Sec. 2. Geothermal exploratory drilling loan program
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In this section: The term Fund means the Geothermal Investment Fund established under subsection (h). The term program means the direct loan program for high risk geothermal exploration wells established under this section. The term Secretary means the Secretary of Energy. The Secretary shall establish a direct loan program for high risk geothermal exploration wells. An applicant that seeks to receive a loan under the program may submit to the Secretary an application for the loan at such time, in such form, and containing such information as the Secretary may prescribe.
In selecting applicants for loans under this section to carry out projects under the program, the Secretary shall consider— the potential for unproven geothermal resources that would be explored and developed under a project; the expertise and experience of an applicant in developing geothermal resources; and the importance of the project in meeting the goals of the Department of Energy. In selecting applicants for loans under this section to carry out projects under the program, the Secretary shall provide a preference for projects likely to lead to successful new geothermal development leading to electricity production.
Data from all exploratory wells that are carried out under the program shall be provided to the Secretary and the Secretary of the Interior for use in mapping national geothermal resources and other uses, including— subsurface geologic data; metadata; borehole temperature data; and inclusion in the National Geothermal Data System of the Department of Energy. The Secretary shall determine the cost share for a loan made under this section. The Secretary may base the cost share percentage for loans made under this section on a sliding scale, with higher Federal shares awarded to projects with higher risks.
The Secretary shall determine the number of wells for each selected geothermal project for which a loan may be made under this section. The Secretary may grant further delays or dispense with the repayment obligation on a demonstration that a selected geothermal project is unproductive. The recipient of a loan made under this section for a geothermal facility shall commence repayment of the loan beginning on the earlier of— the date that is 4 years after the date the loan is made; or the date on which the geothermal facility enters into commercial production.
Except as provided in subparagraph (B), the term of a loan made under this section shall be 4 years beginning on the applicable loan repayment commencement date under paragraph (1). The Secretary may extend the term of a loan under this section for not more than 4 years. Amounts repaid on loans made under this section shall be deposited in the Fund. There is established in the Treasury of the United States a fund to be known as the Geothermal Investment Fund , to be administered by the Secretary, to be available without fiscal year limitation and not subject to appropriation, to carry out this section.
The Fund shall consist of— such amounts as are appropriated to the Fund under subsection (j); and amounts repaid on loans under subsection (g)(3). Amounts in the Fund may not be made available for any purpose other than a purpose described in paragraph (1). Not later than 60 days after the end of each fiscal year beginning with fiscal year 2013, the Secretary of Energy shall submit to the the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the operation of the Fund during the fiscal year.
Each report shall include, for the fiscal year covered by the report, the following: A statement of the amounts deposited into the Fund. A description of the expenditures made from the Fund for the fiscal year, including the purpose of the expenditures. Recommendations for additional authorities to fulfill the purpose of the Fund. A statement of the balance remaining in the Fund at the end of the fiscal year. Not later than 180 days after the date of enactment of this Act, the Secretary shall issue guidelines for the implementation of the program.
The guidelines shall— specify— the terms and conditions that would require a higher or lower level of cost sharing under this section; the conditions under which the Secretary will allow loan modifications or forgiveness in cases in which a well cannot be used for production or injection; and the information necessary to provide a loan applicant with certainty about application of subsection (f), including the level of cost and risk that the applicant and the Secretary will assume; and require that— loans be provided under this section only after the developer has committed the share of the developer for expenditures for drilling costs; and loans for successful wells shall be repaid by the developer within a 10-year period.
There are authorized to be appropriated to carry out this section such sums as are necessary for each of fiscal years 2013 through 2022.