Geothermal energy, which taps heat from underground rock to generate electricity, is getting new attention as drilling techniques make it possible to reach heat sources that used to be out of range. This bill updates a 2007 energy law to formally define "next-generation" and "closed-loop" geothermal systems and directs the Department of Energy to run research, testing, and grant programs for them, including systems operating at extremely high underground temperature and pressure known as "supercritical" conditions. It authorizes $150 million per year from 2027 through 2031 for this work, with some commercial-readiness grants covering up to 80 percent of a project's cost. The bill also requires the U.S. Geological Survey to update its national geothermal resource assessment every four years and requires the Department of Energy to report to Congress every two years, including a study on how much water next-generation geothermal systems use compared to other power sources. It mainly affects the geothermal industry, researchers, and federal land agencies that will coordinate on sharing underground data.
Environmental Concerns
- Federal geothermal R&D funding — Authorizes $150 million annually from FY2027-2031 for next-generation geothermal research, testing, and commercial-readiness grants
Corporate Benefits
- Federal cost-share subsidy — Commercial-readiness grants cover up to 80% of project costs, prioritizing for-profit entities with existing geothermal operations
Transparency & Accountability
- Geothermal resource assessment cycle — USGS assessment moves to a mandatory four-year update schedule
- DOE progress reporting — Department must report to Congress every two years on program results and commercialization barriers
Congressional Summary
Next-Generation Geothermal Research and Development ActThis bill directs the Department of Energy (DOE) to support the development of next-generation geothermal systems, such as closed-loop geothermal systems in supercritical conditions. Specifically, the bill expands the Energy Independence and Security Act of 2007 to modify and establish geothermal energy programs, such as programs concerning research and development, grants, and data management.DOE must support a program of research, development, demonstration, and commercial application for next-generation geothermal systems. DOE may administer grants for carrying out certain focus areas of the program. DOE must also ensure that at least one Frontier Observatory for Research in Geothermal Energy (FORGE) field research site has the capabilities to include next-generation geothermal testing.Additionally, DOE must provide grants for (1) the continuation and expansion of research, development, demonstration, testing, and commercial application activities applicable to FORGE sites; and (2) the establishment of a next-generation geothermal systems center of excellence.DOE must also provide grants to accelerate the development, testing, and implementation of innovative technologies to improve the commercial-readiness of geothermal energy projects using next-generation geothermal systems.DOE must expand its repository of geothermal drilling information to include publicly available subsurface data, including data reported as part of fossil fuel and mining operations. DOE must also periodically update the repository to improve its functionality and usability.The bill authorizes the Department of the Interior to commission the drilling of supercritical geothermal exploration boreholes in certain areas to provide control points for deep heat mapping and geothermal development.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2026-05-13
- Date Added
- 2026-07-18
- Source
- Congress.gov →
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