The department announced the five-year funding plan Thursday for the facility outside Milford, in Beaver County.
Energy Secretary Rick Perry said in a news release that research at the site will help advance geothermal energy technologies and lead to more sources of American energy.
Geothermal power stations take heat from deep inside the earth and turn it into electricity. They are currently limited to areas with a precise combination of underground heat, water and rock openings.
The department says scientists at the laboratory will try to engineer systems that can be used in more locations across the country.