Geothermal Cost-Recovery Authority Act of 2025
Description
This bill would allow the Department of the Interior to collect fees from geothermal leaseholders to cover application and monitoring costs.
Summary
What it does
This bill would authorize the Department of the Interior to require geothermal lease applicants and holders to reimburse the federal government for costs related to processing drilling permits and monitoring exploration activities through September 30, 2032. The Department could reduce these fees in cases of economic hardship or to encourage greater use of geothermal resources, provided the collected funds are used for program administration as directed by future appropriations acts. Additionally, the bill would require a report to Congress within five years assessing the impact of these fees on the geothermal leasing program.
Who is affected
This bill directly affects the Department of the Interior, which would gain the authority to collect and utilize fees for processing geothermal lease applications and monitoring development activities. It also impacts applicants for and holders of geothermal leases on federal land, who may be required to reimburse the United States for costs related to drilling permits, exploration, and reclamation. Additionally, the bill affects Congress, which would receive a report from the Department of the Interior assessing the impact of these fees on the geothermal leasing program.
Key provisions
- Expansion of geothermal cost-recovery authority. The Department of the Interior is authorized to require geothermal lease applicants and holders to reimburse the federal government for costs associated with processing lease applications and drilling permits through September 30, 2032.
- Monitoring and inspection fee collection. The bill allows the federal government to collect fees for the inspection and monitoring of geothermal exploration, development, and reclamation activities.
- Fee reduction and hardship waivers. Interior may reduce reimbursement fees if full payment would cause economic hardship for the applicant or if a lower fee is deemed necessary to encourage the use of geothermal resources.
- Dedicated use of collected funds. Fees collected under this act may only be used, subject to appropriations, for the specific purposes of processing geothermal lease applications and monitoring related development activities.
- Congressional reporting requirements. Within five years of enactment, the Department of the Interior must submit a report to Congress assessing the impact of these fees on the geothermal leasing program and providing recommendations for program updates.
Fiscal impact
Not applicable: No CBO cost estimate available
Effective dates
The Department of the Interior's authority to collect geothermal lease fees is authorized through September 30, 2032. Additionally, the Department must submit a report to Congress assessing the fee program within five years of the bill's enactment.
Relationship to existing law
This bill expands the Geothermal Steam Act of 1970 by granting the Department of the Interior the authority to collect cost-reimbursement fees from geothermal lease applicants and holders through September 30, 2032.
Stated purpose
The bill aims to authorize the Department of the Interior to recover costs from geothermal lease applicants and holders to fund the processing of drilling permits and the monitoring of exploration, development, and reclamation activities through September 30, 2032.