Congress Passes Energy Bill: Tax Credits Removed, Geothermal Research Provisions Passes

GEOTHERMAL ENERGY ASSOCIATION. 12/20/07
After numerous debates, Congress finally passed an energy bill which the President promptly signed. The final bill did not include any tax provisions, which were removed after the Senate failed to obtain the 60 votes necessary to close debate by a one-vote margin. However, the final bill does include the “Advanced Geothermal Energy Research and Development Act of 2007.” These research provisions are based upon compromise language between House and Senate bills that sought to revitalize geothermal research in light of recent reports by the Massachusetts Institute of Technology (MIT) and National Renewable Energy Laboratory (NREL) that show geothermal energy can be a major energy source in the future with continued federal support for market and technology advances.

The Senate passed an energy bill that “will advance geothermal research and development for decades to come,” according to the Geothermal Energy Association (GEA), the trade association for the industry.


The underlying research bills were HR 2304, sponsored by Rep. Jerry McNerney (D-CA) and S.1543 introduced by Senate Energy Committee Chairman Jeff Bingaman (D-NM). Both had bipartisan co- sponsorship and support. The final provisions direct the Department of Energy to undertake a broad and aggressive research program to promote geothermal energy and authorize a total of $95 million annually for this new initiative.

“The new program of geothermal research set forth in the energy bill will help push the geothermal industry into a new era of advanced technology and expanded development,” said Karl Gawell, GEA’s Executive Director. “The geothermal provisions come at a crucial time in the history of the industry. Renewed research, development, and public-private partnerships are needed to continue the momentum we’ve seen in the past few years.”