary' means Secretary of 
        Energy, acting through the Assistant Secretary for Energy 
        Efficiency and Renewable Energy.
    ``(d) Program.--
            ``(1) In general.--The Secretary shall establish a program 
        of research, development, demonstration, and commercial 
        application for geothermal heat pumps and the direct use of 
        geothermal energy.
            ``(2) Areas.--The program may include research, 
        development, demonstration, and commercial application of--
                    ``(A) geothermal ground loop efficiency 
                improvements through more efficient heat transfer 
                fluids;
                    ``(B) geothermal ground loop efficiency 
                improvements through more efficient thermal grouts for 
                wells and trenches;
                    ``(C) geothermal ground loop installation cost 
                reduction through--
                            ``(i) improved drilling methods; and
                            ``(ii) improvements in drilling equipment;
                    ``(D) installing geothermal ground loops near the 
                foundation walls of new construction to take advantage 
                of existing structures;
                    ``(E) using gray or black wastewater as a method of 
                heat exchange;
                    ``(F) improving geothermal heat pump system 
                economics through integration of geothermal systems 
                with other building systems, including providing hot 
                and cold water and rejecting or circulating industrial 
                process heat through refrigeration heat rejection and 
                waste heat recovery;
                    ``(G) advanced geothermal systems using variable 
                pumping rates to increase efficiency;
                    ``(H) geothermal heat pump efficiency improvements;
                    ``(I) use of hot water found in mines and mine 
                shafts and other surface waters as the heat exchange 
                medium;
                    ``(J) heating of districts, neighborhoods, 
                communities, large commercial or public buildings 
                (including office, retail, educational, government, and 
                institutional buildings and multifamily residential 
                buildings and campuses), and industrial and 
                manufacturing facilities;
                    ``(K) geothermal system integration with solar 
                thermal water heating or cool roofs and solar-
                regenerated desiccants to balance loads and use 
                building hot water to store geothermal energy;
                    ``(L) use of hot water coproduced from oil and gas 
                recovery;
                    ``(M) use of water sources at a temperature of less 
                than 150 degrees Celsius for direct use;
                    ``(N) system integration of direct use with 
                geothermal electricity production; and
                    ``(O) coproduction of heat and power, including on-
                site use.
            ``(3) Environmental impacts.--In carrying out the program, 
        the Secretary shall identify and mitigate potential 
        environmental impacts in accordance with section 614(c).
    ``(e) Grants.--
            ``(1) In general.--The Secretary shall make grants 
        available to State and local governments, institutions of 
        higher education, nonprofit entities, utilities, and for-profit 
        companies (including manufacturers of heat-pump and direct-use 
        components and systems) to promote the development of 
        geothermal heat pumps and the direct use of geothermal energy.
            ``(2) Priority.--In making grants under this subsection, 
        the Secretary shall give priority to proposals that apply to 
        large buildings (including office, retail, educational, 
        government, institutional, and multifamily residential 
        buildings and campuses and industrial and manufacturing 
        facilities), commercial districts, and residential communities.
            ``(3) National solicitation.--Not later than 180 days after 
        the date of enactment of this section, the Secretary shall 
        conduct a national solicitation for applications for grants 
        under this section.
    ``(f) Reports.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of this section and annually thereafter, the 
        Secretary shall submit to the Committee on Energy and Natural 
        Resources of the Senate and the Committee on Science and 
        Technology of the House of Representatives a report on progress 
        made and results obtained under this section to develop 
        geothermal heat pumps and direct use of geothermal energy.
            ``(2) Areas.--Each of the reports required under this 
        subsection shall include--
                    ``(A) an analysis of progress made in each of the 
                areas described in subsection (d)(2); and
                    ``(B)(i) a description of any relevant 
                recommendations made during a review of the program; 
                and
                    ``(ii) any plans to address the recommendations 
                under clause (i).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section such sums as 
are necessary for each of fiscal years 2011 through 2015.''.
Output: Amends the Energy Independence and Security Act of 2007 to require the Secretary of Energy (DOE): (1) acting through the Assistant Secretary for Energy Efficiency and Renewable Energy, to establish a program of research, development, demonstration, and commercial application for geothermal heat pumps and the direct use of geothermal energy; and (2) identify and mitigate potential environmental impacts.

Directs the Secretary to: (1) make grants to state and local governments, institutions of higher education, nonprofit entities, utilities, and for-profit companies to promote the development of geothermal heat pumps and the direct use of geothermal energy; (2) give priority to proposals that apply to large buildings, commercial districts, and residential communities; and (3) conduct a national solicitation for grant applications.