No CRS summary available for this bill.
This section states the purpose of the Act as advancing next-generation geothermal demonstration projects to (1) accelerate the commercialization of next-generation geothermal technologies in diverse geologies and regions across the United States; (2) overcome high upfront capital costs for geothermal exploration and drilling; (3) generate public data to de-risk future geothermal projects in new geologies and regions; and (4) catalyze geothermal demonstration projects and innovation through milestone-based financing to de-risk future geothermal projects.
This section establishes a Milestone-Based Geothermal Demonstration Program under new subsection (e) of Section 615 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17194) to award innovative financing—such as loan guarantees or other instruments under DOE authorities—to geothermal projects in low-permeability and impermeable reservoirs through a competitive, milestone-based process. The program, to be established by the Secretary of Energy not later than 180 days after enactment, prioritizes (1) projects in regions and geologies with limited or no geothermal electricity generation, including on or near Indian land (as defined in 25 U.S.C. 3501, i.e., reservation lands, trust lands, certain Alaska Native lands, and census tracts where Natives or enrolled tribal members are the majority); (2) projects supporting data collection on new geothermal resources and technologies; (3) facilities or innovations enabling at least 30 megawatts of commercial-scale geothermal electricity generation; and (4) projects attracting significant private investment. Awards must go to at least three proposals in at least three states from at least three sponsors, with sufficient DOE staffing required; expands the scope of subsection (a) to include the program; strikes paragraph (3) of subsection (d); carries out projects as milestone-based demonstrations under Section 9005 of the Energy Act of 2020 (42 U.S.C. 7256c); and authorizes such sums as necessary for subsections (d) and (e).