Technical corrections only. The changes between v1 and v2 reflect updates to the bill's legislative status, including its reporting out of committee and assignment of a Union Calendar number. No substantive policy changes were made to the text of the bill.
Geothermal Cost-Recovery Authority Act of 2025
- Sponsor
- Rep. Ocasio-Cortez, Alexandria [D-NY-14]
- Committees
- Natural Resources Committee (primary)
- Last action
- May 20, 2026
Bottom line
H.R. 398 empowers the Department of the Interior to recover costs from geothermal lease applicants and holders, aiming to streamline and adequately fund federal oversight of geothermal energy development.
What it actually does
This bill amends the Geothermal Steam Act of 1970 to grant the Department of the Interior (DOI) temporary authority, until September 30, 2032, to recover administrative and other costs associated with processing geothermal lease applications, permits, and conducting inspections and monitoring activities. The Secretary can reduce reimbursement amounts if full recovery would cause economic hardship or if it promotes greater use of geothermal resources. Reimbursed funds are to be used by the DOI for these specific geothermal program activities, subject to congressional appropriations.
Proponents argue
Supporters argue that this bill provides essential funding for the Department of the Interior's Bureau of Land Management (BLM) to efficiently process geothermal permits and conduct necessary inspections. By allowing the BLM to recover costs, proponents contend it will reduce backlogs, accelerate geothermal project development, and ensure robust environmental oversight without relying solely on taxpayer funds, thereby promoting renewable energy growth.
Opponents contend
Critics might argue that imposing cost recovery fees on geothermal developers could increase the financial burden on nascent renewable energy projects, potentially slowing down development or making U.S. geothermal resources less competitive. Opponents may also express concern that the discretion given to the Secretary to reduce fees could lead to inconsistent application or create an additional bureaucratic hurdle for developers.
The bill is concise and clearly written, making it accessible for a quick and informed evaluation by any interested reader.
Section 2, amending Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) by adding subsection (j).
Establishment of Cost Recovery Authority for Geothermal Activities
This provision authorizes the Secretary of the Interior to charge geothermal lease applicants and holders for the administrative and other costs incurred by the United States. These costs cover processing various applications (leases, operations plans, drilling permits, etc.) and inspecting/monitoring activities related to geophysical exploration, well operations (drilling, plugging, abandonment), and facility construction/operation. This authority is temporary, set to expire on September 30, 2032.
Supporters argue
Supporters contend that this cost recovery mechanism ensures that the federal government has adequate resources to efficiently manage and oversee geothermal development, preventing delays and ensuring environmental compliance. They argue it shifts the financial burden from taxpayers to the beneficiaries of the services.
Critics contend
Critics might argue that these new fees could deter investment in geothermal projects, especially for smaller companies or those developing projects in less economically viable areas, thereby hindering the growth of renewable energy.
Tradeoffs
The provision balances the need for federal agencies to be adequately funded for their regulatory duties with the potential for increased costs to the developing geothermal industry. It seeks to ensure efficient government operations while promoting renewable energy.
Section 2, amending Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005), specifically paragraphs (3) and (4) of subsection (j).
Secretary's Discretion for Fee Reduction and Fund Utilization
This provision grants the Secretary of the Interior the authority to reduce the amount of reimbursement required if full payment would cause economic hardship to an applicant or if a reduction is deemed necessary to promote the greatest use of geothermal resources. It also specifies that the reimbursed funds will be credited to the Department of the Interior's appropriations as discretionary offsetting collections, meaning they are available for use only if Congress explicitly appropriates them for the specified geothermal program activities.
Section 3
Report on Geothermal Program and Cost Recovery Effectiveness
This section mandates that the Secretary of the Interior, within five years of the bill's enactment, submit a report to Congress and make it publicly available. The report must assess how the new cost recovery authority affected the Bureau of Land Management's geothermal program, include recommendations for reauthorizing the cost recovery authority, and suggest other updates to the program. The Secretary must consult with the geothermal industry and other stakeholders in developing this report.