Geothermal Cost-Recovery Authority Act of 2026
- Bill Number
- S. 4605
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2026-05-20: Read twice and referred to the Committee on Energy and Natural Resources.
- Last Updated
- 2026-06-29T12:35:23Z
AI-Generated Summary
Purpose This legislation amends the Geothermal Steam Act of 1970 to grant the Department of the Interior temporary authority to recover costs associated with geothermal leasing, permitting, and related oversight activities.
Key Provisions
- Cost Recovery Authority: From the date of enactment through September 30, 2032, the Secretary of the Interior may require applicants or holders of geothermal leases to reimburse the United States for reasonable administrative costs incurred in processing lease applications and associated permits (such as operations plans, drilling permits, utilization plans, site licenses, and facility permits).
- Inspection and Monitoring: Reimbursement also covers costs for inspecting and monitoring geophysical exploration, well drilling/plugging/abandonment, and construction/operation/reclamation of well sites or facilities.
- Considerations and Adjustments: The Secretary must consider any existing cooperative cost-share agreements. The amount may be reduced if full reimbursement would cause economic hardship or if a lower amount would promote greater use of geothermal resources.
- Use of Funds: Reimbursed amounts are credited to the Department of the Interior’s applicable appropriations as discretionary offsetting collections, available only as provided in advance by appropriations acts for the specified processing and oversight activities.
- 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 make it publicly available) assessing effects on the Bureau of Land Management’s geothermal program, recommendations for reauthorizing the cost-recovery provision, and other suggested 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), establishing a time-limited cost-recovery framework that did not previously exist for these geothermal activities.
Potential Impacts
- Government Agencies: Enables the Bureau of Land Management to offset costs of geothermal program administration and oversight through applicant reimbursements, potentially improving program efficiency without increasing direct appropriations.
- Citizens and Industry: Geothermal lease applicants and holders may face additional financial obligations, though reductions are possible for hardship cases or to encourage development.
- International Relations: No direct effects identified in the legislation.
Main Stakeholders Affected
- Department of the Interior (particularly the Bureau of Land Management)
- Geothermal lease applicants and holders
- Geothermal industry participants
- Congressional committees with oversight of energy and natural resources
Notable Legal, Constitutional, or Political Implications The legislation introduces no explicit constitutional issues. It operates within existing administrative authority of the Department of the Interior and includes a sunset date plus a mandatory review process, reflecting a structured, temporary expansion of cost-recovery powers.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-05-20: Read twice and referred to the Committee on Energy and Natural Resources.
- 2026-05-20: Introduced in Senate
Bill Versions
- Geothermal Cost-Recovery Authority Act of 2026 — issued 2026-05-20 — PDF (5 pages)