HR 398
Geothermal Cost-Recovery Authority Act of 2025
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Bill overview
This bill allows the Department of the Interior to charge fees to applicants and leaseholders for geothermal resources. These fees will cover the costs of processing applications, conducting inspections, and monitoring geothermal exploration and development activities on federal land. The fees can be reduced if full reimbursement would cause economic hardship or if a less than full reimbursement would hinder the development of geothermal resources, and the collected funds must be used for related Interior activities.
Key provisions
- The Department of the Interior can now charge fees to geothermal lease applicants and holders.
- Fees cover costs for processing applications, including permits, and for inspecting geothermal activities.
- The authority to collect fees expires on September 30, 2032.
- The Secretary can reduce fees if full reimbursement would cause economic hardship or hinder resource development.
- Reimbursed funds must be used for processing applications and inspections.
- The Secretary must consult with the geothermal industry and other stakeholders.
- A report must be submitted to Congress within five years assessing the impact of the changes and recommending updates.
- The bill amends the Geothermal Steam Act of 1970 to include this cost-recovery authority.
Who is affected
- Geothermal lease applicants
- Holders of geothermal leases
- The Department of the Interior
- The geothermal industry
- Federal land managers
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119th CONGRESS — 1st Session
H. R. 398
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Geothermal Steam Act of 1970 to provide cost-recovery authority for the Department of the Interior.
This Act may be cited as the Geothermal Cost-Recovery Authority Act of 2025
.
Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) is amended by adding at the end the following:
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—
geophysical exploration activities;
The Secretary may reduce the amount to be reimbursed under paragraph (1) if the Secretary determines—
that full reimbursement would impose an economic hardship on the applicant; or
that a less than full reimbursement is necessary to promote the greatest use of geothermal resources.
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—
inspecting and monitoring—
geophysical exploration activities;
the drilling, plugging, and abandonment of wells; and
the construction, operation, termination, and reclamation of any well site or facility for the utilization of geothermal resources pursuant to geothermal leases.
an assessment of how the amendments made by section 2 of this Act affected the Bureau of Land Management’s geothermal program;
any recommendations for reauthorization of section 6(j) of the Geothermal Steam Act of 1970, as added by this Act; and
any other recommendations for updates to such section and the Bureau of Land Management’s geothermal program.