Geothermal Cost-Recovery Authority Act of 2025
Click any stage to learn more about the legislative process.
The bill would let the Interior Department charge geothermal lease applicants and holders fees to recover the government's costs of processing applications and inspecting drilling and reclamation work, through September 30, 2032.
It would give agencies a dedicated funding stream for overseeing geothermal development on federal land, similar to cost-recovery systems used in other resource-leasing programs.
What this bill would do
What it would do
The bill would amend the Geothermal Steam Act of 1970 to authorize the Secretary of the Interior to require applicants for, or holders of, geothermal leases to reimburse the United States for reasonable administrative costs of processing lease-related applications and permits, and for inspecting and monitoring exploration, drilling, and reclamation activities. This authority would run through September 30, 2032. The Secretary could reduce the reimbursement amount if full payment would cause economic hardship or would discourage fuller use of geothermal resources. Reimbursed funds would be credited to Interior's accounts as offsetting collections, usable only as provided in advance by appropriations acts for the same processing and inspection purposes. The bill would also require Interior, within five years of enactment, to report to relevant congressional committees and publish publicly an assessment of the fees' effects and any recommendations for reauthorization or program updates.
Key provisions
- 1Would authorize Interior to require geothermal lease applicants or holders to reimburse costs of processing applications and permits, through September 30, 2032
- 2Would allow Interior to reduce reimbursement amounts to avoid economic hardship or to promote greater use of geothermal resources
- 3Would require Interior to consider existing cost-share agreements before requiring reimbursement
- 4Would restrict use of collected fees to processing and inspection activities, available only as provided in appropriations acts
- 5Would require a report to Congress within five years assessing the fees' effects and recommending updates or reauthorization
Who would be affected
Companies and individuals applying for or holding geothermal leases on federal land, the Bureau of Land Management and Department of the Interior staff who process applications and conduct inspections, and members of Congress who would receive the required five-year assessment report.
Why it matters
Geothermal developers would face new fees tied to the government's actual processing and oversight costs, potentially increasing project expenses, though hardship reductions could soften the impact. Interior would gain a dedicated funding source for its geothermal permitting and inspection work, potentially speeding reviews if appropriations follow.
What would change
Changes to existing law
Amends Geothermal Steam Act of 1970 (30 U.S.C. 1005) (Sec. 2)
Adds a new subsection authorizing cost-recovery fees from geothermal lease applicants and holders through September 30, 2032.
Agencies directed to act
Effective dates
- Cost-recovery fee authority under the new subsection
- Cost-recovery fee authority expires
- Interior's report to Congress on the fees' effects
How implementation would work
Interior would assess reimbursement amounts on geothermal lease applicants and holders for actual processing and inspection costs, weighing existing cost-share agreements and hardship or resource-use considerations before setting or reducing fees. Collected funds would be credited as offsetting collections but could only be spent on processing and inspection activities once Congress appropriates them in advance. Within five years, Interior must consult the geothermal industry and stakeholders, then submit and publicly post a report assessing the program's effects and recommending whether to reauthorize or revise the fee authority before it lapses in 2032.
Legislative status & sources
Latest action
Placed on the Union Calendar, Calendar No. 569.
Official CRS summary
Show the CRS summaryHide the CRS summary
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.
Legislative subjects
Alternative and renewable resources; Electric power generation and transmission; Energy; Environmental assessment, monitoring, research; Land use and conservation; Mining; Pollution liability; User charges and fees
Committee report
H. Rept. 119-655