Analyst Brief July 20, 2026

H.R. 8790 — Next-Generation Geothermal Research and Development Act, as amended

Executive Summary

H.R. 8790 modernizes the Energy Independence and Security Act of 2007 to accelerate the commercialization of advanced geothermal technologies, including closed-loop and supercritical systems. Historically, geothermal energy has been limited to specific geographic regions with natural hydrothermal resources; this bill aims to unlock nationwide baseload clean energy by overcoming technical barriers in deep hardrock drilling and reservoir characterization. It mandates interagency data sharing to leverage existing fossil fuel and mining subsurface data, establishes a dedicated R&D program and a Center of Excellence, and authorizes $150 million annually from FY2027 through FY2031.

Arguments For

  • Argument 1: Unlocks firm, dispatchable clean energy (baseload power) to complement intermittent renewables, solving a critical grid reliability issue.
  • Argument 2: Provides a strong 'just transition' economic narrative by directly leveraging the existing skills and technologies of the oil and gas workforce (e.g., deep drilling, subsurface mapping) for clean energy.

Likely Supporters

Geothermal RisingClearPathFervo EnergyBuilding Trades Unions

Arguments Against

  • Argument 1: Authorizes $750 million in new spending over five years, which will draw opposition from fiscal conservatives focused on reducing federal expenditures.
  • Argument 2: Environmental groups and local communities may raise NIMBY concerns regarding water consumption and the potential for induced seismicity associated with enhanced geothermal systems (EGS).

Likely Opponents

Heritage ActionClub for Growth

📋 Key Provisions

  • Defines 'closed-loop' and 'supercritical' geothermal systems and integrates them into existing Department of Energy R&D frameworks.
  • Mandates a Memorandum of Understanding (MOU) between the DOE and DOI to share subsurface data from fossil fuel and mining operations to aid geothermal exploration.
  • Establishes a Next-Generation Geothermal Center of Excellence and a dedicated R&D program focusing on deep drilling, materials, and water-rock geochemistry.
  • Creates Commercial-Readiness Innovation Grants to accelerate near-term deployment of advanced geothermal technologies.
  • Authorizes $150 million annually (FY2027-FY2031) and requires quadrennial updates to the USGS geothermal resource assessment.
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Claim Analysis Page 2, Line 15

Defines 'closed-loop geothermal systems'.

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"CLOSED-LOOP GEOTHERMAL SYSTEMS.—"

Claim Analysis Page 5, Line 7

Mandates an MOU for data sharing between DOE and DOI.

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"shall enter into a memorandum of under"

Claim Analysis Page 10, Line 9

Requires a report on water use within five years.

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"REPORT ON WATER USE.—Not later than"

Claim Analysis Page 16, Line 5

Authorizes $150 million annually for FY2027-FY2031.

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"out this section $150,000,000 for each"