“To advance next-generation geothermal electricity generation demonstration projects in new regions, and for other purposes.”
No CRS summary available for this bill.
This section declares the purpose of the Act to advance next-generation geothermal demonstration projects by (1) accelerating the commercialization of next-generation geothermal technologies in diverse geologies and regions across the United States, (2) overcoming high upfront capital costs for geothermal exploration and drilling, (3) generating public data to de-risk future geothermal projects in new geologies and regions, and (4) catalyzing geothermal demonstration projects and innovation through milestone-based financing to de-risk future geothermal projects.
This section amends Section 615 of the Energy Independence and Security Act of 2007, which authorizes the Department of Energy (DOE) to provide innovative financing for geothermal demonstration projects, by (1) expanding the program's scope to explicitly include a new milestone-based geothermal demonstration program for projects in low-permeability and impermeable reservoirs; (2) striking subsection (d)(3); and (3) establishing the Milestone-Based Geothermal Demonstration Program. The program requires DOE to solicit proposals and competitively award innovative financing—defined to include financial instruments authorized under DOE's general financial transaction authority (42 U.S.C. 7256)—based on technical and financial milestones achieved, prioritizing (A) projects in regions and geologies with limited or no geothermal electricity generation (including on or near Indian land), (B) projects supporting data collection on new geothermal resources and technologies, (C) new facilities with at least 30 megawatts of aggregate electricity generation capacity or innovations enabling at least 30 megawatts of commercial-scale generation, and (D) projects attracting significant private investment. DOE must establish the program within 180 days of enactment; award financing to at least three proposals from at least three different project sponsors in at least three states; maintain sufficient staffing; and administer projects as milestone-based demonstrations under section 9005 of the Energy Act of 2020 (42 U.S.C. 7256c). The section also authorizes appropriations of such sums as necessary to carry out subsections (d) and (e).