WASHINGTON, Sep 7, 2006 -- U.S. Newswire

 

The geothermal industry today applauded a bipartisan letter from ten Senators urging the Department of Energy to amend their loan guarantee solicitation to include geothermal energy. The letter, organized by Senators Harry Reid (D-NV), was also signed by Senators Ensign (R-NV), Boxer (D-CA), Feinstein (D-CA), Craig (R-ID), Crapo (R-ID), Akaka (D-HI), Murkowski (R-AK), Salazar (D-CO) and Hatch (R-UT).

DOE had recently unveiled its program guidelines for a $2 billion loan guarantee program authorized by the Energy Policy Act (EPAct) passed by Congress. According to EPAct, the program was intended to spur "investment in projects that employ new energy technologies." However, DOE officials indicated that geothermal projects would not be eligible for the program.

The bipartisan Senate letter objects to the omission of geothermal, noting that the law includes "a list of projects which 'shall be eligible...'" The Senators point out to Secretary Bodman "this is not an optional list from which the Department may pick and choose. Congress directed that all those on the list shall be eligible."

"As you know, because the Department was involved in a recent workshop seeking to reassess the nation's geothermal energy potential, this renewable resource likely has the potential to supply nearly all of the West's new electricity demand for at least the next few decades," the Senators noted. "Accessing this resource obviously requires...new and innovative technologies to explore, drill, and exploit it cost-effectively..."

In a related event today, GEA, the industry trade group, released critical comments on DOE's draft Strategic Plan. That plan also omitted geothermal energy.

"In our view, achieving the goals laid out in the Strategic Plan will require every viable energy option available," GEA argued. "The Nation cannot afford to leave a domestic energy alternative as potentially significant as geothermal energy off the table if we are to succeed in changing direction -â?? in ending our addiction to foreign sources of energy and addressing the serious environmental issues facing us," Karl Gawell, GEA's Executive Director, stated.

GEA cited recent reports by the National Academy of Sciences, International Energy Agency, and US Government Accountability Office supporting continued if not increased funding for geothermal research and technology development. "The administration should not limit the window of opportunity for rapid development and investment in one of the most exciting and critical energy industries in the 21st Century -â?? geothermal energy. Geothermal energy should be explicitly included as a key part of the Department's new Strategic Plan," GEA' letter said.

In January, DOE's FY 2007 Budget proposed to terminate its geothermal research program. GEA argued to Congress that this would "set back research in this area for decades and threaten US technological leadership in this important renewable technology." Both the House and Senate have approved continued funding for DOE's geothermal research program in FY 2007 -â?? the House has approved $5 million and the Senate $25 million.

Copies of the Senators Letter to DOE and GEA's Comments on the draft DOE Strategic Plan are available from GEA by emailing karl(At)geo-energy.org  and they will be posted and available for download from GEA's web site at http://www.geo-energy.org .

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