HB 2076 — An Act providing for geothermal energy development; imposing duties on the Department of Environmental Protection; promulgating regulations; establishing the Geothermal Energy Development Fund; and imposing penalties.

(ii) The department may condition or deny a permit based on the criteria specified in the regulations.

(iii) The regulations shall include specific permitting criteria for repurposed wells and exploratory wells.

(2) In a decision to issue a final permit for a 20250HB2076PN3176 - 8 - geothermal well within a census tract with an environmental exposure score in the 80th percentile or greater using the PennEnviroScreen tool provided by the department, the department may require reasonable additional impact assessments, public participation, transparency and reporting measures as part of a permit review or approval.

(3) The department may charge a permit fee or periodic management fee sufficient to maintain oversight and enforcement for geothermal energy projects in this Commonwealth, not to exceed comparable fees set for the purpose of oil and gas production from an unconventional, conventional or carbon dioxide injection well, unless the department demonstrates that such fees are necessary to maintain oversight and enforcement based on specific well characteristics such as loop system type, type of energy generated and depth.

The fees collected under this paragraph shall be deposited into the fund.

(4) The department shall consider the establishment of an expedited permitting process for a person holding an existing well permit under 58 Pa.C.S.

§ 3211 (relating to well permits) to obtain a permit under this section.

(5) For geothermal energy projects stimulated by any form of hydraulic fracturing or repurposing of an existing well that involves hydraulic fracturing operations, the department shall consider the environmental risks and may instead require the operator to seek an unconventional well permit consistent with 58 Pa.C.S.

Ch.

32 Subch.

B (relating to general requirements) or to comply with additional permit conditions consistent with section 6.

(6) Upon submission of a permit application, a well 20250HB2076PN3176 - 9 - operator shall provide notice of application to the surface property interest owners and subsurface property interest owners within a quarter mile of the well bore or other prescribed area of review of the geothermal operation as determined by the department.

(7) (i) To operate a geothermal energy project under this section, a well operator shall design the geothermal energy project as much as practicable to isolate any existing or future production from the commercially valuable material, including of the coal or oil and gas estate, from the subsurface geothermal production area and shall indicate whether it contains commercially valuable mineral, including the coal or oil and gas estates and, if it does, a permit may be issued only if the department is satisfied that the interests of the mineral, including coal or oil and gas estate, will not be adversely affected and the subsurface property interest owners have been notified by the operator.

(ii) If a subsurface property interest owner is a producer of a commercially valuable mineral, including coal or oil and gas, the well operator shall notify the subsurface property interest owner in writing and submit a copy of the notice to the department.

If, upon receipt of the notice, the subsurface property interest owners express an objection to the department to the design of the geothermal energy project based on the potential adverse effect to a commercially valuable mineral, including the coal or oil and gas estate, the operator shall address the objection to the satisfaction of the department.

20250HB2076PN3176 - 10 - (iii) No right to action shall arise with respect to this paragraph if an operator addresses the objection under subparagraph (ii) to the satisfaction of the department in good faith.

(d) Dispute resolution.--The department or any person having a direct interest in a matter subject to this act may, at any time, request that a conference be held to discuss and attempt to resolve by mutual agreement a matter arising under this act.

The following shall apply:

(1) Unless otherwise provided, conferences shall be held within 90 days after a request is received by the department and notice shall be given by the department to all interested parties.

(2) A representative of the department shall attend the conference and the department may make recommendations.

(3) An agreement reached at a conference shall be consistent with this act and, if approved by the department, the agreement shall be reduced to writing and shall be effective unless reviewed and rejected by the department within 10 days after the conference.

(4) The record of an agreement approved by the department shall be kept on file by the department and copies shall be furnished to the parties.

(5) The scheduling of a conference shall have no effect on the department's authority to issue orders to compel compliance with this act.

(e) Class V injection wells.--To operate a Class V Underground Injection Control well for the purpose of producing geothermal resources, a well operator shall obtain a UIC Class V permit or permit-by-rule status and all other permits as 20250HB2076PN3176 - 11 - required by applicable statutes and regulations.

(f) Oil and gas well conversion.--Upon issuance of all necessary permits for a repurposed well, a person may repurpose any existing conventional or unconventional well, including an abandoned well, for the cogeneration of geothermal resources or geothermal energy with oil and gas production or the production or use of geothermal resources or geothermal energy for heating, cooling or electricity production, regardless of depth or temperature.

The department may revoke an issued permit under this section if it has been determined that a well operator is knowingly or intentionally attempting to avoid the fulfillment of obligations under 58 Pa.C.S.

(g)(e) Exploratory wells.--Upon issuance of a permit andby receiving permission from the surfacedepartment, property interest owner, a person or well operator may drill an exploratory well to identify potential viability for geothermal resource production below the surface of the real property.

The(a) EnvironmentalWell Qualitysafety Boardand shall,permit forrequirements.--For purposesthe purpose of regulatingprotecting geothermalthe wellsCommonwealth's natural resources and geothermalpublic operationshealth, undersafety thisand act,welfare, the Environmental Quality Board 20250HB2076PN3319 - 8 - shall, in consultation with the Pennsylvania Geological Survey, promulgate regulations to:

(1) Establish siting,permitting designcriteria andfor otherwell technicaloperators, specificationsincluding specific permitting criteria for repurposed wells and requirements.exploratory wells.

(2) DetermineConsider performancecommunity criteriaimpact foranalysis, repurposedincluding wellssetback toconsiderations, preventin delayedpermitting wellfor plugginggeothermal orenergy improperprojects. abandonment.

(3) RequireEstablish thesiting, spacing,design drilling, casing, testing, operating, producing, plugging and decommissioningother oftechnical geothermalspecifications wells and repurposedrequirements. wells to prevent:

(i)(4) geothermalDetermine resources,performance water,criteria gasesfor orrepurposed otherwells 20250HB2076PN3176to -prevent 12delayed -well fluidsplugging fromor escapingimproper intoabandonment. strata other than where it is found, unless in accordance with a UIC Class V permit and approved by the department;

(ii)(5) pollutionRequire ofthe surfacespacing, drilling, casing, testing, operating, producing, plugging and groundwater,decommissioning includingof wastewatergeothermal managementwells duringand wellrepurposed developmentwells orto production;prevent:

(iii)(i) prematureGeothermal coolingresources, ofwater, anygases geothermalor systemother byfluids waterfrom encroachmentescaping orinto strata other meansthan thatwhere reduceit theis economicfound, recoveryunless ofin theaccordance geothermalwith resources;a UIC Class V permit and approved by the department.

(iv)(ii) blowouts,Pollution explosions,of fires,surface cave-ins and seepage;groundwater, including wastewater management during well development or production.

(v)(iii) unreasonablePremature disturbancecooling orof injuryany togeothermal surroundingsystem property,by existing water rights,encroachment publicor healthother andmeans that reduce the environment;economic recovery of the geothermal resources.

and(iv) (vi)Blowouts, orphaningexplosions, orfires, abandoningcave-ins wells without proper site remediation and wellseepage. plugging.

(4)(v) EstablishUnreasonable adisturbance decommissioningor processinjury forto pluggingsurrounding andproperty, abandoningexisting awater geothermalrights, well,public repurposedhealth well and exploratorythe well.environment.

(5)20250HB2076PN3319 Establish- bonding9 or- other(vi) financialOrphaning securityor requirementsabandoning forwells wellwithout operatorsproper drillingsite aremediation geothermaland well, repurposed well orplugging. exploratory well.

(6) Establish a decommissioning process for plugging and abandoning a geothermal well, repurposed well and exploratory well.

(7) Establish bonding or other financial security requirements for well operators drilling a geothermal well, repurposed well or exploratory well.

(ii) The well operator shall file cash or individual 20250HB2076PN3176 - 13 - bonds for each new geothermal well, repurposed well or exploratory well drilled and each abandoned well redrilled.

(iii) In lieu of separate well bonds, the well operator may file a blanket cash or individual bond in an amount determined by the department to cover the well operator's drilling, maintenance or plugging and decommissioning activities for wells in this Commonwealth.

(v) The surety may be relieved of all obligations when the covered well or wells have been properly 20250HB2076PN3319 - 10 - decommissioned or it has been replaced by another valid bond.

(vi) NoA bond shallmay not exceed a comparable bond set for an unconventional, conventional or carbon dioxide injection well unless the department demonstrates that the fees are necessary to maintain oversight and enforcement based on specific well characteristics.

(6)(8) Determine criteria necessary to release bonding or other financial assurance.

(7)(9) Establish reasonable fees, not to exceed comparable feesfees, set for unconventional, conventional or carbon dioxide injection wells unless the department demonstrates that the fees are necessary to maintain oversight and enforcement based on specific well characteristics,characteristics to cover the costs incurred by the department to administer the provisions of this act.

(8)(10) Establish a process to suspend operations, shut-in a 20250HB2076PN3176 - 14 - geothermal well or repurposed well and remove equipment from a well if the department has determined the well operator is in violation of any rules or regulations established under this act or other environmental laws of this Commonwealth.

(9)(11) Determine well reporting, recordkeeping and other appropriate disclosure requirements for well operators to file with the department.

(i) identificationIdentification of the location and ownership of all wells and producing geothermal leases;leases.

(ii) filingFiling a notice of intent to drill, redrill, deepen, permanently alter the casing of a well or abandon any well.

A notice of intent must be approved by the 20250HB2076PN3319 - 11 - department prior to commencement of operations;operations.

(iii) keepingKeeping of well logs, including temperature and depth data, and filing accurate copies with the department;department.

and (iv) filingFiling any other reasonable reports regarding geothermal operations in this Commonwealth.

(10)(12) Determine criteria for geothermal wells or repurposed wells stimulated by any form of hydraulic fracturing, including any appropriate provisions or regulations under 58 Pa.C.S.

SECTION(b) 5.Permit denial.--The department may condition or deny a permit based on the criteria specified in the regulations promulgated by the Environmental Quality Board under this section.

AUTHORIZATION(c) OFWell PROJECTS.impact review.--In a decision to issue a final permit for a geothermal well within a census tract with an environmental exposure score in the 80th percentile or greater using the PennEnviroScreen tool provided by the department, the department may require reasonable additional impact assessments, public participation, transparency and reporting measures as part of a permit review or approval.

<--(d) (A)Department RESOURCEfees.--The PRODUCTION.--GEOTHERMALdepartment ENERGYmay PROJECTScharge AREa AUTHORIZEDpermit INfee THISor COMMONWEALTH,periodic INCLUDINGmanagement FORfee THEsufficient PURPOSESto OFmaintain ELECTRICITYoversight PRODUCTION,and HEATINGenforcement ANDfor COOLING.geothermal energy projects in this Commonwealth, not to exceed comparable fees set for the purpose of oil and gas production from an unconventional, conventional or carbon dioxide injection well, unless the department demonstrates that 20250HB2076PN3319 - 12 - the fees are necessary to maintain oversight and enforcement based on specific well characteristics such as loop system type, type of energy generated and depth.

TOThe OPERATEfees Acollected GEOTHERMALunder ENERGYthis PROJECTsubsection UNDERshall THISbe ACT,deposited Ainto WELLthe OPERATORfund. MUST 20250HB2076PN3176 - 15 - OBTAIN A GEOTHERMAL WELL PERMIT ISSUED BY THE DEPARTMENT.

(B)(e) RIGHTExpedited TOpermits.--The INSPECT.--UPONdepartment ISSUANCEshall OFconsider Athe PERMITestablishment TOof CONSTRUCTan ORexpedited OPERATEpermitting Aprocess GEOTHERMALfor ENERGYa PROJECT,person THEholding DEPARTMENTan MAYexisting ENTERwell ONTOpermit PRIVATEunder OR58 PUBLICPa.C.S. LAND, WITH PROPER IDENTIFICATION, TO INSPECT A GEOTHERMAL ENERGY PROJECT TO DETERMINE IF THE PROJECT IS BEING CONSTRUCTED, OPERATED OR MAINTAINED IN COMPLIANCE WITH ALL APPLICABLE PERMITS AND ENVIRONMENTAL LAWS OR TO INVESTIGATE ANY UNREASONABLE RISK TO PUBLIC HEALTH, PROPERTY, NATURAL RESOURCES OR THE ENVIRONMENT.

(C)§ CLASS3211 V(relating INJECTIONto WELLS.--TOwell OPERATEpermits) Ato CLASSobtain Va UNDERGROUNDpermit INJECTIONunder CONTROLthis WELLsection. FOR THE PURPOSE OF PRODUCING GEOTHERMAL RESOURCES, A WELL OPERATOR SHALL OBTAIN A UIC CLASS V PERMIT, OR PERMIT-BY-RULE STATUS, AND ALL OTHER PERMITS AS REQUIRED BY APPLICABLE STATUTES AND REGULATIONS.

(D)(f) OILHydraulic ANDfracturing.--For GASgeothermal WELLenergy CONVERSION.--UPONprojects ISSUANCEstimulated OFby ALLany NECESSARYform PERMITSof FORhydraulic Afracturing REPURPOSEDor WELL,repurposing Aof PERSONan MAYexisting REPURPOSEwell ANthat EXISTINGinvolves CONVENTIONALhydraulic ORfracturing UNCONVENTIONALoperations, WELL,the INCLUDINGdepartment ANshall ABANDONEDconsider WELL,the FORenvironmental THErisks COGENERATIONand OFmay GEOTHERMALinstead RESOURCESrequire ORthe GEOTHERMALwell ENERGYoperator WITHto OILseek ANDan GASunconventional PRODUCTIONwell ORpermit THEunder PRODUCTION58 ORPa.C.S. USE OF GEOTHERMAL RESOURCES OR GEOTHERMAL ENERGY FOR HEATING, COOLING OR ELECTRICITY PRODUCTION, REGARDLESS OF DEPTH OR TEMPERATURE.

THECh. DEPARTMENT MAY REVOKE A PERMIT ISSUED UNDER THIS SECTION IF THE DEPARTMENT DETERMINES THAT A WELL OPERATOR IS KNOWINGLY OR INTENTIONALLY ATTEMPTING TO AVOID THE FULFILLMENT OF OBLIGATIONS UNDER 58 PA.C.S.

§32 3220Subch. (RELATING TO PLUGGING REQUIREMENTS).

(E)B EXPLORATORYor WELLS.--UPONto ISSUANCEcomply OFwith Aadditional PERMITpermit BYconditions THEconsistent DEPARTMENT,with Asubsection PERSON(a). MAY DRILL AN EXPLORATORY WELL TO IDENTIFY POTENTIAL VIABILITY FOR GEOTHERMAL RESOURCE PRODUCTION BELOW THE SURFACE OF THE REAL PROPERTY.

20250HB2076PN3176Section -7. 16 - SECTION 6.

REGULATIONS.Estate owner objections and procedures.

(A)(a) WELLNotice.--Upon SAFETYsubmission ANDof PERMITa REQUIREMENTS.--FORpermit THEapplication, PURPOSEa OFwell PROTECTING<-- THEoperator COMMONWEALTH'Sshall NATURALprovide RESOURCESnotice ANDof PUBLICapplication HEALTH,to SAFETYthe ANDsurface WELFARE,property THEinterest ENVIRONMENTALowners QUALITYwithin BOARD1,500 SHALL,feet INof CONSULTATIONthe WITHwell THEbore. PENNSYLVANIA GEOLOGICAL SURVEY, PROMULGATE REGULATIONS TO:

(1)(A) ESTABLISHNOTICE.--UPON PERMITTINGSUBMISSION CRITERIAOF FORA PERMIT APPLICATION, A WELL OPERATORS,<-- INCLUDINGOPERATOR SPECIFICSHALL PERMITTINGPROVIDE CRITERIANOTICE FOROF REPURPOSEDAPPLICATION WELLSTO THE SURFACE PROPERTY INTEREST OWNERS WITHIN 1,500 FEET OF THE WELL BORE AND EXPLORATORYSUBMIT WELLS.A COPY OF THE NOTICE TO THE DEPARTMENT.

(2)IF, CONSIDERUPON COMMUNITYRECEIPT IMPACTOF ANALYSIS,THE INCLUDINGNOTICE, SETBACKTHE CONSIDERATIONS,SURFACE INPROPERTY PERMITTINGINTEREST FOROWNERS EXPRESS AN OBJECTION TO THE DEPARTMENT TO THE DESIGN OF THE GEOTHERMAL ENERGY PROJECTS.PROJECT BASED ON THE POTENTIAL ADVERSE EFFECT TO A COMMERCIALLY VALUABLE MINERAL, INCLUDING THE COAL OR OIL AND GAS ESTATE, THE WELL OPERATOR SHALL ADDRESS THE OBJECTION TO THE SATISFACTION OF THE DEPARTMENT.

(3)20250HB2076PN3319 ESTABLISH- SITING,13 DESIGN- AND(b) OTHERWell TECHNICALdesign.--To SPECIFICATIONSoperate ANDa REQUIREMENTS.geothermal energy project under this section, a well operator shall design the geothermal energy project as much as practicable to isolate any existing or future production from the commercially valuable material, including of the coal or oil and gas estate, from the subsurface geothermal production area and shall indicate whether a geothermal energy project contains commercially valuable mineral, including the coal or oil and gas estates and, if it does, a permit may be issued only if the department is satisfied that the interests of the mineral, including coal or oil and gas estate, will not be adversely affected and the subsurface property interest owners have been notified by the well operator.

(4)(c) DETERMINEObjections.--If PERFORMANCEa CRITERIAsubsurface FORproperty REPURPOSEDinterest WELLSowner TOis PREVENTa DELAYEDproducer WELLof PLUGGINGa ORcommercially IMPROPERvaluable ABANDONMENT.mineral, including coal or oil and gas, the well operator shall notify the subsurface property interest owner in writing and submit a copy of the notice to the department.

(5)If, REQUIREupon THEreceipt SPACING,of DRILLING,the CASING,notice, TESTING,the OPERATING,subsurface PRODUCING,property PLUGGINGinterest ANDowners DECOMMISSIONINGexpress OFan GEOTHERMALobjection WELLSto ANDthe REPURPOSEDdepartment WELLSto TOthe PREVENT:design of the geothermal energy project based on the potential adverse effect to a commercially valuable mineral, including the coal or oil and gas estate, the well operator shall address the objection to the satisfaction of the department.

(I)(d) GEOTHERMALRight RESOURCES,to WATER,action GASESprohibited.-- OR(1) OTHERNo FLUIDSright FROMto ESCAPINGaction INTOshall STRATAarise OTHERwith THANrespect WHEREto ITthis ISsection FOUND,if UNLESSa INwell ACCORDANCEoperator WITHaddresses Athe UICobjection CLASSunder Vsubsection PERMIT(c) ANDto APPROVEDthe BYsatisfaction THEof DEPARTMENT.the department in good faith.

(II)(2) POLLUTIONA OFdetermination SURFACEby ANDthe GROUNDWATER,department INCLUDINGthat WASTEWATERthe MANAGEMENToperator DURING20250HB2076PN3319 WELL- DEVELOPMENT14 OR- PRODUCTION.has satisfactorily addressed the objection shall be a departmental action appealable by the subsurface property interest owner who has raised the objection to the Environmental Hearing Board, as provided under section 4 of the act of July 13, 1988 (P.L.530, No.94), known as the Environmental Hearing Board Act.

(III)The PREMATUREappeal COOLINGmust OFbe ANYfiled GEOTHERMALin SYSTEMaccordance BYwith WATERthe ENCROACHMENTrules ORfor OTHERfiling MEANSan THATappeal REDUCEof THEa ECONOMICfinal RECOVERYagency OFaction THEwith GEOTHERMALthe RESOURCES.Environmental Hearing Board and no later than 30 days following receipt of notice that the objection has been satisfied.

(IV)(e) BLOWOUTS,Dispute EXPLOSIONS,resolution.--The FIRES,department, CAVE-INSor ANDany 20250HB2076PN3176person -having 17a -direct SEEPAGE.interest in a matter subject to this act, may, at any time, request that a conference be held to discuss and attempt to resolve by mutual agreement a matter arising under this act.

(V)The UNREASONABLEfollowing DISTURBANCEshall ORapply: INJURY TO SURROUNDING PROPERTY, EXISTING WATER RIGHTS, PUBLIC HEALTH AND THE ENVIRONMENT.

(VI)(1) ORPHANINGUnless ORotherwise ABANDONINGprovided, WELLSconferences WITHOUTshall PROPERbe SITEheld REMEDIATIONwithin AND90 WELLdays PLUGGING.after a request is received by the department and notice shall be given by the department to all interested parties.

(6)(2) ESTABLISH A DECOMMISSIONINGrepresentative PROCESSof FORthe PLUGGINGdepartment ANDshall ABANDONINGattend Athe GEOTHERMALconference WELL,and REPURPOSEDthe WELLdepartment ANDmay EXPLORATORYmake WELL.recommendations.

(7)(3) ESTABLISHAn BONDINGagreement ORreached OTHERat FINANCIALa SECURITYconference REQUIREMENTSshall FORbe WELLconsistent OPERATORSwith DRILLINGthis Aact GEOTHERMALand, WELL,if REPURPOSEDapproved WELLby ORthe EXPLORATORYdepartment, WELL.the agreement shall be reduced to writing and shall be effective unless reviewed and rejected by the department within 10 days after the conference.

THE(4) FOLLOWINGThe SHALLrecord APPLY:of an agreement approved by the department shall be kept on file by the department and copies shall be furnished to the parties.

(I)(5) REGARDLESSThe OFscheduling THEof WELLa DEPTHconference ORshall DRILLINGhave TECHNIQUE,no THEeffect DEPARTMENT20250HB2076PN3319 SHALL- HAVE15 THE- AUTHORITYon TOthe SETdepartment's BONDINGauthority ORto OTHERissue FINANCIALorders SECURITYto REQUIREMENTScompel INcompliance AMOUNTSwith DEEMEDthis APPROPRIATEact. BY THE DEPARTMENT TO REMEDIATE THE WELLS AND PROTECT THE ENVIRONMENT, PUBLIC HEALTH AND SAFETY.

(II)Section THE8. WELL OPERATOR SHALL FILE CASH OR INDIVIDUAL BONDS FOR EACH NEW GEOTHERMAL WELL, REPURPOSED WELL OR EXPLORATORY WELL DRILLED AND EACH ABANDONED WELL REDRILLED.

(III) IN LIEU OF SEPARATE WELL BONDS, THE WELL OPERATOR MAY FILE A BLANKET CASH OR INDIVIDUAL BOND IN AN AMOUNT DETERMINED BY THE DEPARTMENT TO COVER THE WELL OPERATOR'S DRILLING, MAINTENANCE OR PLUGGING AND DECOMMISSIONING ACTIVITIES FOR WELLS IN THIS COMMONWEALTH.

(IV) ANY BOND OR OTHER FINANCIAL SECURITY FILED WITH 20250HB2076PN3176 - 18 - THE DEPARTMENT MAY BE TERMINATED OR CANCELED WITH THE CONSENT OF THE DEPARTMENT.

(V) THE SURETY MAY BE RELIEVED OF ALL OBLIGATIONS WHEN THE COVERED WELL OR WELLS HAVE BEEN PROPERLY DECOMMISSIONED OR IT HAS BEEN REPLACED BY ANOTHER VALID BOND.

(VI) A BOND MAY NOT EXCEED A COMPARABLE BOND SET FOR AN UNCONVENTIONAL, CONVENTIONAL OR CARBON DIOXIDE INJECTION WELL UNLESS THE DEPARTMENT DEMONSTRATES THAT THE FEES ARE NECESSARY TO MAINTAIN OVERSIGHT AND ENFORCEMENT BASED ON SPECIFIC WELL CHARACTERISTICS.

(8) DETERMINE CRITERIA NECESSARY TO RELEASE BONDING OR OTHER FINANCIAL ASSURANCE.

(9) ESTABLISH REASONABLE FEES, NOT TO EXCEED COMPARABLE FEES, SET FOR UNCONVENTIONAL, CONVENTIONAL OR CARBON DIOXIDE INJECTION WELLS UNLESS THE DEPARTMENT DEMONSTRATES THAT THE FEES ARE NECESSARY TO MAINTAIN OVERSIGHT AND ENFORCEMENT BASED ON SPECIFIC WELL CHARACTERISTICS TO COVER THE COSTS INCURRED BY THE DEPARTMENT TO ADMINISTER THE PROVISIONS OF THIS ACT.

(10) ESTABLISH A PROCESS TO SUSPEND OPERATIONS, SHUT-IN A GEOTHERMAL WELL OR REPURPOSED WELL AND REMOVE EQUIPMENT FROM A WELL IF THE DEPARTMENT HAS DETERMINED THE WELL OPERATOR IS IN VIOLATION OF ANY RULES OR REGULATIONS ESTABLISHED UNDER THIS ACT OR OTHER LAWS OF THIS COMMONWEALTH.

(11) DETERMINE WELL REPORTING, RECORDKEEPING AND OTHER APPROPRIATE DISCLOSURE REQUIREMENTS FOR WELL OPERATORS TO FILE WITH THE DEPARTMENT.

THE DEPARTMENT SHALL REQUIRE:

(I) IDENTIFICATION OF THE LOCATION AND OWNERSHIP OF 20250HB2076PN3176 - 19 - ALL WELLS AND PRODUCING GEOTHERMAL LEASES.

(II) FILING A NOTICE OF INTENT TO DRILL, REDRILL, DEEPEN, PERMANENTLY ALTER THE CASING OF A WELL OR ABANDON ANY WELL.

A NOTICE OF INTENT MUST BE APPROVED BY THE DEPARTMENT PRIOR TO COMMENCEMENT OF OPERATIONS.

(III) KEEPING OF WELL LOGS, INCLUDING TEMPERATURE AND DEPTH DATA, AND FILING ACCURATE COPIES WITH THE DEPARTMENT.

(IV) FILING ANY OTHER REASONABLE REPORTS REGARDING GEOTHERMAL OPERATIONS IN THIS COMMONWEALTH.

(12) DETERMINE CRITERIA FOR GEOTHERMAL WELLS OR REPURPOSED WELLS STIMULATED BY ANY FORM OF HYDRAULIC FRACTURING, INCLUDING ANY APPROPRIATE PROVISIONS OR REGULATIONS UNDER 58 PA.C.S.

CH.

32 SUBCH.

B (RELATING TO GENERAL REQUIREMENTS), IF THE DEPARTMENT DETERMINES IT IS NECESSARY TO PREVENT GROUNDWATER CONTAMINATION OR OTHER ENVIRONMENTAL HARMS.

(B) PERMIT DENIAL.--THE DEPARTMENT MAY CONDITION OR DENY A PERMIT BASED ON THE CRITERIA SPECIFIED IN THE REGULATIONS PROMULGATED BY THE ENVIRONMENTAL QUALITY BOARD UNDER THIS SECTION.

(C) WELL IMPACT REVIEW.--IN A DECISION TO ISSUE A FINAL PERMIT FOR A GEOTHERMAL WELL WITHIN A CENSUS TRACT WITH AN ENVIRONMENTAL EXPOSURE SCORE IN THE 80TH PERCENTILE OR GREATER USING THE PENNENVIROSCREEN TOOL PROVIDED BY THE DEPARTMENT, THE DEPARTMENT MAY REQUIRE REASONABLE ADDITIONAL IMPACT ASSESSMENTS, PUBLIC PARTICIPATION, TRANSPARENCY AND REPORTING MEASURES AS PART OF A PERMIT REVIEW OR APPROVAL.

(D) DEPARTMENT FEES.--THE DEPARTMENT MAY CHARGE A PERMIT FEE OR PERIODIC MANAGEMENT FEE SUFFICIENT TO MAINTAIN OVERSIGHT AND 20250HB2076PN3176 - 20 - ENFORCEMENT FOR GEOTHERMAL ENERGY PROJECTS IN THIS COMMONWEALTH, NOT TO EXCEED COMPARABLE FEES SET FOR THE PURPOSE OF OIL AND GAS PRODUCTION FROM AN UNCONVENTIONAL, CONVENTIONAL OR CARBON DIOXIDE INJECTION WELL, UNLESS THE DEPARTMENT DEMONSTRATES THAT THE FEES ARE NECESSARY TO MAINTAIN OVERSIGHT AND ENFORCEMENT BASED ON SPECIFIC WELL CHARACTERISTICS SUCH AS LOOP SYSTEM TYPE, TYPE OF ENERGY GENERATED AND DEPTH.

THE FEES COLLECTED UNDER THIS SUBSECTION SHALL BE DEPOSITED INTO THE FUND.

(E) EXPEDITED PERMITS.--THE DEPARTMENT SHALL CONSIDER THE ESTABLISHMENT OF AN EXPEDITED PERMITTING PROCESS FOR A PERSON HOLDING AN EXISTING WELL PERMIT UNDER 58 PA.C.S.

§ 3211 (RELATING TO WELL PERMITS) TO OBTAIN A PERMIT UNDER THIS SECTION.

(F) HYDRAULIC FRACTURING.--FOR GEOTHERMAL ENERGY PROJECTS STIMULATED BY ANY FORM OF HYDRAULIC FRACTURING OR REPURPOSING OF AN EXISTING WELL THAT INVOLVES HYDRAULIC FRACTURING OPERATIONS, THE DEPARTMENT SHALL CONSIDER THE ENVIRONMENTAL RISKS AND MAY INSTEAD REQUIRE THE WELL OPERATOR TO SEEK AN UNCONVENTIONAL WELL PERMIT UNDER 58 PA.C.S.

CH.

32 SUBCH.

B OR TO COMPLY WITH ADDITIONAL PERMIT CONDITIONS CONSISTENT WITH SUBSECTION (A).

SECTION 7.

ESTATE OWNER OBJECTIONS AND PROCEDURES.

(A) NOTICE.--UPON SUBMISSION OF A PERMIT APPLICATION, A WELL OPERATOR SHALL PROVIDE NOTICE OF APPLICATION TO THE SURFACE PROPERTY INTEREST OWNERS WITHIN 1,500 FEET OF THE WELL BORE.

(B) WELL DESIGN.--TO OPERATE A GEOTHERMAL ENERGY PROJECT UNDER THIS SECTION, A WELL OPERATOR SHALL DESIGN THE GEOTHERMAL ENERGY PROJECT AS MUCH AS PRACTICABLE TO ISOLATE ANY EXISTING OR FUTURE PRODUCTION FROM THE COMMERCIALLY VALUABLE MATERIAL, INCLUDING OF THE COAL OR OIL AND GAS ESTATE, FROM THE SUBSURFACE GEOTHERMAL PRODUCTION AREA AND SHALL INDICATE WHETHER A 20250HB2076PN3176 - 21 - GEOTHERMAL ENERGY PROJECT CONTAINS COMMERCIALLY VALUABLE MINERAL, INCLUDING THE COAL OR OIL AND GAS ESTATES AND, IF IT DOES, A PERMIT MAY BE ISSUED ONLY IF THE DEPARTMENT IS SATISFIED THAT THE INTERESTS OF THE MINERAL, INCLUDING COAL OR OIL AND GAS ESTATE, WILL NOT BE ADVERSELY AFFECTED AND THE SUBSURFACE PROPERTY INTEREST OWNERS HAVE BEEN NOTIFIED BY THE WELL OPERATOR.

(C) OBJECTIONS.--IF A SUBSURFACE PROPERTY INTEREST OWNER IS A PRODUCER OF A COMMERCIALLY VALUABLE MINERAL, INCLUDING COAL OR OIL AND GAS, THE WELL OPERATOR SHALL NOTIFY THE SUBSURFACE PROPERTY INTEREST OWNER IN WRITING AND SUBMIT A COPY OF THE NOTICE TO THE DEPARTMENT.

IF, UPON RECEIPT OF THE NOTICE, THE SUBSURFACE PROPERTY INTEREST OWNERS EXPRESS AN OBJECTION TO THE DEPARTMENT TO THE DESIGN OF THE GEOTHERMAL ENERGY PROJECT BASED ON THE POTENTIAL ADVERSE EFFECT TO A COMMERCIALLY VALUABLE MINERAL, INCLUDING THE COAL OR OIL AND GAS ESTATE, THE WELL OPERATOR SHALL ADDRESS THE OBJECTION TO THE SATISFACTION OF THE DEPARTMENT.

(D) RIGHT TO ACTION PROHIBITED.-- (1) NO RIGHT TO ACTION SHALL ARISE WITH RESPECT TO THIS SECTION IF A WELL OPERATOR ADDRESSES THE OBJECTION UNDER SUBSECTION (C) TO THE SATISFACTION OF THE DEPARTMENT IN GOOD FAITH.

(2) A DETERMINATION BY THE DEPARTMENT THAT THE OPERATOR HAS SATISFACTORILY ADDRESSED THE OBJECTION SHALL BE A DEPARTMENTAL ACTION APPEALABLE BY THE SUBSURFACE PROPERTY INTEREST OWNER WHO HAS RAISED THE OBJECTION TO THE ENVIRONMENTAL HEARING BOARD, AS PROVIDED UNDER SECTION 4 OF THE ACT OF JULY 13, 1988 (P.L.530, NO.94), KNOWN AS THE ENVIRONMENTAL HEARING BOARD ACT.

THE APPEAL MUST BE FILED IN 20250HB2076PN3176 - 22 - ACCORDANCE WITH THE RULES FOR FILING AN APPEAL OF A FINAL AGENCY ACTION WITH THE ENVIRONMENTAL HEARING BOARD AND NO LATER THAN 30 DAYS FOLLOWING RECEIPT OF NOTICE THAT THE OBJECTION HAS BEEN SATISFIED.

(E) DISPUTE RESOLUTION.--THE DEPARTMENT, OR ANY PERSON HAVING A DIRECT INTEREST IN A MATTER SUBJECT TO THIS ACT, MAY, AT ANY TIME, REQUEST THAT A CONFERENCE BE HELD TO DISCUSS AND ATTEMPT TO RESOLVE BY MUTUAL AGREEMENT A MATTER ARISING UNDER THIS ACT.

THE FOLLOWING SHALL APPLY:

(1) UNLESS OTHERWISE PROVIDED, CONFERENCES SHALL BE HELD WITHIN 90 DAYS AFTER A REQUEST IS RECEIVED BY THE DEPARTMENT AND NOTICE SHALL BE GIVEN BY THE DEPARTMENT TO ALL INTERESTED PARTIES.

(2) A REPRESENTATIVE OF THE DEPARTMENT SHALL ATTEND THE CONFERENCE AND THE DEPARTMENT MAY MAKE RECOMMENDATIONS.

(3) AN AGREEMENT REACHED AT A CONFERENCE SHALL BE CONSISTENT WITH THIS ACT AND, IF APPROVED BY THE DEPARTMENT, THE AGREEMENT SHALL BE REDUCED TO WRITING AND SHALL BE EFFECTIVE UNLESS REVIEWED AND REJECTED BY THE DEPARTMENT WITHIN 10 DAYS AFTER THE CONFERENCE.

(4) THE RECORD OF AN AGREEMENT APPROVED BY THE DEPARTMENT SHALL BE KEPT ON FILE BY THE DEPARTMENT AND COPIES SHALL BE FURNISHED TO THE PARTIES.

(5) THE SCHEDULING OF A CONFERENCE SHALL HAVE NO EFFECT ON THE DEPARTMENT'S AUTHORITY TO ISSUE ORDERS TO COMPEL COMPLIANCE WITH THIS ACT.

Section 7 8.

<-- The Environmental Quality Board may promulgate rules and regulations to establish geothermal resource units applicable to geothermal resources.

When promulgating regulations, the 20250HB2076PN3176 - 23 - department may:

Section 8 9.

<-- A well operator or individual drilling an exploratory well shall be liable to any person or agency that sustains damages from failure of the operator or individual to comply with any of the following:

(1) A permit condition providedimposed under sectionthis 5(c)act. <-- IMPOSED UNDER THIS ACT.

<-- (2) Any rules or regulations established by the Environmental Quality Board under this act.

Section 9 10.

<-- A violation of this act or an order or regulation under this act constitutes a public nuisance.

Section 10 11.

<--20250HB2076PN3319 - 16 - (a) Issuance of orders.--Except as modified by subsections (b), (c) and (d), the department may issue orders necessary to prevent or restrain a violation of this act or rules, regulations, standards, orders or permits adopted or issued under this act or to restrain the maintenance or threat of a 20250HB2076PN3176 - 24 - public nuisance or to prevent a reasonable likelihood of unlawful conduct or conduct causing immediate and irreparable harm to the public.

20250HB2076PN3319 - 17 - (3) The department may revoke a well permit for any well suspended under paragraph (1) if the violation is egregious, repeated or impossible to resolve or if the permittee is unable to comply with the steps necessary to resolve the violation.

20250HB2076PN3176 - 25 - (c) Written notice.--Prior to a suspension or revocation order of a well permit under subsection (a), the department shall serve written notice on the well operator or its agent, stating specifically the statutory provision, regulation or other reason relied upon, along with factual circumstances surrounding the alleged violation.

Section 11 12.

<-- (a) Remedies.-- (1) In addition to any other remedy provided in this act, the department may institute a suit in equity in the name of the Commonwealth for an injunction to restrain a violation of this act or rules, regulations, standards or orders adopted or issued under this act and to restrain the maintenance or threat of a public nuisance.

(2) Upon motion of the Commonwealth, the court shall 20250HB2076PN3319 - 18 - issue a prohibitory or mandatory preliminary injunction if the court finds that the defendant is engaging in unlawful conduct, as defined by this act, or conduct causing immediate and irreparable harm to the public.

(3) The Commonwealth shall not be required to furnish 20250HB2076PN3176 - 26 - bond or other security in connection with the proceeding.

Section 12 13.

<-- In addition to other remedies available at law or in equity for a violation of this act, a regulation of the department, a departmental order or a permit condition, the department may assess a civil penalty regardless of whether the violation was willful.

(1) The penalty shall not exceed $50,000 plus $2,000 for 20250HB2076PN3319 - 19 - each day during which time the violation continues.

(2) In determining the amount, the department shall consider willfulness of the violation, damage or injury to natural resources of this Commonwealth or their uses, endangerment of safety of others, the cost of remedying the 20250HB2076PN3176 - 27 - harm, savings resulting to the violator as a result of the violation and any other relevant factor.

(9) Each prothonotary shall enter and docket the liens 20250HB2076PN3319 - 20 - of record in the prothonotary's office and index them as judgments are indexed, without requiring payment of costs as a condition precedent to entry.

Section 13 14.

Existing rights and remedies preserved and <-- cumulative remedies authorized.

20250HB2076PN3176 - 28 - Nothing in this act prohibits the Commonwealth or a district attorney from proceeding in a court of law or in equity to abate pollution forbidden under this act or a nuisance under existing law.

Section 14 15.

<-- (a) Establishment.--The Geothermal Energy Development Fund is established as a separate fund within the State Treasury.

20250HB2076PN3319 - 21 - (2) defraying the department's expenses associated with processing permit applications;

20250HB2076PN3176 - 29 - (d) Interest.--Interest earned by the fund shall be deposited into the fund.

Section 15 16.

<-- Until the Environmental Quality Board promulgates regulations in accordance with section 6 of this act or December 31, 2030, whichever is earlier, the department:

32 as either conventional or unconventional wells, as the department determines to be appropriate, notwithstanding that the department shall require any geothermal well stimulated 20250HB2076PN3319 - 22 - by hydraulic fracturing to seek an unconventional well permit under 58 Pa.C.S.

32 to comply with modified permit conditions to reflect the 20250HB2076PN3176 - 30 - differences between geothermal wells and oil and gas wells.

SECTIONSection 17.

CONSTRUCTION.Construction.

<--Nothing NOTHINGin INthis THISact ACTshall SHALLbe BEconstrued CONSTRUEDto TOamend AMENDor ORmodify MODIFYthe THEprovisions PROVISIONSor ORregulations REGULATIONSpromulgated PROMULGATEDunder UNDER 58 PA.C.S.Pa.C.S.

CH.Ch.

32 (RELATING(relating TOto DEVELOPMENT).development).

Section 16 18.

<-- This act shall take effect immediately.

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