The Capitol LedgerEvery move in Congress, on the record
HomeBillsRecordsLedger AI

The Capitol Ledger

Built from the Congressional Record and Congress.gov. Every summary links to its source.

AboutFAQFeedbackTerms of ServicePrivacy Policy
Follow us onlineInstagram

Summaries are AI-generated from primary sources. Verify anything important against the original record.

The Capitol Ledger

Built from the Congressional Record and Congress.gov. Every summary links to its source.

The projectAboutFAQFeedback
LegalTerms of ServicePrivacy Policy
Follow us onlineInstagram

Summaries are AI-generated from primary sources. Verify anything important against the original record.

All bills
S. 4605·119th Congress·Introduced May 20, 2026

Geothermal Cost-Recovery Authority Act of 2026

IntroducedEnergySubstantive
View bill text
Sponsor
Sen. Gallego, Ruben [D-AZ]
Committees
Energy and Natural Resources Committee (primary)
Last action
Jul 15, 2026

Bottom line

The bill authorizes the Department of the Interior to charge fees to geothermal lease applicants and holders to cover administrative and oversight costs, aiming to make the federal geothermal program more self-sustaining.

What it actually does

This bill amends the Geothermal Steam Act of 1970 to grant the Department of the Interior (DOI) explicit authority to recover costs associated with processing geothermal lease applications, permits, and conducting inspections and monitoring activities. This authority is temporary, lasting until September 30, 2032, and allows the Secretary to reduce fees in cases of economic hardship or to promote geothermal resource use. The collected funds are to be used specifically for the activities they were collected for, subject to appropriations.

Proponents argue

Supporters argue that this bill provides essential funding for the Department of the Interior to efficiently process geothermal leases and conduct necessary oversight, ensuring the responsible development of geothermal resources without relying solely on taxpayer funds. They contend that cost recovery will streamline the permitting process by providing dedicated resources, ultimately accelerating geothermal energy projects.

Opponents contend

Opponents might argue that imposing additional fees on geothermal developers could increase the cost of projects, potentially hindering the growth of the geothermal industry, especially for smaller companies or projects in early development stages. They may contend that such fees could make geothermal energy less competitive compared to other energy sources or disincentivize investment in this renewable sector.

The bill is very short and straightforward, making it highly accessible for a reader to understand its core provisions quickly.

Section 2, amending Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) by adding subsection (j).

Geothermal Cost Recovery Authority

prominently featuredstraightforward

This provision empowers the Secretary of the Interior to charge fees to companies applying for or holding geothermal leases. These fees would cover the administrative costs of processing various applications (like drilling permits and operations plans) and the expenses of inspecting and monitoring geothermal exploration, drilling, and facility operations. The authority is set to expire on September 30, 2032, and the Secretary can reduce fees if they cause economic hardship or if a reduction would encourage more geothermal development.

GroupImpactMechanismScale
GroupGeothermal lease applicants and holders (companies developing geothermal energy)ImpactFinancial burden (potential increase in operating costs)MechanismDirect fees for processing applications and conducting inspections.ScalePotentially significant, depending on the level of fees set by the Secretary.
GroupDepartment of the Interior (Bureau of Land Management)ImpactIncreased funding and operational capacityMechanismReceipt of offsetting collections to fund program activities.ScaleDirect impact on the budget and staffing for geothermal program administration.
GroupU.S. taxpayersImpactReduced reliance on general appropriations for geothermal program administrationMechanismShifting costs from general funds to industry-specific fees.ScaleMinor, indirect benefit from more efficient use of federal funds.

Supporters argue

Supporters argue that this cost-recovery mechanism is crucial for the efficient and effective administration of the federal geothermal leasing program. By allowing the DOI to recover its costs, the program can be adequately staffed and resourced, leading to faster permit processing and more thorough oversight, which ultimately benefits both the industry through efficiency and the public through responsible resource management.

Critics contend

Critics might argue that these new fees could create an additional financial barrier for geothermal energy projects, potentially slowing down development at a time when renewable energy expansion is a priority. They may contend that the industry is already subject to various costs and regulations, and adding more could make U.S. geothermal development less competitive.

Tradeoffs

The bill balances the need for federal agencies to recover costs for their services against the potential for these costs to impede the development of a nascent renewable energy industry. It seeks to ensure adequate resourcing for oversight while providing flexibility to prevent undue economic hardship or disincentivizing geothermal growth.

Section 3

Report on Cost Recovery Program

mentioned in summarystraightforward

This section mandates that the Secretary of the Interior, in consultation with the geothermal industry and other stakeholders, submit a report to Congress within five years of the bill's enactment. The report must assess the impact of the new cost-recovery authority on the Bureau of Land Management's geothermal program, offer recommendations for reauthorizing the cost-recovery provision, and suggest other updates to the program. The report will also be made publicly available.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.

On this page

  • Executive summary
  • Key provisions
  • Follow the money
  • Critical analysis
  • Questions to ask
Ask Ledger AI about this