Geothermal Industry

Joanna Schroeder

The Geothermal Energy Association (GEA) is calling on the Environmental Protection Agency (EPA) to include geothermal energy in the Clean Energy Incentive Program (CEIP). In a letter, GEA makes the following suggestions that would allow geothermal power plants to fully be included in CEIP:

  1. Include metered MWh generated from geothermal resources or allow states to include geothermal resources if their state contains these resources.
  2. Since the timeframe for geothermal includes exploration and more permitting in many states than an equivalent wind or solar project, include projects where significant construction has begun; this could include a binding written contract to the manufacture, construct, or produce electricity on a piece of the geothermal property, and includes expansion of existing facilities (incremental generation) or a new facility.
  3. Projects online in 2020 and 2021 under this program would receive credit for their MWh generated like wind or a solar project.

US geothermal energy photo DOE“Without this amendment to the CEIP program, GEA is concerned the way the current rule is written would shift investment away from geothermal projects in the west,” states the letter, noting geothermal’s importance in the low-income communities such as the Imperial and Coachella Valleys.

The letter states, “geothermal power meets the criteria and the spirit of the CEIP by providing emission free power in low-income communities. In fact, studies have shown, geothermal binary plants are less polluting than either wind or solar technologies on a lifecycle basis. In addition, these plants are located in some areas with the highest unemployment rates in the west. Adding geothermal to this provision could help expand these facilities, providing jobs and economic opportunities in these impoverished communities. Overall, geothermal power will be essential to western states’ long term clean energy portfolio and economies, while being consistent with the CEIP’s directive to advance clean technology in impoverished communities.”

Recently several senators (Reid, Feinstein, Boxer, Wyden, Merkley, Hirono, and Schatz), submitted a letter to EPA Administrator McCarthy also calling for geothermal energy to be included in the program. The letter stated, “We have noted that the Clean Energy Incentive Program includes solar and wind energy, but does not include a number of other important clean energy technologies that the federal government has historically defined as renewable energy resources, like geothermal energy, marine and hydrokinetic energy, biomass, small irrigation power, and qualified hydropower, as defined under Section 45(c) of the Internal Revenue Code. The Environmental Protection Agency should ensure that other clean energy sources of electricity are eligible for matching emission rate credits under the Clean Energy Incentive Program.”

Geothermal, Legislation, Renewable Energy