HB 1691-FN – AS INTRODUCED

2006 SESSION

06-3017

03/01

HOUSE BILL 1691-FN

AN ACT establishing a geothermal assessment project.

SPONSORS: Rep. Cataldo, Straf 3; Rep. Slocum, Hills 6; Rep. Harvey, Hills 21; Sen. Green, Dist 6

COMMITTEE: Science, Technology and Energy

ANALYSIS

This bill requires the state geologist to conduct a geothermal assessment project.

This bill is a request of the committee established by 2005, 202.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-3017

03/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT establishing a geothermal assessment project.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Geothermal Assessment Project.

I. The state geologist shall conduct a geothermal assessment project, which shall:

(a) Assess the current state of technology relating to harvesting geothermal energy in New Hampshire to generate electricity.

(b)(1) Determine the location of known and potential geothermal deep sites and their characteristics, such as steam, hot water, temperature, and deleterious materials that limit use.

(2) Identify promising geothermal sites that have the proper rock quality, quantity, and temperature.

(3) Perform deep well temperature tests and evaluate the results.

(4) Classify geothermal energy into types within the tested wells.

(c) Identify opportunities for the most economically viable near-term applications of geothermal as an alternative energy source.

(d) Determine the geothermal resources in New Hampshire by county and assess their potential for fostering the development of geothermal energy to generate electricity. The assessment shall identify opportunities for economically viable near-term applications of geothermal direct use, including:

(1) The location of reservoirs, known and potential.

(2) The location of existing and proposed wells.

(3) An estimate of the ultimate magnitude of geothermal resources.

(4) The types of geothermal resources (e.g., steam, hot water), temperature, whether the potential use is electric or non-electric, and deleterious materials that limit use.

(5) Temperature measurements to ascertain the available types of potential hot dry rock (HDR) capabilities.

(e) Create a manageable search effort by geothermal regions within each county and rate each region for its potential direct use development to generate electricity.

(f) Collect and record for accessibility and feasibility survey data for each county.

(g) Recommend a program for progressively more intensive exploration of geothermal resources in the state to determine the existence of exploitable resources and to delineate the extent and characteristics of the resources. The exploration program may include existing wells, as well as the testing of shallow temperature gradient wells, “slim-hole” exploration wells, and production-sized exploration wells. The recommendation shall include proposals for:

(1) Analyzing types of geothermal resources.

(2) Surveying by reconnaissance and exploration to identify the most suitable prospect areas by recognizing favorable geological settings and locating surface thermal discharge. Reconnaissance studies shall also involve mapping surface, thermal features, and identification of favorable geological structures.

(3) Defining areas identified as having high potential for exploitation or that are favored because of proximity to an energy use center, which shall be explored by more comprehensive scientific survey methods.

(4) Producing a detailed geological and geochemical study. The assessment shall propose using a range of geophysical techniques, including gravity, magnetic, and, in particular, resistivity surveys, to locate anomalies that are directly related to the presence of geothermal fluids.

(5) Interpreting integrated geoscientific studies to prioritize targets for exploration drilling programs to measure actual subsurface temperatures and test reservoir productivity.

II. The state geologist shall seek federal funding for the costs associated with conducting the geothermal assessment project.

III. The public utilities commission and the office of energy and planning shall assist the state geologist in conducting the geothermal assessment project.

IV. The state geologist shall report the results of the geothermal assessment project to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before July 1, 2007.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

06-3017

Revised 1/9/06

HB 1691 FISCAL NOTE

AN ACT establishing a geothermal assessment project.

FISCAL IMPACT:

The Department of Environmental Services has determined this bill will increase state general fund expenditures by $106,731 in FY 2007 and may increase state revenue and expenditures in each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

The Department states a full-time Hydrogeologist IV (grade 30, step 1) would be hired to assume the applied research activities to complete the geothermal assessment project, and a summer intern would be needed to assist with data collection. Some costs, such as project supervision, staff assistance, and office space could be absorbed by the Department. The Department would need to purchase new computing equipment, including advanced licensed geographical information system software, and other equipment, such as scintillometers and temperature probes for making direct measurements of subsurface temperature and radioactivity. The Department assumes a Department vehicle will be assigned to the project, and in-state mileage funding would be needed to travel to prospective deep well sites when they are drilled throughout the state to take direct temperature measurements. Out-of-state travel funding would be needed for travel to the US Department of Energy Idaho National Laboratory for training. The Department summarized the expenses as follows:

The Department states the geothermal assessment project will likely take more than one year to complete. The Department further states federal assistance may be available from the US Department of Energy in future fiscal years; however, the peer-reviewed grant award process may not coincide with the timeframe established in this bill.

The Public Utilities Commission stated it is unclear what type of assistance the Commission would provide to the geothermal assessment project; however, it is conceivable the Commission could provide certain assistance with existing staff and would not require any change in the Commission’s budget.

The Office of Energy and Planning stated it is unclear what level of involvement the Office will have in assisting the State Geologist, and is unable to determine a fiscal impact at this time.