H.R. 7568 — Hot Rock Act

This section establishes definitions for terms used in the Act, including (1) geothermal energy, as given in section 45(c)(4) of the Internal Revenue Code of 1986; (2) geothermal reservoir, meaning an underground reservoir containing a geothermal resource or deposit (whether fluids are native or injected); (3) hot dry rock, meaning a superhot geothermal resource or supercritical geothermal resource in rocks with little to no natural permeability; (4) hot dry rock geothermal project, meaning combined surface and subsurface facilities to produce electricity or industrial heat from hot dry rock using a next-generation geothermal system; (5) next-generation geothermal system, meaning an engineered (as opposed to naturally occurring) geothermal reservoir system; (6) supercritical geothermal resource, meaning a geothermal resource at a temperature of 375 degrees Celsius or greater; and (7) superhot geothermal resource, meaning a geothermal resource at a temperature equal to 300 degrees Celsius or 374 degrees Celsius, or between 300 degrees Celsius and 374 degrees Celsius.

This section establishes programs within the Department of Energy for hot dry rock geothermal energy research, testing, development, and demonstration. (As background, hot dry rock geothermal extracts heat from hot, impermeable rock formations by hydraulically fracturing the rock to create reservoirs and circulating fluid to transfer heat to the surface for power generation.) Specifically, the section (1) directs the Secretary of Energy to establish grant programs for high-temperature completions research and testing, high-temperature and high-pressure sensing equipment development, and supercritical fluid properties research and testing, along with a program to increase relevant staffing and contract with scientists; (2) authorizes $16 million annually for fiscal years 2027 through 2031 for those grant programs; (3) directs establishment of a program to construct and operate a frontier observatory and testing site for hot dry rock projects and authorizes $40 million annually for fiscal years 2027 through 2031; (4) directs establishment of a program to support research, development, and demonstration activities addressing challenges such as supercritical fluid infrastructure, reservoir management, advanced drilling, proppants, and wellbore integrity and authorizes $16 million annually for fiscal years 2027 through 2031; and (5) directs establishment of a milestone-based grant program to support development of supercritical wells, fluid processes, and energy harnessing techniques upon achievement of milestones such as drilling, reservoir creation, steam production, and power production.

This section directs the Secretary of the Interior, acting through the Director of the U.S. Geological Survey (USGS), to establish not later than 180 days after enactment of this section three programs concerning hot dry rock geothermal energy (i.e., enhanced geothermal systems that extract heat from dry, impermeable hot rock formations): (1) a research program studying seismicity and rock mechanics in the brittle-ductile transition zone and thermal properties of rocks (including conductivity, fluid and rock heat capacity, specific heat capacity, and seismicity); (2) a program to map deep basement rocks in each state, the District of Columbia, and U.S. territories and possessions; and (3) a program to monitor groundwater in areas affected by hot dry rock testing and demonstration activities. It authorizes appropriations of $5 million to the Secretary for each of FY2027 through FY2031.

This section establishes a workforce cross-training program under which the Secretary of Labor enters into agreements with at least two institutions of higher education, as defined in section 102(a) of the Higher Education Act of 1965 (20 U.S.C. 1002(a)), to provide classroom education, training, and apprenticeship placements to covered individuals for employment in the geothermal energy industry. The program covers specified fields including geosciences, geophysics, computational sciences and engineering, and various engineering disciplines (i.e., geological, mechanical, process, chemical, petroleum, drilling, civil, and electrical). It requires encouraging participation by covered individuals who are union members or residents of energy communities (as defined in IRC §45(b)(11)(B)) and prioritizing those working in oil and gas roles (e.g., mechanical engineer, drilling engineer, petroleum engineer, oil rig worker, geoscientist) or as technicians (e.g., welder, machinist, pipefitter, electrician). Covered individuals must be U.S. citizens or legal permanent residents employed by or contracting for U.S.-headquartered companies. The section authorizes $10 million to the Secretary for each of FY2027 through FY2031.

This section establishes a Department of Energy program to provide technical assistance—including on research and development—to Bureau of Land Management and Forest Service offices for federal authorizations related to hot dry rock geothermal projects and authorizes $10 million for each of FY2027 through 2031. This section amends Section 390 of the Energy Policy Act of 2005 to extend a rebuttable presumption that specified activities qualify for a categorical exclusion under NEPA (i.e., no full environmental assessment or impact statement required)— (1) to geothermal exploration under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.), in addition to oil or gas exploration or development under the Mineral Leasing Act (30 U.S.C. 181 et seq.); and (2) by including geothermal wells, in addition to oil or gas wells, for drilling at previously drilled sites (within five years prior to spudding) and within developed fields for which NEPA documents approved such drilling as reasonably foreseeable (within five years prior to spudding). (As background, the presumption applies to actions by the Secretary of the Interior on public lands or the Secretary of Agriculture on National Forest System lands for low-impact activities, including individual surface disturbances of less than five acres where total lease disturbance does not exceed 150 acres with prior site-specific NEPA analysis, pipeline placement in corridors approved within five years, and minor maintenance.) This section also defines "expert" (i.e., energy sector individual with specified technical expertise) and "Federal authorization" (i.e., any federal approval for geothermal lease activities, including siting, drilling, injection, operations, and energy generation).