HR-8437-119
Referred to the House Committee on Science, Space, and Technology.
Sponsored by Nicholas Begich (R-AK)
What it does
This bill would establish a Milestone-Based Geothermal Demonstration Program within the Department of Energy, awarding financing to geothermal energy projects in low-permeability and impermeable rock formations — geological conditions where geothermal energy has historically been difficult to develop. Funding would be awarded competitively based on projects reaching defined technical and financial milestones, with at least three awards spread across at least three different states and three different project sponsors. The bill prioritizes projects in regions with little or no existing geothermal electricity generation, including on or near tribal lands, and projects capable of generating at least 30 megawatts of electricity.
Who benefits
Geothermal energy companies and startups developing next-generation drilling and reservoir technologies. Regions outside the traditional geothermal belt (primarily the western U.S.) that could gain access to new electricity generation. Tribal communities on or near Indian land, which are explicitly prioritized for project siting. Workers in the energy and drilling sectors who may gain employment from new projects. Electricity ratepayers in regions where new geothermal capacity could diversify the grid and stabilize prices. Researchers and data users who would benefit from publicly disseminated geological and technical data generated by the projects.
Who is hurt
Competing energy technologies — such as wind, solar, and nuclear — that vie for the same federal research and demonstration funding. Geothermal project sponsors in already-established geothermal regions (e.g., California, Nevada, Utah) who are deprioritized in favor of new geologies. Taxpayers who bear the cost of projects that may not achieve commercial viability. Natural gas and other conventional electricity generators in regions where successful geothermal development could reduce their market share.
Supporters argue
Supporters argue that next-generation geothermal energy — particularly enhanced geothermal systems — could theoretically power the entire U.S. but remains commercially underdeveloped due to high upfront drilling costs and geological uncertainty. They contend that milestone-based financing is a proven, fiscally disciplined model (used successfully in NASA's Commercial Crew program) that ties federal dollars to measurable results rather than blank-check grants, reducing taxpayer risk. They also argue that expanding geothermal into new regions and geologies would diversify the electricity grid, generate publicly available data to attract private investment, and create economic opportunities in communities — including tribal nations — that have historically been bypassed by the clean energy transition.
Opponents argue
Opponents argue that the federal government has already spent billions on geothermal research and demonstration programs with limited commercial breakthroughs, and that this bill's open-ended "such sums as are necessary" appropriations language provides no fiscal guardrails on spending. They contend that if next-generation geothermal were commercially viable, private capital markets would fund it without government intervention, and that milestone-based financing still exposes taxpayers to substantial losses if projects fail to reach commercial scale. They also argue that prioritizing geographic and geological diversity over technical merit may result in funding projects in suboptimal locations, reducing the program's likelihood of producing replicable, commercially scalable results.
Constitutional context
Congress's authority to fund energy research and demonstration programs rests on the Commerce Clause (Art. I, §8, cl. 3) and the Spending Clause. This bill amends an existing statute and provides explicit congressional authorization for the program, which is relevant in the post-Loper Bright environment where agency actions require clear statutory grounding rather than deference to agency interpretation.
Checks and balances
The Executive Branch (Department of Energy) gains authority to administer and award financing; Congress retains oversight through the appropriations process, and the competitive, milestone-based structure imposes procedural constraints on how the Secretary may distribute funds.
Historical precedent
The Department of Energy's loan guarantee programs under the Energy Policy Act of 2005 and the American Recovery and Reinvestment Act of 2009 similarly used federal financing to de-risk early-stage clean energy projects, with mixed commercial results.