Enhancing Geothermal Production on Federal Lands Act

I 116TH CONGRESS 1ST SESSION H. R. 4026 To amend the Geothermal Steam Act of 1970 to promote timely exploration for geothermal resources under geothermal leases, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 25, 2019 Mr. FULCHER introduced the following bill; which was referred to the Committee on Natural Resources A BILL To amend the Geothermal Steam Act of 1970 to promote timely exploration for geothermal resources under geo- thermal leases, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Enhancing Geothermal 4 Production on Federal Lands Act’’. 5 SEC. 2. GEOTHERMAL PRODUCTION ON FEDERAL LANDS. 6 The Geothermal Steam Act of 1970 (30 U.S.C. 1001 7 et seq.) is amended by adding at the end the following: 8 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 2 •HR 4026 IH ‘‘SEC. 30. GEOTHERMAL EXPLORATION TEST PROJECTS. 1 ‘‘(a) DEFINITION OF GEOTHERMAL EXPLORATION 2 TEST PROJECT.—In this section, the term ‘geothermal ex- 3 ploration test project’ means the drilling of a well to test 4 or explore for geothermal resources on lands for which the 5 Secretary has issued a lease under this Act, that— 6 ‘‘(1) is carried out by the holder of the lease; 7 ‘‘(2) causes— 8 ‘‘(A) less than 5 acres of soil or vegetation 9 disruption at the location of each geothermal 10 exploration well; and 11 ‘‘(B) not more than an additional 5 acres 12 of soil or vegetation disruption during access or 13 egress to the test site; 14 ‘‘(3) is developed— 15 ‘‘(A) less than 9 inches in diameter; 16 ‘‘(B) in a manner that does not require 17 off-road motorized access other than to and 18 from the well site along an identified off-road 19 route; 20 ‘‘(C) without construction of new roads 21 other than upgrading of existing drainage cross- 22 ings for safety purposes; 23 ‘‘(D) with the use of rubber-tired digging 24 or drilling equipment vehicles; and 25 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 3 •HR 4026 IH ‘‘(E) without the use of high-pressure well 1 stimulation; 2 ‘‘(4) is completed in less than 90 days, includ- 3 ing the removal of any surface infrastructure from 4 the site; and 5 ‘‘(5) requires the restoration of the project site 6 within 3 years of the date of first exploration drilling 7 to approximately the condition that existed at the 8 time the project began, unless the site is subse- 9 quently used as part of energy development under 10 the lease. 11 ‘‘(b) CATEGORICAL EXCLUSION.— 12 ‘‘(1) IN GENERAL.—Unless extraordinary cir- 13 cumstances exist, a project that the Secretary deter- 14 mines under subsection (c) is a geothermal explo- 15 ration test project shall be categorically excluded 16 from the requirements for an environmental assess- 17 ment or an environmental impact statement under 18 the National Environmental Policy Act of 1969 (42 19 U.S.C. 4321 et seq.) or section 1508.4 of title 40, 20 Code of Federal Regulations (or a successor regula- 21 tion). 22 ‘‘(2) EXTRAORDINARY CIRCUMSTANCES DEFINI- 23 TION.—In this subsection, the term ‘extraordinary 24 circumstances’ has the same meaning given such 25 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 4 •HR 4026 IH term in the Department of the Interior Depart- 1 mental Manual, 516 DM 2.3A(3) and 516 DM 2, 2 Appendix 2 (or successor provisions). 3 ‘‘(c) PROCESS.— 4 ‘‘(1) REQUIREMENT TO PROVIDE NOTICE.—A 5 leaseholder shall provide notice to the Secretary of 6 the leaseholder’s intent to carry out a geothermal ex- 7 ploration test project at least 30 days before the 8 start of drilling under the project. 9 ‘‘(2) REVIEW AND DETERMINATION.—Not later 10 than 10 days after receipt of a notice of intent 11 under paragraph (1), the Secretary shall, with re- 12 spect to the project described in the notice of in- 13 tent— 14 ‘‘(A) determine if the project qualifies for 15 a categorical exclusion under subsection (b); 16 and 17 ‘‘(B) notify the leaseholder of such deter- 18 mination. 19 ‘‘(3) OPPORTUNITY TO REMEDY.—If the Sec- 20 retary determines under paragraph (2)(A) that the 21 project does not qualify for a categorical exclusion 22 under subsection (b), the Secretary shall— 23 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 5 •HR 4026 IH ‘‘(A) include in such notice clear and de- 1 tailed findings on any deficiencies in the project 2 that resulted in such determination; and 3 ‘‘(B) allow the leaseholder to remedy any 4 such deficiencies and resubmit the notice of in- 5 tent under paragraph (1).’’. 6 SEC. 3. GEOTHERMAL LEASING PRIORITY AREAS. 7 The Geothermal Steam Act of 1970 (30 U.S.C. 1001 8 et seq.) is further amended by adding at the end the fol- 9 lowing: 10 ‘‘SEC. 31. GEOTHERMAL LEASING PRIORITY AREAS. 11 ‘‘(a) DEFINITION OF COVERED LAND.—In this sec- 12 tion, the term ‘covered land’ means land that is— 13 ‘‘(1) Federal land; and 14 ‘‘(2) not excluded from the development of geo- 15 thermal energy under— 16 ‘‘(A) a land use plan established under the 17 Federal Land Policy and Management Act of 18 1976 (43 U.S.C. 1701 et seq.); or 19 ‘‘(B) any other Federal law. 20 ‘‘(b) DESIGNATION OF GEOTHERMAL LEASING PRI- 21 ORITY AREAS.—The Secretary, in consultation with the 22 Secretary of Energy, shall designate portions of covered 23 land as geothermal leasing priority areas as soon as prac- 24 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 6 •HR 4026 IH ticable, but not later than 5 years, after the date of the 1 enactment of this section. 2 ‘‘(c) CRITERIA FOR SELECTION.—In determining 3 which covered lands to designate as geothermal leasing 4 priority areas under subsection (b), the Secretary, in con- 5 sultation with the Secretary of Energy, shall consider if— 6 ‘‘(1) the covered land is preferable for geo- 7 thermal leasing; 8 ‘‘(2) production of geothermal energy on such 9 land is economically viable, including if such land 10 has access to methods of energy transmission; and 11 ‘‘(3) the designation would be in compliance 12 with section 202 of the Federal Land Policy and 13 Management Act of 1976 (43 U.S.C. 1712), includ- 14 ing subsection (c)(9) of that section. 15 ‘‘(d) REVIEW AND MODIFICATION.—Not less fre- 16 quently than once every 10 years, the Secretary shall— 17 ‘‘(1) review covered land and, if appropriate, 18 make additional designations of geothermal leasing 19 priority areas; and 20 ‘‘(2) review each area designated as a geo- 21 thermal leasing priority area under this section, and, 22 if appropriate, remove such designation. 23 ‘‘(e) PROGRAMMATIC ENVIRONMENTAL IMPACT 24 STATEMENT.— 25 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 7 •HR 4026 IH ‘‘(1) INITIAL DESIGNATIONS.—No later than 1 one year after the initial designation of a geothermal 2 leasing priority area, the Secretary shall prepare a 3 supplement to any final programmatic environmental 4 impact statement for geothermal leasing that is the 5 most recently finalized such statement with respect 6 to covered land designated as a geothermal leasing 7 priority area under subsection (b). 8 ‘‘(2) SUBSEQUENT DESIGNATIONS.—Each des- 9 ignation of a geothermal leasing priority area under 10 subsection (d) shall be included in a programmatic 11 environmental impact statement for geothermal leas- 12 ing or in a supplement to such a statement. 13 ‘‘(3) CONSULTATIONS.—In developing any pro- 14 grammatic environmental impact statement for geo- 15 thermal leasing or supplement to such a statement 16 under this section, the Secretary shall consult, on an 17 ongoing basis, with appropriate State, Tribal, and 18 local governments, transmission infrastructure own- 19 ers and operators, developers, and other appropriate 20 entities. 21 ‘‘(4) PROCEDURE.—The Secretary may not 22 delay issuing a permit or holding a lease sale under 23 this Act because the supplement required under 24 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 8 •HR 4026 IH paragraph (1) has not been finalized by the Sec- 1 retary. 2 ‘‘(f) COMPLIANCE WITH NEPA.—If the Secretary 3 determines that the designation of a geothermal leasing 4 priority area has been sufficiently analyzed by a pro- 5 grammatic environmental impact statement, the Secretary 6 shall not prepare any additional analysis under the Na- 7 tional Environmental Policy Act of 1969 (42 U.S.C. 4321 8 et seq.) with respect to geothermal lease sales for such 9 geothermal leasing priority area.’’. 10 SEC. 4. FACILITATION OF COPRODUCTION OF GEO- 11 THERMAL ENERGY ON OIL AND GAS LEASES. 12 Section 4(b) of the Geothermal Steam Act of 1970 13 (30 U.S.C. 1003(b)) is amended by adding at the end the 14 following: 15 ‘‘(4) LAND SUBJECT TO OIL AND GAS LEASE.— 16 Land under an oil and gas lease issued pursuant to 17 the Mineral Leasing Act (30 U.S.C. 181 et seq.) or 18 the Mineral Leasing Act for Acquired Lands (30 19 U.S.C. 351 et seq.) that is subject to an approved 20 application for permit to drill and from which oil 21 and gas production is occurring may be available for 22 noncompetitive leasing under subsection (c) by the 23 holder of the oil and gas lease— 24 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 9 •HR 4026 IH ‘‘(A) on a determination that geothermal 1 energy will be produced from a well producing 2 or capable of producing oil and gas; and 3 ‘‘(B) in order to provide for the coproduc- 4 tion of geothermal energy with oil and gas.’’. 5 SEC. 5. NONCOMPETITIVE LEASING OF ADJOINING AREAS 6 FOR DEVELOPMENT OF GEOTHERMAL RE- 7 SOURCES. 8 Section 4(b) of the Geothermal Steam Act of 1970 9 (30 U.S.C. 1003(b)) is further amended by adding at the 10 end the following: 11 ‘‘(5) ADJOINING LAND.— 12 ‘‘(A) DEFINITIONS.—In this paragraph: 13 ‘‘(i) FAIR MARKET VALUE PER 14 ACRE.—The term ‘fair market value per 15 acre’ means a dollar amount per acre 16 that— 17 ‘‘(I) except as provided in this 18 clause, shall be equal to the market 19 value per acre (taking into account 20 the determination under subparagraph 21 (B)(iii) regarding a valid discovery on 22 the adjoining land) as determined by 23 the Secretary under regulations issued 24 under this paragraph; 25 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 10 •HR 4026 IH ‘‘(II) shall be determined by the 1 Secretary with respect to a lease 2 under this paragraph, by not later 3 than the end of the 180-day period 4 beginning on the date the Secretary 5 receives an application for the lease; 6 and 7 ‘‘(III) shall be not less than the 8 greater of— 9 ‘‘(aa) 4 times the median 10 amount paid per acre for all land 11 leased under this Act during the 12 preceding year; or 13 ‘‘(bb) $50. 14 ‘‘(ii) INDUSTRY STANDARDS.—The 15 term ‘industry standards’ means the stand- 16 ards by which a qualified geothermal pro- 17 fessional assesses whether downhole or 18 flowing temperature measurements with 19 indications of permeability are sufficient to 20 produce energy from geothermal resources, 21 as determined through flow or injection 22 testing or measurement of lost circulation 23 while drilling. 24 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 11 •HR 4026 IH ‘‘(iii) QUALIFIED FEDERAL LAND.— 1 The term ‘qualified Federal land’ means 2 land that is otherwise available for leasing 3 under this Act. 4 ‘‘(iv) QUALIFIED GEOTHERMAL PRO- 5 FESSIONAL.—The term ‘qualified geo- 6 thermal professional’ means an individual 7 who is an engineer or geoscientist in good 8 professional standing with at least 5 years 9 of experience in geothermal exploration, 10 development, or project assessment. 11 ‘‘(v) QUALIFIED LESSEE.—The term 12 ‘qualified lessee’ means a person who may 13 hold a geothermal lease under this Act (in- 14 cluding applicable regulations). 15 ‘‘(vi) VALID DISCOVERY.—The term 16 ‘valid discovery’ means a discovery of a 17 geothermal resource by a new or existing 18 slim hole or production well, that exhibits 19 downhole or flowing temperature measure- 20 ments with indications of permeability that 21 are sufficient to meet industry standards. 22 ‘‘(B) AUTHORITY.—An area of qualified 23 Federal land that adjoins other land for which 24 a qualified lessee holds a legal right to develop 25 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 12 •HR 4026 IH geothermal resources may be available for a 1 noncompetitive lease under this section to the 2 qualified lessee at the fair market value per 3 acre, if— 4 ‘‘(i) the area of qualified Federal 5 land— 6 ‘‘(I) consists of not less than 1 7 acre and not more than 640 acres; 8 and 9 ‘‘(II) is not already leased under 10 this Act or nominated to be leased 11 under subsection (a); 12 ‘‘(ii) the qualified lessee has not pre- 13 viously received a noncompetitive lease 14 under this paragraph in connection with 15 the valid discovery for which data has been 16 submitted under clause (iii)(I); and 17 ‘‘(iii) sufficient geological and other 18 technical data prepared by a qualified geo- 19 thermal professional has been submitted by 20 the qualified lessee to the applicable Fed- 21 eral land management agency that would 22 lead individuals who are experienced in the 23 subject matter to believe that— 24 VerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026 kjohnson on DSK79L0C42 with BILLS 13 •HR 4026 IH ‘‘(I) there is a valid discovery of 1 geothermal resources on the land for 2 which the qualified lessee holds the 3 legal right to develop geothermal re- 4 sources; and 5 ‘‘(II) that geothermal feature ex- 6 tends into the adjoining areas. 7 ‘‘(C) DETERMINATION OF FAIR MARKET 8 VALUE.— 9 ‘‘(i) IN GENERAL.—The Secretary 10 shall— 11 ‘‘(I) publish a notice of any re- 12 quest [Text truncated for display. 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