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This bill would let the Department of the Interior charge some geothermal lease applicants and lease holders to cover certain government costs. These costs include reviewing lease applications and related permits, as well as inspecting and monitoring geothermal exploration, drilling, well work, and site cleanup. The authority would last from the date the bill becomes law through September 30, 2032. The bill also gives the Interior Secretary some flexibility to lower the amount owed if full payment would cause hardship or if a lower fee would help encourage more geothermal development. In addition, the bill requires the Interior Department to study how this change works and report back to Congress within five years.
- The government could ask applicants for geothermal leases, and people who already hold them, to reimburse “reasonable” administrative costs.
- Covered costs include processing lease-related approvals and inspecting or monitoring activities like drilling, plugging wells, construction, operation, shutdown, and land restoration.
- The Secretary of the Interior must take into account any existing cost-sharing agreement before deciding whether to charge reimbursement.
- The collected money would go to Interior Department accounts and could only be used if Congress allows it in future spending bills.
- Within five years, the Interior Secretary must submit a public report to Congress on how the new fee system affected the Bureau of Land Management’s geothermal program.
- That report must also include recommendations on whether to renew the policy and what changes, if any, should be made.
Official Summaries
Geothermal Cost-Recovery Authority Act of 2025
This bill expands the Geothermal Steam Act of 1970 to give the Department of the Interior the authority to collect certain fees from applicants for, or holders of, geothermal leases through September 30, 2032. Specifically, Interior may direct those applicants or leaseholders to reimburse the United States for costs from (1) processing applications for geothermal leases on federal land, such as applications for geothermal drilling permits; and (2) inspecting and monitoring geothermal exploration and development activities, including reclamation activities.
Interior may reduce the amount of the fee if it determines that (1) the full reimbursement would impose an economic hardship on the applicant, or (2) a less than full reimbursement is necessary to promote the greatest use of geothermal resources.
Interior may use those fees only to the extent that they are provided in advance in appropriations acts for (1) processing applications for geothermal leases, and (2) inspecting and monitoring related exploration and development activities.
Within five years of the bill's enactment, Interior must submit to Congress a report that includes an assessment of how the fees affect Interior's geothermal leasing program and any recommendations for updates to the fees and the program.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 398 Reported in House (RH)]
<DOC>
Union Calendar No. 569
119th CONGRESS
2d Session
H. R. 398
[Report No. 119-655]
To amend the Geothermal Steam Act of 1970 to provide cost-recovery
authority for the Department of the Interior.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 14, 2025
Ms. Ocasio-Cortez introduced the following bill; which was referred to
the Committee on Natural Resources
May 20, 2026
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
_______________________________________________________________________
A BILL
To amend the Geothermal Steam Act of 1970 to provide cost-recovery
authority for the Department of the Interior.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Geothermal Cost-Recovery Authority
Act of 2025''.
SEC. 2. COST RECOVERY FROM GEOTHERMAL LEASING, PERMITTING, AND
INSPECTIONS.
Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) is
amended by adding at the end the following:
``(j) Cost Recovery.--
``(1) In general.--During the period that begins on the
date of enactment of this subsection and ends September 30,
2032, the Secretary may require an applicant for, or a holder
of, a geothermal lease to reimburse the United States for all
reasonable administrative and other costs incurred by the
United States from--
``(A) processing the application for the geothermal
lease, including any application for an operations
plan, geothermal drilling permit, utilization plan,
site license, facility construction permit, commercial
use permit, and any other approval associated with a
geothermal lease; and
``(B) inspecting and monitoring--
``(i) geophysical exploration activities;
``(ii) the drilling, plugging, and
abandonment of wells; and
``(iii) the construction, operation,
termination, and reclamation of any well site
or facility for the utilization of geothermal
resources pursuant to the geothermal lease.
``(2) Considerations.--In determining whether to require
reimbursement under paragraph (1), the Secretary shall consider
whether there is in existence a cooperative cost share
agreement between the United States and the holder of a
geothermal lease.
``(3) Adjustments.--The Secretary may reduce the amount to
be reimbursed under paragraph (1) if the Secretary determines--
``(A) that full reimbursement would impose an
economic hardship on the applicant; or
``(B) that a less than full reimbursement is
necessary to promote the greatest use of geothermal
resources.
``(4) Use.--The amounts reimbursed under this subsection
shall be credited to the currently applicable appropriation,
account, or fund of the Department of the Interior as
discretionary offsetting collections, and shall be available
only to the extent provided in advance in appropriations Acts
for--
``(A) processing the application for geothermal
leases, including any application for operations plans,
geothermal drilling permits, utilization plans, site
licenses, facility construction permits, commercial use
permits, and any other approval associated with
geothermal leases; and
``(B) inspecting and monitoring--
``(i) geophysical exploration activities;
``(ii) the drilling, plugging, and
abandonment of wells; and
``(iii) the construction, operation,
termination, and reclamation of any well site
or facility for the utilization of geothermal
resources pursuant to geothermal leases.''.
SEC. 3. REPORT.
(a) Report.--Not later than 5 years after the date of enactment of
this Act, the Secretary of the Interior, in consultation with the
geothermal industry and other stakeholders, shall submit to the
Committee on Natural Resources of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate, and make
publicly available on the website of the Department of the Interior, a
report that includes--
(1) an assessment of how the amendments made by section 2
of this Act affected the Bureau of Land Management's geothermal
program;
(2) any recommendations for reauthorization of section 6(j)
of the Geothermal Steam Act of 1970, as added by this Act; and
(3) any other recommendations for updates to such section
and the Bureau of Land Management's geothermal program.
(b) Considerations.--In developing the report required in
subsection (a), the Secretary of the Interior shall solicit facts or
information from the geothermal industry and other stakeholders.
Union Calendar No. 569
119th CONGRESS
2d Session
H. R. 398
[Report No. 119-655]
_______________________________________________________________________
A BILL
To amend the Geothermal Steam Act of 1970 to provide cost-recovery
authority for the Department of the Interior.
_______________________________________________________________________
May 20, 2026
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed