Rules Committee on H.R. 8446 & H.R. 7409

Thank you, Chair Fischbach, and I appreciate the opportunity to testify today in support of two bills, H.R. 7409, the Harnessing Energy at Thermal Sources Act, or the HEAT Act, and H.R. 8446, the Critical Mineral Consistency Act. Our nation possesses abundant natural resources which we can develop more safely and cleaner than anywhere else in the world. Both bills under consideration today would cut red tape to promote the development of American resources, improving our energy and our national security. H.R. 7409, introduced by Representative Kim from California, would expedite geothermal energy development on non-federal lands where federal minerals are involved. Currently, geothermal operators working on non-federal lands must comply with federal regulations, including NEPA, and obtain federal permits even if the share of federal minerals implicated is minor. This bill takes a common-sense approach to fix this problem by deferring to state regulatory frameworks when the share of federal mineral resources is less than 50%. Notably, H.R. 7409 would not impact royalties paid to the federal government, so the bill would not reduce the federal revenues created by geothermal energy production. Enhanced geothermal systems, or EGS, use proven technologies to stimulate geothermal reservoirs. The DOE predicts that EGS could provide 60 gigawatts of electricity by 2050, which is 8.5% of U.S. generation capacity. To realize this potential, federal streamlining efforts like this bill will be necessary. Geothermal reservoirs most suitable for EGS are in states with federal minerals, including Colorado, California, Utah, Nevada, Idaho, New Mexico, and Oregon. The Department of Energy has also identified West Virginia and Pennsylvania as highly feasible EGS locations, and small EGS pilot projects have already been constructed in Massachusetts and Maryland. Federal minerals come with red tape. H.R. 7409 provides a rational approach to streamlining renewable geothermal energy resource development. The next piece of legislation up for discussion is H.R. 8446, the Critical Mineral Consistency Act, sponsored by Representative Siskimani of Arizona. This bill would amend the Energy Act of 2020 to include critical minerals or critical materials from the Department of Energy's critical materials list in the United States Geological Survey's critical minerals list. The definition of critical mineral is already included in the definition of critical material. This means that every mineral on USGS's critical minerals list is automatically placed on DOE's critical materials list. H.R. 8446 would create a symbiotic relationship between the list by placing critical materials on the critical minerals list. When compiling their list, each department considers slightly different yet complementary criteria. The USGS list focuses on non-fuel minerals essential to U.S. economic and national security vulnerable to supply chain disruptions. The DOE list uses a forward-looking methodology that accounts for international demand scenarios and growth trajectories specifically for energy technologies. For example, copper is on DOE's list but not USGS's list because DOE considered projections that forecast increased copper demand to fulfill the needs of the renewable and conventional energy sectors. The criteria are established and complementary and it stands to reason that just as DOE includes all minerals from the USGS in their list, USGS should also include all materials from the DOE on their critical minerals list. The bottom line is that these lists were created to help the U.S. identify where our mineral supply risk lies so that we can shore up our supply chains to provide for the U.S. energy economic and national security needs. H.R. 8446 is an elegant solution to the common issue of critical mineral or critical material. Confusion that recognizes each agency's autonomy and expertise. The Committee on Natural Resources passed this bill with bipartisan support in June of this year. Both H.R. 7409 and H.R. 8446 have had hearings and a markup in committee. They have been thoroughly vetted and have regular order behind them. I urge the Rules Committee to report out an appropriate rule to provide for their consideration in the House and urge my colleagues to support their passage on the floor. Thank you. Thank you, Mr. Chair.