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S 4116

Geo POWER Act

119th Congress Introduced by John Curtis and 3 co-sponsors

Creates a milestone-based DOE financing program to develop 30 MW geothermal projects in low-activity regions, reducing upfront costs and attracting private investment.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 4116

Geothermal Power Opportunity With Expanded Regions Act (Geo POWER Act)

Purpose

  • Establish and fund a milestone-based, milestone-driven program to advance next-generation geothermal electricity demonstration projects in regions and geologies with limited or no geothermal activity.
  • Aim to accelerate commercialization, reduce upfront exploration/drilling costs, generate public data to de-risk future projects, and catalyze innovation and private investment in geothermal power.

Key Provisions and Changes

  • Innovative Financing Framework (amendment to Section 615 of the Energy Independence and Security Act of 2007):

    • Adds a new subsection (e) creating the Milestone-Based Geothermal Demonstration Program.
    • Defines terms:
    • Innovative Financing: financial instruments to support geothermal development, including mechanisms under the Secretary’s authority in the DOE Organization Act.
    • Program: Milestone-Based Geothermal Demonstration Program.
    • Establishment and timeline:
    • The Secretary of Energy must establish the program within 180 days of enactment.
    • Program goals and focus areas:
    • Prioritize geothermal projects in regions/geologies with limited or no current electricity generation, including areas near Indian land (as defined in the Energy Policy Act of 1992).
    • Support data collection and dissemination to characterize new resources and technologies to attract future private investment.
    • Target new facilities with potential to generate at least 30 megawatts (MW) of electricity, or projects advancing innovative drilling/other innovations enabling 30 MW commercial-scale generation.
    • Favor projects with strong potential to attract private investment.
    • Proposals and evaluation:
    • DOE shall solicit proposals from project sponsors meeting the criteria.
    • Awards must be differentiated across at least three different proposals in at least three states and to at least three project sponsors.
    • DOE shall maintain adequate staffing to administer the program.
    • Project authorization:
    • DOE shall implement projects under this subsection as milestone-based demonstrations under section 9005 of the Energy Act of 2020 (42 U.S.C. 7256c).

  • Milestone-Based Demonstration Program (new subsection 615(e)):

    • Establishes milestones tied to both technical and financial achievements to unlock financing.
    • Emphasizes data collection and dissemination to reduce risk for future projects.

  • Funding and Appropriations:

    • Authorizes such sums as necessary to carry out subsections (d) and (e) of amended Section 615, i.e., the milestone-based program and its related financing mechanisms.

Who/What Would Be Affected

  • Beneficiaries and Stakeholders:
    • Geothermal project sponsors seeking innovative financing for construction in low-permeability/impermable reservoirs.
    • Regions with limited or no existing geothermal electricity generation, including projects on or near Indian land.
    • Public sector and private investors seeking data-driven, milestone-based risk reductions to enable geothermal development.
  • Federal Agencies:
    • U.S. Department of Energy (DOE) would administer the Milestone-Based Geothermal Demonstration Program, solicit proposals, award financing, and oversee compliance with milestones.
  • Geological Focus:
    • Emphasis on diverse geologies and new regions to expand geothermal deployment beyond traditional hot, conventional reservoirs.

Procedural and Timeline Aspects

  • Enactment Timeline:
    • If enacted, the DOE must establish the Milestone-Based Geothermal Demonstration Program within 180 days.
  • Implementation:
    • Funding programs would be carried out as milestone-based demonstrations under the Energy Act of 2020, aligning with established authorities for milestone-driven financing.
  • Procurement Process:
    • Competitive selection process with geographic and sponsor diversification goals (minimum of three proposals, three states, and three sponsors).

Summary

The Geo POWER Act seeks to catalyze next-generation geothermal electricity by creating a milestone-based financing program within the Department of Energy. The program targets innovative, data-enabled demonstrations in regions/geologies with little or no existing geothermal generation, including near Indian land, and requires at least 30 MW capacity for eligible projects. It emphasizes reducing upfront costs, generating actionable data, and attracting private investment through milestone-based funding, with a structured, competitive selection process and a clear 180-day establishment deadline.

Compiled from official sources — confirm details with the bill’s official record.

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