Geothermal Cost-Recovery Authority Act of 2026
- 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
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.
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
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.