Geothermal Cost-Recovery Authority Act of 2025
- Bill Number
- H.R. 398
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2026-05-20: Placed on the Union Calendar, Calendar No. 569.
- Last Updated
- 2026-06-26T21:14:30Z
AI-Generated Summary
Purpose This legislation amends the Geothermal Steam Act of 1970 to authorize the Department of the Interior to recover costs associated with geothermal lease processing, permitting, inspections, and monitoring. It aims to support efficient administration of geothermal resources on federal lands through a temporary cost-recovery mechanism.
Key Provisions
- Cost Recovery Authority: From the date of enactment through September 30, 2032, the Secretary of the Interior may require geothermal lease applicants or holders to reimburse the United States for reasonable administrative costs related to:
- Processing applications for leases, operations plans, drilling permits, utilization plans, site licenses, construction permits, commercial use permits, and other approvals.
- Inspecting and monitoring geophysical exploration, well drilling, plugging, abandonment, and site construction, operation, termination, and reclamation.
- Considerations and Adjustments: The Secretary must consider any existing cooperative cost-sharing agreements. Reimbursement amounts may be reduced if full payment would cause economic hardship or if lower costs would encourage greater geothermal resource use.
- Use of Funds: Reimbursements are credited as discretionary offsetting collections to the Department of the Interior’s applicable accounts and may only be used for the specified geothermal activities, subject to appropriations.
- Reporting Requirement: Within five years of enactment, the Secretary must submit a report to the House Committee on Natural Resources and the Senate Committee on Energy and Natural Resources, and post it publicly. The report assesses impacts on the Bureau of Land Management’s geothermal program, offers recommendations for reauthorizing the cost-recovery provision, and suggests other program updates. The report must incorporate input from the geothermal industry and other stakeholders.
Significant Changes to Existing Law The bill adds a new subsection (j) to Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005), creating explicit temporary authority for cost recovery that did not previously exist in this form. This provision sunsets on September 30, 2032, unless reauthorized, and directs recovered funds specifically to geothermal program operations.
Potential Impacts
- On government agencies: Provides the Bureau of Land Management with a dedicated funding mechanism for geothermal lease processing and oversight, potentially improving program efficiency while remaining subject to congressional appropriations.
- On citizens and industry: May increase upfront costs for geothermal developers and lease holders, though adjustments for hardship or resource promotion are available.
- On international relations: No direct effects are outlined in the legislation.
Main Stakeholders Affected
- The Department of the Interior and Bureau of Land Management, which gain authority to recover costs.
- Geothermal lease applicants and holders, who may face new reimbursement requirements.
- The geothermal industry, which must be consulted for the required report.
- Congressional committees responsible for oversight and appropriations.
Notable Legal, Constitutional, or Political Implications The measure introduces a time-limited cost-recovery framework that aligns with existing federal practices for other energy programs but requires explicit appropriations for use of funds. It emphasizes stakeholder consultation in future evaluations, potentially affecting how federal geothermal policy evolves.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Ocasio-Cortez, Alexandria [D-NY-14]
Recent Actions
- 2026-05-20: Placed on the Union Calendar, Calendar No. 569.
- 2026-05-20: Reported by the Committee on Natural Resources. H. Rept. 119-655.
- 2026-05-20: Reported by the Committee on Natural Resources. H. Rept. 119-655.
- 2026-03-05: Ordered to be Reported by Unanimous Consent.
- 2026-03-05: Committee Consideration and Mark-up Session Held
- 2026-03-05: Subcommittee on Energy and Mineral Resources Discharged
- 2025-12-16: Subcommittee Hearings Held
- 2025-12-09: Referred to the Subcommittee on Energy and Mineral Resources.
- 2025-01-14: Referred to the House Committee on Natural Resources.
- 2025-01-14: Introduced in House
- 2025-01-14: Introduced in House
Bill Versions
- Geothermal Cost-Recovery Authority Act of 2025 — issued 2025-01-14 — PDF (5 pages)
- Geothermal Cost-Recovery Authority Act of 2025 — issued 2026-05-20 — PDF (8 pages)