Next-Generation Geothermal Research and Development Act

This Act may be cited as the “Next-Generation Geothermal Research and Development Act”.

(a) EISA definitions.— Section 612 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17191) is amended—

(1) by redesignating paragraphs (1) through (8) as paragraphs (2), (3), (4), (5), (6), (7), (8), and (12), respectively;

(2) by inserting before paragraph (2) (as so redesignated) the following:

“(1) Closed-loop geothermal systems.— The term closed-loop geothermal systems means a wellbore or subsurface circuit of wellbores containing a fluid heated through contact with the borehole wall.”; and

(3) by inserting after paragraph (8) (as so redesignated) the following:

“(9) Next-generation geothermal systems.— The term next-generation geothermal systems means—

(A) enhanced geothermal systems;

(B) closed-loop geothermal systems; and

(C) in supercritical conditions—

(i) enhanced geothermal systems;

(ii) closed-loop geothermal systems; or

(iii) other technologies, as determined by the Secretary.

(10) Supercritical conditions.— The term supercritical conditions means subsurface temperature conditions at or above the supercritical temperature of the primary fluid present.

(11) Supercritical geothermal.— The term supercritical geothermal means energy derived from a subsurface geologic rock resource existing in-situ at or above the supercritical temperature of the primary fluid present.”.

(b) Hydrothermal research and development programs.— Section 613(b)(1) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17192(b)(1)) is amended by striking “advanced geologic tools to assist” and inserting “advanced tools, including machine learning algorithms, to assist”.

(c) Geothermal systems research and development.— Section 614 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17193) is amended—

(1) in subsection (d)(1), by striking “among the Office of Fossil Energy, the Office of Energy Efficiency and Renewable Energy,” and inserting “across the Department”; and

(2) in subsection (h)—

(A) in paragraph (1), by inserting “and publicly available subsurface data, including data reported as part of fossil fuel and mining operations,” after “geothermal drilling information”; and

(B) in paragraph (2), by adding at the end the following:

“(C) Updates.— The repository established under paragraph (1) shall be periodically updated in order to carry out the following:

(i) Standardize data in a uniform manner to the maximum extent practicable and enable analysis across different projects.

(ii) Enhance the accessibility and usability of data to increase analysis of geothermal energy, including next-generation geothermal systems on regional, local, and site-specific scales.

(iii) Increase uses of data, including data viewable by map and organization by common attributes such as region.

(iv) Make other improvements in functionality and usability, as determined by the Secretary.

(D) Memorandum of understanding.—

(i) In general.— The Secretary shall enter into a memorandum of understanding with the Secretary of the Interior, and may enter into a memorandum of understanding with the head of any other relevant Federal department or agency, for notifying, sharing, and providing opportunities for additional data collection regarding shared geothermal development data from projects funded by each applicable department or agency, including data from mining, critical minerals, and energy projects, such as subsurface heat data, seismic data, lithology data, boundaries of State-protected and federally protected areas, and existing transmission capacity.

(ii) Prioritization.— To the maximum extent practicable, activities conducted under a memorandum of understanding entered into under clause (i) shall prioritize heat, lithology, and strain profiles through deep exploration boreholes and control points for deep heat mapping and geothermal development.

(E) Regional deep data probes.—

(i) In general.— The Secretary shall work with the Secretary of the Interior, who shall be responsible for commissioning the drilling of deep exploration boreholes deeper than 8 kilometers in depth in representative geological provinces in the United States to provide control points for deep heat mapping and geothermal development.

(ii) Requirements.— The resulting data shall—

(I) include an exploration of heat, lithology, and subsurface stress state; and

(II) be shared publicly on the drilling data repository.”.

(d) Enhanced geothermal systems research and development.— Section 615 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17194) is amended—

(1) in the section heading, by striking “research and development” and inserting “and closed-loop geothermal systems research, development, and testing”;

(2) by inserting “and closed-loop geothermal systems” after “enhanced geothermal systems” each place it appears;

(3) in subsection (b)—

(A) in the subsection heading, by inserting “and closed-loop geothermal systems” after “systems”;

(B) in paragraph (11), by striking “and” at the end;

(C) in paragraph (12), by striking the period at the end and inserting “; and”; and

(D) by adding at the end the following:

“(13) the research topics described in paragraphs (1) through (12) in supercritical conditions.”;

(4) in subsection (c)—

(A) by inserting “systems and closed-loop geothermal systems” after “enhanced geothermal” each place it appears;

(B) by redesignating paragraph (7) as paragraph (8); and

(C) by inserting after paragraph (6) the following:

“(7) Testing of next-generation geothermal systems in supercritical conditions.— Not later than 1 year after the date of enactment of the Next-Generation Geothermal Research and Development Act, the Secretary shall take such actions as may be necessary to ensure that at least 1 FORGE site has the capabilities to include testing of next-generation geothermal systems in supercritical conditions.”;

(5) in subsection (d)—

(A) in the subsection heading, by inserting “and Closed-loop Geothermal Systems” after “Systems”; and

(B) in paragraph (2)(C), by inserting “and closed-loop geothermal” after “enhanced geothermal”; and

(6) by adding at the end the following:

“(e) Next-Generation Geothermal Research and Development Program.—

(1) In general.— Within the Geothermal Technologies Office of the Department, the Secretary shall support a program, to be called the “Next-Generation Research and Development Program”, for next-generation geothermal systems research, development, demonstration, and commercial application activities.

(2) Supercritical geothermal.—

(A) In general.— The program described in paragraph (1) shall include research on supercritical geothermal, including on the following topics in supercritical conditions:

(i) Well completion.

(ii) Reservoir creation and management, including drilling tools, casing production equipment, proppants, and packers.

(iii) Materials development and equipment design, including power production, specific to supercritical geothermal systems.

(iv) Sensor development.

(v) Water-rock geochemistry.

(vi) Rock properties.

(vii) Hard rock and deep drilling.

(viii) Any other topics the Secretary determines necessary.

(B) Milestone-based grants.— In carrying out supercritical geothermal research under the program described in paragraph (1), the Secretary shall award milestone-based grants for deep drilling projects in unique geodynamic settings at each of the following milestones:

(i) Tectonic crustal stress and fracture characterization.

(ii) Laboratory work.

(iii) Drilling.

(iv) Flow testing.

(v) Power production.

(C) Administration.— The Secretary shall administer grants to institutions of higher education and private sector entities to carry out activities on the topics described in subparagraphs (A) and (B) and, to the maximum extent practicable, share data, results, and information publicly.

(3) Report on water use.—

(A) In general.— Not later than 5 years after the date of enactment of this subsection, the Secretary shall submit to the Committee on Natural Resources and the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report on estimated water withdrawal and consumption of next-generation geothermal systems.

(B) Requirements.— The report required under subparagraph (A) shall include an analysis of—

(i) the ability of next-generation geothermal systems to use brackish and non-potable water;

(ii) the withdrawal and consumption of water per megawatt hour of next-generation geothermal systems, as compared to other power-generation technologies; and

(iii) technological and operational improvements that could lead to decreases in water withdrawal and consumption of next-generation geothermal systems.

(4) Next-generation geothermal center of excellence.—

(A) Establishment.— The Secretary shall award grants, through a competitive, merit-reviewed process, to National Laboratories (as defined in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)) (referred to in this paragraph as the “National Laboratories”), multi-institutional collaborations, public-private partnerships, State geological surveys, or institutions of higher education (or consortia thereof), for the following:

(i) The continuation and expansion of research, development, demonstration, testing, and commercial application activities applicable to FORGE sites, including activities in supercritical conditions.

(ii) The establishment of a next-generation geothermal systems center of excellence.

(B) Location.— In selecting National Laboratories, multi-institutional collaborations, public-private partnerships, or institutions of higher education for the establishment of a center of excellence under subparagraph (A), the Secretary shall consider the following criteria:

(i) Whether the institution hosts an existing geothermal energy research and development program.

(ii) Whether the institution has proven technical expertise to support geothermal energy research.

(iii) Whether the institution has access to diverse geothermal resources to support next-generation geothermal systems in various conditions.

(C) Purpose.— A center of excellence established under subparagraph (A) shall coordinate among existing FORGE sites, the Department, institutions of higher education, and National Laboratories to carry out the following:

(i) Advance research, development, demonstration, and commercial application of next-generation geothermal systems, including supercritical geothermal technologies, to address both fundamental scientific challenges and industry and commercial needs, including by partnering with other academic or research institutions, industry, nongovernmental organizations, Tribal entities (including Alaska Native Corporations), and State, local, or Tribal governments.

(ii) Foster collaboration for education, research, and partnership initiatives in order to support the technology, deployment, and workforce needs of the United States geothermal energy industry, including a focus on next-generation geothermal systems.

(iii) Support workforce development across the next-generation geothermal systems energy development lifecycle.

(iv) Provide educational, technical, and analytical assistance on next-generation geothermal systems to Federal agencies, industry, and State, local, and Tribal governments.

(v) Collect and disseminate information on best practices in all areas relating to developing and managing geothermal energy resources and energy systems, including next-generation geothermal systems.

(5) Commercial-readiness innovation grants.—

(A) In general.— The Secretary shall award grants to accelerate the development, testing, and implementation of innovative technologies identified by in-field operations as areas for improving the performance of commercial geothermal energy projects using enhanced geothermal systems and closed-loop geothermal systems.

(B) Focus areas.— Grants may be awarded under this paragraph for innovative technologies, including—

(i) hardrock drilling equipment, components, and systems, including bit design and vibration control;

(ii) reservoir characterization, well design and spacing, and completions; and

(iii) data acquisition and analysis, including fiber optic sensing tools and methodologies.

(C) Applications.—

(i) In general.— An entity seeking a grant under this paragraph shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.

(ii) Prioritization.— In awarding grants under this paragraph, the Secretary shall give priority to—

(I) applicants, especially for-profit entities and public-private partnerships, with demonstrated success relating to in-field development and commercial operations for geothermal energy projects;

(II) projects with the greatest ability to advance near-term commercial deployment of enhanced geothermal systems and closed-loop geothermal systems; and

(III) projects that advance the commercialization of geothermal energy projects in diverse geological conditions or supercritical conditions.

(D) Cost sharing.— The Federal share of the cost of a project carried out with a grant under this paragraph shall be not more than 80 percent.

(6) Next-generation geothermal systems surface facility innovation grants.—

(A) In general.— The Secretary shall award grants for innovation in the operation, cost, and design of surface facility components of next-generation geothermal systems.

(B) Focus areas.— Grants may be awarded under this paragraph for development and testing of innovative technologies, including—

(i) improved organic Rankine cycle generation efficiency, working fluids, and performance at low and supercritical temperatures;

(ii) improved performance of air-cooled condensers in warm ambient weather conditions, and improved efficiency of water-cooled condensers; and

(iii) component and facility design, including gathering lines, generation unit standardization, and data collection and monitoring.

(C) Applications.—

(i) In general.— An entity seeking a grant under this paragraph shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.

(ii) Prioritization.— In awarding grants under this paragraph, the Secretary shall give priority to—

(I) applicants, especially private entities and public-private partnerships, with demonstrated success relating to in-field operation of geothermal energy technologies, including manufacturing power generation and industrial energy components;

(II) projects with the greatest ability to advance near-term commercial deployment of geothermal energy projects; and

(III) projects that advance the commercialization of geothermal energy projects in diverse geological conditions or in supercritical conditions.

(7) Authorization of appropriations.— There are authorized to be appropriated to the Secretary to carry out this subsection $5,000,000 for each of fiscal years 2027 through 2031.”.

(e) Organization and administration of programs.— Section 617 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17196) is amended—

(1) in subsection (e), by striking “Committee on Science and Technology” and inserting “Committee on Science, Space, and Technology”; and

(2) by striking subsection (f) and inserting the following:

“(f) Progress reports.— Not later than 1 year after the date of enactment of the Next-Generation Geothermal Research and Development Act, and every 2 years thereafter, the Secretary shall submit to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report that contains the following:

(1) A description of the maximum potential of geothermal resources in the United States, including the States of Alaska and Hawaii, using the geothermal resource assessment under section 2501 of the Energy Policy Act of 1992 (30 U.S.C. 1028) or other such means, as the Secretary determines appropriate, including a consideration of next-generation geothermal systems.

(2) Information relating to the results of projects undertaken under this section.

(3) An assessment of the barriers to commercialization of next-generation geothermal systems.

(4) Such other information as the Secretary considers appropriate.”.

(f) Reauthorization of advanced geothermal innovation leadership.— Section 623 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17202) is amended—

(1) by striking “There are authorized” and inserting the following:

“(a) In general.— There are authorized”; and

(2) by adding at the end the following:

“(b) Program continuance.— In addition to amounts provided under section 615(e), there are authorized to be appropriated to the Secretary to carry out the programs under this subtitle such sums as are necessary for each of fiscal years 2026 through 2031, to remain available until expended.”.

(g) International geothermal energy development.— Section 624(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17203(a)) is amended by striking “system resources” and inserting “systems resources”.

(h) Update to geothermal resource assessment.— Section 2501 of the Energy Policy Act of 1992 (30 U.S.C. 1028) is amended—

(1) by striking “acting through the United States Geological Survey” each place it appears and inserting “acting through the Director of the United States Geological Survey”;

(2) in subsection (c)—

(A) in the matter preceding paragraph (1), by inserting “, subject to subsection (d), quadrennially” after “shall”;

(B) in paragraph (1)(D)(ii), by striking “and” at the end;

(C) in paragraph (2)—

(i) by inserting “, State geological surveys,” after “State officials”; and

(ii) by striking the period at the end and inserting “; and”; and

(D) by adding at the end the following:

“(3) by assessing regions of the United States with significant potential for supercritical geothermal (as defined in section 612 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17191)).”; and

(3) by striking subsection (d) and inserting the following:

“(d) Initial assessments.—

(1) In general.— Not later than 2 years after the date of enactment of the Next-Generation Geothermal Research and Development Act, the Secretary of the Interior, acting through the Director of the United States Geological Survey (referred to in this subsection as the “Director”), shall complete updated assessments of—

(A) conventional hydrothermal resources; and

(B) next-generation geothermal resources, including enhanced geothermal systems.

(2) Methodologies.— Not later than 5 years after the date of enactment of the Next-Generation Geothermal Research and Development Act, the Director shall develop methodologies for, and complete an initial assessment of, next-generation geothermal resources, including supercritical geothermal systems.

(3) Interim products.— In carrying out paragraphs (1) and (2), the Director may publish interim datasets, analyses, or partial assessments prior to the completion of a full assessment under those paragraphs.

(4) Prioritization.— To the extent practicable, the Director shall prioritize carrying out geothermal resource assessments in a sustained effort and manner consistent with the requirements of the Advanced Geothermal Energy Research and Development Act of 2007 (42 U.S.C. 17191 et seq.).

(5) Implementation.— The completion of the initial assessments required under paragraphs (1) and (2) shall satisfy the first update required after the date of enactment of the Next-Generation Geothermal Research and Development Act under subsection (c).”.

(i) Clerical amendment.— The table of contents of the Energy Independence and Security Act of 2007 (42 U.S.C. 17001 note; Public Law 110–140) is amended by striking the item relating to section 615 and inserting the following: